Apple (NASDAQ:AAPL) — for an unpleasant change — announced Tuesday evening that revenues and earnings were down for the most recent quarter, and that sales of iPhones trailed estimates, though iPad sales came in higher than expected.
Investors took note, as AAPL shares traded down 5% in early after-hours trading.
Meanwhile, Netflix (NASDAQ:NFLX) posted second-quarter revenue and earnings gains on an expanded customer base, reversing last quarter’s losses. However, the company said the Olympics would put a damper on new sign-ups, and NFLX was beaten down by almost 14% quickly after the report.
As for the actual trading day, the markets piggy-backed on yesterday’s losses, absorbing a few more disappointing earnings reports to finish down broadly. Tech stocks continued to take a pounding, leading the Nasdaq down 0.94% to 2,862, while the S&P fell 0.9% to 1,338 and the Dow limped home off 0.82% to finish at 12,617.
Networking gear leader Cisco (NASDAQ:CSCO) got the day off to a gloomy start last night in announcing a layoff of 1,300 employees, or roughly 2% of the company total. Cisco shares traded down nearly 6% on the news, which once again served as a selling rationale for Red Hat (NYSE:RHT) and Adobe Systems (NASDAQ:ADBE), both down over 2%.
AT&T (NYSE:T) managed to confound the Street by beating profit estimates on sales of fewer (subsidized) iPhones, but missing on revenue targets. Investors looked past the increase in subscribers and knocked the stock down over 2%, while competitor Verizon (NYSE:VZ) lost 1.5% on the day.
Earnings news littered the wires, as DuPont‘s (NYSE:DD) net income slipped up despite a revenue increase that was not quite what analysts anticipated, thanks partially to the effects of foreign exchange. DD shares dropped 2%.
UPS (NYSE:UPS) released improved earnings and revenues that still did not measure up to investor hopes, and cut its outlook for the remainder of the year. Shareholders beat the stock down nearly 5% on the day.
On the happier side of the earnings coin, performance apparel-maker Under Armour (NYSE:UA) announced a blowout quarter on the heels of solid growth in its footwear division. And defense contractor Lockheed Martin (NYSE:LMT) announced higher revenues and earnings despite projected and actual defense cuts, as well as raised its forecast for the coming year. UA soared more than 9%, while LMT gained a more modest 1%.
Earnings season continues in earnest tomorrow, with Boeing (NYSE:BA), Bristol-Meyers Squibb (NYSE:BMY), Caterpillar (NYSE:CAT) and Green Mountain Coffee (NASDAQ:GMCR) among the many notables.
- Baidu (NASDAQ:BIDU): Up 7.1% ($7.63) to $114.73.
- Six Flags (NYSE:SIX): Up 6.3% ($3.31) to $55.90.
- Regions Financing (NYSE:RF): Up 3.3% (21 cents) to $6.60.
- Lexmark (NYSE:LXK): Down 12.8% ($2.46) to $16.76.
- Alpha Natural Resources (NYSE:ANR): Down 10.6% (73 cents) to $6.19.
- Whirlpool (NYSE:WHR): Down 4.7% ($4.89) to $62.59.
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he was long AAPL and VZ.