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U.S. Stock-Index Futures Fall as Google's Slump Overshadows Better-Than-Estimated Earnings

Strategic Insights

— 1 min read

U.S. stock-index futures declined as Google's disappointing earnings overshadowed better-than-estimated profits at General Electric and Bank of America. Google's shares plummeted 4.6 percent after the company reported a first-quarter profit that fell short of some analysts' estimates. The tech giant's earnings were also marred by a 18 percent increase in costs, more than double the previous period's rise. Despite Google's struggles, General Electric and Bank of America advanced over 1 percent, buoyed by their own robust earnings reports. The slump in Google's shares dragged down oil prices, causing ConocoPhillips and Exxon Mobil Corp. to retreat.

Key Takeaways:

  • Google's earnings fell short of analysts' estimates, causing its shares to plummet 4.6 percent.
  • The tech giant's costs rose 18 percent in the first quarter, more than double the previous period's increase.
  • General Electric and Bank of America reported better-than-estimated earnings, with General Electric's profit from continuing operations reaching 21 cents a share.
  • Oil prices declined due to the slump in Google's shares and concerns about the U.S. economy recovering slowly.
  • ConocoPhillips and Exxon Mobil Corp. retreated as a result of the decline in oil prices.
  • The first-quarter earnings season in the U.S. is expected to see combined profit for S&P 500 companies increase by 30 percent from a year earlier.

Statistics:

  • Google's shares fell 4.6 percent to $567.93 in early trading.
  • First-quarter net income rose 37 percent to $1.96 billion, or $6.06 a share, from $1.42 billion, or $4.49, a year earlier.
  • Excluding some costs, Google's profit was $6.76 a share.
  • Estimates compiled by Bloomberg were as high as $6.91.
  • ConocoPhillips' shares dropped 0.9 percent to $56.57 in Germany.
  • Oil prices declined for a second day due to concerns about the U.S. economy recovering slowly and the dollar extending its gains.

Sources:

  • Euclid Infotech Pvt. Ltd.
  • Bloomberg
  • Syndigate.info
  • Albawaba.com

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