Stocks Rally as Investors Shrug Off Egypt; Earnings, Manufacturing Data Lends Support

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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 nationwide.

The U.S. January ISM factory index rose to 60.8 from 58.5 in December. Economists had expected 58.4, according to 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 ( DAL ) are up 0.94%. US Airways ( LCC ) is up 0.8%.

In company news:

Oracle Corp. ( ORCL ) 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.

Citigroup ( C ) 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 ( OREX ) 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 year ago.

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities
Referenced Symbols: C , DAL , LCC , ORCL , OREX

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