Oct 16 - Summary of business headlines: Best Buy to launch tablet- source; Intel's outlook misses; IBM revenues hurt by strong dollar; Goldman, J&J beat, Coke in line; S&P's best two-day advance in a month; Consumer prices rise on gas surge. Bobbi Rebell reports.
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Best Buy is coming out with its own Android based tablet according to a Reuters source. The "Insignia Flex" will be priced as low as $239 dollars and compete with Apple's iPad and Amazon's Kindle.
The strength of the tablet market continues to weigh on companies tied to the PC business.
After the closing bell Intel warned fourth-quarter revenue and margins will be below Wall Street forecasts. The company did report third-quarter results that were better-than-expectations.
Revenue's were below expectations at IBM. Technology spending has suffered along with the global economy. But demand for its software services and tight cost management offset the effect of a stronger dollar, and overall IBM results beat forecasts.
Shares of Citi rose on unexpected news that CEO Vikram Pandit was stepping down after months of tensions with the company's board. The bank named Michael Corbat as the new CEO.
Goldman Sachs reported stronger-than-expected quarterly earnings- and raised their dividend.
Dow component Johnson and Johnson also reporting better-than-expected results- newer drugs led to a rebound in sales.
And earnings at the world's biggest soft drink maker, Coca Cola was in line with expectations but revenue's came in lighter than forecasts. They were hurt by declines in Europe and Asia where it sold more lower cost drinks.
The generally strong showing isn't a surprise to Rockwell Global Capital's Peter Cardillo:
SOUNDBITE: PETER CARDILLO, CHIEF MARKET STRATEGIST, ROCKWELL GLOBAL CAPITAL (ENGLISH) SAYING:
"I really wasn't worried about earnings because estimates were scaled back and to me this is not a surprise that some of these companies are beating expectations. What might be a bit of a surprise to me is the fact that we are seeing less of a guarded attitude in forecasts."
U.S. consumer prices rose 6-tenths of a percent- as the cost of gasoline surged.
Strong earnings from corporate America during the regular trading session helped to lift stocks. The S&P 500 having its best two-day advance in a month.
In Europe: gains in financial shares, as well as speculation that Spain may be getting closer to asking for a sovereign bailout led European markets to close higher.
Bobbi Rebell, Reuters.
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