Analysts polled by FactSet Research have forecasted earnings of $1.04 a share.
Among Technology stocks, Intel (INTC) lost 6.24% in regular trading, ahead of its third quarter earnings report. Intel reported better than expected profit after the closing bell. The chipmaker posted a third-quarter net profit of $2 billion, or 35 cents a share, vs. $1.8 billion, or 30 cents a share, an increase of 12% from last year. Revenue climbed 1.3% to $10.2 billion. Analysts had forecasted a profit of 34 cents a share. Shares of Intel gained 3.70% in after hours trade.
Microsoft Corp. (MSFT) dropped $1.40 or 5.49% to $24.10 after Credit Suisse Group AG reduced earnings forecasts for the largest maker over the next two years.
iPhone maker Apple (AAPL) lost 5.60%. Apple introduced a new line of MacBook on Tuesday.
Blackberry maker Research In Motion (RIMM) declined 5.87%. Cisco (CSCO) was down 3.79% while Oracle (ORCL) plunged 6.2%.Yahoo Inc. declined 6.23% while Google was down 4.81%.
Largest US Aluminum maker Alcoa Inc. (AA) slipped 6%.
Healthcare products and services major, Johnson & Johnson (JNJ) reported that third quarter profits were $3.31 billion, or $1.17 a share, up from $2.55 billion, or 88 cents, earned in the same quarter a year before. Analysts were expecting earnings of $1.11 a share. Revenue for the quarter was $15.92 billion, up from $14.97 billion in the year-ago period.
Among financials, Bank of America Corp. (BAC) surged 16.41%. Goldman Sachs Group (GS) jumped 10.72% while Morgan Stanley (MS) advanced 21.22%.Wells Fargo & Co. (WFC) gained 10.26%. Citigroup Inc. soared 18.22%.
General Motors Corp. (GM) added 0.5%to its Monday’s gains. The Auto major is reportedly in talks with Chrysler for a possible merger.
Money markets showed signs of further easing on Tuesday. According to the British Bankers' Association the London interbank offered rate, or LIBOR, that banks charge each other for one week dollar loans dropped 50 basis points to 4.08% today. The three-month euro rate declined 7 basis points to 5.23%. The dollar Libor-OIS spread narrowed 14 basis points to 340 basis points.
European Stocks extended gains on Tuesday. U.K. FTSE climbed 137.31 points or 3.23% to 4,394.21. The German DAX and the French CAC advanced 2.70% and 2.75% respectively.
Among Asian markets Nikkei 225 soared 14.15% in Tokyo while Hang Seng Index gained 3.19%.
NYMEX Crude-oil for November delivery declined $2.56, or 3.2%, to close at $78.63 a barrel.
Dollar remained weak against major currencies, including rival Euro on Tuesday.
Disclosure: The author does not own any of the stocks mentioned.
