By Maxine Shapiro, KERA 90.1 commentator
Dallas, TX – This week, most companies will report their second quarter earnings. If you really want to make yourself dizzy, watch the market during earning season. It's like a tumbleweed being blown around on a windy West Texas day. I'm Maxine Shapiro with KERA Marketplace Middays.
Intel reported their earnings after yesterday's close and did not meet Wall Street's expectations. But that's okay. I guess the Street didn't expect Intel to meet the expectations. And Intel is actually suggesting that the present quarter, that'll be the third quarter, will be a little better than the second. Only 4,000 job cuts will be necessary. Some were projecting 8- to 10-thousand job cuts. Yippee? Intel is up today...
Locally, AMR, the parent company to American Airlines, announced this morning another loss for their second quarter. It was a net loss of $495 million or $3.19 a share. Doesn't sound so bad when you talk in shares. In fact, this was slightly less than what they lost same time last year. Then it was $3.29 a share. But that included a one-time charge to write down the value of some aircraft. The real loss would have been three quarters less than that. AMR is pleased that they've been successfully cutting costs, but revenues are killing 'em. CEO Donald Carty complained that airfares are at a 15-year low. "Who cares if traffic has increased? How can we be expected to make money at these outrageously low fares!" He wasn't quite that animated, but you know that's how he felt. All airlines are expected to be in the red this quarter, except for Dallas' own Southwest Airlines. They're going to make money flying me anywhere in Texas and an adjoining state.
And even though housing starts for June fell a little from May's whooping number, Dallas-based homebuilder Centex reported a 17% gain for the last quarter. And it doesn't look like it's going to end soon. Housing permits were up. Tomorrow Eli Lilly, Lockheed Martin, and Nokia. For KERA Marketplace Middays, I'm Maxine Shapiro.
Marketplace Midday Reports air on KERA 90.1 Monday - Friday at 1:04 P.M.