Portfolio Crafter
10-19-2007, 02:35 AM
End of Day Market Summary - Thursday, October 18, 2007
by Portfolio Crafter (http://www.wealthpire.com/cmd.php?Clk=1838416)
Stocks struggled to retain gains after crossing into positive territory in late-session trading as most blue-chip stocks were weighed down by news of Bank of America Corp.'s bleak earnings report. All evidence points to an economic slowdown, which could be a soft landing and not a recession.
The Dow Jones industrial average closed down 3.58 or 0.03% to 13,888.96, the broader S&P 500 closed down 1.16 or 0.08% to 1,540.08, and the tech-fueled Nasdaq composite closed up 6.64 or 0.24% to 2,799.31.
Market breadth was negative. On the New York Stock Exchange, losers beat winners 9 to 7 on volume of almost 1.27 billion shares. On the Nasdaq, decliners topped advancers 4 to 3 on volume of 2.03 billion shares.
Mixed earnings news and record-high oil prices kept the markets fluctuating. It is apparent that looking forward, stocks could be in for a bit of a retreat after the recent run. Investors are aware that earnings reporting period is not going to be great, and with the oil prices high, the market is set to correct a bit from recent highs. Worries that the mortgage and credit market crisis could send the economy into recession led to global banks pumping billions into their banking systems and the U.S. Fed cutting the discount rate, which impacts bank loans, and the fed funds rate, which impacts consumer loans.
This quarter is expected to mark the weakest pace of earnings growth in at least 5 years. The number of Americans filing new claims for unemployment rose last week by a greater-than-expected amount. The index of leading economic indicators rose 0.3% in September, and the Philadelphia Fed index dipped to 6.8 from 10.9.
Shares of Bank of America closed down $1.18 or 2.36% to $48.85, after reporting quarterly sales and earnings that fell on a setback for the company's investment banking business in response to the financial market mess. Its net income fell 32% to $3.70 billion, from $5.42 billion a year earlier. Its revenue declined 12% to $16.3 billion from $18.49 billion in the same period in 2006.
Stock of Washington Mutual closed down $2.55 or 7.71% to $30.52, on reporting earnings that missed estimates. Its net income fell 72% to $210 million, from $748 million a year earlier. Revenue fell nearly 12% to $3.39 billion from $3.52 billion a year ago.
Shares of eBay closed down $2.50 or 6.16% to $38.10, after declaring a loss due to big charges associated with its Skype telecom purchase. It reported a third-quarter net loss of more than $936 million. However, its revenue was up 30% to $1.89 billion. Not counting Skype charges, stock-based compensation and other expenses, eBay earned $563.8 million, up 53% from $367.4 million in the year-ago quarter.
Stock of Pfizer closed down $0.01 or 0.04% to $24.54, after reporting quarterly profit plunged due to a $2.8 billion charge to end investment in inhaled insulin drug Exubera, and lower sales of blockbuster cholesterol drug Lipitor. It earned $761 million, down from $3.36 billion during the same period a year ago. Revenue fell 2% to $11.99 billion from $12.28 billion a year earlier.
U.S. light crude oil for November delivery ended at $89.47 a barrel after hitting an intraday record of $89.55 shortly before the close. Oil prices rose on the weak dollar and escalating violence between Turkey and Iraq.
Join PortfolioCrafter.com (http://www.wealthpire.com/cmd.php?Clk=1838416)
Join FirstHourTrading.com (http://www.wealthpire.com/cmd.php?Clk=1841176)
by Portfolio Crafter (http://www.wealthpire.com/cmd.php?Clk=1838416)
Stocks struggled to retain gains after crossing into positive territory in late-session trading as most blue-chip stocks were weighed down by news of Bank of America Corp.'s bleak earnings report. All evidence points to an economic slowdown, which could be a soft landing and not a recession.
The Dow Jones industrial average closed down 3.58 or 0.03% to 13,888.96, the broader S&P 500 closed down 1.16 or 0.08% to 1,540.08, and the tech-fueled Nasdaq composite closed up 6.64 or 0.24% to 2,799.31.
Market breadth was negative. On the New York Stock Exchange, losers beat winners 9 to 7 on volume of almost 1.27 billion shares. On the Nasdaq, decliners topped advancers 4 to 3 on volume of 2.03 billion shares.
Mixed earnings news and record-high oil prices kept the markets fluctuating. It is apparent that looking forward, stocks could be in for a bit of a retreat after the recent run. Investors are aware that earnings reporting period is not going to be great, and with the oil prices high, the market is set to correct a bit from recent highs. Worries that the mortgage and credit market crisis could send the economy into recession led to global banks pumping billions into their banking systems and the U.S. Fed cutting the discount rate, which impacts bank loans, and the fed funds rate, which impacts consumer loans.
This quarter is expected to mark the weakest pace of earnings growth in at least 5 years. The number of Americans filing new claims for unemployment rose last week by a greater-than-expected amount. The index of leading economic indicators rose 0.3% in September, and the Philadelphia Fed index dipped to 6.8 from 10.9.
Shares of Bank of America closed down $1.18 or 2.36% to $48.85, after reporting quarterly sales and earnings that fell on a setback for the company's investment banking business in response to the financial market mess. Its net income fell 32% to $3.70 billion, from $5.42 billion a year earlier. Its revenue declined 12% to $16.3 billion from $18.49 billion in the same period in 2006.
Stock of Washington Mutual closed down $2.55 or 7.71% to $30.52, on reporting earnings that missed estimates. Its net income fell 72% to $210 million, from $748 million a year earlier. Revenue fell nearly 12% to $3.39 billion from $3.52 billion a year ago.
Shares of eBay closed down $2.50 or 6.16% to $38.10, after declaring a loss due to big charges associated with its Skype telecom purchase. It reported a third-quarter net loss of more than $936 million. However, its revenue was up 30% to $1.89 billion. Not counting Skype charges, stock-based compensation and other expenses, eBay earned $563.8 million, up 53% from $367.4 million in the year-ago quarter.
Stock of Pfizer closed down $0.01 or 0.04% to $24.54, after reporting quarterly profit plunged due to a $2.8 billion charge to end investment in inhaled insulin drug Exubera, and lower sales of blockbuster cholesterol drug Lipitor. It earned $761 million, down from $3.36 billion during the same period a year ago. Revenue fell 2% to $11.99 billion from $12.28 billion a year earlier.
U.S. light crude oil for November delivery ended at $89.47 a barrel after hitting an intraday record of $89.55 shortly before the close. Oil prices rose on the weak dollar and escalating violence between Turkey and Iraq.
Join PortfolioCrafter.com (http://www.wealthpire.com/cmd.php?Clk=1838416)
Join FirstHourTrading.com (http://www.wealthpire.com/cmd.php?Clk=1841176)