The trading in the stock markets in the United States did not demonstrate any big moves today as investors continue to weigh financial results of corporations reporting today.
The S&P 500 gained 0.11%, the Dow Jones Industrial Average (DJIA) dropped 0.17% while the Nasdaq rallied 0.44%.
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When he's trying to figure out if a company is a good investment, Warren Buffett does not rely on complicated formulas, spreadsheets, and higher-level math. He believes higher mathematics may actually be "dangerous and will lead you down pathways that are better left untrod," if used in the investment process. Q2 2020 hedge fund letters, Read More
In a phone interview with Bloomberg, Dan Morris, global investment strategist at TIAA-CREF Asset Management said, “Earnings are all that matters. To see the justification for meaningful higher prices, we just need to wait for earnings to catch up and accelerate a bit and that may take a quarter or two.”
Analysts polled by Bloomberg estimated that the earnings per share of companies in the S&P 500 increased 6% in the fourth quarter of 2013. The valuations of equities in the benchmark increased almost to the highest level since 2009. The index is trading at 15.6x estimated earnings of its members compared with the average multiple of 14x over the past five years.
- Dow Jones Industrial Average (DJIA)- 16,386.54 (-0.17%)
- S&P 500- 1,845.75 (+0.11%)
- NASDAQ- 4,244.30 (+0.44%)
- Russell 2000- 1,181.37 (+0.48%)
- EURO STOXX 50 Price EUR- 3,151.27 (-0.06%)
- FTSE 100 Index- 6,826.33 (-0.12%)
- Deutsche Borse AG German Stock Index DAX- 9,720.11 (-0.10%)
Asia Pacific Markets
- Nikkei 225- 15,820.96 (+0.16%)
- Hong Kong Hang Seng Index- 23082.25 (+0.21%)
- Shanghai Shenzhen CSI 300 Index- 2,243.80 (+2.58%)
Stocks in Focus
The stock price of Advanced Micro Devices, Inc. (NYSE:AMD) sunk more than 11% to as low as $3.70 per share after the company provided disappointing guidance for the current quarter. The maker of processors for personal computers projected that its revenue will decline by 16% plus or minus 3%, sequentially. Advanced Micro Devices, Inc. (NYSE:AMD) estimated that its revenue for the first quarter this year will be around $1.29 billion to $1.38 billion.
The shares of International Business Machines Corp (NYSE:IBM) dropped more than 3% to as low as $179.68 per share today after the company reported that its revenue declined to $27.7 billion during the December quarter. International Business Machines Corp (NYSE:IBM) CFO Martin Schroeter explained that the decline in profit of its hardware unit was partly caused by its x86 server business.
BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) surged by more than 8% to $10.74 per share today. The stock price of the Canadian smartphone manufacturer rose 26% over the past three days due to several factors including the report that the United States Department of Defense (DoD) will support 80,000 BlackBerry phones in its new network, and the sale of the majority of its real estate properties in Canada. The company is refocusing its business on its primary clients, enterprises and governments.
On the other hand, the stock price of Motorola Solutions Inc (NYSE:MSI) declined more than 3% to as low as $63.07 per share today after the company predicted that its first quarter earnings will decline by 4% to 6% compared with the 2% gain estimated by analysts. During the third quarter, the company generated $343 million GAAP net income or $1.31 per share, higher than its $1.18 EPS in the same period a year ago.