Stocks are lower at the session's half as the major indexes pare
prior-session gains following a spate of negative earnings and
economic news, including disappointing results from a Blue Chip
name and new data showing the US trade deficit widened, despite
Walt Disney Co. (
) is down after reporting Q2 EPS of $0.49, up from $0.48 per share
in the prior year quarter. Revenue was $9.07 billion, up from $8.58
billion. The Street view was $0.57 per share in earnings on revenue
of $9.11 billion.
The U.S. trade deficit widened by 6% in March to $48.2 billion,
the Commerce Department said Wednesday. The trade deficit was above
the consensus forecast of Wall Street economists for $47.0 billion.
Exports rose to the highest level on record while imports were the
strongest since August 2008.
Also, crude oil futures moved lower following talk about
interest rate hikes in China and a larger-than-expected rise in
U.S. oil supplies last week. The Energy Information Administration
said crude oil inventories for the week ended May 6 increased by
3.8 million barrels, above the 1.1 million barrels expected by
The major refiners--including Chevron (
), Royal Dutch Shell (RDSA) and Exxon (
) were all trending lower.
In company news:
) is higher after it raises its quarterly cash dividend 16% to
$0.21 per share, beginning with the dividend that will be declared
in Q3. The move is the second time in six months the world's
largest chipmaker as boosted its dividend as corporate technology
Shares of Johnson & Johnson (JNJ) are higher following an AP
report that the drug and health care products company is recalling
a prescription drug due to a musty odor--most likely from a
chemical on shipping pallets. J&J said it is recalling five
lots of HIV medicine Prezista. The recall comes at the wholesale
and pharmacy level in five countries.
U.S.-traded shares of HSBC (HBC) are down after the bank
released cost cutting measures as part of a strategy day. HSBC
plans to slash as much as $3.5 billion from mounting costs and
announced a review of its U.S. credit-card business and branch
network, MarketWatch and other news outlets reported. The bank said
it aims to achieve sustainable annual cost savings of between $2.5
billion and $3.5 billion by 2013, bringing its cost efficiency
ratio, the ratio of expenses to revenue, down to between 48% and
Level 3 (LVLT) firms after it says HBO selected the company to
provide content delivery network (CDN) services supporting the new
HBO GO mobile app delivery initiative.
American International Group (AIG) shares are gaining after the
insurer said it and the U.S. Department of the Treasury, as the
selling shareholder, have commenced a registered public offering of
AIG common stock, par value $2.50 per share. One hundred million
shares will be issued and sold by AIG and 200 million shares will
be sold by the selling shareholder. The Wall Street Journal was out
with a report earlier Wednesday saying the $9 billion offering was
smaller than analysts expected.
In earnings news:
--Teva Pharmaceutical Industries Ltd. (TEVA) reports Q1 non-GAAP
EPS rose 11.8% to $1.04 a share, beating the Thomson Reuters mean
analyst estimate for $1.03 by a penny. Net sales rose 11.7% to
--Arcelor Mittal (MT) says Q1 sales were $22.2 billion, up 7.2%
from a year ago. Net income was $0.69 per share, up from $0.42 a
--Macy's (M) says Q1 sales were $5.889 billion, more than the
Thomson Reuters mean for $5.85849 billion. It earned $0.30 per
share, better than forecasts for $0.18.
Commodities are lower. June gold contracts are down 0.73%, to
$1,506 an ounce while June crude oil contacts are down 2.46% to
$101.32 a barrel.
In energy ETFs, the United States Oil Fund (USO) is down 2.56%
to $40.03 and the United States Natural Gas fund (UNG) is down
2.18%, to $10.77.
In precious metal ETFs, the SPDR Gold Trust (GLD) is down 0.94%
at $146.51. Market Vectors Gold Miners (GDX) is down 1.9% to
$55.68. iShares Silver Trust (SLV) is down 6.18% to $35.18.
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