YAHOO [BRIEFING.COM]: The Dow
and S&P 500 had a lackluster finish that came after they had wavered near
key technical levels, but the Nasdaq managed to score a solid gain following a
couple of exceptional quarterly announcements.
Netflix (NFLX 210.87, +27.84) and Qualcomm
(QCOM 54.90, +3.04) helped the Nasdaq Composite lock in a nice lead
over its counterparts for the entire session. The two stocks were distinguished
by their bottom line beats and upside forecasts. Shortly before the closing
bell Microsoft (MSFT 28.87, +0.09) posted an upside earnings
surprise that pushed the Nasdaq to a session high, but the move was sold into
the final minutes of the session.
The surprise announcement from
MSFT also helped the S&P 500 clear 1300 and the Dow eclipse 12,000, but
neither could hold the move. Both settled slightly below their psychologically
significant lines.
Broad market participants were
generally uninspired by stronger-than-expected earnings from Dow components Caterpillar
(CAT 96.63, +0.88), AT&T (T 28.13, -0.60), and Procter
& Gamble (PG 64.18, -1.93), as well as upside surprises from the
likes of Eli Lilly (LLY 35.47, +0.52) and Colgate-Palmolive
(CL 77.39, -2.61). The primary reason is that simply beating the
consensus earnings estimate has become expected, especially in light of the
stock market's climb in the past couple of months to two-year highs.
Murphy Oil (MUR 65.74, -7.49) failed to meet the
consensus earnings estimate. Bristol-Myers Squibb (BMY 26.35,
+0.42) also came short of the call, but compounded the offense with downside
guidance. Starbucks (SBUX 33.03, -0.04) beat expectations, but
issued downside guidance.
Data today was mixed. Durable
goods orders for December dropped 2.5% in an ugly follow up to the 0.1% decline
that was recorded in the prior month. The sharp decline in December came as a
surprise considering that the Briefing.com consensus called for a 1.5%
increase. Excluding transportation, durable goods orders increased 0.5%, but
that still is not as strong as the 0.6% increase that had been expected among
economists polled by Briefing.com or the 4.5% spike that had been recorded for
the prior month.
The latest initial jobless
claims tally for the week ended January 22 came in at a three-month high of
454,000, which is well above the 410,000 claims that had been widely expected.
Continuing claims came in at 3.99 million, up from 3.90 million.
Pending home sales proved to
be a much more positive surprise. They climbed 2.0% when a 0.5% decline had
been expected.
The Dollar Index was down
fractionally at the end of the trading day. Most of its slip was due to a
narrow gain by the euro, although the yen fell a sharp 0.9% to 82.90 yen per
dollar after S&P's downgrade of Japan's debt to AA- from AA.
Treasuries had a quiet session
that ended with muted gains. An auction of 7-year Notes attracted a
bid-to-cover of 2.85, dollar demand of $82.7 billion, and an indirect bidder
participation rate of 52.1%.
Commodities finished mixed
today. Energy (-1.9%) was the largest declining sector, while industrials
(+1.6%) was the largest advancer. Sugar futures were, once again, the largest
advancing future after they tacked on 3.2% to close at $0.3418 per pound.
Energy futures ended down
sharply today, led lower by a 3.8% decline in March natural gas -which closed
at $4.32 per MMBtu. This morning's inventory data show a draw down that was
more-or-less inline with expectations and that was not enough to stem the
recent drop in prices. March crude oil shed 1.9% to close at $85.64 per barrel.
It notched lows at $85.51, its worst levels since early Dec.
Feb gold finished down 1.2% to
$1318.40 per ounce, while March silver closed lower by 0.4% to $27.03 per
ounce. Both metals dropped sharply in morning trade and were unable to recoup
those losses. In afterhours trade both metals continue to trend lower. Gold's
lows, currently at $$1311.10, mark its worst levels in almost 4 months.
Advancing Sectors: Financials (+0.9%), Consumer
Discretionary (+0.8%), Tech (+0.5%), Industrials (+0.5%), Utilities (+0.4%), Health
Care (+0.3%)
Declining Sectors: Energy (-0.5%), Materials (-0.7%), Consumer
Staples (-0.9%), Telecom (-0.9%)DJ30 +4.39 NASDAQ +15.78 NQ100 +0.7% R2K +0.2%
SP400 +0.5% SP500 +2.91 NASDAQ Adv/Vol/Dec 1348/2.04 bln/1284 NYSE Adv/Vol/Dec
1675/987 mln/1311