New York Opens Lower

123jump.com Staff
20 Jul, 2007
New York City

New York averages opened lower on the several earnings misses including that of Google, Caterpillar and Boston Scientific. Google fell 7% after reporting slower than expected earnings grwoth and Microsoft fell 3% on higher than expected charges stemming from Xbox. Ericsson profit jump 12% but miss the target. Asian markets closed higher. Gneneral Motors sales rise outside the U.S. Mixed earnings in europe lower indexes in the region.

[R]9:00AM New York – Earnings news dominate the New York opening[/R]

Earnings reports from several companies in the technology, banking, and industrial sectors dominated the trading sentiment. Market averages are likely open lower in New York on a decline in Google, Microsoft, and Caterpillar.

Citigroup reported second quarter earnings of $6.23 billion from $5.26 billion a year ago on revenue 20% gain in revenue of $26.6 billion. Earnings per share jumped to $1.24 from $1.05. International revenue jumped 34%, on recent acquisitions, to $12.6 billion and earnings surged 35% to $3.04 billion. Earnings in the investment banking jumped to $2.83 billion from $1.72 billion. The Global Wealth Management division which includes the Smith Barney brokerage services, earned $514 million, 48%, on a global rise in earnings.

Caterpillar Inc ((CAT)) earnings dropped to $823 million from $1.05 billion on 7.1% revenue increase to $11.4 billion. Earnings per share declined to $1.24 from $1.52. The company restated the annual earnings guidance between $5.30 and $5.80 per share and revenue of $44 billion in the year 2007. The company also lowered its forecast of new home construction to 1.4 million from 1.5 million. Engine sales in the North America declined 7.5% from a year ago due to higher demand of engines last year ahead of tigher emissions standard.

Google dropped 7% in the morning hours after disappointing some aggressive growth investors and Microsoft is down 3% on charges related to Xbox repairs. Caterpillar lost 5% on 7% decline in earnings. Whirlpool is ahead 2% on 77% jump in earnings. sanDisk jumped 7% on its quarterly profit on strong sales in Europe. Advanced Micro Devices jumped 2% and reported sales gain of 13% to $1.38 billion in the second quarter.

Apple Inc traded at record high to $142 on a favorable report from Piper Jaffrey and a revised price target of $205.