Apple disappoints markets, oil lower again
Results from two of the world’s largest tech firms has given sentiment a knock Wednesday. Apple released its latest earnings report after Wall Street’s closing bell Tuesday and showed weakness in sales and revenue forecasts; Microsoft also announced a $3.2 billion loss for its latest quarter. Shares of both fell Tuesday. Asian markets have closed mostly lower on Apple results and lower commodity prices. Only Shanghai managed to end the session higher. European markets are also lower so far.
US stock futures are trending lower. Oil is trending lower (Brent $56.72, WTI $50.37 at 5.50am ET). Gold is trending lower.
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American Express, Boeing and Coca-Cola are among the companies reporting earnings today.
Apple’s Cook dismisses China worries
Tim Cook, CEO of Apple, said Tuesday that he is proud of the company’s results and dismissed concern about the Chinese stock market to say that Apple is going “pedal to the metal” in the world’s second-largest economy. Cook was speaking after Apple’s quarterly results showed revenue of $49.6 billion, narrowly beating expectations. Sales and profit were also up but it was the forecast for the next quarter that disappointed investors. Analysts are calling for almost $51 billion for Q4 but Apple’s guidance puts that figure at the top end with $49 billion a possibility.
Citibank hit with $700 million pay-out to customers
Citibank must pay $700 million to customers who had been overcharged by the bank and pay a $35 million penalty. The Consumer Financial Protection Bureau said Tuesday that the bank used “deceptive marketing” techniques resulting in the overcharging of millions of customers enrolling in its credit monitoring services between 2003 and 2012.
Herbalife petitions for Twitter user information
A Twitter user who posted defamatory comments about Herbalife on the social network is being tracked by the firm. Herbalife filed a petition for “discovery before suit” and wants Twitter to provide details including IP address for the user. Reuters reports that Twitter requires a court order to provide such information. "This is pretty straightforward. We are not going to sit back and let someone make false and defamatory statements about our company," said Alan Hoffman, a representative for Herbalife told the news organization.