As Earnings Move To The Forefront, Here Are Two Key Reports For Today
The
major averages are higher midday after the release of a
slightly-better-than expected business inventories number had little effect on
price action. Trading has been quiet on low volume ahead of key earnings
announcements scheduled for the week. Topping today’s earnings news, banks
Citigroup and Bank of America put in upside surprises, and both are slightly
higher midday after experiencing sharp sell offs after opening higher. Also, key
Internet stocks are under water on the heels of a negative front page article in
Barron’s over the weekend.Â
The Dow Jones Industrial
Average
(
$INDU.X |
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PowerRating) is +1.34% at 8,313.00. The S&P 500
(
$SPX.X |
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PowerRating)
is +1.34% at 879.93. The Nasdaq
(
$COMPQ |
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PowerRating) is +1.405% at 1,377.94.
Top gainers are
healthcare
(
$HMO.X |
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PowerRating), +2.17%, telecoms
(
$IXTC.X |
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PowerRating),
+1.96%, and software
(
$GSO.X |
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PowerRating), +1.92%.
In the losers column we have
gold and silver
(
$XAU.X |
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PowerRating), -0.76%, oil service
(
$OSX.X |
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PowerRating),
-0.22%, and airlines
(
$XAL.X |
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Chart |
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PowerRating), -0.12%.
In economic news, business
inventories rose 0.6% vs. expectations of a 0.2% gain.
The 10-year U.S. Note
is -145 at 113 215.
The dollar is -0.18 at
100.37.
Gold is -2.20 at 325.70.
Crude Oil +0.24 at
28.38.
Volume is at 495,251,000
on the NYSE, and at 555,264,000 on the Nasdaq.
Market breadth is positive,
with NYSE advancing issues over declining issues by a ratio of 2.61, and up
volume over down volume by a 4.39 ratio. Nasdaq advancing issues over declining
issues are at 1.73, and up volume over down volume is at a 3.87 ratio.
Biggest Dow gainers are:
General Motors
(
GM |
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PowerRating), +3.99% at 36.22, JP Morgan
(
JPM |
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Chart |
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PowerRating), +3.79% at 26.56,
Hewlett Packard
(
HPQ |
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Chart |
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PowerRating), +3.33% at 15.81, Alcoa
(
AA |
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Chart |
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PowerRating), +3.20% at
21.96, Altria
(
MO |
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PowerRating), +3.07% at 31.53, United Technologies
(
UTX |
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Chart |
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PowerRating),
+2.38% at 62.71, and Boeing
(
BA |
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Chart |
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PowerRating), +2.23% at 27.06.
Stocks in the news:
Money Center Banks Citigroup
Inc.
(
C |
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Chart |
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PowerRating), +1.55% at 37.93, beat its earnings expectations by $0.02 with
profits of $0.79 per share. And, Bank of America
(
BAC |
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News |
PowerRating), +0.03% at
71.36, beat its first-quarter earnings expectations by $0.11 with profits of
$1.48 per share.
Also in the money center bank
biz, JP Morgan
(
JPM |
Quote |
Chart |
News |
PowerRating), +3.79% at 26.56, is the subject of a positive
Wall Street Journal article which claims no current news on the stock
looks good given the company’s recent setbacks.
Financial services company
Fannie Mae
(
FNM |
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Chart |
News |
PowerRating), +2.01% at 70.40, beat its first-quarter earnings by
$0.10 with profits of $1.84 per share.
Internet stocks made the cover
of Barron’s over the weekend in an article which highlighted Yahoo!
(
YHOO |
Quote |
Chart |
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PowerRating), -0.90% at 24.21, Amazon.com [AMZN]AMZN], -2.80% at 24.95,
and eBay
(
EBAY |
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PowerRating), -0.98% at 87.43, as potentially overvalued.
In the retail sector Merrill
Lynch has downgraded to “neutral” from “buy” the following: Abercrombie and
Fitch
(
ANF |
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PowerRating), -1.37% at 30.97, Coach
(
COH |
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PowerRating), -1.17% at 38.05,
Gap
(
GPS |
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PowerRating), -0.68% at 16.09, Ross Stores
(
ROST |
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Chart |
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PowerRating), -0.27% at
37.27, and TJ Maxx
(
TJX |
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Chart |
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PowerRating), -2.17% at 18.50.
Drug maker Osip
Pharmaceuticals
(
OSIP |
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PowerRating), +9.41% at 16.74, has been upgraded by Merrill
Lynch to “buy” from “neutral”.
Capital goods company Eaton
(
ETN |
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PowerRating), +2.60% at 74.18, beat its first-quarter earnings expectations by
$0.11 with profits of $0.95 per share. The company has also guided higher for
the second-quarter.
Also in the capital goods
business, Cummins
(
CUM |
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Chart |
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PowerRating), -0.71% at 25.02, has lowered its earnings
guidance, and now expects to take a loss between $0.85-0.95 per share vs. a
consensus for a loss of $0.57.
Conglomerate Temple-Inland
(
TIN |
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PowerRating), +3.16% at 41.19, is the subject of a positive Barron’s article
which claims the stock is poised to go higher if the company were to sell its
savings and loan bank Guaranty.