U.S. stocks overcame disappointing guidance from Caterpillar and
an unexpected dip in existing home sales to finish higher Monday.
Energy and materials stocks led the markets higher, rebounding with
the price of crude oil and precious metals in commodities trading.
Healthcare and consumer stocks also turned around from early
declines to end moderately higher. Most other industry sectors in
the S&P 500 finished narrowly higher although utilities failed
to make up enough ground before the close.
) - often viewed as a bellwether for the global economy - helped
establish a negative tone when the heavy equipment maker missed Q1
EPS and revenue expectations and cut its FY13 revenue forecast by
at least $3 bln to a new range of $57 bln to $61 bln. CAT also
trimmed its EPS EPS guidance, now projecting earnings this year of
around $7.00 per share, compared to its prior guidance looking for
earnings of $7.00 to $9.00 per share.
But CAT turned around late and finished nearly 3% higher,
benefiting from its plans to buyback another $1 bln of its shares
over the next year. Company executives also said they were seeing
an upswing in China during their conference call with analysts and
the media, also helping over initial pessimism over the company's
expectations of a decline in the global commodities business.
Traders responded similarly to existing home sales last month,
with shares of several homebuilders initially falling after today's
report found existing home sales slid 0.6% during March to an
annualized rate of 4.92 mln homes. That lagged analyst expectations
looking for a 1% rise and a 5.03-mln annual pace.
But helping stem any declines were surprising strong financial
results from Halliburton (
) and Hasbro (
). HAL, the oilfield-services company was able to overcome a 1%
decline in North American revenues in its Q1 ended last month with
brisk activity in the Middle East and Asia and the company beating
analyst projections by $0.10 with a $0.67 per share quarterly
HAS also surprised by posting a 2% year over year increase in
sales during its traditionally slow Q1 for the toy-maker to $663.7
mln. Adjusted net income of $0.05 per share also topped estimates
by a penny.
Revenue increased 2% to $663.7 mln, also topping the analyst
consensus by $24.9 mln in what traditionally is a weak quarter for
HAS following the holiday gift-giving season in the prior
Stocks also got a boost over the past weekend when central
bankers attending a G-20 summit in Washington, D.C., in a surprise
move, did not criticize Japan's aggressive stimulus efforts.
European stocks also were bolstered by indications Italy may soon
form a new government after President Giorgio Napolitano agreed to
serve a second term.
Crude oil and precious metals ended higher today, helping lift
energy and materials stocks to solid gains. Crude oil for May
delivery settled 75 cents higher at $88.76 per barrel. June gold
also settled higher, climbing $25.70 to $1,421 per ounce while May
silver rose 36 cents to finish at $23.32 per ounce. May copper
slipped 2 cents, ending at $3.13 per pound. May natural gas also
declined, ending 14 cents lower at $3.27 per 1 mln BTU.
Here's where the markets stood at end-of-day:
Dow Jones Industrial Average up 19.66 (+0.14%) to 14,567.17
S&P 500 up 7.25 (+0.47%) to 1,562.50
Nasdaq Composite Index up 27.49 (+0.86%) to 3,233.55
Hang Seng Index down 0.14%.
Shanghai China Composite Index down 0.12%.
FTSE 100 down 0.10%.
(+) AIM, Aceepts $39-mln buyout offer from aircraft parts-maker
TransDigm Group (
), which will pay $7.75 per share in cash for each AIM share.
(+) ABIO, Announces an agreement with Medtronic, Inc. (
) to collaborate on the treatment of chronic diseases, including
cardiac rhythm disorders as well as working together on ARCA's
upcoming clinical trial of its lead developmental drug,
(+) PWER, Agrees to a $1-bln buyout offer from Switzerland's
ABB, which will pay $6.35 a share in cash for each PWER share.
(+) MPR, Receives $210-mln buyout offer from CECO Environomental
(CECE). The offer will pay $7.25 in cash and $6.50 in CECE stock in
exchange for each MPR share.
MPR shareholders will receive $13.75 a share - including $7.25
in cash and $6.50 in CECE stock
(-) NVR, Homebuilder reports Q1 net income of $6.84 per share,
down 75% from the prior-year period and trailing analyst
expectations by $1.21 per share. Consolidated revenues rose rose
28% to $770 mln, also lagging estimates by around $70.9 mln.
(-) HMX, Gives back about half of Friday's 14% advance that
followed the Mexican company announcing plans to sell its stake in
(-) RL, Settles bribe probe, agreeing to pay $882,000 penalty
and give back about $734,000 in improper profits by a subsidiary in
Argentina accused of offering bribes and gifts to government
(-) FABK, Announcing plans to delist from the Nasdaq Stock
Exchange on May 10 and become a privately held firm.
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