Stocks are mixed at mid-day, but well off session lows,
following disappointing earning guidance from a big tech sector
name after the market closed yesterday and mixed economic data
released before the bell this morning.
In the latest economic data, the Labor Department reported that
applications for unemployment compensation fell by 44,000 last week
to 434,000. Economists had expected that number to decline to
seasonally adjusted 428,000 from an upwardly revised 478,000 in the
prior week, according to MarketWatch.
Meanwhile, the Commerce Department said retail sales in the US
rose 0.5% in April to a seasonally adjusted $389.4 billion. That
marks the 10th straight month of gains, but is lower than the 0.7%
rise in April. Also, wholesale prices in the US rose 0.8% last
month due to rising fuel costs--in line with economists'
Shares of Cisco systems (
) are down after it said on its conference call late Wednesday it
expects Q4 revenue growth in the range of flat to up 2% on a
year-over-year basis. Q4 non-GAAP EPS is seen in the range of $0.37
to $0.39 per share. The Street view is 7% revenue growth and
earnings of $0.41 per share.
In company news:
Shares of Novartis (
) are higher after Chief Financial Officer Jon Symonds said his
company's consumer drug division is profiting from Johnson &
) series of recalls, Reuters reported. Novartis is reportedly
interested in buying other consumer brands.
Shares of Google (
) are down despite news late yesterday that comScore released its
April 2011 search engine rankings showing the Internet search giant
at the top, but with 65.4% of the US market from 65.7%. Meanwhile,
) and Microsoft (MSFT) came in an No. 2 and No. 3 at 15.9% and
14.1% respectively. Both gain 0.2% over March. Yahoo is up 2.62%,
while Microsoft is down 0.67%.
Shares of Goldman Sachs (GS) are down after Bloomberg reported
that a poll of traders, analysts and investors shows 54% of those
asked have an unfavorable view of the company.
Cell Therapeutics (CTIC) says data from a study with OPAXIO in
patients with newly diagnosed high-grade gliomas, and interim
results from a study of tosedostat in elderly patients with
relapsed or refractory acute myeloid leukemia will be presented at
the 2011 American Society of Clinical Oncology (ASCO) Annual
Exxon Mobil (XOM) shares are down after Chief Executive Rex
Tillerson told Congress that based only on supply and demand, crude
oil prices should be in the range of $60 to $70 a barrel, Reuters
In other earnings news:
-- Cisco (
) is down 4.4% at mid-day after it said on its conference call late
Wednesday it expects Q4 revenue growth in the range of flat to up
2% on a year-over-year basis. Q4 non-GAAP EPS is seen in the range
of $0.37 to $0.39 per share. The Street view is for 7% revenue
growth and earnings of $0.41 per share. Separately, CSCO received a
pair of downgrades this morning.
--General Mills (GIS) says it reaffirmed fiscal 2011 earnings
per share guidance of $2.46 to $2.48 excluding mark-to-market
effects and a net gain related to certain tax items. The Thomson
Reuters mean is for $2.48.
--Kohl's Corp. (KSS) reported Q1 EPS of $0.73 compared to $0.64
a year earlier, matching the Thomson Reuters mean analyst estimate
for $0.73 Sales rose 3.1% to $4.2 billion. The Street expected
$4.18 billion. The company raises annual EPS guidance to $4.25 to
$4.40 from $4.05 to $4.25.The Street is at $4.36.
--Tim Hortons Inc. (THI) reported Q1 EPS of $0.48 compared to
$0.45 a year earlier. Revenue of $643.5 million is up 10.4% from
Commodities are mixed. June gold contracts are down 0.29%, to
$1,497 an ounce while June crude oil contacts have shaken off
earlier losses and are up 0.5% to $98.71 a barrel.
In energy ETFs, the United States Oil Fund (USO) is down 1.27%
to $38.85 and the United States Natural Gas fund (UNG) is up 0.37%,
In precious metal ETFs, the SPDR Gold Trust (GLD) is down 0.67%
at $145.56. Market Vectors Gold Miners (GDX) is down 0.82% to
$54.46. iShares Silver Trust (SLV) is down 3.84% to $33.07.