Weak GDP Outweighs Strong Earnings as Futures Fall: Morning Buzzers

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The U.S. equity markets are off to a bad start on Wednesday morning. Futures are lower across the board despite strong earnings and a positive employment report because of an unexpectedly bad turn for the nation’s gross domestic product.

At 8:45 a.m.: DJIA: -0.09%, S&P 500: -0.17%, NASDAQ: -0.10%.

Here’s what’s buzzing on Wednesday morning:Show us Jobs New Feature 300x270

The ADP National Employment Report shows that 192,000 non-farm private sector jobs were added in January, above most estimates. This is the sixth consecutive month that the ADP report has shown growth in private employment.

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The Bureau of Economic Analysis reported in its preliminary findings that fourth-quarter GDP shrank 0.1 percent, below expectations for about 1 percent growth.

Boeing (NYSE:BA) released fourth-quarter and full-year earnings before the bell that had the stock up as much as 1.5 percent in the pre-market. Revenues for the quarter climbed 14 percent year over year to $22.3 billion, and increased 19 percent for the full year to $81.7 billion. Earnings per share for the quarter fell 30 percent year over year to $1.28, and decreased 4 percent for the year to $5.11. These results came in ahead of most estimates. As expected, costs related to the on-going 787 Dreamliner investigation haven’t materialized yet.

Amazon (NASDAQ:AMZN) is set to open today’s trading session at least 8 percent higher as a result of its fourth-quarter earnings report. Sales for the period increased 22 percent to $21.27 billion, while net income decreased 45 percent to $0.21 per diluted share. The good news comes in the form of operating income, which climbed 56 percent to $405 million in the fourth quarter… (Read more.)

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