Government Reopening with Debt Deal; GS, VZ, UNH Report; Dimon’s Decision or Not?

Dan Berman
Hot Stock Minute
Government Reopening with Debt Deal; GS, VZ, UNH Report; Dimon’s Decision or Not?

A debt default averted. And the government re-opening too. All part of a short-term agreement, passed after most of us went to sleep. So what's the real deal? Under the bargain, the government will reopen until January 15th, ending what had been a 16-day shutdown. Meanwhile, the debt ceiling will be raised to keep the country paying its bills through February 7th. Under the agreement, lawmakers are also supposed to reach hammer out a blueprint for long-term for tax and spending policies by December 13th. So, have we done anything more than set the stage for another stalemate? Yahoo Finance Senior Columnist Mike Santoli has more in the video above.

Three companies in the Dow are just out with earnings: Goldman Sachs (GS), Verizon (VZ) and UnitedHealth Group (UNH). Goldman easily beat on the bottom line with adjusted earnings of $2.88 a share versus expectations of $2.47. Revenue, however, was below estimates at $6.72-billion versus $7.35-billion. As for Verizon, it beat on both the top and bottom lines with adjusted earnings of 77-cents a share versus 74-cents on sales of $30.28-billion versus $30.161-billion. Finally UnitedHealth matched on earnings estimates reporting $1.53 a share. Revenue was slightly under estimates at $30.62-billion compared to $30.86-billion.

Breaking news: weekly jobless claims. The Labor Department says there were 358,000 new claims filed last week. Estimates had been for about 330,000 claims. The number released last week was originally reported at 374,000, the highest number in 6-months, partly because of the government shutdown.


Google (GOOG) reports after today's closing bell. The company is expected to post profits of $10.35 a share, up more than 10% from a year ago on revenue that's risen to nearly $15-billion. Key will be revenue from search advertising. Here in the U.S. Google's share of the market was nearly 70% in September. But analysts say another thing to watch will be sales of the Moto-X smart phone. Shares of Google go into today's regular session up 24% year-to-date.

Next, we have three giants which reported after yesterday's closing bell including Dow component IBM (IBM) which is down more than 7% on its earnings. The company beat on the bottom line making adjusted earnings of $3.99 a share, 3-cents better than estimates. Revenue, however, was more than $1-billion short. Even ahead of this morning's losses, shares of IBM have been down 5% year-to-date.

We've also got another Dow component, American Express (AXP), which reported after yesterday's closing bell, and is now up more than 1%. Amex beat on earnings posting profits of $1.25 a share, a nickel better than estimates. Revenue also topped expectations at $8.3-billion compared to $8.19-billion.

Also reporting yesterday afternoon was eBay (EBAY) which is now down more than 5%. eBay posted earnings of 64-cents a share, which was a penny better than estimates, but if fell slightly short of the consensus on revenues with sales of $3.89-billion versus $3.91-billion. As we showed you yesterday, eBay's year-to-date chart looks pretty jagged, but the stock price is essentially unchanged since the start of the year.

Chipotle (CMG) reports after the closing bell. Shares hit an all-time high on Monday topping $447 a piece, and are currently up 46% year-to-date. The stock's latest climb came after an upgrade from Janney Capital. It moved Chipotle to a buy citing the company's sales outlook and the possibility of moving into breakfast offerings. Chipotle's sales are expected to rise 17% to $820-million. Earnings are estimated to be $2.78 a share.

Las Vegas Sands (LVS) has seemed like a sure bet lately hitting multi-year highs. It also reports after today's close. Shares of the Sands are up 43% so far this year, and even briefly topped $70 this week. Here's why: earning are expected to jump to 75-cents a share from 46-cents last year. Revenues have likely climbed almost 30% to $3.47-billion dollars. This is largely on the company's expansion in Macau.