Explosive Earnings, a Recall, and Facebook Lockup Expires: Afternoon Buzzers
Stock futures are trekking higher on Wednesday Afternoon. With Congress back in session, President Barack Obama is scheduled to sit down with business leaders today to discuss strategies for tackling the fiscal cliff.
Adding another item to a growing list of recent blemishes, Toyota (NYSE:TM) has announced a voluntary global recall of up to 2.7 million vehicles. Certain 2004 to 2009 model year Prius vehicles are suspected of having a problem with the steering extension shaft, or a problem with an electric water pump. Neither issue is thought to be dangerous. About 670,000 vehicles in the United States are affected.
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The lockup on 800 million shares of Facebook (NASDAQ:FB) are due to expire today, but the stock seems to be stable in the morning. The stock is trading up about 8.84 percent in the afternoon after falling back below $20 per share last week.
Clothing retailer Abercrombie & Fitch (NYSE:ANF) exploded in the afternoon, jumping over 27.74 percent after posting third-quarter results that surprised investors. Revenue grew 8.7 percent to $1.17 billion, while net income grew 40.5 percent to $0.87 per share from the quarter a year ago.
Cisco Systems (NASDAQ:CSCO) traded as much as 5.82 percent higher in the afternoon after posting strong first-quarter earnings after the bell on Tuesday. Revenue rose 5.5 percent to $11.88 billion, while net income climbed 17.7 percent to $0.39 per share from the quarter a year ago, beating estimates on both fronts. This is the third consecutive quarter of income growth for the company, which has seen it share price fall 9.5 percent this year to date.
Staples Inc. (NASDAQ:SPLS) traded up nearly 1.78 percent today after reporting third quarter results. Revenue for the office supply retail chain dropped 2 percent from the quarter a year ago to $6.35 billion, while net income dropped to a loss of $0.89 per share compared to a gain of $0.47 a year ago. This is the first loss in three quarters, and analysts predict a negative fourth quarter as well.