STOCKS FALL AFTER GOOGLE FIASCO: Here's What You Need To Know

Google booth slide TBI MWC 2011

Photo: Dan Frommer, Business Insider

A big leak from Google took the markets deeper into the red.First the scoreboard:

Dow: 13,548, -8.0, -0.0 per cent
S&P 500: 1,457, -3.5, -0.2 per cent
NASDAQ: 3,072, -31.2, -1.0 per cent

And now the top stories:

  • Google was scheduled to announce its Q3 financial results after the closing bell today.  But in an epic snafu, its earnings announcement was published at around 12:30 via an 8-K filing with the SEC.  At the top of the filing, it read “PENDING LARRY QUOTE,” which was a clear sign to everyone that it was a draft.
  • Right away, Google blamed financial printing company RR Donnelley for the leak.  This announcement in turn caused RRD shares to plunge.
  • However, Google didn’t tumble because of the leak.  Rather, the stock tumbled because the details of the filing were bad.  According to the 8-K, earnings per share came in at $9.03 versus expectations of $10.65.  Revenue was $11.33 billion versus expectations of $11.83 billion.  Click Here For Full Analysis Of Google’s Premature Earnings Announcement >
  • The Google debacle took attention away from some disappointing economic data this morning.
  • Initial jobless claims jumped to 388k, which was much higher than the 365k expected by economists.  However, the markets barely reacted.  Most people were expecting some payback after last week’s number plunged to 339k.  Here’s Why Today’s Jobless Claims Report Was So Carefully Watched >
  • The Philly Fed index surged to 5.7, which leapfrogged over expectations for 1.0.  However, all of these gains were due to higher prices.  In fact, the employment and orders sub-indices both fell.  So overall, not a good report. Remember All Those Great Consumer Charts? — Now Here’s The Dark Side Of The Economy >
  • Microsoft and Chipotle will be announcing Q3 earnings after the closing bell. We will be covering both announcements at BusinessInsider.com.
  • Don’t Miss: 19 Chinese White Collar Criminals Who Were Handed The Death Sentence >

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