Stocks declined for the second consecutive day following
dismal forecasts from major companies. The Street also received
some domestic reports. The number of Americans filing for the
unemployment benefits increased marginally in the previous week.
Additionally, the Philadelphia Fed's manufacturing index declined
in April. The energy sector was the biggest gainer among the
S&P 500 industry groups whereas health care stocks were the
The Dow Jones Industrial Average (DJI) fell 0.6% to close the
day at 14,537.14. The S&P 500 dropped 0.7% to finish
yesterday's trading session at 1,541.61. The tech-laden Nasdaq
Composite Index declined 1.2% to end at 3,166.36. The fear-gauge
CBOE Volatility Index (VIX) jumped 6.4% to settle at 17.56.
Consolidated volumes on the New York Stock Exchange, American
Stock Exchange and Nasdaq were roughly 7.05 billion shares,
significantly higher than this year daily average of 6.36 billion
shares. Declining stocks outnumbered the advancers. For the 43%
that advanced, 53% declined.
E-commerce major eBay Inc (NASDAQ:
) reported its first quarter results after the close of markets
on Wednesday. The company's earnings came in above the Street's
estimate but revenue fell short of expectations. The company's
profit was boosted by robust development in its PayPal and
Marketplaces businesses. Revenue from eBay's PayPal surged 18% in
the first quarter. However, the company shares tumbled 5.9%
following a weak earnings outlook for the second quarter.
Shares of UnitedHealth Group Inc. (NYSE:
) fell 3.8% after the company reported its first-quarter results.
The company's earnings came in slightly above the Street's
estimate. Revenue increased 11% on a year-over-year basis. The
company decreased its revenue outlook for the year 2013.
Health care stocks took a beating after UnitedHealth Group
released its quarterly results and outlook for the year 2013. The
Health Care SPDR (XLV) lost 1.2%. Stock such as Johnson &
), Amgen, Inc. (NASDAQ:
), Vertex Pharmaceuticals Incorporated (NASDAQ:
) and Pfizer Inc. (NYSE:
) fell 0.9%, 1.8%, 2.2% and 0.9%, respectively.
Morgan Stanley (NYSE:
) also reported its first-quarter results. The company's earnings
and revenue beat the Street's estimates. Despite robust results,
shares of the company tumbled 5.4% after the company said trading
revenue declined year-over-year. Revenue from bonds, commodities,
and currencies fell sharply in the first-quarter. Thomson Reuters
has revised its growth estimate for earnings of S&P 500
companies to 1.9% from the beginning of the month estimate of
On the home front, the U.S. Department of Labor reported
initial claims numbers. According to the report, initial claims
increased 4,000 to 352,000 from the previous week's revised
figure of 348,000. This was contrary to the consensus estimate of
a decline to 346,000. The four week moving average also moved up
by 2,750 to 361,250 from the prior week's revised figure of
According to the Federal Reserve Bank of Philadelphia,
manufacturing activity in the Philadelphia area grew at a slower
rate than estimated. The general economic index slipped to 1.3 in
April from 2.0 in March. This was well below the consensus
estimate of 3.5. New orders decreased to -1 from 0.5 whereas
shipments jumped to 9.1 from 3.5. The inventory index plunged to
-22.2 after remaining flat.
The energy sector had a good run yesterday and was the biggest
gainer among the S&P 500 industry groups. The Energy Select
Sector SPDR (XLE) gained 0.9%. Stocks such as Exxon Mobil
), Chevron Corporation (NYSE:
), Suncor Energy Inc. (USA) (NYSE:
), Marathon Oil Corporation (NYSE:
) and Anadarko Petroleum Corporation (NYSE:
) added 0.6%, 0.7%, 1.3%, 0.4% and 1.5%, respectively.
AMGEN INC (AMGN): Free Stock Analysis Report
ANADARKO PETROL (APC): Free Stock Analysis
CHEVRON CORP (CVX): Free Stock Analysis
EBAY INC (EBAY): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis
MARATHON OIL CP (MRO): Free Stock Analysis
MORGAN STANLEY (MS): Free Stock Analysis
PFIZER INC (PFE): Free Stock Analysis Report
SUNCOR ENERGY (SU): Free Stock Analysis
UNITEDHEALTH GP (UNH): Free Stock Analysis
VERTEX PHARM (VRTX): Free Stock Analysis
EXXON MOBIL CRP (XOM): Free Stock Analysis
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