IBM and Apple Hike Dividend, Stocks Volatile on Wall Street

Nichole Harper
28 Apr, 2015
New York City

Stocks on Wall Street in volatile trading reversed earlier losses after IBM and Apple hiked dividend and a private survey showed home prices increase more than expected in February. European markets dropped more than 1.3%. Crude oil jumped to a new 2015-high.

[R]1:15 PM – Stocks on Wall Street in volatile trading reversed earlier losses after IBM and Apple hiked dividend and a private survey showed home prices increase more than expected in February. European markets dropped more than 1.3%. Crude oil jumped to a new 2015-high.[/R]

Stocks on Wall Street reversed earlier losses in volatile trading as investors digested latest batch of earnings and IBM and Apple hiked dividend.

On Wall Street, Tollbooth Strategy Index rose 0.2% or 16.27 to 10,867.25.

S&P 500 index rose 4.06 or 0.2% to 2,112.87 and the Nasdaq Composite Index added 6.86 or 0.1% to 5,067.17.

Crude oil in New York gained 17 to $57.16 a barrel and gold jumped $9.20 to $1,212.40 an ounce.

Federal Reserve rate setting committee is scheduled to start its 2-day meeting Tuesday and investors are expecting rates to be on hold at least till September meeting.

U.S. Movers

Apple Inc ((AAPL)) slipped 1.2% or $1.63 to $131.22 after the mobile, media devices and personal computers maker reported revenues in the second-quarter ending on March 28 soared 27.1% to $58.01 billion from a year ago period.

Net income in the quarter surged 32.8% to $13.57 billion or $2.33 per diluted share compared to $10.22 billion or $1.66 from the same quarter last year.

During the quarter, iPhones sales climbed 40% to 61.2 million, including 72% increase in China but iPad unit sales declined 23% to 12.6 million units. Macs sales in the quarter jumped 10% to 4.56 million.

Apple said revenues in America climbed 19% to $21.3 billion and revenues in Europe jumped 12% to $12.2 billion. Revenues in China surged 71% to $16.8 billion while revenues from Japan plunged 15%.

The company added revenues from Asia-Pacific regions soared 48% from a year earlier.

Ford Motor Company ((F)) slid 7 cents to $15.82 after the automaker reported total revenues in the first-quarter ending in March declined 5.5% to $33.90 billion from a year ago period.

Net income in the quarter dropped 6.6% to $924 million or 23 cents per diluted share compared to $989 million or 24 cents from the same quarter last year.

Merck & Co., Inc ((MRK)) soared 5.2% or $2.96 to $60.06 after the health care company reported sales in the first-quarter ending in March dropped 8% to $9.43 billion from a year ago period.

Net income in the quarter plunged 45% to $958 million or 33 cents per diluted share compared to $1.73 billion or 57 cents from the same quarter last year.

Pfizer Inc ((PFE)) slipped 15 cents to $34.44 after the biopharmaceutical company reported revenues in the first-quarter ending in March slumped 4% to $10.86 billion from a year ago period.

Net income in the quarter rose 2% to $2.38 billion or 38 cents per diluted share compared to $2.33 billion or 36 cents from the same quarter last year.

European Markets

Stocks across Europe were under pressure and the U.K. gross domestic product was lower than expected in the first quarter to March.

U.K. GDP expanded 0.3% in the quarter and in the one year to March growth slowed to 2.4% from 2.8% in the year to December 2014, according to the data released by the Office for National Statistics.

European markets trended lower after weaker than expected corporate results and worries of stretched valuations and falling confidence index in the U.S.

In London trading, FTSE 100 index dropped 1.5% or 108.82 to 6,995.16 and in Frankfurt the DAX index plunged 2.2% or 263.82 to 11,775.34.

In Paris, CAC 40 index declined 1.3% or 119.56 to 5,149.35.

Banco Santander, S.A gained 1% to €6.84 after the Spain-based lender and largest European bank reported net interest income in the first-quarter ending in March climbed 15% to €8.04 billion from €6.99 billion in a year ago period.

Net profit in the quarter soared 31.8% from a year ago to €1.72 billion compared to €1.30 billion and diluted earnings per share increased to 12.10 euro cents from 11.30 euro cents.

Daimler AG rose 0.9% to €90.32 after the Germany-based automaker said revenues in the first-quarter ending in March soared 16% to €34.24 billion from €29.46 billion in a year ago period.

Net profit in the quarter surged 89% from a year ago to €2.05 billion compared to €1.09 billion and diluted earnings per share jumped 91% to €1.83 from €0.96.

Daimler said unit sales in the quarter climbed 13% to 641,600 vehicles and sales of Mercedes-Benz cars jumped 18% to 459,700 vehicles. Daimler Trucks revenues advanced 18% to €8.4 billion.

Asian Markets

Nikkei stock average in Tokyo closed higher amid corporate earnings and Fanuc soared 6% after industrial robot maker said it plans to pay 60% of its consolidate income as dividend. Komatsu declined 6% after the company estimated operating profit to fall 8.7%.

Nikkei index in Tokyo closed higher and seasonally adjusted retail sales in March declined 1.9% and in the quarter slumped 4.8%.

Retail sales in March plunged 9.7% to 12.40 trillion yen from 10.73 trillion yen in February, the Ministry of Economy, Trade and Industry said today.

Commercial sales declined 8.5% to 42.27 trillion yen after losing 3.3% in the previous month and wholesale sales retreated 7.9% percent to 29.87 trillion yen compared to a fall of 4% in February.

On a seasonally adjusted basis, retail sales dropped 1.9% from the increase of 0.7% in a month earlier.

In the first-quarter to March, retail sales slumped 4.8% to 34.61 trillion yen compared to 0.6% rise in fourth-quarter of 2014.

Market trading is likely to be subdued ahead of Golden Week holidays starting on Wednesday.

The Nikkei 225 Stock Average gained 75.63 or 0.4% to 20,058.95 and the broader Topix index rose 8.36 to 1,627.43.

The yen closed at 119.02 against a dollar.

Market indexes in Mumbai opened higher ahead of earnings from telecom companies and indexes extended gains on the strength in banks, automakers and capital goods stocks.

Investors returned to stock amid corporate earnings season and Bank of India launched its $750 million medium-term note offering and Reliance Communications is looking to raise $300 million in international markets.

Rupee strengthened 34 paisa to 63.14.

The Sensex Index jumped 219.39 or 0.8% to close at 27,396.38. The CNX Nifty gained 71.80 or 0.9% to 8,285.60.

Stocks in India rebounded and the rupee strengthened. Godrej Consumer Products quarterly net rose 13%. Kirloskar Brothers net more than doubled. RCom plans to raise $300 million through an international bond offering. Welspun net and revenues surged.

Reliance Communications Limited increased 2.6% to ₹62.85 after the largest mobile operator plans to raise up to $300 million through an international bond offering.

The company is also planning to launch 4G services across India beginning with Gujarat State.