Stocks are rallying at mid-day as investors turned away from
civil unrest in Egypt and toward earnings and economic news at
home, including stronger-than-expected manufacturing rise.
Meanwhile, a large winter storm that walloped the western United
States is moving toward the East Coast, snarling air traffic
The U.S. January ISM factory index rose to 60.8 from 58.5 in
December. Economists had expected 58.4, according to Briefing.com.
The index reached the highest level since last May. The price
component rose to 81.5 in January from 72.5 in December, while
employment rose to 61.7 from 58.9.
Also, the Commerce Department reported that construction
spending fell 2.5% in December.
Airline stocks are mixed as airlines cancelled flights at
certain major airports due to weather. United Continental Holdings
shares are down 0.5% while Delta Air Lines (
) are up 0.94%. US Airways (
) is up 0.8%.
In company news:
Oracle Corp. (
) has agreed to pay $46 million to settle a lawsuit over alleged
kickbacks to win government work, the AP reported late Monday. The
Department of Justice charged that Sun Microsystems Inc., which
Oracle bought last year, and other technology companies paid
kickbacks to Accenture PLC for Accenture to recommend that federal
agencies buy Sun products, the AP said.
) is using stock for a greater portion of bonuses to be paid to
investment bankers, traders and other employees, Bloomberg
reported, citing people briefed. The bank is looking to pay certain
recipients with as much as 50% of bonuses in stock, the report
says. That compares with 40% last year. Citigroup received $45
billion bailout from taxpayers last year.
Orexigen Therapeutics (
) has shed nearly three-quarters of its market value after it and
Takeda Pharmaceutical Company said that federal regulators noted
concern about the cardiovascular safety profile of
naltrexone/bupropion when used long-term in a population of
overweight and obese subjects.
Shares of Google (GOOG) are higher after the company said it is
offering Egyptians a method of communicating using a voice
connection, Bloomberg reports. Google, along with Twitter and
SayNow, which Google acquired last week, are making it possible for
Egyptians to leave a voicemail on an international number, which is
then turned into a tweet, Bloomberg reports.
Shares of General Motors (GM) are higher after the automaker
reported 178,896 total sales in January, a 23% increase from a year
ago for the company's four brands. The gain was driven by solid
retail sales which were 36 percent higher than a strong January a
Shares of Deutsche Bank (DB) are higher in trading on the NYSE
after it released its preliminary 2010 Q4 results late on Monday.
The bank is set to report net income of 600 million euros, less
than half the 1.3 billion profit in the period a year earlier. The
net revenue is expected at 7.4 billion euros, compared with 5.5
billion euros in the period a year earlier. Costs rose to 6.3
billion euros from 4.2 billion euros in the period a year earlier
on charges related to integrating Deutsche Postbank, the retail
lender that Deutsche Bank announced it would buy in September, as
well as the Sal. Oppenheim Group.
Shares of Anadarko Petroleum (APC) are higher after the
Texas-based oil company reported Q4 earnings of $0.22 per share, a
penny better than the Street view. Sales came in at $2.69 billion
compared to expectations of $2.73 billion. Anadarko had a 25% in in
the Macando well in the Gulf of Mexico, which was the site of BP's
oil spill last year. The company is keying in on areas such as
Africa and the Gulf of Mexico for growth, Bloomberg reports.
In the latest earnings news:
--Patriot Coal (PCX) reported Q4 EPS of $0.08 per share, better
than expectations of a loss of $0.35 per share. Revenue was $528.2
million, vs. the analyst consensus of $548 million.
--BP (BP) reported a Q4 net profit of $5.57 billion, up from
year ago levels of $4.3 billion. Replacement cost profit was $4.36
billion, about flat with year ago levels and south of the Street
view of $4.87 billion, according to Dow Jones Newswires.
--Archer Daniels Midland (ADM) reports Q2 EPS of $1.14 per
share, up from year ago levels and better than the Street view of
$0.78 per share. Sales were $20.9 billion, vs. the analyst
consensus of $17.4 billion on Thomson Reuters.
--Lexmark (LXK) reported Q4 revenue of $1.11 billion, just ahead
of the Street view of $1.10 billion on Thomson Reuters. EPS was
$1.29, vs. expectations of $1.12 per share. In Q1, the company
currently expects about 1 percent revenue growth year on year and
GAAP earnings per share to be around $1.08 to $1.18, or $1.18 to
$1.28 excluding $0.10 per share for restructuring-related and
acquisition-related adjustments. The Street is at 1% revenue growth
and EPS of $1.14 per share.
--Corinthian Colleges (COCO) reported that its Q2 met or
exceeded guidance for revenue and earnings per share, but fell
slightly below guidance for new student enrollment. The company
took a $206.0 million impairment, facility closing and severance
charge in the second quarter.
--Pfizer (PFE) said Q4 sales were $17.6 billion, above the
Thomson Reuters mean for $16.96 billion. Adjusted EPS were $0.47, a
penny ahead of estimates. 2012 adjusted EPS are seen between $2.25
and $2.35. Sales are seen between $63.0 and $65.5 billion, compared
with the previous target of between $65.2 and $67.7 billion. 2011
reported sales are seen between $66.0 to $68.0 billion and adjusted
EPS are seen between $2.16 to $2.26.
Commodities are mixed. April gold contracts are up $1, or 0.01%,
to $1,334 an ounce while March crude oil contacts are down 0.58%,
or $0.53, at $91.67 a barrel.
In energy ETFs, the United States Oil Fund (USO) is down 0.39%
to $38.46 and the United States Natural Gas fund (UNG) is down
1.92% to $5.88.
In precious metal ETFs, the SPDR Gold Trust (GLD) is up 0.12% to
$130.03. Market Vectors Gold Miners (GDX) is up 1.8% to $54.89.
iShares Silver Trust (SLV) is up 0.76% to $27.58.
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