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Amazon disappoints, Alphabet beats

Thursday, October 27, 2016 - 01:31

Earnings from two big names after the bell: Amazon's profit and outlook disappoint Wall Street while Alphabet, Google's parent's revenue impresses. Jeanne Yurman reports.

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It was busy after the bell Thursday. Amazon reported a quarterly profit and an outlook for the current quarter which fell short of Wall Street forecasts. But Alphabet, the parent company of Google, said its third quarter revenue was up more than twenty percent helped by healthy mobile ad sales. Stocks closed lower as investors sold defensive names. A surprise drop in new orders for U.S. manufactured goods last month is tempering forecasts for near-term business spending. Chief U.S. Economist, Steven Richhiuto at Mizuho Securities says, the report is sobering. SOUNDBITE: STEVEN RICCHIUTO, CHIEF US ECONOMIST, MIZUHO SECURITIES (ENGLISH) SAYING: "There is no corporate confidence out there. This concept of an acceleration in growth, and we may see a little pick up in the third quarter, has no sustainability. There's no legs to it." Apple unveiled a revamped MacBook Pro Thursday, which includes a fingerprint reader. Another mega merger this week. Qualcomm is buying NXP Semiconductors for roughly $38 billion in the biggest-ever deal in the chip industry. With potential buyers backing off, Twitter said it's cutting nine percent of its global workforce after it reported quarterly results that beat forecasts. Ford's profit plunged more than fifty percent last quarter on lower shipments, a costly recall and expenses for launching a new truck. Pending home sales rose 1.5 percent in September boosted by strong demand in the West and the South. European shares ended the day flat in choppy trading.

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Amazon disappoints, Alphabet beats

Thursday, October 27, 2016 - 01:31