US markets in search of gains after Google miss estimates

US markets look set to open lower today as earnings from Google after yesterday’s close failed to live up to expectations. This may be enough to undo comments from Fed Chair Janet Yellen expecting low US inflation and a positive growth outlook from the Fed’s Beige book. Futures suggest the S&P500 will open 8 points lower at 1,854 with the Dow Jones expected to open 72 points lower at 16,352. Google’s shares fell as much as 6% as the company cited rising costs and lower internet advertisement pricing. There’s not cause to lose faith in the company just yet as revenues are still up 19% on the year but the company maybe overstretching a bit with some of the recent acquisitions moving into areas as far afield as drone-making. With stock markets stuck in a volatile range, up for two or three days then down for two or three days, the poor results from Google might be the catalyst to end the 3 days of gains seen this week. Barring any escalations in Ukraine, earnings will be the name of the game again today with announcements coming from Morgan Stanley, General Electric and PepsiCo all having the potential to reverse or extenuate gains made yesterday. Morgan Stanley earnings are expected to come out at $0.60 per share on revenue of $8.52bn. GE is expected to earn $0.32 per share on revenue of $34.36bn. Pepsico is projected to report first quarter EPS of $0.75 on revenue of $12.40bn. CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.