The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
Three Dow components reported for their last quarters today and all three saw a decline in their share price, even though the results were fairly strong. Verizon saw a 3.4% rise in quarterly revenue after better-then-expected growth in its wireless business. The company announced earnings of $1.76 per share, compared to a loss of $1.48 per share in the same quarter in 2012. This was a better result than had been expected by Wall Street analysts, but still saw its shares drop 1.6%.
Travelers also surprised to the upside with its earnings and also saw a similar percentage fall in its share price. It was a similar story for drugmaker Johnson & Johnson, which achieved earnings of $1.24 per share for the quarter, compared to a consensus estimate of $1.20, but the company provided slightly disappointing forward guidance for 2014, estimating earnings in the range of $5.75 to $5.85 per share, which is towards the low end of where analysts had been forecasting earnings for the this year. Its shares slipped 1.4%.
By early afternoon in New York, the Dow Jones was off by 0.47%, the S&P 500 was up 0.23% and the NASDAQ 100 had risen 0.61%.
The Bank of Canada is scheduled to announce its latest rate decision tomorrow. Speculation that the central bank could be thinking about introducing an easing bias has helped push USD/CAD to its highest rate in more than four years today. The currency pair was up 0.22% at 1.0970 after earlier breaking above 1.1000 for the first time since September 2009.