Facebook Inc. (FB), Wednesday reported a jump in profit for the second quarter, as the social networking giant's bottom line continues to be driven by soaring ad revenues. Both earnings and revenues trumped Wall Street expectations, sending shares up by 6 percent in the extended hours.
Stocks showed a lack of direction throughout much of the trading session on Wednesday before ending the day mixed. The choppy trading on the day extended the lackluster performance that was seen in the previous session.
Stocks are turning in a relatively lackluster performance in mid-day trading on Wednesday after failing to sustain an initial upward move. The choppy trading on the day comes after the markets also showed a lack of direction in the previous session.
After seeing a notable move to the upside at the open, stocks are turning in a lackluster performance in morning trading on Wednesday. The major averages have pulled back off their early highs, with the Dow and the S&P 500 dipping into negative territory.
Pending home sales in the U.S. rose by much less than expected in the month of June, the National Association of Realtors revealed in a report on Wednesday. NAR said its pending home sales index edged up by 0.2 percent to 111.0 in June after tumbling by 3.7 percent to 110.8 in May.
New orders for U.S. manufactured durable goods fell by much more than expected in the month of June, according to a report released by the Commerce Department on Wednesday. The report said durable goods orders tumbled by 4.0 percent in June following a revised 2.8 percent decrease in May.
After ending the previous session mixed, stocks may move to the upside in early trading on Wednesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 59 points.
Boeing Co.(BA) reported a loss for the second-quarter 2016 compared to profit in the prior year, reflecting 787 cost reclassification and charges on the 747 program and the KC-46 Tanker program, partially offset by solid execution and higher volume. It cut its profit outlook for fiscal year 2016, while it reaffirmed annual revenue guidance.
Automaker Fiat Chrysler Automobiles NV on Wednesday reported a 25 percent increase in profit for the second quarter from last year. However, quarterly net revenues and worldwide shipments declined from last year.
The U.K. economy grew at a faster pace in the second quarter, weathering the uncertainty stemming from the run-up to the EU referendum. Gross domestic product expanded 0.6 percent in the three months to June from the previous quarter, preliminary estimates from the Office for National Statistics showed Wednesday.
Coca-Cola Co. (KO) posted a profit for the second-quarter that increased 11 percent from last year, while net operating revenues declined 5 percent. It is targeting full-year 2016 net share repurchases of $2.0 billion to $2.5 billion.
Cable television giant Comcast Corp. on Wednesday reported a 5 percent decline in profit for the second quarter from last year, as higher revenues at its Cable Communications segment were offset by an increase in expenses. However, both revenue and adjusted earnings per share for the quarter beat analysts' estimates.
Wall Street looks set to open Wednesday's session on a positive note as solid earnings from companies such as Apple generate strength. More earnings are set to follow, with Boeing (BA), Coca-Cola (KO) and Fiat Chrysler (FCAU) among the noteworthy names. The FOMC statement is the main Main Street event that traders look forward to.
Shares of Deutsche Bank AG declined around 4 percent in the morning trading after the German bank reported Wednesday sharply lower profit in its second quarter with significant one-time charges as well as weak revenues. John Cryan, CEO, said,".. if the current weak economic environment persists, we will need to be yet more ambitious in the timing and intensity of our restructuring."
Shares of Airbus Group SE were gaining around 6 percent in the early morning trading in Paris after the aerospace and defense major reported Wednesday significantly higher profit in its second quarter, with positive one-offs items. Revenues, meanwhile, declined 1 percent with weakness in all segments. For fiscal 2016, the company continues to expect stable earnings per share.