YAHOO[BRIEFING.COM]: Strength
in tech, energy, and financial stocks helped the broader market shake off early
weakness to finish the session 0.5% higher. Stocks had been down more than 2.6%
at their session low.
Google (GOOG 324.70, +18.20) helped drive the
tech sector 1.6% higher. Investors bid shares of the Internet titan higher
after it announced better-than-expected fourth quarter results, which featured
double-digit top and bottom line growth. Google's annual cash flow totaled
roughly $25 per share, which is more than double that of Apple (AAPL
88.36, +0.00) or Microsoft (MSFT 17.20, +0.09).
The energy sector (+2.2%) put
together a strong advance of its own as crude oil prices rebounded from a 5%
loss to finish more than 4% higher at $45.60 per barrel. Crude advanced nearly
25% this week. Though oil staged a strong advance, demand
concerns remain in focus.
Oil services outfit Schlumberger
(SLB 41.00, +3.73) indicated a sharp drop in oil and gas prices
caused a rapid and substantial decline in spending on exploration and
production services. Its shares provided leadership to the energy sector in
what some pundits believe was a short-covering rally. Schlumberger has been
trading at multiyear lows in recent sessions, and reported this morning
quarterly earnings results that fell short of the consensus estimate.
Financial stocks logged the
best performance of the session. They advanced 3.4% with the support of other
diversified financial services companies (+7.0%). Capital One Financial
(COF 19.32, -2.62) was a laggard in the sector and traded at new
multiyear lows; it reported a loss of $1.59 per share for the latest quarter.
The results further underscore profit concerns and the threat of capital
raises.
Such concerns have taken their
toll on General Electric (GE 12.03, -1.45). The economic
bellwether reported in-line earnings results and said it does not see a
scenario where it would need to raise capital. Management also reiterated
that it is maintaining its dividend. At GE's current share price, GE's dividend
yield stands at almost 10%, leading many to quesion whether it is
sustainable. GE registered new multiyear lows this session; its weakness
undercut the industrial sector (-3.3%) and the Dow Jones Industrial Average.
Though overall credit
conditions remain tight, cash rich companies are able to take advantage of
depressed asset and securities prices by making acquisitions. According to
reports, Pfizer (PFE 17.45, +0.24) may be looking to
acquire Wyeth (WYE 43.74, +4.91) in a deal valued at more than
$60 billion. Such a deal would help Pfizer rebuff concerns stemming from a
narrowing product pipeline and increased competition from generic drug makers.
Stocks finished with a weekly
loss of 2.1%, which isn't quite as severe as the 4.5% loss registered last
week. Stocks are down almost 8% for the month.DJ30 -45.24 NASDAQ +11.80 NQ100
+0.7% R2K +0.3% SP400 +1.0% SP500 +4.45 NASDAQ Dec/Adv/Vol 1406/1268/2.18 bln
NYSE Dec/Adv/Vol 1386/1663/1.42 bln