Portfolio Crafter
10-21-2007, 09:14 PM
End of Day Market Summary - Friday, October 19, 2007
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Stocks tanked as panicky investors opted to sell after disappointing earnings from blue chips Honeywell International Inc., 3M Co. and Caterpillar Inc. tipped the delicate balance the street had walked between hard-hit financials and strength in technology. This is a cumulative result of problems in the bank sector, slower corporate earnings growth, the weak dollar, and record-high oil prices all came to a head.
The Dow Jones industrial average closed down 366.94 or 2.64% to 13, 522.02, the broader S&P 500 closed down 39.45 or 2.56% to 1,500.63, and the tech-fueled Nasdaq composite closed down 74.15 or 2.65% to 2, 725.16. For the week, the Dow declined 4.1%, the S&P lost 3.9%, and the Nasdaq slipped 2.9%.
Market breadth was negative. On the New York Stock Exchange, losers beat winners 5 to 1 on volume of 1.8 billion shares. On the Nasdaq, decliners topped advancers 5 to 1 on volume of 2.4 billion shares.
Disappointing earnings exacerbated concerns about weak third-quarter profits. Stubbornly high oil prices added to the day's weakness, as the dollar fell to a new record low against the Euro and also slipped versus the yen. Investors have digested what the run up in oil prices could mean for consumer spending and the economy. The run up in oil prices revives fears about whether it will drive up inflationary pressures enough to limit the Federal Reserve's ability to cut interest rates further, even if the economic growth deteriorates enough to warrant more cuts.
With 24% of the S&P 500 having reported, earnings are currently on track to have fallen 0.1% from the same period a year ago. Even if overall earnings growth ends up a few percentage points higher, the third-quarter will still represent the worst quarterly growth in more than 5 years.
Stock of Caterpillar closed down $4.09 or 5.27% to $73.57, after reporting quarterly earnings that rose versus a year ago, but results were short of estimates. Its third-quarter earnings rose 21% but the company lowered its outlook for the year. It earned $927 million, compared with $769 million in the year-ago quarter. Revenue increased 9% to $11.44 billion, from $10.52 billion in the prior-year period.
Shares of Honeywell closed down $2.37 or 3.91% to $58.32, after reporting results that disappointed investors. Net income grew to $618 million, from $541 million in the prior-year period. Quarterly revenue jumped 10% to $8.74 billion, from $7.95 billion.
Stock of 3M closed down $8.11 or 8.56% to $86.62, after reporting higher quarterly earnings that topped estimates on higher sales that missed estimates. The company also raised its fiscal 2007 earnings forecast. However, investors were unnerved by news that 3M is cutting prices on its films for LCD television screens, one of its most profitable ventures.
Shares of McDonald's closed down $0.37 or 0.65% to $56.42, after reporting higher quarterly earnings that met estimates on sales that missed forecasts. Its third-quarter profit rose to $1.07 billion, from $843.3 million a year earlier. Its global same-store sales rose 6.9% in the quarter.
Stock of SanDisk closed down $7.60 or 15.11% to $42.71, after reporting lower quarterly earning. However, it also reported gross margins that were short of forecasts, sending shares of the flash memory drive maker lower.
Shares of Google closed up $5.09 or 0.80% to $644.71, after reporting higher quarterly sales and earnings that topped estimates. Its revenues in the third quarter were $4.23 billion, up 57% from a year ago. It posted net income of $1.07 billion, an increase of 46% from a year ago.
U.S. light crude oil for November delivery briefly hit a record of $90.07 a barrel in electronic trading. Oil fell $1.19 to to $88.28 a barrel on the New York Mercantile Exchange in afternoon trading.
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by Portfolio Crafter (http://www.wealthpire.com/cmd.php?Clk=1838416)
Stocks tanked as panicky investors opted to sell after disappointing earnings from blue chips Honeywell International Inc., 3M Co. and Caterpillar Inc. tipped the delicate balance the street had walked between hard-hit financials and strength in technology. This is a cumulative result of problems in the bank sector, slower corporate earnings growth, the weak dollar, and record-high oil prices all came to a head.
The Dow Jones industrial average closed down 366.94 or 2.64% to 13, 522.02, the broader S&P 500 closed down 39.45 or 2.56% to 1,500.63, and the tech-fueled Nasdaq composite closed down 74.15 or 2.65% to 2, 725.16. For the week, the Dow declined 4.1%, the S&P lost 3.9%, and the Nasdaq slipped 2.9%.
Market breadth was negative. On the New York Stock Exchange, losers beat winners 5 to 1 on volume of 1.8 billion shares. On the Nasdaq, decliners topped advancers 5 to 1 on volume of 2.4 billion shares.
Disappointing earnings exacerbated concerns about weak third-quarter profits. Stubbornly high oil prices added to the day's weakness, as the dollar fell to a new record low against the Euro and also slipped versus the yen. Investors have digested what the run up in oil prices could mean for consumer spending and the economy. The run up in oil prices revives fears about whether it will drive up inflationary pressures enough to limit the Federal Reserve's ability to cut interest rates further, even if the economic growth deteriorates enough to warrant more cuts.
With 24% of the S&P 500 having reported, earnings are currently on track to have fallen 0.1% from the same period a year ago. Even if overall earnings growth ends up a few percentage points higher, the third-quarter will still represent the worst quarterly growth in more than 5 years.
Stock of Caterpillar closed down $4.09 or 5.27% to $73.57, after reporting quarterly earnings that rose versus a year ago, but results were short of estimates. Its third-quarter earnings rose 21% but the company lowered its outlook for the year. It earned $927 million, compared with $769 million in the year-ago quarter. Revenue increased 9% to $11.44 billion, from $10.52 billion in the prior-year period.
Shares of Honeywell closed down $2.37 or 3.91% to $58.32, after reporting results that disappointed investors. Net income grew to $618 million, from $541 million in the prior-year period. Quarterly revenue jumped 10% to $8.74 billion, from $7.95 billion.
Stock of 3M closed down $8.11 or 8.56% to $86.62, after reporting higher quarterly earnings that topped estimates on higher sales that missed estimates. The company also raised its fiscal 2007 earnings forecast. However, investors were unnerved by news that 3M is cutting prices on its films for LCD television screens, one of its most profitable ventures.
Shares of McDonald's closed down $0.37 or 0.65% to $56.42, after reporting higher quarterly earnings that met estimates on sales that missed forecasts. Its third-quarter profit rose to $1.07 billion, from $843.3 million a year earlier. Its global same-store sales rose 6.9% in the quarter.
Stock of SanDisk closed down $7.60 or 15.11% to $42.71, after reporting lower quarterly earning. However, it also reported gross margins that were short of forecasts, sending shares of the flash memory drive maker lower.
Shares of Google closed up $5.09 or 0.80% to $644.71, after reporting higher quarterly sales and earnings that topped estimates. Its revenues in the third quarter were $4.23 billion, up 57% from a year ago. It posted net income of $1.07 billion, an increase of 46% from a year ago.
U.S. light crude oil for November delivery briefly hit a record of $90.07 a barrel in electronic trading. Oil fell $1.19 to to $88.28 a barrel on the New York Mercantile Exchange in afternoon trading.
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