Stocks Drop on News Out of Europe

Sheila Dharmarajan explains the latest fears over the European debt crisis.
7:08 | 10/17/11

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Transcript for Stocks Drop on News Out of Europe
-- futures were down this morning on the latest comments out of Europe. -- now to discuss all the business headlines this morning -- down -- us and from Bloomberg TV nation get a good weekend is I think we're getting good weekends in I did so let's start with talk of -- eurozone rescue members of the G-20 -- have a plan in place by next Sunday. But Germany is -- some cold water on hopes of a happy ending out what exactly is going on there now. That's absolutely right Stephanie again we have the markets down this morning investors feeling skittish again all coming out of Europe ID said prison back at the G-20 -- concluded their meetings last week. Really pushing EU members to come up with the resolution to this debt crisis. Putting a deadline on that -- for -- -- over twenty -- next week. The problem is Angela Merkel spokesperson coming out today saying look even if there is a plan in place it's not going to be a quick fix it is not going to be that easy to solve all of his -- which have taken years to build up. Some threw some cold water on the fact that this plan might be when and ultimately -- the -- -- us some more comments He said was that. A lot of the downtrend that we've seen so far will likely -- continue until next year in not a quick fix some markets -- getting a little bit spooked by that. We are seeing things lower this morning. OK yeah they are slightly -- just the first minute of trading -- But here's your both Citigroup and Wells Fargo are out with earnings this morning did they beat the street that's got to factor and it's in some ways to today. Yeah actually like it is a big big earnings week we had two big banks -- either buzz Biron coming out with earnings. Let's -- Citigroup because the stock is higher this morning the company actually reported a 784%. Increase in their profits. Said that is a good news it did beat expectations. -- wasn't the -- number in the world villain in some of those -- actually had to do with the accounting gain but -- actually had to do with the credit trends improving you know when you take -- look deep down into the number -- -- still see that division of the city group like your investment banking division. Like they're trading division are still doing quite clearly still. A lot of concerns out there but this headline numbers -- coming started expected the market clearly liking that. You know bigger -- at the CEO of Citigroup on the consumer -- seeing comments -- the economy He says that things are still slow. We are in a challenging -- and when it comes to jobs which of course what everyone is talking about right now He said that Citigroup will only be hiring in critical positions at. Not necessarily a great outlook for the economy but as they said this headline numbers definitely impressing the street -- that stock is higher. A lot of analysts are saying look they're -- signs of improvement and the market will take. That I can just the last fifteen minute -- new numbers on factory production Howard today. Yeah find -- and -- came in high that she matching estimates about point two tense and that. Percent higher than expected to that's the -- is the problem is the revision for the prior month actually got revised downward -- Net -- probably about equal here you know not a whole lot you can say about that here you know one of the things -- analysts economists saying if you take look at the -- of these industrial production numbers. The good news is we aren't seeing some huge -- spike -- we -- seeing huge decline here so maybe not quite the these numbers were a little bit hell -- yes they matched estimates this -- that last -- was lower than expected. OK let's talk about Phillips cutting 4500. Jobs what is the company saying about these cutbacks -- really an immense job left -- Phyllis and I remember this is the consumer electronics company based in Amsterdam. So coming and saying look we're doing this multiyear restructuring program for the company we want to be leaner we wanna be fast we want to be more entrepreneurial. And as part of that they are laying indeed 4500. Workers. Now the good news is able probably equating to about 800 million euros of cost saving -- Certainly a good thing for the company but of course in an environment where all we can do -- talk of -- jobs. Not a great -- -- -- tonight just about what's happening in Europe at -- if you take a look at what what's happening right here held. Lowe's the home improvement retailer also coming -- with a similar sentiment this morning. They say -- -- closing about twenty North American stories are gonna slow down their North American store openings. That's -- equating to elect 2000 jobs. Still and quickly the jobs picture not getting any greater corporate America not helping at their ever was is trying to cope with these challenging time. That is not good news on the jobs front. I was about research in national and talked a lot about last week all those problems with blackberries -- I believe on five continents including ours. -- what are you doing to appease customers -- Police did admission is -- get back in the good graces the customers who make up for a little bit for -- forty days of service outages that we sell last week. What they're doing is they're offering 800 dollar credit for customers to buy apps from the Blackberry system itself again trying to get back in the good graces the customers were gonna have to see if it's gonna work -- -- -- still so much competition in the Smartphone world you know Stephanie I read this amazing stat here in three days alone. The Apple iPhone four excellent about three million phones out a lot of funds to be solid in -- a couple of days up. -- -- every situation trying to get back in the good graces the customers trying to claw their way out of this but clearly. Bigger picture the Smartphone -- are very very tough on them apple just taking their lines. Yeah that was really bad timing for Research in Motion to have those -- -- -- weak -- song came out. Our Amazon is nearing its profit charges in a push to compete with apple what's -- tells about that. This has to do with the Kindle fire and I remember this isn't -- tablet product that Amazon introduced a couple of weeks ago. Think any kind of as -- souped -- can really can get eleven media services in addition to use the regular books you read in the Kindle here's the thing. Amazon wants to take a piece of this market and they are willing to take a lesson on the Kendall fire -- to -- -- today are often the price in the -- fire at about 199. Dollars that is about half of what the lowest an apple iPad actually -- -- -- they are actually pricing is at a huge discount apple they're probably gonna take a last minute. As a result when you take a look at Amazon's results we are going to -- pressure on their operating margins and in the -- -- operated pretty low operating margins but they're willing to take that hit. All to get this. A step ahead in the tablet market and remember for -- it's not suggested that the tablet and just let the device itself. It's also -- all the content that consumers like you and you're gonna get from the Amazon site when their books and movies -- There helping in the longer and that's can actually overtake these losses at their take in the devices but it's pretty cheap device in -- pretty curious about it. Yeah I've heard some good things and -- to see -- -- -- -- Amazon -- not anything else are going to be watching today Sheila. All of the earnings Jeremy today we have -- in coming up after the that is going to be a huge tech Bellwether will definitely it was a signal if corporate America predict this tech departments are still spending money a lot of people waiting for that to see -- big blue is gonna give the market today -- -- let's take one more look at the Dow rain now down about 68 points. Yeah we IC has expressed the -- down NASDAQ and S&P five during an off about five tenths of one -- -- a half a percent there again in Europe still at front and center -- of these earnings reports are helping -- until European officials can get their act together until we have some sort of resolution on this -- races. We -- likely gonna see some pressure on the markets today that familiar tanks and a car accident from Bloomberg TV thanks slash -- thank you.

This transcript has been automatically generated and may not be 100% accurate.

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