Stocks fell today with the Dow retreating from record highs. The indexes moved lower as traders digested the latest earnings reports and made guesses about the future of the Fed's bond-buying stimulus program. Some better-than-expected corporate earnings-- and the most recent jobs data-- support theories that the central bank could start to taper the stimulus shortly.
Dish Network (DISH) climbed 6% on its earnings which were released ahead of the opening bell. The satellite TV provider blew past estimates, making 68-cents a share when estimates were for 44-cents. Revenues also beat the consensus though by a narrower margin at $3.60-billion versus $3.58-billion. Dish faces increased competition from streaming services like Netflix (NFLX) and Hulu. But it grew subscriptions by about 35,000 for the period. The company announced plans last week to shutter all of its corporate owned Blockbuster video stores.
Vodafone (VOD) moved higher on an announcement that it will spend more than $11-billion dollars upgrading its network worldwide. The Britain-based company says it will focus efforts on India, Turkey and South Africa where the majority of its customers live. The plan was unveiled along with the company's first earnings report since it sold a 45% stake in Verizon Wireless. The company made $130-billion off the transaction.
Hologic (HOLX) dropped double digits on its earnings which came out yesterday afternoon. Hologic makes diagnostic tests for women. It beat on the bottom line with earnings per share of 39-cents when expectations were for 3-cents. However, sales came up a little short at $622-million and the company is lowering guidance for the current quarter. The losses more than erased all of Hologic's gains for the year. It had been up 11% going into today's regular session.
Rackspace Holding (RAX) also fell double digits on its earnings. The cloud computing company says profits fell 40% for the quarter. Earnings were 11-cents a share when analysts had expected 15-cents. Revenues rose 16% to $388.6-million missing estimates of $403.33-million. The company has been struggling to attract new business from existing customers since they redesigned their cloud-computing platform.
Tesla (TSLA) went in reverse again today, falling close to 5% and erasing gains it made yesterday. Tesla has been tanking since it reported earnings last week. It has also been burned by a third report of a car fire in a six-week stretch. The stock went into today's session down nearly 20% over the last month.
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