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Investors may have been concerned about Chegg's lack of profits. Although its annual revenue has consistently grown
-- to $213 million in 2012 -- Chegg said in its initial public offering filing that it couldn't assure investors it will be profitable anytime soon. Cisco Systems fell $2.25, or 9.5 percent, to $21.72 in after-hours trading. The technology company said its first-quarter revenue grew at a slower pace than analysts had expected and its net income declined. In government bond trading, the yield on the 10-year Treasury note fell to 2.73 percent from 2.77 percent Tuesday. About 90 percent of companies in the S&P 500 have now reported third-quarter results, and earnings are projected to rise by 5.6 percent in the July-to-September period, according to S&P Capital IQ. That's better than the 4.9 percent growth recorded in the second quarter and better than the 2.4 percent growth in same period a year earlier. The strong trend in earnings should help the stock market rebound from any weakness caused by concerns that the Fed is set to cut its stimulus, said Dan Morris, Global Investment Strategist at TIAA-CREF, an asset management company. "What really matters are earnings for corporations," Morris said. "If people focus on that, it's all pretty good." In commodities trading, the price of oil rebounded after a slump on Tuesday. Oil rose 84 cents, or 0.9 percent, to $93.88 a barrel. Gold fell $2.80, or 0.2 percent, to $1,268.40 an ounce.
Among other stocks making big moves: Potbelly rose $2.52, or 9.3 percent, to $29.58, after its third-quarter earnings came in ahead of market expectations. It was the restaurant operator's first quarter as a publicly traded company. Perry Ellis fell $4.47, or 23 percent, to $15 after lowering its revenue forecast, citing fewer shipments and lower sales through its direct retail channel. The clothing company also cut its full-year forecast.
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