Strong USD hurts revenues as Q3 earnings for IBM rise
International Business Machines Corp, popularly known as IBM recorded its earnings for the third quarter in this financial year in revenue at $24.7 Billion and the net earnings of about $3.9 billion as the demand for its services increased in the software market along with a tighter cost management causing the effect of a strong USD being offset by the consulting technology company. The company has started shifting its focus to higher margin services and software from the usual technical products that it used to provide earlier. The company officials said that its earnings for every share excluding the items were recorded at $3.62, close to what most analysts had expected. The revenue eased by almost five percent due to the impact of negative currency causing an impact of about $1 billion. This came as a surprise as Wall Street had otherwise expected a decline in revenue of only three percent max to $25.36 billion.
Spain dodges bullet: Euro, shares up
The European currency hit a 1 month high and global shares also rose on Wednesday as bright prospects came into the after the likelihood of Spain resolving its continuous debt crisis finally started seeing some fruitfulness. However, some disappointment came in as the quarterly earnings for the financial year came in significantly lower for Intel Corp and a few other major firms. Amidst speculations that Spain might be asking for a bailout the Euro lifted significantly higher, as it might look out for a bailout in the coming months. Some opposition from the German Side to aid Spain and Greece somehow supported the Euro in the near term.
The euro was up 0.5 percent at $1.3117.
Extended bounce for JPY
The USD/JPY currency pair moved up to reach the 78.00 mark after reports came in that the Bank of Japan was taking into consideration further steps to ease off the market trading tension currently present in the markets. However, a quick risk aversion caused the currency pair to retrace all the gains it had made to come back to 78.67. Now, given that the market has more time to digest the currency pair is back again to put the sessions high back to test while just 2 pips away from the highs in the Asian Markets. However, the USD/JPY still remained in the red as it took a drop to just below the 79.00 level. This came on the backdrop of improvements being seen in the US market sphere to 0.872M as current value as compared to the previous value of 0.758M.
Stocks up for US CRUDE
The stocks of US Crude took a rise last week as imports started to increase whereas the oil inventories came out a bit mixed this Wednesday.
The value of the domestic stocks for crude rose by approximately three billion barrels by the 12th of October in the previous week. The Imports of crude in total rose by about 126 thousand barrels per day. Also, on the other hand the oil products took a mixed stand as the refinery utilization index took a rise by about 0.7 percent to a capacity of 87.4% while analysts had predicted an increase of only 0.3 %.
The stock futures for US Crude traded at $ 92.25 for every barrel by 10:35 AM ET (14:35 GMT).