Here’s What You Need To Know About Bank Earnings
Stocks are lower
Thursday on higher oil prices, lackluster economic data and a weak report by
General Motors.
The trade deficit for August rose more than
expected to $54 billion; import prices rose 0.2%; export prices rose 0.4%.
Jobless claims for the week of 10/9 rose 15,000 to 352,000
Oil inventories rose by 4.2 million
barrels. Heating oil inventories fell by 2.5 million barrels. The EIA said
demand for heating oil rose 3.1% in the past month. Gasoline inventories rose
1.2 million barrels.
General Motors
(
GM |
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News |
PowerRating) missed estimates, reporting 0.78, warned, and announced 12,000 job cuts
in Europe. The company also cited rising raw materials costs.
Bank earnings are in focus. The good news: lower
reserves for bad loans. The bad news: low rates are putting pressure on spread
revenue and capital markets have been poor. Citigroup
(
C |
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PowerRating) Q3 profits
rose, 1.02 vs. a 0.99 estimate, but missed on revenues. 58% of profit came from
its consumer unit. Bank of America
(
BAC |
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PowerRating) beat by a penny. Q3 profit
rose 29%; the company missed on revenues.
Google released a desktop search which allows you to search Microsoft
and text files
PlanetOut
(
LGBT |
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Chart |
News |
PowerRating) IPO came at $9. The stock is trading at 10.37.
Eliot Spitzer is taking on the insurance industry, specifically bid
rigging and payoffs by Marsh and McLennan. Other companies named are: Ace, AIG,
The Hartford and Munich American.
Sun Microsystems SUNW reports after
the bell, estimates are <0.03>.
| Dow | -74.40 | 9927.70 |
| S&P 500 | -6.13 | 1107.52 |
| Nasdaq | -12.60 | 1907.93 |
Strong sectors are: Oil
Services
(
OSX.X |
Quote |
Chart |
News |
PowerRating) +2.04%,
Airlines
(
XAL.X |
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News |
PowerRating) +1.93%, Natural Gas
(
XNG.X |
Quote |
Chart |
News |
PowerRating) +1.22%Â Â
Weak sectors are:Â Semis
(
SOX.X |
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Chart |
News |
PowerRating), Insurance
(
IUX.X |
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Chart |
News |
PowerRating)
-2.63%, Brokers
(
XBD.X |
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Chart |
News |
PowerRating) -1.67%.
10-year notes are: +100
at 113 130
The dollar
is -0.34 at 87.54
Gold is +1.10 at 417
Crude Oil is +0.76 at 53.90
826 million on the Nasdaq.
Market breadth is negative.
| NYSE | Issues | |
| Advancing | 1443 | Up Vol 232 |
| Declining | 1648 | Down Vol 396 |
| Ratio | 1.14 | 1.70 |
| Nasdaq |
||
| Advancing | 1015 | Up Vol 261 |
| Declining | 1803 | Down Vol 520 |
| Ratio | 1.77 | 1.99 |
Stocks in the News
Apple (AAPL)
reported 0.27 vs. a 0.18 estimate (0.26 adjusted for dilution). Revenues were
$2.35 billion vs. a $2.15 billion estimate. The company shipped over 2 million
iPods, more than the 1.45 million consensus.
Abbot Labs
(
ABT |
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PowerRating) was in-line and posted a higher Q3 profit.
United Healthcare
(
UNH |
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PowerRating) reported 1.04, beating by 0.04
Southwest Airlines
(
LUV |
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News |
PowerRating) said Q3 profits rose 12.3%.
Sandisk (SNDK)
missed by 0.05; the stock fell $5 in after hours trading.
Lam Research (LRCX)
beat by 0.06 and announced a $250 million share buyback.
QLogic (QLGC)
beat by 0.04.
InFocus
(
INFS |
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PowerRating) cut its Q3 sales outlook.
Nokia
(
NOK |
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Chart |
News |
PowerRating) said Q3 earnings fell.
Novellus (NVLS)
was in-line. The company lowered its outlook, saying customers have become more
cautious.
Brice Wightman