Market Focus Shifts to Earnings; Xyratex Sees Big Drop (XRTX)
Indices on Tuesday moved lower as investors continue to worry about earnings and a Spanish bailout. While some push to hear of bailout talks, Spain delayed any action and Germany signaled that they should hold off. In the US, automobile sales for the month of September look to beat estimates due to stronger consumer confidence and strong sales from companies like Toyota (TM) and General Motors (GM). Profits of data storage company Xyratex (XRTX) dropped nearly 20% for their third fiscal quarter and adjusted their expected earnings for the fourth quarter.The lawsuit launched yesterday against JPMorgan Chase (JPM) was said to be the first of a new wave of US regulatory action. Reports showed that crude-oil inventories rose less than expected and the euro edged higher for the second session in a row after hitting a three-week low last week.
Word on the Street
- Auto sales on pace in September for a 13% jump from one year ago, Toyota (TM) rebounds.
- Home prices in the US see biggest top gain of 4.6% in six years.
- A day after JPMorgan (JPM) is sued by New York, state officials announce firms will face more lawsuits.
- Although a Spanish bailout appears imminent, officials delay the request.
- Shoppers are expected to spend just over $586 billion this holiday season, a 4.1% increase in 2012.
- Vanguard Group announces it will switch 22 of its biggest index funds to cut costs.
- Devon Energy Corp. (DVN) shares rise while other energy stocks fall flat on Tuesday.
- Google (GOOG) Becomes the World's Second Largest Tech Company, Surpassing Microsoft (MSFT).
Published on Oct 2, 2012By InvestorGuide Staff