Stocks Spooked, Housing Starts Slammed, Jobless Jump

Stocks closed down today, but well above their worst levels, after being spooked by disappointing earnings and recession fears. The lowest housing starts since records were started in 1959 combined with jumping jobless claims rattled the market with the DJIA losing -105.30 to 8122.80, the tech heavy Nasdaq dropping -41.58 to 1465.49 and the broad based market barometer S&P 500 slipping -12.74 to 827.50. Provided the severity of today’s economic data, the stock market has shown surprising resilience in the face of the ugly figures, which is a positive indication.

Microsoft
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– The software giant fell 11.71% or $2.27 to $17.11/share after missing analysts estimates of sales and income. In response, the company is cutting 5000 jobs and instituting other cost cutting measures.

Comerica
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– The financial company climbed 9.31% or $1.29 to $15.15 despite a massive drop in income after they announced cost cutting measures via job elimination.

eBay
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– Dropped 12.05% or $1.60 to $11.68/share upon missing analysts EPS estimates.

Apple
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– Gained 6.68% or $5.53 to $88.36/share after beating analysts sales and profits forecasts in the 1st quarter.

Oil dropped 0.12 cents to $43.00, gold eased ahead $8.70 to $858.80 and the fear index VIX added 1.83% to 47.27

Market Snapshot

Dow

-105.30 8122.8

NASDAQ

-41.58 1465.49

S&P 500

-12.74 827.50

Economic
News

Building Permits (Dec): Consensus: 615K, Prior: 616K

Housing Starts (Dec): Consensus: 610K, Prior: 625K

Initial Claims (Jan 17): Consensus: 548K, Prior: 524K

Crude Inventories (Jan 16): Consensus:NA, Prior: 1.14M