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Market Update

Time Warner Rejects $80 B Offer; Bank of America Drops, Intel Soars


Author: Mukesh Buch
ticker.com
Last Update: 12:15 PM ET July 16 2014

12:15 PM New York Abbott net fell 2% but sales rose 2%. Bank of America net plunged 43% after litigation expenses. BlackRock net jumped 11%. Charles Schwab net surged 27%. Intel profit climbed 40%. Time Warner rejected $80 billion takeover offer. Yahoo profit tumbled.

Tollbooth Index inched lower 0.06% or 5.59 to 9,503.81.

Earnings Review

Abbott Laboratories (ABT) slid 13 cents to $41.04 after the health care products maker reported net sales in the second-quarter ending in June rose 1.9% to $5.55 billion from a year ago.

Net earning in the quarter fell 2.2% to $466 million or 30 cents a diluted share compared to $476 million or 30 cents from a same quarter last year.

Bank of America Corp (BAC) dropped 2.1% or 33 cents to $15.48 after the bank reported total revenue in the second-quarter ending in June dropped 4.4% to $21.7 billion from a year ago period.

Net income in the quarter plunged 43.1% to $2.03 billion or 19 cents a diluted share compared to $3.57 billion or 32 cents from a year ago.

The bank posted a loss of $2.8 billion in its consumer real estate services segment, rise from a loss of $930 million a year earlier due to increase in litigation expenses.

The bank said operating expenses in the quarter jumped to $18.54 billion from $16.1 billion.

The bank agreed to pay $650 million to American International Group to settle the issue of litigation mortgage-securities.

BlackRock, Inc. (BLK) slipped 18 cents to $323.56 after the investment management firm said total revenue in the second-quarter ending in June climbed 12% to $2.78 billion from a year ago period.

Net income in the quarter jumped 11% to $808 million or $4.72 a diluted share compared to $729 million or $4.19 from a year ago.

The Charles Schwab Corporation (SCHW) fell 26 cents to $27.17 after the discount broker reported net revenue in the second-quarter ending in June advanced 10.4% to $1.48 billion from a year ago.

Net income in the quarter surged 27% to $324 million or 23 cents a diluted share compared to $256 million or 18 cents from a same quarter last year.

Intel Corporation (INTC) soared 6.5% or $2.04 to $33.74 after the microprocessor and chipset maker reported revenue in the second-quarter ending in June jumped 8% to $13.8 billion from a year ago.

Net income in the quarter climbed 40% to $2.8 billion or 55 cents a diluted share compared to $2 billion or 39 cents from a same quarter last year.

The company forecasted revenue in the third-quarter of $14.4 billion, plus or minus $500 million and revenue growth of 5% for the year.

The board of directors authorized to increase $20 billion to its share repurchase program and projected for share repurchases of about $4 billion in the third quarter.

Time Warner Inc (TWX) soared 17.2% or $12.01 to $83.14 after the media conglomerate rejected the proposal from Twenty-First Century Fox to acquire all the outstanding shares for a combination of 1.531 of non-voting common shares and $32.42 in cash per share that valued $80 billion.

Yahoo! Inc (YHOO) plunged 5% or $1.78 to $33.85 after the search engines service provider stated revenue in the second-quarter ending in June dropped 4% to $1.08 billion from a year ago period.

Net income in the quarter tumbled 19% to $269.7 million or 26 cents a diluted share compared to $331.1 million or 30 cents from a same quarter last year.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc