Stocks struggle after economic data; Hewlett-Packard sales fall short; Chrysler trades in its logo
Stocks are struggling to make any headway after a wave of economic data hit Wall Street this morning.
The Commerce Department reported that consumer spending rebounded in October from September, up 0.2% and personal income rose by the same amount. However, economists were expecting a bigger jump in both numbers.
In a separate report from the Commerce Department showed aircraft orders helped lift durable goods orders in October. New orders for manufactured products unexpectedly rose 0.4% last month following a 0.9% drop in September. But when you strip out the volatile transportation sector, orders fell 0.9%. That’s the biggest drop since December 2013.
Meantime, the number of Americans filing for first-time jobless benefits jumped to an 11-week high. The Labor Department reporting that initial jobless claims rose by 21,000 to 313,000 last week.
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Investors also keeping a close eye on oil prices ahead of Thursday’s OPEC meeting.
Yahoo Finance Columnist Rick Newman says the weak global economy and the fracking revolution in the U.S is turning oil into a buyer’s market with oil producers more worried about losing market share than lower margins.
In corporate news. Hewlett-Packard (HPQ) shares were under pressure in early trading. The struggling PC maker’s latest financial report did not impress investors as it prepares to split its enterprise services from its traditional computer and printing unit early next year. Revenue missed estimates as sales fell in almost every business segment. But earnings per share matched forecasts.
Related: Deere gets dumped; Hewlett-Packard sales miss; Hertz gets an Icahn boost
Deere (DE) shares got dumped in early trading. The company said its fiscal 2015 profits will be below analysts' estimates due to a drop in equipment sales as farmers scale back on spending on the heels of falling commodity prices. However, earnings and revenue for last quarter surpassed expectations.
Hertz (HTZ) headed higher ahead of the bell. Its largest shareholder is taking a bigger stake in the company. Activist investor Carl Icahn raised his holdings in the car rental company to nearly 11% from about 8.5%. Icahn has been instrumental in pushing for management changes at Hertz after landing board seats at the company. Hertz recently said it would have to restate or correct financial results for the past three years due to accounting errors.
AeroVironment (AVAV) shares fell in early trading. The maker of aerial drones posted a wider-than-expected loss. Revenue also came up short of estimates falling nearly 19% from a year earlier. The Federal Aviation Administration is expected to release proposed rules for the use of drones by the end of this year as the industry and regulators debate their safety and privacy.
Related: FAA reportedly set to announce drone rules
From the skies to the roads, an iconic American brand is trading in its old logo for a new one. Chrysler’s more than 50-year-old pentagon with a star in the middle is being replaced by the stylized letters "F-C-A." That stands for Fiat Chrysler Automobiles (FCAU).
Related: Chrysler: end of the road?
Tomorrow may not be a very happy Thanksgiving for Google (GOOGL). That's because the European Parliament is expected to call for a breakup of the world's largest search engine company. Officials on the Continent argue Google violates anti-trust laws. The parliament doesn't actually have the power to force what's being called an "unbundling" of Google. But Thursday’s vote could put pressure on the European Commission to take some action against the firm.
