Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

American Express Company (AXP), Intel Corporation (INTC), Verizon Communications Inc. (VZ): The Good and the Bad of Earnings Season

American Express Company (NYSE:AXP)As of 12:45 p.m. EDT the Dow Jones Industrial Average (Dow Jones Indices:.DJI) is up 90 points, or 0.58%, to 15,560, which would be a new all-time closing high if the markets were to hold on to their gains. Meanwhile, the S&P 500 has risen 0.48% and the Nasdaq is flat%. Now that we’re getting into the thick of earnings season, stocks are moving based on real information, rather than rumors or macroeconomic events that may or may not impact business fundamentals.

The Dow is benefiting from strong earnings reports from IBM and UnitedHealth, which have helped the two companies add about 60 points to the index. However, a few big losers are holding the index at its current levels, so let’s take a look at who they are.

Shares of American Express Company (NYSE:AXP) are down 3% this afternoon. The company reported expectation-beating second-quarter profit and revenue more or less in line with estimates, but the stock was soon downgraded for the second time in just a few days. Buckingham lowered its rating yesterday, and today Susquehanna lowered its call on the stock from “positive” to “neutral.” Additionally, the company still faces the possibility that the European Commission’s plan to limit credit and debit card transaction fees will be approved.

Intel Corporation (NASDAQ:INTC) is taking a big hit today, down 4%. The company released earnings last night, and although it matched estimates for earnings per share and just barely missed revenue estimates of $12.9 billion with sales of $12.8 billion, investors are selling off the stock today. The most likely cause of that move is that management is forecasting lower third-quarter revenue than Wall Street was expecting — $13.5 billion versus $13.7 billion. Additionally, when the last quarter is compared to the second quarter of last year, when EPS was at $0.54 and revenue came in 5% higher, today’s stock price decline makes sense.

Lastly, shares of Verizon Communications Inc. (NYSE:VZ) are down 1.7% today after the company released earnings that were not terrible but surely didn’t impress. Revenue came in at $29.8 billion, while analysts were estimating $29.83 billion, and earnings per share rose to $0.73, just above expectations of $0.72 per share. Although these numbers looked good, revenue growth was lower than expected, and with the stock up 17% year to date, it was priced for perfection — and that’s not what investors saw in Verizon Communications Inc. (NYSE:VZ)’s report.

The article The Good and the Bad of Earnings Season originally appeared on and is written by Matt Thalman.

Fool contributor Matt Thalman has no position in any stocks mentioned. Check back Monday through Friday as Matt explains what caused the Dow’s winners and losers of the day, and every Saturday for a weekly recap. Follow Matt on Twitter @mthalman5513. The Motley Fool recommends American Express, Intel, and UnitedHealth Group. The Motley Fool owns shares of Intel and International Business Machines.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.