Market Minute: HP Ekes Out a Profit; Apple's Outlook Looks Brighter

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A one-time tech titan continues to struggle, and the Google-Yahoo war heats up. Those and more are what's making business news Thursday.

The Dow Jones industrial average (^DJI) fell another 105 points Wednesday, falling back below 15,000. It's the Dow's sixth loss in a row, the longest down streak in more than a year. The Standard & Poor's 500 index (^GPSC) fell 9 points and the Nasdaq composite index (^IXIC) lost 13.

hewlett packard ceo meg whiteman earnings pc sales
ChinaFotoPress via Getty ImagesHewlett Packard CEO Meg Whitman
Earnings from Hewlett-Packard (HPQ) won't help improve the mood of investors. The tech giant's turnaround seems to be faltering. It reported a quarterly profit, but revenue fell 8 percent from a year ago -- and was especially weak in its key PC and server divisions. CEO Meg Whitman says revenue for the full year is likely to decline.

But shares of Apple (AAPL) could shine brighter. A prominent UBS analyst raised his price target for the stock to $560 a share. He expects strong sales of the low-priced iPhone that Apple is expected to introduce next month.

According to comScore, Yahoo (YHOO) drew more unique visitors last month than Google (GOOG). It's Yahoo's first win in several years. But analysts say Yahoo is still far behind in turning its huge base of users into profits. Microsoft (MSFT), Facebook (FB) and AOL (AOL) -- the site you're watching-- round out the top five in the comScore (SCOR) rankings.

A customer satisfaction survey by J.D. Power shows American Express (AXP) remains the top ranked credit card. It was followed by Discover (DFS), Chase (JPM), Barclay's and U.S. Bank (USB).

Two more retailers post disappointing numbers. Sears Holdings (SHLD) reports its loss widened from a year ago, and revenue fell.

And shares of Abercrombie & Fitch (ANF) are set to tumble after the teen retailer said earnings and sales both fell sharply.

And rising interest rates mean the spurt of mortgage refinancings is coming to an end -- and that means jobs cuts. Wells Fargo (WFC), the nation's largest mortgage lender, is eliminating 2,300 positions in its home-lending unit.

-Produced by Drew Trachtenberg.


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Alan

HPs problem is they are only continuing to do those things they were already doing pre-Meg. Making all of that more efficient can only go so far. Now they have reached that point and there is no next act. That means they can only expect future declines as technology advances beyond them. Followers, no longer innovators.

August 22 2013 at 12:49 PM Report abuse +2 rate up rate down Reply
CJG

By the time they realize that destroying end-user customer service will force people & companies to look elsewhere....it'll be too late.
Meg has proven during her time at EBay & Disney, that the customer doesn't count.
As a consultant, I have ceased recommending and/or purchasing HP products. I now have at least 6 clients facing printer purchases simply because HP refuses to update for compatibility with current software

August 22 2013 at 12:42 PM Report abuse +2 rate up rate down Reply
Prowl

I\'ll never buy HP again. Bought a custom built laptop costing $2,300, three weeks later I had to send the computer back in becuse the computer fried it\'s self. Even then in that 3 week period, the lettering on the keys was wearing off. The had to \"build\" me a new computer and this one has had nothing but problems. constantly crashes, locks up and this one too had the leattering starting to wear off within weeks. The Microssoft Office software I bought along with my original computer won\'t won\'t load onto this computer even though it was sold to me by HP. Blue ray won\'t play Blue ray DVD\'s and more issues. I typo all the time now because I cannot see what letters are on the keys since they have worn off. I use this computer for work and have already had to send this 2nd computer back in for repairs, 2 times. Who cann afford to be with out a work computer every time you have to ship it back for repairs? I know I can\'t

August 22 2013 at 11:45 AM Report abuse +1 rate up rate down Reply
Jeri

HP has the worst customer service of any company I have ever dealt with. I hope they fail big time! I previously only bought HP but never again since the do not care about anything but making money.

August 22 2013 at 11:32 AM Report abuse +2 rate up rate down Reply
madsenspnm

Hello proofreading! \"Eeks Out a Profit\"? That should be \"ekes\"...

August 22 2013 at 11:02 AM Report abuse rate up rate down Reply
Jim

HP are thieves and set up their printers to drain the colored ink under the black ink they have been doing it for years and I for one am glad to see them fail. I always used to use HP products but go out of my way to avoid them. They settled out of court over the ink issue and my so called replacement printer they sent me to correct the problem is now doing it. I have hundreds of legal associates as well as contacts elsewhere and I tell them all to dump their HP products and never but it.

August 22 2013 at 9:40 AM Report abuse +2 rate up rate down Reply