Summary:Traders on edge after plane crash; Google and IBM turn in strong revenues; Microsoft will cut 18,000 jobs; Alibaba won't debut until at least September- source. Bobbi Rebell reports.
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News of a Malaysian Airlines jet crash on the Ukraine Russia border, with 295 passengers, put traders on edge. Airline stocks were lower as were the major indexes.
After the closing bell, shares of Google rose, even though the earnings per share fell short.
Revenue increased by 22 percent- thanks to strong demand for ads on its websites.
IBM also had better than expected revenue, and also missed on overall earnings per share. It's been shifting into higher-end businesses like cloud computing, and security and mobile services.
Microsoft announcing the deepest cuts in its near 4-decade history- up to 18,000 jobs- that works out to 14 percent of its 127,000 total workforce. The company is trimming its Nokia phone business- and reshaping itself into a cloud computing and mobile friendly software company.
S &P Capital IQ's Scott Kessler.
SOUNDBITE: SCOTT KESSLER, EQUITY ANALYST, S&P CAPITAL IQ (ENGLISH) SAYING:
"These changes probably are painful, and unfortunately, in many respects the reality is that I don't know if Satya Nadella would have acquired the Nokia kind of businesses that were bought in April. That was a deal that he inherited, and clearly he is kind of right sizing those operations based on what he sees Microsoft's future being.
Profits more than doubled at Morgan Stanley- beating estimates. Investment banking and wealth management made up for a drop in revenue from bond trading.
And Blackstone's second quarter earnings jumped 89 percent year-on-year. Private equity profits soared, driving it to its best second quarter ever.
News that Barbie is not as popular as she used to be weighed on Mattel stock. The toy company blamed the iconic doll and its 15 percent sales drop for its third straight quarter of lower sales.
Alibaba is eyeing a fall debut. A source tells Reuters that despite speculation of an August initial public offering for the Chinese e-commerce giant, it will wait until after the September Labor Day holiday.
Mixed economic news. June housing starts- a big disappointment- falling 9.3 percent to their lowest pace since September.
But on the upside: jobless claims dropped by 3,000 to 302,000. That is the lowest level in 9 weeks, and better than forecasts.
European markets extended their losses at the end of the day on news of that Malaysian plane crash in Ukraine.
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