By Scott Costa, Publisher, tED Magazine
The news alert from the Associated Press on Tuesday morning, January 27 caught my eye. It was hard to miss.
“The Dow Jones industrial average has dropped nearly 400 points in late morning trading after disappointing earnings reports.”
By the end of the day, the Dow Jones industrial average rebounded slightly, finishing Tuesday with a drop of 291 points, or 1.7 percent, to close at 17,387.
One of the other key reasons for the drop: orders for long-lasting manufactured goods dropped sharply in December, which the government reported as the earnings reports were being announced. Most of the durable goods cited in that report were airplane parts and automobiles.
But it does make us interested to see what will be happening as some of the key figures in our industry announce their earning reports in the next 7 days.
Amazon will be one of the first, and the internet giant is planning a noon central time conference call on Thursday, January 29th to discuss its performance in the 4th quarter of 2014 and its yearly earnings report. That information should be interesting, since tED Magazine reported on January 2nd that Amazon CEO Jeff Bezos lost $7.4 billion in 2014. According to Zacks, its third quarter result was the third negative earnings report in the last four quarters, and the average negative report of 40.36%. Amazon stock holders were not impressed with Bezos and his free-spending ways. Many left after the Fire smartphone rollout was unsuccessful. Others grew extremely concerned about the large network of warehouses Bezos bought near larger cities to decrease delivery times. Amazon does not break out its individual units, so we will not know the results of AmazonSupply.
WESCO will hold a conference call at 11am Eastern time on Thursday to discuss their earnings report. Hubbell is also scheduled to announce its earnings on Thursday. And then over the next week, we will be seeing earnings reports from Anixter, ABB, Graybar and Eaton, among others.
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