U.S. stock markets were lower in morning trading Wednesday, ahead of good quarterly results from many companies that beat earnings estimates.
Shares of General Motors Co. (GM, Financial) fell on Wednesday morning more than 5% after the company posted second-quarter earnings. GM recorded earnings per share of $1.81 on revenue of $36.8 billion, representing a 0.5% year-over-year decline. The company beat earnings estimates by 3 cents and revenue by $70 million.
By geographic area, the company's North America segment had adjusted Ebit of $2.7 billion with margin of 9.4%. International Ebit-adjusted reached $100 million, including record equity income in China of $600 million. GM Cruise Ebit-adjusted was a negative $200 million, on plan and reflecting continued spending on autonomous vehicles as the company moves to commercialization.
Inflation costs and the unfavorable foreign exchange impact of the Argentine peso and Brazilian real have negatively affected the business.
Now the company expects diluted earnings per share of approximately $5.14 and adjusted diluted earnings per share of approximately $6.
Gainers
• Robert Half International Inc. (RHI, Financial)
• Total System Services Inc. (TSS, Financial)
• Waste Management Inc. (WM, Financial)
• United Parcel Service Inc. (UPS, Financial)
Losers
• Hormel Foods Corp. (HRL, Financial)
• BorgWarner Inc. (BWA, Financial)
• Ford Motor Co. (F, Financial)
• Vulcan Materials Co. (VMC, Financial)
Global markets
The main European stock markets traded in the red. The U.K.'s FTSE 100 retreated 0.60%, France's CAC 40 swelled 0.14%, Germany's Dax fell 0.52% and Spain's Ibex 35 slid 0.52%.
In Asia, markets closed in positive territory. Japan's Nikkei 225 rose 0.46%, India’s BSE Sensex gained 0.09%, Hong Kong's Hang Seng advanced 0.90% and China's Shanghai Composite fell 0.07%.
Disclosure: The author holds no positions in any stocks mentioned.
