Stocks are firmly lower as a cocktail of disappointing housing
and industrial production data combined with lackluster corporate
earnings stagger the major indexes. The Dow Jones Industrial
Average is off more than 100 points.
In the latest economic data, the Federal Reserve Bank said
Tuesday that industrial production was flat in April compared with
an increase of 0.7% in March, according to TheStreet.com. Analysts
were expecting a 0.4% increase in April.
Before the market opened, the government reported that new home
construction fell 10.6% in April to an annual rate of 523,000,
while permits declined 4.0%. Housing starts in March were revised
up to 585,000 from an original reading of 549,000, according to
Commerce Department data. Economists surveyed by MarketWatch had
expected housing starts in April to climb to an annual rate of
575,000 on a seasonally adjusted basis. Permits for new
construction, viewed as a gauge of future demand, fell to an annual
rate of 551,000 from March's upwardly revised level of 574,000.
) is down sharply after it said second quarter non-GAAP EPS were
$1.24 compared to $1.09 a year earlier and topping the Thomson
Reuters mean analyst estimate for $1.21. Revenue of $31.6 billion
is up from $30.8 billion. The Street looked for $31.5 billion. For
Q3, HPQ estimates revenue of approximately $31.1 billion to $31.3
billion, GAAP diluted EPS of approximately $0.90, and non-GAAP
diluted EPS of approximately $1.08. The Street is at $1.23 on $31.8
billion in revs. HPQ expects full year fiscal 2011 revenue between
$129 billion to $130 billion, GAAP diluted EPS of at least $4.27,
and non-GAAP diluted EPS of at least $5.00. The Street is at $5.24
on $130 billion.
In other company news:
Shares of Amgen (
) are near flat as several reports say that a trial of the
company's Xgeva bone drug showed it significantly delayed the time
it takes prostate cancer to lead to bone pain. The company
reportedly believes the discovery will increase the market
potential for the drug, Reuters reports.
Shares of JP Morgan Chase are seeing firm support after James
Dimon, the bank's chief executive, told shareholders the bank has
billions of dollars in future earnings opportunities, according to
a Wall Street Journal report. The comments came from the bank's
annual meeting in Columbus, Ohio.
Shares of Apple (
) are down after The Wall Street Journal reported that FBR Capital
said that the iPhone 5--the next version of Apple's popular
smartphone--should arrive in September.
Shares of Pfizer Inc. (
) are higher after the Food and Drug Administration gave priority
status to the company's new drug application to sell experimental
cancer drug crizotinib for a certain type of advanced lung cancer.
A filing has also been made with Japanese regulators, according to
news reports. The priority view status accelerates the review time
to a target of six months from 10 months and is given to treatments
that may offer major advances or provide a therapy where none
) shares are flat following a Bloomberg report that the bank will
pay 7% interest annually on cash bonuses deferred for at least five
years to senior employees. The move comes as a part of the bank's
plan to tie compensation with long-term performance, the report
Aside from HP's earnings report:
--Dick's Sporting Goods (DKS) says Q1 EPS were $0.30, a penny
above estimates. Sales were $1.1 billion, below the Thomson Reuters
mean for $1.14263 billion. It raised its FY estimate to $1.89 to
1.91 per diluted share to $1.91 to 1.93, compared with the Thomson
Reuters mean for $1.94. Consolidated same store sales are currently
expected to increase approximately 3.0% compared to a 7.4% increase
last year. Q2 EPS are seen between $0.47 - 0.49.
--Wal-Mart Stores (WMT) says Q1 EPS from continuing operations
were $0.98, which included a benefit of $0.01 related to currency
translation, above the Thomson Reuters mean for $0.95. Sales were
$103.4 billion, above estimates for $102.93411 billion. Q2 EPS from
continuing operations are seen between $1.05 and $1.10.
--Home Depot (HD) said Q1 EPS of $0.50, a penny better than the
analyst consensus on Thomson Reuters. Sales were $16.8 billion, shy
of the Street view of $17 billion.
Commodities are down. June gold contracts are down 1.05%, to
$1,475 an ounce while June crude oil contacts are down 2.05% to
$95.36 a barrel.
In energy ETFs, the United States Oil Fund (USO) is down 1.35%
to $37.99 and the United States Natural Gas fund (UNG) is up 2.88%,
In precious metal ETFs, the SPDR Gold Trust (GLD) is down 1% at
$143.92. Market Vectors Gold Miners (GDX) is down 0.92% to $53.97.
iShares Silver Trust (SLV) is down 0.91% to $32.55.
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