IBM’s weak earnings dragged down the U.S. stock market this morning. The S&P 500 was down slightly to 2,125 and the Nasdaq was essentially flat at 5,216. The Dow Jones was getting beat up the most by IBM’s earnings, falling to break below 18,000 to 17,954.
Former wunder-company IBM can’t seem to figure out how to adjust to the new tech environment where companies like Facebook are now the market leaders. The social network now has a bigger market capitalization than General Electric.
Chinese company JD.com has teamed up with Taylor Swift to launch its online U.S. Mall for Chinese customers. JD was trading higher by 0.5 percent at $35.24. JD.com competes with Alibaba for online Chinese shoppers. JD.com will promote the authenticity of its products, taking a stab at Alibaba, which has a reputation for selling counterfeit items. Alibaba was also up 0.5 percent to trade at $83.15.
Nike chief executive officer Mark Parker’s compensation for fiscal 2015 jumped by 15 percent. The big raise was mostly due to the fact that his compensation is tied to the company’s annual performance. Nike has benefited greatly from the shift in consumers wearing athletic wear for just about any occasion. Nike disclosed in a proxy statement on Monday that Parker’s pay went from $14.7 million for last year to $16.8 million this year. Parker also got a $30 million stock award; he can collect the full amount if he stays with the company for five years. Shareholders aren’t getting a raise today as the stock is trading sideways in the early session.
Later today Apple will post its earnings after the close of the market. Earnings estimates range from a low of $1.65 to a high of $2.05 for the third quarter ending June 30. Most analysts expect that iPhone sales will be the big driver in the earnings, but many will be looking to see how well the Apple Watch is selling. Another area of focus will be on the Apple Pay service and its recent launch in the U.K. Demand for Apple products in Great Britain is higher than the worldwide market share.