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U.S. Morning Call: Google may groove with music service

Wednesday, May 15, 2013 - 03:30

May 15 - Google may introduce a new subscription music service, like Spotify, according to reports.

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Let's pick up your Wednesday morning call -- a couple of key earnings may think has. -- analysts estimate the past four quarters. And start I'd say it's likely to do it again. The numbers look good because the entire retail sectors same store sales grew four point 7% in April. Macy's may also have stolen customers from the -- a nightmare known as JC Penney. It's not perfect though the company still has to pay the legal costs from its high profile court battle with Martha Stewart. And of course there's the Specter of tax hikes putting a damper on America's love of retail therapy. Shares of Macy's are up 15% this year. And just go reports after the bell it's expected to post a slight jump in quarterly profit. But Wall Street is worried that Cisco will be a victim of the sequester as the government spends less on technology. By some estimates as much as 10% of Cisco's revenues content from the public sector. Research firm IDC also cut its 2013 I T spending forecast. It expects the network gear market to grow just one point 1% vs five point 8% in 2012. You've heard this can't afford Google wants to get into the music business. According to reports Google may introduce a new subscription music service like Spotify. At the company's annual conference for developers today. Well about a Google music product two years ago at the same conference. Really haven't heard much about it. But tech analysts expect stream music revenues to grow by more than 40% and 2013. Rising to one point seven billion dollars by the end of the year. Combine that with a four billion bucks apple makes from iTunes. And that adds up to five point seven billion reasons Google should get serious about music. I guess what else tech nerds may be excited about those totally wearable Google glasses and perhaps even new nexus tablet. She is Google trading closed all time highs in the premarket near 887. Box. Fresh numbers from JPMorgan stole the spotlight at a big UBS conference here in new York and our stopped to watch. The co head of investment banking Mike Cavanaugh said trading revenues were up ten to 15% so far this quarter compared to last year. That about tops even that brought the eleven point 7% while analysts are predicting. I didn't touch -- should Jamie -- beat the chairman and CEO question but reports say diamond is seeking advice from of all people. Lloyd Blankfein of Goldman Sachs maybe Blankfein owes -- one for diamond council during Goldman's Capitol -- troubles after the financial crisis. That's -- market taking a look at US stock futures are pointing to a slightly lower open coming off the record highs yesterday. When the Dow closed about 151200. And the S&P hit 1650. And report on US producer prices may show a slight decline in April thanks to falling energy prices. That's your Wednesday morning call remembered follow us on Twitter at let it inside or get more great videos at Reuters dot com slash later. I mean it's hard cars it.

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U.S. Morning Call: Google may groove with music service

Wednesday, May 15, 2013 - 03:30