1:15 PM – Market indexes on Wall Street declined after quarterly results from IBM, United Technologies and Verizon disappointed investors. Chesapeake Energy axed its annual dividend. Citigroup was fined $700 million for its illegal credit card practices.
Stocks on Wall Street weakened and market indexes dropped between 0.2% and 1% after IBM, United Technologies and Verizon Communications disappointed investors.
Tech stocks were weak after IBM missed revenue estimate and United Technologies reported earnings that were lower than expected.
Chesapeake Energy dropped more than 5% after the oil explorer canceled its annual dividend and redirect funds to capital expenditure in 2016.
Verizon Communications declined after it reported lower than expected revenues and new additions lagged net increase from a year ago quarter. The telecom company added 1.1 million wireless subscribers, of which 852,000 were tablet users.
On Wall Street, Tollbooth Strategy Index fell 0.2% or 23.99 to 10,923.55.
S&P 500 index fell 8.32 or 0.4% to 2,120 and the Nasdaq Composite Index slid 5.61 to 5,213.20.
Crude oil in New York rose 27 cents to $50.42 a barrel and gold slid $2 to $1,104.80 an ounce.
International Business Machines Corp
) declined 6% or $10.37 to $162.85 after the technology company reported total revenue in the second-quarter ending in June declined 13.5% to $20.8 billion from a year ago period.
Net income in the quarter tumbled 16.6% to $3.45 billion or $3.50 per diluted share compared to $4.14 billion or $4.12 from the same quarter last year.
IBM said revenues in America declined 8% to $9.8 billion and revenues in Asia-Pacific region plummeted 19% to $4.3 billion. Revenues in Europe, Middle East and Africa plunged 17% to $6.6 billion.
Verizon Communications Inc
) slumped 2.5% or $1.19 to $46.91 after the wireless voice and data services provider reported total revenue in the second-quarter ending in June fell 2.4% to $32.2 billion from a year ago period.
Net income in the quarter rose 0.7% to $4.35 billion or $1.04 per diluted share compared to $4.32 billion or $1.01 from the same quarter last year.
For the quarter, the company added 1.1 million net retail postpaid subscribers and mobile carrier had 109.5 million retail connections and 103.7 million total retail postpaid subscribers.
For the year, Verizon lowered consolidated revenue forecast of about 3% increase compared to earlier guidance of 4%.
Market indexes in Europe traded lower on a weakness pharmaceutical companies after Novartis reported lower than expected earnings.
Traders worried that the strengthening dollar and the expected increase in U.S. interest rate is likely to keep the Novartis earnings in check in the next few quarter.
In a preliminary estimate, the wider EU28 region seasonally adjusted external current account recorded a surplus of €13 billion in May compared to a surplus of €11.9 billion in April and a surplus of €4.8 billion in a year ago month, the Statistical Office of the European Communities said.
In London trading, FTSE 100 index slid 6.84 to 6,781.81 and in Frankfurt the DAX index slipped 0.9% or 103.16 to 11,631.87.
In Paris, CAC 40 index decreased 0.5% or 24.59 to 5,118.57.
In addition, investors looked at Greece as Prime Minister Alexis Tsipras has until Wednesday mid-night in winning a parliamentary approval of conditions demanded by lenders.
slipped 1.9% to 100.40 Swiss francs after the Switzerland-based healthcare products maker reported net sales in the second-quarter ending in June dropped 5% to $12.69 billion from $13.35 billion in a year ago period.
Net income in the quarter plunged 32% to $1.84 billion compared to $2.59 billion and diluted earnings per share slumped to 75 cents from $1.03.
The company said the divestment of Novartis influenza business to CSL is expected to be finished in the second-half of this year.
fell 0.7% to €68.28 after the Germany-based enterprise application developer reported total revenues in the second-quarter ending in June climbed 20% to €4.97 billion from €4.15 billion in a year ago period.
Net profit in the quarter declined 16% from a year ago to €469 million compared to €556 million and earnings per share jumped to €0.39 from €0.47.
SAP said revenues in cloud and software jumped 21% to €4.06 billion and revenues in software licenses segment climbed 13% to €3.51 billion.
The company added revenues in cloud subscriptions and support business surged 129% to €552 million as the new cloud booking in the quarter soared 162% to €203 million.
Nikkei average in Tokyo extended rally and the yen eased after two weeks of strength as investors digested latest batch of earnings.
Genky, the drug store retailer, said annual sales increased 9% and net soared 50%. Yasakawa Electric said quarterly revenues rose 11%.
jumped 6.1% to 399.90 yen after the diversified conglomerate said that the third-party independent investigation committee Ernst & Young ShinNihon LLC said accounting irregularities found in operating profit had overstated by 151.8 billion yen or $1.22 billion from fiscal 2008 through December 2014.