Economic woes weighed on the Street on Monday, pressuring the
Dow Jones Industrial Average (DJIA ) to close below the 12,400
level for the first time since June 29 -- and the S&P 500 Index
(SPX ) and Nasdaq Composite (COMP ) swung to daily losses as well.
However, it's a new day, and it seems that the bulls have dusted
themselves off and re-entered the ring, ready for the day's slew of
earnings reports. In fact, futures on all three major indexes are
pointing higher, with the Dow hovering an impressive 75 points
north fair value. Already, bulls have responded to Bank of
America's (BAC - 9.72) quarterly report, which came out just
moments ago. Let's take a look at the banking bigwig's results.
Earlier this morning, BAC confessed to a second-quarter net loss
of $8.8 billion, or 90 cents per share, compared to income of $3.1
billion, or 27 cents per share, in the year-earlier period.
Adjusted net income arrived at 33 cents per share. Analysts had
predicted BAC to post a quarterly loss of 85 cents per share. The
financial heavyweight said the results reflected its efforts to
resolve the repurchase exposure of Countrywide, as well as other
mortgage-related costs. Meanwhile, credit costs dropped and fees
from asset management and investment banking climbed. Ahead of the
open, BAC is 0.1% higher.
Meanwhile, IBM Corp. (IBM - 175.28) said its second-quarter
profit increased 8.2% to $3.66 billion, or $3.00 per share, from
its year-ago earnings of $3.39 billion, or $2.61 per share.
Excluding items, IBM banked an operating profit of $3.09 per share,
while revenue rose 12% to $26.67 billion. Analysts, on average,
were looking for a profit of $3.03 per share on $25.35 billion in
revenue. Looking ahead, IBM predicted full-year earnings of $13.25
per share, up from its April forecast of $13.15 per share. The tech
issue is up roughly 2% in pre-market trading.
The Mosaic Company (MOS - 66.46) pulled down a fiscal
fourth-quarter profit of $649.2 million, or $1.45 per share -- an
improvement of 64% over last year's earnings of $396.1 million, or
89 cents per share. Revenue for the quarter increased 54% to $2.86
billion. Both figures topped analysts' expectations, which called
for a profit of $1.38 per share on $2.6 billion in revenue.
"Looking to fiscal 2012, we anticipate another good year given
continued healthy global nutrient demand," said President and CEO
Wynn Resorts (WYNN - 164.89) raked in a second-quarter profit of
$122 million, or 97 cents per diluted share, more than doubling its
year-ago net income of $52.4 million, or 42 cents per diluted
share. On an adjusted basis, WYNN earned $200.8 million, or $1.60
per diluted share, while net revenue jumped 32% to $1.37 billion.
Wall Street was looking for WYNN to report a tamer per-share profit
of $1.03 on $1.28 billion in revenue. Ahead of the open, WYNN has
Today's earnings docket will feature reports from Apple (
), Coca-Cola Co. (
), Goldman Sachs (
), Chipotle Mexican Grill (
), Johnson & Johnson (
), Peabody Energy (BTU), and Yahoo (YHOO). Keep your browser at
for more news as it breaks.
Housing data continues today, with the release of home starts
and building permits for June. Existing home sales for June will
hit the Street on Wednesday, along with the usual update on U.S.
petroleum supplies. A flurry of data will be released Thursday,
including weekly jobless claims, the Philly Fed index for July, and
the Conference Board's index of leading economic indicators for
June. There are no major economic reports scheduled for Friday.
Equity option activity on the Chicago Board Options Exchange
(CBOE) saw 1,125,839 call contracts traded on Monday, compared to
782,553 put contracts. The resultant single-session put/call ratio
docked at 0.70, while the 21-day moving average was perched at
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Asian markets ended mixed today, as strength in the tech sector
helped to offset lingering macroeconomic woes. Rising risk aversion
amid ongoing debt crises in Europe and the U.S. propelled the yen
higher, weighing on Japanese exporters such as Canon and Honda
Motor. However, well-received earnings from IBM helped prop up tech
stocks in the region, while strength in banks and energy stocks
helped Hong Kong's benchmark index to a positive finish. By the
close, Japan's Nikkei declined 0.9%, China's Shanghai Composite
dipped 0.7%, South Korea's Kospi pulled back 0.01%, and Hong Kong's
Hang Seng added 0.5%.
European stocks are trading higher at midday, thanks in part to
a rebound for beaten-down banking issues. The tech sector has
emerged as a pocket of strength following Big Blue's quarterly
results, while a solid earnings announcement from Novartis is also
stoking some investor optimism. However, with euro zone finance
leaders slated to meet later this week to address the Greek debt
crisis, traders are keeping their exuberance mostly in check. At
last look, the German DAX is up 1.3%, the French CAC 40 has tacked
on 1.2%, and London's FTSE 100 is 0.4% higher.
Currencies and Commodities
Gold has continued its record-breaking ascent this morning,
adding 3.2 points, or 0.2%, to hover around $1,605.60 an ounce. The
precious metal has rallied to new highs in recent sessions, as
traders gravitate toward the "safe haven" investment. Meanwhile,
the dollar has backpedaled 0.4 point, or 0.5%, this morning, as a
result of rising demand for gold and anxieties over the global
economic situation. Elsewhere, crude has edged higher in pre-market
trading, up 0.9 point, or 0.9%, at last check.
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