New AAPL iPhone Report Leads Today's Stock Market News

Stock Market News, July 22, 2014: The DJIA slumped on Monday, as military action continues in the Gaza Strip and geopolitical tensions remain high in Ukraine. The United States and European allies have strengthened economic sanctions against Russian interests and are threatening further action against Vladimir Putin if he doesn't pull support from pro-Russian militants in Eastern Ukraine.

Here's what you should know to make your Tuesday profitable:

  • Stock market newsSurging Shares: Tech giant Apple Inc. (Nasdaq: AAPL) is ramping up production of its next line of iPhones. The model will feature larger-screen models designed to lure new customers away from its primary competitor Samsung Electronics Co. Reports indicate that Apple will ask its suppliers to manufacture more than 70 million units, which include large-screen formats with 4.7-inch and 5.5-inch displays by December 30. The company will report its fiscal third-quarter results after hours today.
  • Earnings Win: Shares of Verizon Communications Inc. (NYSE: VZ) were down marginally in premarket hours after the company announced second-quarter adjusted earnings of $0.91 per share and revenue of $31.48 billion. The report beats Wall Street estimates of $0.90 per share and revenue of $31.12 billion. The company reported growth across all major segments and businesses.
  • Earnings Miss: Shares of The Coca-Cola Co. (NYSE: KO) slipped nearly 2% in premarket hours on news the company missed second-quarter earnings expectations. The company reported a 3% decline in net profits for the quarter, citing an end to its Brazilian bottling operations and a restructuring of its juice-manufacturing unit in Russia.
  • Commodities Escape: A day after one of its primary competitors went in one direction, Credit Suisse Group (NYSE: CS) announced plans to wind down its commodity trading activity to focus on more profitable business practices. In an investor presentation that accompanied the firm's quarterly earnings, the firm said it could save nearly $75 million and reduce risk-weighted assets by $2 billion by reducing its commodities desk. On Monday, Morgan Stanley (NYSE: MS) said it was rebuilding its commodity desk and planning to hire new analysts and sales team members.

  • Merger Mania: Shares of Yahoo! Inc. (Nasdaq: YHOO) were up in premarket hours after the company announced plans to purchase Flurry, a tech startup that helps programmers design apps and marketing campaigns on cell phones and tablets. Though terms of the deal were unreleased, several reports estimate the deal cost nearly $200 million.
  • Data, Profit Surge: Streaming giant Netflix Inc. (Nasdaq: NFLX) was on the rise yesterday after the company announced its second-quarter earnings more than doubled from last year. Despite a recent price increase to $8.99 per month, the company's subscriber base increased more than expected. Over the quarter, Netflix added 570,000 domestic subscribers and 1.1 million customers internationally. The company surpassed expectations by 250,000 subscribers.
  • Eating Up the Profits: Shares of Chipotle Mexican Grill Inc. (NYSE: CMG) popped 10% after-hours yesterday on news that the company shattered second-quarter profit expectations. The company's menu price increase earlier this year helped offset concerns about its stock during a surge in staple food prices.
  • Earnings Reports: Stay tuned for earnings reports from Apple Inc. (Nasdaq: AAPL), Altria Group Inc. (NYSE: MO), Comcast Corp. (Nasdaq: CMCSA), Crocs Inc. (Nasdaq: CROX), Electronic Arts Inc. (NYSE: EA), Harley-Davidson Inc. (NYSE: HOG), Lockheed Martin Corp. (NYSE: LMT), The Coca-Cola Co. (NYSE: KO), and VMware Inc. (NYSE: VMW).
  • Today's Economic Calendar: Today's schedule features existing home sales, the Richmond Fed Manufacturing Index, and the weekly ICSC-Goldman store sales report.

Full U.S. Economic Calendar July 22, 2014

  • ICSC-Goldman Store Sales at 7:45 a.m.
  • Consumer Price Index at 8:30 a.m.
  • Redbook at 8:55 a.m.
  • FHFA House Price Index at 9 a.m.
  • Existing Home Sales at 10 a.m.
  • Richmond Fed Manufacturing Index at 10 a.m.
  • 4-Week Bill Auction at 11:30 a.m.
  • 52-Week Bill Auction at 11:30 a.m.

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About the Author

Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.

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