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Overnight Markets: Apple shares slump 10%

by Himanshu Singh on Jan 24, 2013 at 03:23

Overnight Markets: Apple shares slump 10%

Wall Street gained on Wednesday after stronger-than-expected profits from IBM and Google and as lawmakers voted to temporarily suspend the federal debt limit.

The Dow Jones industrial average rose 67 points or 0.49%, to 13,779, the S&P 500 gained two points or 0.15%, to 1,495, and the Nasdaq Composite added 10 points or 0.33%, to 3,154.

Shares in IBM Corp, the world's largest technology services company, climbed 4.4% during regular market hours to $204.72 as per-share earnings exceeded projections. The largest computer-services provider’s profit forecast also topped analyst estimates as the company shifts to data analysis and cloud computing.

Also helping the tech sector was a 5.5% jump in Google to $741.50. The Internet search company reported its core business outpaced expectations and revenue was higher than expected.

Advanced Micro Devices Inc. surged 11% after revenue beat forecasts, helped by sales of chips that run servers.

But Apple fell 8% in extended trading after sales of its flagship iPhone came in below analyst targets and quarterly revenue slightly missed Wall Street expectations.

Adding to the positive sentiment, the US House of Representatives passed a Republican-led plan to extend the country's borrowing authority until mid May.

Netflix shares climbed 32%, above $136, after the video subscription service said it added subscribers in the US and abroad and posted a quarterly profit.

LED maker Cree Inc jumped 22% to $40.85 after it forecast a higher-than-expected third-quarter profit, and reported results above analysts' estimates.

On the negative side, leather goods maker Coach Inc plunged 16.4% to $50.75 after reporting sales that missed expectations.

In Asia, shares oscillated between gains and losses on Thursday in late morning trade after a report showed China’s manufacturing exceeded estimates.

The MSCI Asia Pacific Index rose less than 0.1% to 132 as of 11:34 a.m. in Tokyo. Japan’s Nikkei 225 Stock Average climbed 0.4% even after a report showed the nation’s December exports dropped 5.8% from a year earlier.

Australia’s S&P/ASX 200 Index gained 0.4%. South Korea’s Kospi Index lost 0.1% after a report showed the nation’s economy expanded less than analysts forecast in the fourth quarter. Taiwan’s Taiex Index dropped 0.4%.

Hong Kong’s Hang Seng Index increased 0.2% and China’s Shanghai Composite Index jumped 1.4% after a private survey of companies showed China’s manufacturing is expanding at the fastest rate in two years.

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