US Indexes Lower as Industrial Production, Housing Data Weighs; HP Guidance Disappoints

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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.

Hewlett-Packard ( HPQ ) 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 ( AMGN ) 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 ( AAPL ) 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. ( PFE ) 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 exists.

Barclays ( BCS ) 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 says.

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%, to $10.80.

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.



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

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: AAPL , AMGN , BCS , HPQ , PFE

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