Top Midday Stories: June CPI Falls More Than Expected; IBM Shares Drop After Company Provides Update on Q2 Earnings 'Shortfall'
All three major US stock indexes were up in late-morning trading, as the big banks kicked off earnings season with strong reports and the latest consumer price index report showed inflation fell more than expected. The US seasonally adjusted consumer price index fell by 0.4% in June, compared to expectations of a 0.1% decline in a survey compiled as of 7:35 a.m. ET and following a 0.5% increase in May, the Bureau of Labor Statistics said Tuesday. Core CPI, which excludes food and energy prices, held steady, compared to the consensus estimate of a 0.2% gain. Core CPI rose by 0.2% in May. The year-over-year rates for headline and core CPI slowed to 3.5% and 2.6%, respectively, from 4.2% and 2.9% in May. In company news, IBM (IBM) said Tuesday it expects Q2 operating earnings of $2.93 per diluted share, up from $2.80 a year earlier but below the FactSet consensus analyst estimate of $3.01. Second-quarter revenue is expected to rise 1% to $17.2 billion, below the FactSet consensus of $17.86 billion. IBM Chief Executive Arvind Krishna said that most of Q2's "shortfall" was due to the company failing to close "numerous large deals" on expected timelines. The company.
All three major US stock indexes were up in late-morning trading, as the big banks kicked off earnings season with strong reports and the latest consumer price index report showed inflation fell more than expected.
The US seasonally adjusted consumer price index fell by 0.4% in June, compared to expectations of a 0.1% decline in a survey compiled as of 7:35 a.m.
ET and following a 0.5% increase in May, the Bureau of Labor Statistics said Tuesday.
Core CPI, which excludes food and energy prices, held steady, compared to the consensus estimate of a 0.2% gain.
Core CPI rose by 0.2% in May.
The year-over-year rates for headline and core CPI slowed to 3.5% and 2.6%, respectively, from 4.2% and 2.9% in May.
In company news, IBM (IBM) said Tuesday it expects Q2 operating earnings of $2.93 per diluted share, up from $2.80 a year earlier but below the FactSet consensus analyst estimate of $3.01.
Second-quarter revenue is expected to rise 1% to $17.2 billion, below the FactSet consensus of $17.86 billion.
IBM Chief Executive Arvind Krishna said that most of Q2's "shortfall" was due to the company failing to close "numerous large deals" on expected timelines.
The company.