General Electric’s numbers were right on target, but investors weren’t impressed. Fourth quarter income was up nearly five percent as industrial revenue increased. GE has been able to improve profit by cutting costs and increasing productivity. Profit margins, however, disappointed, hurt by certain delivery delays and weak energy management. Shares fell more than two percent to $26.58.
Legal bills weighed on Morgan Stanley’s profit, but investors didn’t seem to mind. Despite a $1.2 billion legal expense related to mortgage-backed securities, adjusted earnings beat market estimates. The firm said strong investment banking performance helped it post good results. Shares rose more than four percent to $33.40.
Capital One’s profit missed street estimates. Net-interest fell in both the company’s credit card and consumer banking business. Revenue was slightly above consensus. Still, shares fell more than five percent to $72.39.
IBM will invest in more than $1 billion to expand its cloud services operation. The cloud expansion will include building 15 new data centers around the world. This isn’t the company’s first cloud investment; it acquired SoftLayer, a cloud computing business, last year for $2 billion. Shares rose slightly to $190.09.