YAHOO [BRIEFING.COM]: For the
second straight session strength in the energy sector helped the broader market
make an upward move in the waning minutes of trade, but this time it
wasn't enough to fully overcome the weakness that stemmed from a handful of
disappointing earnings reports.
Weakness enveloped stocks in
the early going as market participants reacted negatively to the latest batch
of earnings releases. Dow component IBM (IBM 121.64, -6.34)
was out last evening with better-than-expected earnings and even raised its
earnings forecast for 2009. However, the company's top line was down from the
previous year, indicating that demand hasn't fully rebounded.
Google (GOOG 549.85, +19.94) also reported after
the close of trading Thursday. The company brought in $5.89 per share, which
bested the consensus estimate of $5.42 per share. Google distinguished its
report from many others this earnings season by posting an increase to its
revenue.
Economic bellwether and
industrial conglomerate General Electric (GE 16.08, -0.71)
brought in better-than-expected earnings of its own, though it saw continued
pressure in its capital finance business and was hit with a 20% year-over-year
drop in revenue.
Bank of America (BAC 17.26, -0.84) kept the focus of participants
on the negative side of things by unveiling a deeper-than-expected loss of
$0.26 per share for the third quarter. Disappointment from Bank of America's
report extended the financial sector's losses from the prior session, leaving
it to finish this session with a 2.6% loss and down 0.2% for the week.
Weakness in the financial
sector bled into the broader market and hampered it for the entire session.
Stocks did manage to pare some
of their losses, though. The move came late in the session as energy stocks
staged a rally on the heels of rising oil prices. Oil prices hit a new 2009
high of $78.67 per barrel and settled just off those highs at $78.51 per
barrel, up 1.2%. However, energy stocks couldn't hold steady in positive
ground and slipped to a fractional loss, instead. The broader market also lost
its momentum in the final minutes of trade.
Economic data wasn't much of a
help to stocks. The University of Michigan Preliminary Sentiment Consumer
Survey came in at 69.4, which is below the 73.3 that was widely expected.
Meanwhile, industrial
production was up 0.7% in September. That beat the 0.2% increase that was
expected.
Advancing Sectors: Consumer Staples (+0.4%), Utilities
(+0.3%)
Declining Sectors: Financials (-2.6%), Materials (-1.4%), Tech
(-1.0%), Telecom (-0.9%), Industrials (-0.9%), Consumer Discretionary (-0.6%),
Health Care (-0.4%), Energy (-0.1%)DJ30 -67.03 NASDAQ -16.49 NQ100 -0.8% R2K
-1.2% SP400 -1.0% SP500 -8.88 NASDAQ Adv/Vol/Dec 837/2.21 bln/1828 NYSE
Adv/Vol/Dec 1041/1.39 bln/1962