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Friday April 18, 2014

Finances

Finances
 

Google Reports Quarterly Earnings

Google, Inc. (GOOG), a technology company known best for its search engine that carries the same name, reported its quarterly earnings on April 18.

Google reported quarterly earnings of $13.97 billion. This represents an increase of 31.2% from the same period last year when the company reported quarterly revenue of $10.65 billion.

The company reported quarterly net income of $3.35 billion. This represents an increase of 15.8% from the same period last year when the company reported net income of $2.89 billion.

"We had a very strong start to 2013, with $14 billion in revenue, up 31% year-on-year," said Larry Page, CEO of Google. "We are working hard and investing in our products that aim to improve billions of people's lives all around the world."

Google has over 53,000 full-time employees and is headquartered in Mountain View, California.

Google, Inc. (GOOG) shares ended the week at $799.87.

Coca-Cola Reports Quarterly Earnings


The Coca-Cola Company (KO), an international beverage company, reported its quarterly earnings on April 16.

Coca-Cola reported revenue of $11.04 billion for the quarter. This represents a slight decrease from the same period last year when the company reported quarterly revenue of $11.14 billion.

The company reported quarterly net income of $1.75 billion. This represents a decrease of 15% from the same period last year when the company reported net income of $2.05 billion.

"I am pleased with our first quarter performance results, having once again delivered solid growth against the backdrop of a still uncertain global economy," said Muhtar Kent, Chairman and CEO of The Coca-Cola Company. " Guided by our 2020 Vision, our roadmap for winning together with our global system bottling partners, we enter 2013 and the fourth year of our journey to 2020 focused and on track to reach our goals."

Coca-Cola employs about 150,900 people full-time worldwide. The company was founded in 1886 and is headquartered in Atlanta, Georgia.

The Coca-Cola Company (KO) shares ended the week at $42.66.

Johnson & Johnson Reports Quarterly Earnings


Johnson & Johnson (JNJ), a global company offering products in the health care field, reported its quarterly earnings on April 16.

The company reported revenue of $17.5 billion for the quarter. This represents an increase of 8.4% from the same period last year when the company reported revenue of $16.14 billion.

Johnson & Johnson reported net income of $3.5 billion. This represents a decrease of about 10.5% from the same period last year when the company reported net income of $3.91 billion.

"We delivered solid first quarter results led by the success of many of our recently launched pharmaceutical products and the addition of Synthes to our orthopedics business," said Alex Gorsky, Chairman and CEO of Johnson & Johnson. "Also of note is the growth in our over-the-counter medicines business as we continue to make progress in returning a reliable supply of high quality products to our customers. Our investments to advance our pipelines and expand our global presence, along with the outstanding efforts of our talented people, will enable us to continue to deliver sustainable growth and meaningful innovations to patients and customers around the world."

Johnson & Johnson (JNJ) shares ended the week at $84.49.

The Dow started the week at 14,865 and closed at 14,548. The S&P 500 started the week at 1,589 and ended at 1,555. The NASDAQ started the week at 3,278 and finished at 3,206.
 

Treasuries Decline after G-20 Meeting in Washington

The semiannual meeting of the International Monetary Fund and World Bank took place on April 19. Finance ministers and central bankers from around the world descended upon Washington D.C to discuss the work of the World Bank and the IMF.

The finance officials for all G-20 nations met as well. Their primary purpose was to discuss how to bolster global economic growth. Among other things, they discussed a written commitment to avoid weakening their currencies to obtain a trade advantage.

The comments of officials after the meeting were generally positive. After struggling in the first quarter, China's State Information Center said that China's economy was set to improve in the second and third quarters of 2013. Also, Wolfgang Schaeuble, Germany's Finance Minister said that there was unanimous recognition at the G-20 that Europe has made progress in stabilizing the euro and that the financial markets have a more certain view of the currency.

As a result, treasuries fell for the first time in three days, pushing yields higher, as investors sought the return of riskier securities. The 10-year Treasury yield rose two basis points to 1.70% in early trading on Friday, April 19.

According to Bloomberg, Treasuries are at almost the most expensive level this year. The 10-year term premium was at -0.83% on April 15, which is the most expensive since December 13, 2012. A negative reading indicates investors are willing to accept yields below fair value.

"We are at expensive levels," said Christopher Sullivan, Chief Investment Officer at United Nations Federal Credit Union in New York. "Equities are up, suggesting there may be better sentiment on risk. That may present additional pressure for Treasuries."

The 10-year Treasury note yield finished the week at 1.70% while the 30-year Treasury note yield finished the week at 2.88%.
 

Interest Rates Drop Near Record Lows

Freddie Mac released the results of its Primary Mortgage Market Survey (PMMS) on April 18. The results showed mortgage rates inching lower for the third consecutive week as economic data continues to show weak consumer spending.

The 30-year fixed rate mortgage averaged 3.41% this week. This represents a decrease from last week when it averaged 3.43%. Last year at this time, the 30-year fixed rate mortgage averaged 3.90%.

This week, the 15-year fixed rate mortgage averaged 2.64%, representing a decrease from last week when it averaged 2.65%. One year ago, the 15-year fixed rate mortgage averaged 3.13%.

"Mortgage rates nudged lower this week as consumer spending showed signs of weakness," said Frank Nothaft, Vice President and Chief Economist at Freddie Mac. "Retail sales contracted for the second time in three months, falling 0.4% in March. In addition, the University of Michigan reported their Consumer Sentiment Index dropped 6.3% in April to settle at 72.3, its lowest level since July. The April reading snapped a streak of three consecutive gains."

The money market fund finished this week at 0.5%. The 1-year CD finished at 0.5%.

Published April 19, 2013


Previous Articles

Bed Bath & Beyond Reports Fiscal 2012 Results

JoS. A Bank Reports Annual Earnings

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