Reuters Insider - U.S. Morning Call: BofA, eBay, Netflix earnings in focus
15/10/2014 15:20
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Source: Thomson Reuters
Description: Bank of America posting a smaller-than-expected
loss in the third-quarter. Earnings from eBay and
Netflix are also due out.
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Transcript (May be auto-generated)
Bank of America, the second largest bank in the US, reported a $0.01 per share
loss for the third quarter. That was nowhere near as bad as analysts forecast.
They had expected a loss of $0.09 per share but a $5.3 billion legal settlement
with US authorities cost the bank $0.43 per share, a huge drag on earnings. The
bank agreed in August to pay a record $16.65 billion over mortgage bond fraud.
BofA CEO and newly minted Chairman Brian Moynihan said, "We remain focused on
streamlining and simplifying our company." Bank of America shares rising more
than 1% in the premarket. And after the bell, we'll get quarterly results from
eBay. The big focus, the company's recent announcement to spin off its PayPal
unit. Its data security breach also expected to get some attention. The impact
could have trickled down into the third quarter after hurting second quarter
results. But analysts still see strong growth at PayPal, pushing profit higher.
Shares right now are down slightly in the premarket. Netflix also due to report.
Video streaming subscribers will be one of the key numbers to watch. It's
looking to add more than three million new subscribers in the third quarter.
Netflix has been betting big on international expansion, launching its service
in several European countries last month.
The stock has recently pulled back a bit from the lofty levels seen all year as
part of a broader decline in the overall equity market. Moving onto some other
stocks to watch, starting with Intel. The company says demand for its chips is
in good shape and for a change, people are actually buying personal computers
but that's because companies are replacing old employee laptops. Intel gave a
current quarter revenue forecast above expectations and says it's ready for the
holiday season. The recovering PC industry has helped push shares up 24% this
year, making Intel the top performer in the Dow. The stock is up about 0.5% in
the premarket. Sticking with chipmakers, Qualcomm is offering to buy British
chipmaker CSR for $2.5 billion. Qualcomm, which is the world's number one mobile
chipmaker, says the move will help it get into markets for short-range wireless
Bluetooth chips. Qualcomm shares are moving higher in the premarket. More deal
news this morning involving AbbVie-Shire. Chicago-based AbbVie is having a
change of heart. It's rethinking its $55 billion offer for London-based Shire.
This comes in the wake of new US rules that make it more difficult for American
companies to get lower tax rates through overseas deals. AbbVie is planning an
October 20 board meeting to make a final decision. AbbVie shares are up more
than 1% in the premarket. And as for Shire, shares getting pummeled on the
London Stock Exchange, down 26%. And before we move on, a second healthcare
worker has been diagnosed with Ebola in Texas and some of those Ebola-related
names popping in the premarket. Take a look at Lakeland Industries up almost
20%, Alpha Pro Tech, which like Lakeland makes protective gear, is up 23% and
pharma company Tekmira with its Ebola treatment drug is up more than 1%. Turning
to markets, investors can't shake that stalling global growth gloom. US futures
pointing to a lower open. The oil price tailspin jolted the market late Tuesday
and chopped large US stock gains to almost unchanged. Oil prices, a critical
barometer of economic demand, continued their decline today. And investors are
still flocking to safer assets as the US Treasury market remains stable and
holding onto gains made on Tuesday with the benchmark 10-year yield still
hovering at 2.20% and the 30-year bond still below 3%. On the economic data
front, an important inflation gauge, the September Producer Price Index, is
released at 0830 AM and is expected to rise 0.01%. At the same time, we'll see
how consumers, the key driver of the US economy, are spending their money when
September retail sales come out. That is it for your Wednesday Morning Call. You
can follow us on Twitter @ReutersInsider and watch more videos at
www.reuters.com. I'm Lisa Bernhard, this is Reuters