Stocks in the news: JPMorgan Chase, Harley Davidson, CIT Group
JPMorgan Chase & Co. (JPM) second-quarter profit of $2.72 billion, or 28 cents per share easily surpassed expectations of 4 cents per share as profit was buoyed by strength in its investment banking business. Shares declined about 2 percent at the start of trading.
Harley Davidson Inc. (HOG)'s profit tumbled 91 percent to $19.8 million, or 8 cents per share, far below estimates of 24 cents a shares as revenue declined 27 percent. The company also said it is cutting 1,000 more employees. Shares climbed over 6 percent half an hour into the session.
CIT Group Inc. (CIT) was unable to secure emergency government funding, which raises expectations that the commercial lender will file for bankruptcy. Shares plunged 76 percent.
Marriott International (MAR)'s profit fell 76 percent as revenue from available room may drop between 17 percent and 20 percent this year. Excluding restructuring costs and other items, earnings were 23 cents per share, beating estimates. Shares fell over 7 percent by 10 a.m.
Novartis (NVS) reported a 10 percent drop in second-quarter profit to $2.04 billion, or 89 cents a share, as a stronger U.S. dollar wiped away its sales advance. This was a penny above estimates. Shares gained over 2 percent.
Corp. (BAC) "is operating under a secret regulatory sanction that requires it to overhaul its board and address perceived problems with risk and liquidity management, according to people familiar with the situation," the Wall Street Journal reported. Shares fell about 3 percent.
Nokia (NOK) reported that underlying earnings per share slumped to 0.15 euros from 0.37 euros, but beat the average forecast of 0.13 euros in a Reuters poll of 31 analysts. The company also cut its forecast on margins and market share. Shares dropped about 14 percent by 10 a.m.
Reporting later today: Google (GOOG) and IBM (IBM).
Sony Ericsson Mobile Communications, the handset making joint venture between Sony (SNE) and Ericsson (ERIC), said it swung to a second-quarter loss of 213 million euros ($301 million) as sales dropped 40 percent.
American Express (AXP) was upgraded at J.P. Morgan analysts to Neutral from Underweight. Price target was raised to $25 from $16. The company also has halted its contributions to employees' pension plans in the United States and the U.K., as part of a restructuring process to slash costs amid mounting credit losses.