Oct. 18 - Summary of business headlines: Microsoft, Google miss; Morgan Stanley beats forecasts; Record profits at Verizon; Jobless claims spike. Bobbi Rebell reports.
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A rocky day for tech earnings. After the bell, Microsoft said its profits dipped by 22 percent - a bigger fall than expected. It was hurt by a dip in computer sales running its Windows operating system.
Andrew Lange covers Microsoft at Morningstar:
SOUNDBITE: ANDREW LANGE, ANALYST, MORNINGSTAR (ENGLISH) SAYING:
"I think the biggest thing that stood out to us was the decline in the windows division. I think the decline was larger than what most people were expecting. I think it was largely foreshadowed though by the decline in PC sales which we've seen over the last few weeks so it really doesn't come as a big surprise to see a little bit more weakness than expected given the prior results in the PC industry. "
The company is set to launch Windows 8 next week.
Google stock slammed after a big earnings and revenue miss- that accidentally came out during the trading day. Shares were halted after its filing agent, R.R. Donnelley, mistakenly released its results early. Google resumed trading at 3:20 in the afternoon, and closed down sharply.
Morgan Stanley earnings beat forecasts. The main driver of the higher results were improvements in the company's institutional securities business- which includes trading and investment banking.
Record profits from Verizon- thanks to strength in its wireless business. The telecomm group said it was on track to meet this year's financial goals.
In economic news: The number of Americans filing new claims for jobless benefits spiked last week- reversing a sharp decline from the previous week.
Taking a look at the closing numbers:
In the US - lots of red across the board.
In Europe: stocks rose in a late rally session- climbing for the 4th day in a row.
Bobbi Rebell, Reuters.
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