Portfolio Crafter
01-23-2007, 09:49 PM
End of Day Market Summary Tuesday, January 23, 2007
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Stocks closed higher reclaiming some ground from a sell-off in the previous session, as solid results from Texas Instruments helped soothe investor concerns about technology stocks. The Dow and S&P 500 rose, while the Nasdaq was little changed, as investors struggled to absorb a nearly 5% jump in oil prices.
Today, the Dow Jones Industrial average closed up 56.64 or 0.45% to 12,533.8, the broader S&P 500 index closed up 5.04 or 0.35% to 1,427.99, and the tech-heavy Nasdaq closed up 0.34 or 0.01% to 2,431.41.
Market breadth was positive. On the New York Stock Exchange, winners topped losers 21 to 11 on volume of 1.7 billion shares. On the Nasdaq, advancers beat decliners 17 to 11 on volume of 2.1 billion shares.
While last week there was some disappointing tech news and stocks fell, today appeared to be a bounce back. Nearly one-fourth of the S&P 500 reports quarterly results this week. Earnings are expected to have risen 9.2% in the fourth quarter versus a year ago. That would mark the slowest quarter of year-over-year growth since early 2002. The jump in energy prices put a little hesitation in the market, reviving some worries about inflationary pressures.
In economic news, the December index of leading economic indicators (LEI) rose 0.3%, against the expected rise by 0.2%. LEI was downwardly revised to a flat reading in the previous month.
Shares of Texas Instruments closed up $0.98 or 2% to $29.57, after reporting that fourth-quarter sales and earnings rose from a year ago and topped estimates. It also forecast first-quarter revenue that is short of estimates. It forecast first-quarter EPS of 28 cents to 34 cents on revenue of $2.95 billion to $3.2 billion. Analyst had expected first-quarter earnings of 35 cents a share on revenue of $3.3 billion.
Shares of Johnson & Johnson fell 1% despite reporting a 3.5% increase in fourth-quarter profit, on the back of solid growth in all three of its divisions. It posted net income of $2.17 billion, compared with nearly $2.1 billion earned last year. It reported an EPS of 81 cents. Quarterly revenue climbed 8.5%, to $13.68 billion.
Stock of Pfizer closed down $0.63 to $26.32, for a second session on a Bear Stearns downgrade. It also announced that it will cut 10,000 jobs and close five plants, including three R&D sites and two factories, by the end of 2008. It also said that it does not expect sales to grow in 2007 and 2008, and that it might purchase up to $10 billion of its own stock. The announcement was part of Pfizer's five-year plan to reduce its manufacturing plants from 93 to 48 by the end of 2008. The company plans to invest $3 billion of the money it saves in cost cuts in new products and business development through the end of 2008.
Shares of Alcatel-Lucent tumbled 7.3% after the company warned that it failed to make a profit during the fourth-quarter and that sales declined. It also red-flagged restructuring charges of around 800 million euros in the quarter. It expects fourth-quarter revenue of around 4.42 billion euros compared with 5.25 billion euros last year.
U.S. light crude oil for March delivery rose $2.46 or 4.7% to $55.04 a barrel on the New York Mercantile Exchange.
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by Portfolio Crafter (http://www.portfoliocrafter.com?a_aid=fiasco)
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Stocks closed higher reclaiming some ground from a sell-off in the previous session, as solid results from Texas Instruments helped soothe investor concerns about technology stocks. The Dow and S&P 500 rose, while the Nasdaq was little changed, as investors struggled to absorb a nearly 5% jump in oil prices.
Today, the Dow Jones Industrial average closed up 56.64 or 0.45% to 12,533.8, the broader S&P 500 index closed up 5.04 or 0.35% to 1,427.99, and the tech-heavy Nasdaq closed up 0.34 or 0.01% to 2,431.41.
Market breadth was positive. On the New York Stock Exchange, winners topped losers 21 to 11 on volume of 1.7 billion shares. On the Nasdaq, advancers beat decliners 17 to 11 on volume of 2.1 billion shares.
While last week there was some disappointing tech news and stocks fell, today appeared to be a bounce back. Nearly one-fourth of the S&P 500 reports quarterly results this week. Earnings are expected to have risen 9.2% in the fourth quarter versus a year ago. That would mark the slowest quarter of year-over-year growth since early 2002. The jump in energy prices put a little hesitation in the market, reviving some worries about inflationary pressures.
In economic news, the December index of leading economic indicators (LEI) rose 0.3%, against the expected rise by 0.2%. LEI was downwardly revised to a flat reading in the previous month.
Shares of Texas Instruments closed up $0.98 or 2% to $29.57, after reporting that fourth-quarter sales and earnings rose from a year ago and topped estimates. It also forecast first-quarter revenue that is short of estimates. It forecast first-quarter EPS of 28 cents to 34 cents on revenue of $2.95 billion to $3.2 billion. Analyst had expected first-quarter earnings of 35 cents a share on revenue of $3.3 billion.
Shares of Johnson & Johnson fell 1% despite reporting a 3.5% increase in fourth-quarter profit, on the back of solid growth in all three of its divisions. It posted net income of $2.17 billion, compared with nearly $2.1 billion earned last year. It reported an EPS of 81 cents. Quarterly revenue climbed 8.5%, to $13.68 billion.
Stock of Pfizer closed down $0.63 to $26.32, for a second session on a Bear Stearns downgrade. It also announced that it will cut 10,000 jobs and close five plants, including three R&D sites and two factories, by the end of 2008. It also said that it does not expect sales to grow in 2007 and 2008, and that it might purchase up to $10 billion of its own stock. The announcement was part of Pfizer's five-year plan to reduce its manufacturing plants from 93 to 48 by the end of 2008. The company plans to invest $3 billion of the money it saves in cost cuts in new products and business development through the end of 2008.
Shares of Alcatel-Lucent tumbled 7.3% after the company warned that it failed to make a profit during the fourth-quarter and that sales declined. It also red-flagged restructuring charges of around 800 million euros in the quarter. It expects fourth-quarter revenue of around 4.42 billion euros compared with 5.25 billion euros last year.
U.S. light crude oil for March delivery rose $2.46 or 4.7% to $55.04 a barrel on the New York Mercantile Exchange.
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