DATA FLASH: Housing Starts Down. Building Permits Up. Top Line Earnings Disappoint
ByPosted To: MBS Commentary
Stock futures are lower and interest rates are rallying after several key earnings releases failed to impress the markets. Investing pessimism began to spread in after hours trading last night after IBM and Texas Instruments reported lower than expected top line revenue growth. Equity futures moved even lower this morning after Goldman Sachs said Q2 earnings fell to $453 million ($0.78/share) compared to $2.7 billion ($4.93/share) in the same period of 2009. Although Goldman's earnings reflect a $550 million SEC fine and a $600 million expense related to U.K payroll taxes on bonuses, GS said client activity had declined across all business channels. Plain and Simple: the market is no longer satisfied with bottom line earnings per share growth, cost cutting, a steep yield curve, inventory…(read more)