Stocks are broadly lower in morning trade as earnings season
gets underway following Alcoa's (
) earnings report after the closing bell yesterday. Meanwhile, new
data showed the U.S. trade gap narrowed less than expected and news
from Japan showed a worsening of the situation with one of its
nuclear reactors, weighing on stocks.
Alcoa late Monday reported a Q1 profit of $0.27 compared to a
loss of $0.20 in the same period a year ago. EPS from continuing
ops ex-items were $0.28. The Thomson Reuters mean analyst estimate
was for $0.27. Revenue of $6.0 billion is up 22% over first quarter
2010. The Street looked for $6.07 billion. At
least one downgrade of the stock emerged this morning.
In economic news, data showed the U.S. trade gap narrowed in
February though not as dramatically as economists predicted, to
$45.8 billion. Import prices did jump 2.7%, which will add to the
recent conversation on global inflation.
Meanwhile, the International Energy Agency on Monday said global
oil production fell by 700,000 barrels a day in March on reduced
Libyan crude supply. Supply from the Organization of Petroleum
Exporting Countries, or OPEC, fell by 890,000 barrels a day in
March to 29.2 million barrels on a near 70% drop in Libyan output,
the agency said in its monthly report.
Also, Japanese regulators on Tuesday assessed the crisis at the
nation's damaged nuclear facility as level 7, the highest possible
on an international scale, but said the amount of radiation
released is around 10% that of the accident at Chernobyl in the
former Soviet Union.
In company news:
) announced that it will exit aspects of its consumer businesses
and realign the remaining consumer business to support four of its
five key company priorities -- core routing, switching and
services; collaboration; architectures; and video. In connection
with the changes to the consumer business, it is anticipated that
Cisco will recognize restructuring charges to its GAAP financial
results, with an aggregate pre-tax impact not expected to exceed
$300 million during the third and fourth quarters of fiscal
) rises after Bloomberg reports that the company is working with
Goldman Sachs Group to field potential takeover offers after
clinical-trial results showed an experimental drug helped
prostate-cancer patients, according to people with knowledge of the
) launches two new handsets using the latest update of its Symbian
software. The Nokia E6 is a business smartphone with a full qwerty
keyboard that offers access to Microsoft Exchange among other
applications. The X7 is focused on entertainment, with a large
display for gaming, an 8 megapixel camera and
) announced today that it has entered into an agreement to acquire
additional shares in GittiGidiyor, an online marketplace in Turkey.
EBAY already owns a minority stake in the company since 2007. Once
the transaction is completed, EBAY will own approximately 93% of
the outstanding shares of GittiGidiyor. Terms of the deal were not
Shares of Alliance HealthCare Services (AIQ) are up 8.47% after
the company raised its full year guidance for 2011. The company
stated that it expects revenue within the range of $500 million to
$530 million, up from it previous guidance range of $475 million to
$505 million. Analysts expect revenues for 2011 to be $482.97
million, according to a poll by Thomson Reuters.
Commodities are down as June gold contracts are down $17, or
1.12%, to $1,451 an ounce while May crude oil contacts are down
3.21%, or $3.53, at $106.38 a barrel.
In energy ETFs, the United States Oil Fund (USO) is down 2.64%
to $42.48 and the United States Natural Gas fund (UNG) is down
$1.02, or 0.11%, to $10.67.
In precious metal ETFs, the SPDR Gold Trust (GLD) is down 0.94%
at $141.32. Market Vectors Gold Miners (GDX) is down 1.74% to
$61.02. iShares Silver Trust (SLV) is down 0.54% to $38.99.
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