Shares of IBM were down by as much as 8% in the pre-market while software giant SAP is down 4.6% in Germany.
Those are the two biggest reasons for that European stocks are down and S&P futures are 2 points lower. Hopes for the Fed continuing QE are also fading after comments from Rosengren and Fisher.
Earnings from IBM fell far short of analyst expectations at $3.68 ex-items compared to the $4.31 consensus in a sign that companies continue to refuse to invest.
On the bright side, appliance giant Electrolux reported better results in a sign of solid consumer demand. They said European sales were about flat year-on-year with a slight improvement in Western Europe and the UK. In North America sales rose 8% y/y while they said demand in Brazil stabilized after a weak Spring.
Warren Buffett signing the blues
It’s turning into a tough year for Warren Buffett after the Tesco fiasco. He’s the largest shareholder in IBM with a $172.57 average purchase price. Shares are trading around $168.70 in the pre-market and today’s decline cost him about $1 billion. He started buying the shares about 3.5 years ago.
