U.S. Markets open in 1 hr 16 mins

PG and UPS Report; September Durable Goods; Twitter’s IPO Pricing Plan

Dan Berman
Hot Stock Minute
PG and UPS Report; September Durable Goods; Twitter’s IPO Pricing Plan

We're seeing a technology boom on the NASDAQ. A number of tech and service sector stocks are soaring on earnings that were released after yesterday's closing bell. Amazon (AMZN) has been up more than 8%, Microsoft (MSFT) more than 6%. Zynga (ZNGA) is also jumping, and so is Outerwall (OUTR), the owner of Redbox. More on all of these in a few minutes. But first, Procter and Gamble (PG) and UPS (UPS) are just out with earnings this morning. Yahoo Finance Senior Columnist Mike Santoli has more on both in the video above.

Breaking news: durable goods orders rose more than expected in for September. The Commerce Department says new orders climbed 3.7% for the month. The consensus had been for a gain of 2.5%. Back in August, durable goods orders rose by a scant .1%.

Twitter has revealed new details on its IPO. The company now says it plans to offer shares somewhere in the range of $17 to $20. If shares are sold in the middle of that range, the IPO would raise about $1.3-billion. It would also give the company a total value of about $10-billion excluding options. Analysts say Twitter may still decide to raise its range, but is currently pricing shares low to make sure they rise on the first day of trading.


Amazon (AMZN) and Microsoft (MSFT) are both surging on their earnings, which came out after yesterday's closing bell. The climb puts Amazon at an all-time high. As of yesterday's close it was already up 29% year-to-date. Amazon had adjusted losses of 9-cents a share for the quarter. That's exactly what was expected. Investors seem to be ignoring the fact that the company issued guidance for the current quarter that was below consensus. Not a good thing when you consider the period includes the holiday season. As for Microsoft, the software giant had a healthy beat for the period with earnings of 62-cents a share, 8-cents above estimates. Revenues also beat expectations. Shares of Microsoft were already up 22% going into today's session.

Next up are service sector stocks Zynga (ZNGA) and Outerwall (OUTR). Zynga lost 2-cents for the quarter, but it was expected to lose 4-cents, and revenue topped estimates at $152-million. Revenue was actually down 36% from a year ago, and the company lowered its outlook for the current quarter. As for Outerwall, the owner of Redbox and Coinstar, it has been up more than 7%. Outerwall beat estimates, earning 97-cents a share on $587-million. Even ahead of this morning's gains Outerwall shares were up 26% over the past month.

Two other companies are making giant moves on earnings. First, up Qlik (QLIK) which has been down 20%. The company made a nickel a share for the quarter, beating estimates by 2-cents. Revenue however was about 4% below expectations and the company lowered its forecast. Prior to the drop we're seeing now, the stock had been up 48% year-to-date. We also have Callaway Golf (ELY) which is up 16%. Callaway had adjusted losses of 18-cents for the quarter, but analysts expected a dime worse than that. Revenue also topped consensus. Callaway says it benefited from cost-cutting as well as a licensing agreement for clothing and footwear. The company is also upping its forecast.

NQ Mobile (NQ) plunged 47% yesterday before trading was suspended. The drop came after research firm Muddy Waters called NQ a massive fraud. N-Q, in case you haven't hear of it before is a Chinese mobile security company. Muddy Waters claims 3/4 of NQ’s purported revenue is faked. Even with yesterday's drop NQ shares have doubled since the start of the year. They hit a 52-week high on Monday.