Markets wavered on Wednesday after applications for U.S. mortgages dropped last week. The Mortgage Bankers Association reported that their index for mortgage activity dropped 9% for the week ending on February 6. This data accounts for both refinancing applications and mortgage applications. Refinancing applications dropped 10.3%, while mortgage loan applications fell 6.5%.
Shares of Pepsico, Inc. (PEP) were trading higher after the company reported quarterly profits that beat analysts expectations. The company partially attributed the higher data from stronger sales at their Frito-Lay business and raised dividends. They said dividends were being increased by 7.3% to $2.81 per share. Pepsi also said that intend to return $8.5 billion to $9 billion to their shareholders this year. Chief Financial Officer, Hugh Johnston, said, “We have momentum. We are absolutely rolling right now.” Revenue fell nearly 1% to $19.95 billion, but it still beat out expectations of $19.66 billion. Net income dropped to $1.31 billion, or 87 cents per share, which was down from $1.74 billion, or $1.12 per share.
Time Warner Inc. (TWX) shares were trading slightly higher after reporting their quarterly-profits. Revenue from their Turner Broadcasting division was up 2.3% to $2.6 billion during their fourth-quarter. This accounts for channels like CNN, TNT and Cartoon Network and accounts for 34.6% of overall revenue for Time Warner. HBO, which attributes 18% of total revenue, was up 6.2% to $1.3 billion. There was a dark spot on the data. A decline of 4.5% to $7.55 billion was noted at their Warner Brothers movie studio business. Chairman and Chief Executive Officer, Jeff Bewkes, said, “
That’s all for today,
Warren Gates, Normandy Research