News Column

US markets await Twitter`s first earnings report since IPO, stock futures flat

February 5, 2014

U.S. Markets are poised for a pause Wednesday, following a rough ride on markets as investors await monthly figures on private-sector employment, and corporate results, including Twitter's first batch of earnings. U.S. stock futures were flat ahead of the open, with most market participants still fearful about current market dynamics. -Futures on the Dow Jones Industrial Average dropped 0.091% to 15324 -Futures on the S&P 500 index dropped 0.155% to 1741.00 -Futures on the NASDAQ 100 dropped 0.109% to 3448.25 . As of 07:18 a.m. ET U.S. markets finished higher Tuesday, regaining lost ground after Monday`s steep sell-off. Meanwhile, Asian markets closed with mixed results. The Japanese markets clawed back some lost ground after posting a 4% drop Tuesday. Markets will get a preview of Friday`s jobs report Wednesday morning with the release of payroll processor ADP`s monthly figures on private-sector employment at 8:15 a.m. ET . Twitter Results Twitter will report its first batch of results since last year`s IPO after the close. Twitter has been on fire since its November IPO, posting a gain of over 150% enough to make TWTR stock one of 2013's top offerings. Wall Street is looking for revenue of $217.8 million and a net loss of 2 cents per share, and market consensus shows that it could do well. Perhaps the most encouraging factor is Facebook , which reported a blow-out quarter last week. As much of Facebook's growth came from mobile advertising, and Twitter gets over 65% of its ad revenue from mobile, while Facebook gets about 53%. Strong mobile growth could easily send Twitter stock higher. Also, there are hints that Twitter is looking at e-commerce as a new revenue stream, and more details could be revealed in the upcoming earnings release. The idea is that a company will be able to set up product pages, which are linked to tweets and "buy" buttons. While ad opportunity is large for Twitter, it does make sense to try for another revenue stream. Besides, Twitter has already become a top source for recommendations of products. Corporate results to be released today include Time Warner , Estee Lauder , GlaxoSmithKline , and Merck. Shares in tech company ARM Holdings could rebound after posting a sharp drop Tuesday. The company`s shares have fallen by 20% since the start of 2014. Verizon shares also look set to push up when the opening bell rings. The company`s stock took a hit Monday as investors worried a price war was breaking out between the major U.S. mobile operators .

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Financial Markets

Story Tools