Opening View: Stock Futures Drop Following Poor Tech, Financial Earnings

the U.S. Dollar Index is trading 0.26% lower in pre-market activity. The weakening U.S. currency has given a boost to gold futures, as the August contract was last seen higher by $11.50 at $975.20 an ounce in London trading. Finally, crude futures are extending yesterday's gains surrounding Iran and Tropical Storm Dolly. The September crude futures contract was last seen higher by 32 cents at $132.16 per barrel.

In earnings news, Apple (AAPL: sentiment, chart, options) reported a third-quarter profit of $1.07 billion, or $1.19 per share, up from $818 million, or 92 cents per share, a year earlier. Revenue rose to $7.46 billion from $5.41 billion. Analysts were looking for a profit of $1.07 per share on sales of $7.36 billion. Chief Financial Officer Peter Oppenheimer said the company expects to earn $1 a share on $7.8 billion in revenue in the fourth quarter, below the current consensus estimates.

Also in the technology sector, Texas Instruments (TXN: sentiment, chart, options) reported second-quarter net income of $588 million, or 44 cents per share, compared with $614 million, or 42 cents, in the year-earlier period. Revenue was $3.35 billion, down from $3.42 billion. Analysts expected earnings of 45 cents per share on revenue of $3.39 billion. In pre-market activity, TXN was downgraded to "neutral" from "buy" at Merrill Lynch.

In financials, American Express (AXP: sentiment, chart, options) announced that second-quarter net income came in at $653 million, or 56 cents per share, down 38% from last year. The latest results include $600 million added to cover bad U.S. loans, another $136 million charge, and a tax benefit of $101 million. The results were well below expectations for a profit of 83 cents per share. "We do not expect to meet or exceed our long-term financial targets until we see improvements in the economy," Kenneth Chenault, chief executive, said in a statement.

Finally, Wachovia (WB: sentiment, chart, options) reported a second-quarter loss of $8.86 billion, or $4.20 per share. Profit was impacted by a $6.1-billion impairment charge on declining market valuations and asset values. The company also reported that it is reducing its quarterly dividend to 5 cents per share, allowing Wachovia to save $700 million in capital a quarter. Excluding items, WB lost $1.27 per share, versus expectations for a loss of 71 cents per share.

Opening View: Stock Futures Drop Following Poor Tech, Financial Earnings