US STOCKS-Futures drop after IBM earnings; Goldman eyed

By Chuck Mikolajczak

NEW YORK, July 20 (BestGrowthStock) – U.S. stock index futures were
lower on Tuesday after technology bellwethers International
Business Machines and Texas Instruments posted quarterly
revenues that fell shy of expectations.

* IBM (IBM.N: ) fell 5 percent to $123.50 in premarket trade
a day after it reported a decline in new technology services
contracts in the second quarter as revenues rose 2 percent to
$23.7 billion, but missed the average estimate of $24.2
billion. For details, see [ID:nN19191611]

* Texas Instruments Inc (TXN.N: ) also missed second-quarter
revenue estimates, caused by weaker-than-expected orders from
one mobile phone customer, identified by analysts as Nokia.
(NOK.N: ) Its shares were down 6.1 percent to $24.
[ID:nN19215910]

* The revenue results came on the heels of disappointing
revenues from General Electric and two big banks last week.
Investors have zeroed in on top-line numbers for signs of
growth in the economy.

* “Wall Street is being very critical as companies are
falling short on revenue, but delivering on the bottom line,”
said Andre Bakhos, director of market analytics at Lek
Securities in New York.

* “So until earnings begin to show revenue growth, the
market is going to be very apprehensive.”

* S&P 500 futures (SPc1: ) dropped 7.8 points and were below
fair value, a formula that evaluates pricing by taking into
account interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures (DJc1: ) lost 88
points, and Nasdaq 100 futures (NDc1: ) fell 16.75 points.

* Goldman Sachs Group Inc (GS.N: ), Johnson & Johnson
(JNJ.N: ), Yahoo Inc (YHOO.O: ) and Apple Inc (Read more about Apple stock future.) (AAPL.O: ) are all
expected to report results later Tuesday.

* Bank of New York Mellon Corp (BK.N: ) said second-quarter
earnings more than tripled as higher stock prices and tighter
credit spreads boosted its asset management and custody
business.

* Whirlpool Corp (WHR.N: ) beat quarterly profit and sales
estimates on strong sales in Asia and Latin America, prompting
the world’s largest appliance maker to raise its outlook for
the year. Shares rose 2 percent to $93.20 premarket.
[ID:nN20232703]

* Investors will also eye U.S. housing starts data at 8:30
a.m. EDT [1230 GMT]. Economists in a Reuters survey forecast a
580,000 annualized rate versus 593,000 in May, and a total of
570,000 permits in June compared with 574,000 in the prior
month.

* European shares extended declines Tuesday morning, with
banks lower, after Hungary sold less debt than expected, and
ahead of Goldman results. [ID:nLDE66J0XL]

* Asian stocks rose Tuesday as shares of resource firms and
banks clawed back recent losses. [ID:nLDE66J0AZ]

Investment

(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)

US STOCKS-Futures drop after IBM earnings; Goldman eyed