YAHOO [BRIEFING.COM]: Tech
stocks were under pressure for the entire session and caused the Nasdaq to log
its first loss in more than two weeks, but a supportive bid in the broader
market emerged to help the Dow and S&P 500 reverse early losses and finish
with a modest gain.
Microsoft (MSFT 23.45, -2.11) weighed on the Nasdaq
for the entire session. Though the company generated in-line earnings, a
double-digit percentage decline in revenue caused its top line to come short of
expectations. Microsoft's report showcased just how weak demand remains.
Semiconductor stocks (-1.3%)
were pressured even though Broadcom (BRCM 27.20, -1.98) topped
earnings expectations, saw revenue rise at a double-digit annual clip, and
provided upside revenue guidance for the third quarter. Some believe the
results from semiconductor companies are an inaccurate barometer for the tech
sector's health since they feed the tech supply chain rather than consumers
directly.
In-line earnings and an
in-line outlook from online retailer Amazon.com (AMZN 86.49,
-7.38) failed to rebuff profit takers from locking in gains from the stock's
24% surge between July 7 and July 23. That also weighed on the Nasdaq.
Weakness in the Nasdaq caused
it to lag the other headline indices for the entire session. It was down nearly
2% at its session low, but was able to reclaim most of its losses as the
session progressed. Still, its decline put an end to its 12-session streak of
gains.
The S&P 500, a broader
market benchmark, was able to close with a modest gain at session highs. Health
care provided leadership with a 1.6% advance amid news from Reuters that a
leader of House fiscal conservatives said health care reform talks fell apart
and that he sees no possibility of a deal.
Financial stocks tried to provide
support to the broader market, but they never made their way into positive
territory. Instead, they finished with a 0.3% loss. Capital One (COF
30.07, +2.24) saw strong gains, though. The consumer finance outfit reported a
second quarter loss that wasn't as deep as what had been expected. Participants
also reacted positively to the company's quarterly metrics.
Dow component American
Express (AXP 29.51, +0.06) was able to eke out a gain after narrowly
topping the consensus earnings estimate. Its loss provisions were down from the
year-ago period, but they were offset by higher write-offs and past due loans.
Market participants return
Monday to another batch of quarterly announcements. New home sales data for
June are also due.DJ30 +23.95 NASDAQ -7.64 NQ100 -0.2% R2K +0.5% SP400 +0.6%
SP500 +2.97 NASDAQ Adv/Vol/Dec 1446/2.25 bln/1160 NYSE Adv/Vol/Dec 1909/1.02
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