Stocks in narrow range as earnings season accelerates
The major U.S. averages have now had three days of relatively narrow movement, as investors try to get a handle on second quarter corporate earnings. The S&P 500 is coming off just its second loss in 14 sessions, though it remains on pace for its best monthly gain since October 2011.
We'll see fresh housing data for the third straight day, with the government set to issue June new home sales figures at 10 a.m. ET. Economists look for a 1.7 percent gain in new home sales, following a 2.1 percent increase in May. We'll also get the weekly report on mortgage applications from the Mortgage Bankers Association as 7 a.m. ET.
The Energy Department releases its weekly look at oil and gasoline inventories at 10:30 a.m. ET, while the Treasury is set to sell $35 billion in 5-year notes. The results of that sale will be available shortly after 1 p.m. ET.
Dow components Boeing (BA) and Caterpillar (CAT), as well as automaker Ford (F), are the most prominent names among this morning's earnings releases. We'll also get the latest quarterly reports from Dr Pepper Snapple (DPS), General Dynamics (GD), Eli Lilly (LLY), Moody's (MCO), Northrop Grumman (NOC), Reynolds American (RAI), Seagate Technology (STX), T. Rowe Price (TROW), WellPoint Health (WLP), and Wyndham Worldwide (WYN), among others.
Facebook (FB) leads the list of after-the-bell reports today, joined by Visa (V), Western Digital (WDC), TripAdvisor (TRIP), Qualcomm (QCOM), E*Trade (ETFC), and Citrix Systems (CTXS).
Apple (AAPL) tops our list of stocks to watch, reporting fiscal third quarter profit of $7.47 per share, above estimates of $7.32, with revenues also topping consensus. However, Apple's current quarter revenue forecast is below estimates.
AT&T (T) earned $0.67 per share, excluding certain items, for the second quarter, missing estimates by a penny, while revenue was slightly above expectations. AT&T did see gains in its wireless and enterprise businesses, but the bottom line was impacted by the subsidies required to gain new wireless customers.
VMWare (VMW) reported second quarter profit of $0.79 per share, two cents above estimates. The cloud software producer also raised its full year revenue outlook, based on the expectation of stronger second half business from both business and government customers.
Panera Bread (PNRA) earned $1.74 per share for the second quarter, falling short of estimates by three cents. Revenue was shy of consensus as well, and the restaurant chain cut its full year forecast because of a growth shortfall at company-owned locations.
Juniper Networks (JNPR) reported second quarter profit of $0.29 per share, four cents above estimates, with revenue also topping consensus. The maker of networking equipment also announced that CEO Kevin Johnson plans to retire, as well as unveiling a $1 billion stock buyback.
Electronic Arts (EA) lost $0.40 per share for its first quarter, excluding certain items, a smaller loss than Wall Street had expected. Revenue topped estimates by a wide margin, as the video game maker was able to implement cost controls and see gains in digital sales.
Broadcom (BRCM) beat estimates by two cents with second quarter profit of $0.70 per share, excluding certain items. However, its current quarter revenue outlook falls short of forecasts, sparking concerns about the chipmaker's prospects in a slowing smartphone market.
Polycom (PLCM) CEO Andrew Miller has resigned following the discovery of accounting irregularities in his expense reports. The maker of videoconferencing equipment said Miller has accepted responsibility for the reports, and that this will not have a material effect on the company's results.
Norfolk Southern (NSC) missed estimates by three cents with its second quarter profit of $1.46 per share. The rail operator's results were impacted by a drop in coal shipment demand.
Illumina (ILMN) earned $0.43 per share for the second quarter, four cents above estimates, with revenues scoring a solid beat as well. The company, which specializes in gene sequencing, also raised its revenue outlook.