U.S. markets were slipping Monday as utility stocks grew 0.6% and the dollar weakened. The S&P 500 Index fell 0.3%, the Dow Jones Industrial Average slipped 0.3% and the Nasdaq Composite declined 0.3%.
Earnings news lead the charge with International Business Machines Corp. (NYSE:IBM) and Netflix, Inc. (NASDAQ:NFLX) releasing quarterly results after Monday’s close. Visa Inc (NYSE:V) also made a big announcement.
Here’s what’s happening ahead of Tuesday’s action:
IBM (IBM)
IBM posted its fiscal third-quarter report yesterday.
For its most recent three-month period, the tech company earned $3.29 per share, topping the consensus estimate of $3.23 per share.
Revenue was strong as well for IBM, coming in at $19.23 billion. Wall Street was calling for revenue of $19 billion for the quarter.
The company benefited from strong showings in its new technologies, including cloud and security products. IBM CEO Ginni Rometty noted that the company’s business allowed it to transform a number of industries.
Additionally, the company has made a series of good investments that are starting to pay off.
IBM shares slipped 3.1% after hours Monday.
Netflix, Inc. (NFLX)
Netflix also had financial news to share Monday.
The online streaming site missed its quarterly revenue estimates, posting net sales of $2.2 billion. Analysts expected revenue of $2.28 billion.
However, earnings was a strong point for Netflix, coming in at 12 cents per share. Wall Street had predicted earnings of 6 cents to 7 cents per share.
3.2 million additional Netflix accounts were created in foreign markets and 370,000 were added in the U.S. The consensus estimate called for 304,000 new U.S. subscribers and 2 million new members outside the U.S.
New Netflix original content played a role in boosting subscription revenue for the service.
NFLX shares soared 19.9% after the bell yesterday.
Visa Inc (V)
Visa has announced a change in management that may come as a surprise to many.
CEO Charles Scharf has resigned from the company during one of Visa’s most productive periods — the credit card provider’s stock has surged 4.9% over the last three months.
Visa’s independent chairman Robert Matschullat noted that Scharf has played an important role in combining the company’s digital commerce business with a winning strategy that will ensure a bright future.
He helped to recruit some experts from JPMorgan Chase & Co. (NYSE:JPM) to boost the business side of things at Visa.
V stock declined 1.4% after Monday’s market close.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.
