Market Preview: A Warning Signal
Jim O'Sullivan, chief U.S. economist at High Frequency Economics , expects the impact of Hurricane Sandy to start to show up in the data this week, specifically in tomorrow's retail sales number as well as initial jobless claims on Thursday.
"While we expect the net impact on Q4 GDP to be modest, some of the monthly and weekly data could be affected significantly, with extra weakness at the start of the quarter followed by catch-up later," he said. "The main candidates for a noticeable impact this week are retail sales and jobless claims -- with retail sales down and jobless claims up."
The networking giant reported non-GAAP earnings of $2.57 billion, or 48 cents a share, on revenue of $11.88 billion, up from a year-ago equivalent profit of $2.32 billion, or 43 cents a share, on revenue of $11.27 billion.
The performance topped the average estimate of analysts polled by Thomson Reuters for earnings of 46 cents per share on revenue of $11.77 billion. On CNBC, CEO John Chambers said the company's gross margin came in at 62.7% for the quarter. The stock was last quoted at $18.10, up 7.42%, on extended volume of 12.24 million, according to Nasdaq.com.
-- Written by Michael Baron in New York.
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