CLOSING UPDATE: Stocks Mixed With S&P 500 at Record; Budget Deal Stirs Worries for Economy, IBM Drives Down Blue Chips
Wall Street took profits off recent gains in the stock market after the last minute deal to end the budget crisis left investors concerned about the health of the economy and outlook for year-end earnings. Although the Nasdaq and S&P 500 closed on the plus side (the S&P 500 ended at a record of 1,732), the Dow Industrials closed in the red. Blue chip stocks were weighed down by disappointing earnings from IBM ( IBM ) and Goldman Sachs ( GS ). Bearish economic data on employment and business confidence along with a downgrade in US debt by a Chinese rating agency all underscored the deterioration in consumer and investor confidence.
Initial jobless claims fell 16,000 for the week ended October 12, to a greater than expected 358,000. But once again, the data was muddled by reporting errors and the inclusion of furloughed government employees.
The Philadelphia Fed survey of business conditions retreated to 19.8 in October. While that was better than estimates of 15.0, it underscored a deterioration in the business environment from 22.3 the month prior.
Here's where the markets stand at the close:
Dow Jones Industrial Index was down 2.18 or 0.01% at 15,371
S&P 500 was up 11.61 or 0.7% at 1,733
Nasdaq Composite Index was up 23 or 0.6% at 3,863
FTSE 100 was up0.07%
Nikkei 225 was up 0.83%
Hang Seng Index was down 0.57%
Shanghai China Composite Index was down 0.21%
ARIA, Medical community endorses leukemia drug despite FDA investigation
ZIOP, The company will present at the 2013 AACR-NCI-EORTC International Conference on Molecular Targets and Cancer Therapeutics
NTCT, Reported Q2 earnings of $0.34 per share topping the consensus by $0.05 per share. Revenue of $92.2 million also beat expectations by $3.44 million.
IBM, Beat earnings estimates but missed on revenue by $1.09 billion
AMRN, FDA's Endocrinologic and Metabolic Drugs Advisory Committee voted 9-2 against approval of its Vascepa capsules for certain uses.
SCSS, The company reported Q3 EPS of $0.36 after the close on Wednesday, missing the Thomson Reuters estimate for $0.43. Sales were $264 million, missing forecasts for $277.47 million.
OSTK, Missed earnings estimates by $0.01