US FINANCIAL MARKET
- IBM gave a better than expected 2013 outlook after a solid fourth quarter. Earnings in 2013 will be at least $16.70 a share. Meanwhile, the company is aiming for $20 in earnings per share by 2015.
- Google reported stronger than expected revenue and profit in 4Q for its core business.
- McDonald’s reported an unexpected rise in sales in December at established U.S. restaurants, helping to lift its fourth-quarter profit above analysts’ estimates. The company said it expected global same-restaurant sales to be down in January.
- Abbott Laboratories forecasts 2013 earnings above Wall Street expectations. It expects earnings for the full year of $1.98 to $2.04 per share. Analysts, on average, have forecast $1.95.
- Abbott also said global sales of branded drugs that now belong to AbbVie rose 7.4% to $5.14 billion in the fourth quarter. The rise would have been 8.5% if not for the stronger dollar, which lowers the value of sales in overseas markets.
- Motorola Solutions reported better-than-expected fourth-quarter profit.
- Shares of Coach plunged after its earnings saying that a challenging economy and heavy price-cutting by competitors weighed on its fiscal second-quarter results.
- Senate committee will hold a hearing in coming weeks to examine U.S. aviation safety oversight and the FAA’s decision to allow Boeing to use highly flammable lithium-ion batteries on board its new 787 Dreamliner.
- CSX says weak coal demand offset by gains in other areas, 4Q profit down 3 pct. Coal revenue fell 18%. Net income declined 3%. However, the results beat the Street. CSX also says it expects 2013 to be another challenging year for the railroad.
- Weak coal demand is still weighing on Norfolk Southern Corp’s profits. The fourth-quarter profit declined 14%. Despite the declines, the results still topped Wall Street expectations. Norfolk Southern operates about 20,000 miles of rail in 22 states, and the railroad serves all major container ports on the East Coast.
- Kansas City Southern’s fourth-quarter profit fell 4%, but resurgent demand for autos helped the railroad operator top Wall Street expectations and shares jumped to an all-time high.
- Earnings at industrial conglomerate Siemens declined 12% in the fourth quarter.
- Business software maker SAP says its fourth-quarter net earnings were down 8%.
US ECONOMY & POLITICS
- The FHFA home price index — which measures prices of homes with mortgages owned or guaranteed by Fannie Mae or Freddie Mac — rose by a solid 0.6% in November.
- The Richmond Fed manufacturing index fell to -12 in January from +5 in December, weaker than consensus expectations for an unchanged reading. The composition of the report also weak, as shipments, new orders, and capacity utilization all fell sharply.
- The number of new federal securities fraud lawsuits seeking class-action status fell to a 6-year low in 2012.
EUROPE & WORLD
- IMF cut its global growth forecasts and now projects a second year of contraction in the euro region as progress in battling Europe’s debt crisis fails to produce an economic recovery. The world economy will expand 3.5% this year, less than the 3.6% forecast in October. It sees the world economy expanding 4.1% in 2014.
- Prime Minister David Cameron pledged a referendum on Britain leaving the European Union, drawing rebukes from Germany, France and his own coalition partner.
TODAY in HISTORY
- John Hancock was born today (1737). He, as the President of the Continental Congress from 1775 to 1777, was the first to put his signature on the Declaration of Independence.
- Elizabeth Blackwell became the first woman physician in the U.S. (1849)
- The 24th Amendment to the Constitution, barring poll taxes, was ratified (1964)
Sources: Reuters, Yahoo Finance, Google Finance, Bloomberg, CNN Money.
This information has been prepared from sources believed to be reliable, but no representation is being made as to its accuracy or completeness. The information provided should be used only as general information and is not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in the material may not develop as predicted. All indices, such as the S & P 500, are unmanaged and may not be invested into directly.
