Stocks opened lower on Wednesday as investors digested corporate earnings reports and news from Microsoft Corporation (NASDAQ:MSFT).[0] The software giant edged past expectations with its fourth-quarter adjusted earnings per share, which fell from last year to reach $2.32, beating estimates by a penny. However, revenue rose just 2% to $52.7 billion – missing projections by $450 million.[1] Microsoft also suffered a network outage for its Azure cloud platform and Teams and Outlook services earlier Wednesday.[1]
Verizon Communications (NYSE:VZ) shares slipped 1.51% after the company posted mixed results for the 2022 fourth quarter.[2] Although the earnings were in accordance with analyst prognostications, the forward earnings did not reach the Refinitiv consensus estimate.[3]
General Electric (NYSE:GE) rose 0.3% after beating Q4 earnings and reporting 7.3% year-over-year revenue growth. For fiscal 2023, however, the company drastically reduced its earnings guidance.[4] For the previous quarter, GE reported earnings per share of $1.24 on total revenue of $21.79 billion. Refinitiv reported that analysts predicted a profit of $1.13 per share on total sales of $21.59 billion.[3]
3M (NYSE:MMM) got blasted with a 4.9% loss after missing Q4 earnings and guiding fiscal 2023 top and bottom lines below analysts’ consensus guidance.[4] The company revealed that it would be eliminating 2,500[4] 3M anticipates that, for 2023, their adjusted sales will decrease by a range of 2-6%, and their adjusted earnings per share will be in the range of $8.50-$9.[5]
Intuitive Surgical (NASDAQ:ISRG) sold off nearly 7% on a decline in fourth-quarter earnings that also missed analyst estimates.[6] The manufacturer of robotic surgical systems was creating a flat base, however, the stock moved below that pattern.[6]
Tesla (NASDAQ:TSLA) shares slipped lower in pre-market trading ahead of the clean energy carmaker’s highly-anticipated fourth quarter earnings after the closing bell.[7] It is predicted that earnings will increase by 33% to a total of $1.13 per share and revenue will grow by 39% to reach $24.67 billion.[6]
Boeing (NYSE:BA) shares edged higher ahead of the planemaker’s fourth quarter earnings prior to the opening bell.[8] The company posted a surprise fourth quarter loss but noted its first positive free-cash flow tally in more than four years, and reaffirmed its full-year profit guidance.
0. “Stock Market News Today: MSFT Earnings Drag Down Stocks at Open” TipRanks, 25 Jan. 2023, https://www.tipranks.com/news/stock-market-news-today-futures-dip-as-corporate-outlooks-weaken
1. “6 stocks to watch on Wednesday: Microsoft, AT&T, Capital One and more (NASDAQ:MSFT)” Seeking Alpha, 25 Jan. 2023, https://seekingalpha.com/news/3927733-6-stocks-to-watch-on-wednesday-microsoft-att-capital-one-and-more
2. “US stock futures slide ahead of the open on corporate caution” ForexLive, 24 Jan. 2023, https://www.forexlive.com/news/us-stock-futures-slide-ahead-of-the-open-on-corporate-caution-20230124/
3. “Dow closes 100 points higher for third consecutive day of gains” CNBC, 24 Jan. 2023, https://www.cnbc.com/2023/01/23/stock-market-news-live-updates-futures-open-to-close.html
4. “Stock Market Spins Wheels Ahead Of Earnings Wave; Why Azure Should Worry Microsoft Bulls” Investor’s Business Daily, 24 Jan. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-lower-ahead-of-big-earnings-why-azure-should-worry-microsoft-bulls
5. “Stock Market Today: Dow Gains After Busy Day of Blue-Chip Earnings” Kiplinger’s Personal Finance, 24 Jan. 2023, https://www.kiplinger.com/investing/stocks/stock-market-today-012423-dow-gains-after-busy-day-of-blue-chip-earnings
6. “Nasdaq Slides 2% As Microsoft, Other Earnings Hurt Stock Market” Investor’s Business Daily, 25 Jan. 2023, https://www.investors.com/market-trend/stock-market-today/nasdaq-slides-2-as-microsoft-other-earnings-hurt-stock-market-tesla-ibm-set-to-report
7. “Stocks Move Lower, Microsoft, Tesla, Boeing, Fox In Focus – Five Things To Know” TheStreet, 25 Jan. 2023, https://www.thestreet.com/markets/stocks-move-lower-microsoft-tesla-boeing-fox-5-things-to-know
8. “Stock Market Today: Stocks Slide As Earnings Underwhelm, Microsoft Slumps; Tesla Up Next” TheStreet, 25 Jan. 2023, https://thestreet.com/markets/stock-market-today-stocks-slide-as-earnings-underwhelm-tesla-next
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