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Futures Lower After Weak Earnings; GE Falls

CNBC.com
Friday, 19 Oct 2012 | 9:19 AM ET

U.S. stock index futures declined Friday following several disappointing quarterly results from major companies including Google, Microsoft and General Electric.

Friday also marks the 25th anniversary of Black Monday, when the U.S. stock market went into a free fall and the Dow lost 22.6 percent in a single trading session.

General Electric reported earnings that matched expectations, but revenue fell below estimates. (GE is the minority shareholder of NBCUniversal.)

And McDonald's also slipped after the fast-food chain reported earnings that missed estimates, though revenues were actually higher.

Google reported its earnings much earlier than expected Thursday, and the results widely missed analysts' expectations. Shares tumbled 8 percent after being halted for nearly 2-1/2 hours in regular trading.

Microsoft also slid after the company posted quarterly results that missed expectations.

'Black Monday' Could Happen Again: Blitzer
David Blitzer, MD and chairman of the S&P 500 index committee at Standard and Poor's, tells CNBC that in one sense Black Monday could happen again, the human psychology that was around in 1987 is still around today.

Further bad news in the technology sector came from Sony, with the Japanese firm announcing plans to cut its global headcount by the end of March 2013.

Across the Atlantic, European shares edged lower as market participants remained cautious as EU leaders met for a second day to discuss a euro zone-wide banking union.

Chipotle Mexican Grill tumbled after the fast-casual restaurant missed earnings expectations and handed in a downbeat forecast on growth. The company also said it sees potentially higher food costs in 2013.

Marvell Technology also declined after the chipmaker lowered its third-quarter sales forecast and warned that demand is being hurt by the weak global economy. The company's CFO Clyde Hosein also resigned.

On the macroeconomic front, existing home sales data for September will be released at 10 a.m. New York time. Economists polled by Reuters forecast 4.75 million sales were made in September compared with 4.82 million in August.

—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)

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