MIDDAY UPDATE: Stocks Struggle to Hold Opening Gains, Spooked By Chevon, AIG Misses
Stocks are in consolidation mode today, trying to find their footings after disappointing quarterly results from American International Group ( AIG ) and Dow component Chevron ( CVX ). The major market gauges recorded modest early gains following another stronger-than-expected view on the manufacturing sector and a well-received IPO from The Container Store ( TCS ). The S&P 500 is narrowly lower despite gains for utilities while the Nasdaq Composite is trading in the red for a sixth consecutive day.
The Purchasing Managers Index confirmed the continued strength of the manufacturing sector during October, rising to a 56.4 reading from 5.2 in the prior month, according to the Institute for Supply Management. That topped market expectations for a slight decline to 55.0 last month and comes closely on the heels of a surprise gain in the Chicago PMI reported yesterday.
The Markit/Purchasing Manager's Index showed a decline in activity with a final read of 51.8 in October from the initial posting of 52.8
European markets fell into the red as they closed after a mixed open resulting from weaker-than-expected UK manufacturing data and a late sell-off in the U.S. markets yesterday.
Crude oil was down $1.60 to $94.78 per barrel. Natural gas was down $0.06 to $3.60 per 1 million BTU. Gold was down $15.20 to $1,308.40 an ounce, while silver was down $0.06 to $21.81 an ounce. Copper was unchanged at $3.30 per pound.
Among energy ETFs, the United States Oil Fund was down 1.42% to $34.20 with the United States Natural Gas Fund was down 1.69% to $17.49. Amongst precious-metal funds, the Market Vectors Gold Miners ETF was down 3.05% to 24.24 while SPDR Gold Shares are down 1.08% to $126.38. The iShares Silver Trust was down 0.21% to $21.05.
Here's where the markets stand at mid-day:
NYSE Composite Index down 40.46 (-0.40%) to 9,969.19
Dow Jones Industrial Average up 1.54 (+0.01%) to 15,547.29
S&P 500 down 3.21 (-0.18%) to 1,753.33
Nasdaq Composite Index down 14.36 (-0.37%) to 3,905.35
Nikkei 225 Index down 0.88%
Hang Seng Index up 0.19%
Shanghai China Composite Index up 0.37%
FTSE 100 Index down 0.02%
CAC 40 down 0.64%
DAX down 0.28%
NYSE SECTOR INDICES
NYSE Energy Sector Index down 1.15%
NYSE Financial Sector Index down 0.25%
NYSE Healthcare Sector Index down 0.12%
(+) OSIR (+26.2%) Narrows its Q3 loss to $0.05 per share from $0.09 a year earlier, beating estimates for a $0.10 loss
(+) FSLR (+17.3%) Reported record quarterly net sales of $1.3 billion, a gain of $746 million from last quarter.
(+) DRAD (+15.0%) Reported Q3 adjusted earnings of $0.06 per share, reversing a loss of $0.06 per share in the year-ago quarter.
(-) WCG (-8.0%) Reported Q3 earnings of $1.56 per share, up from $1.05 during the same quarter last year by trailing analyst estimates by $0.05.
(-) AIG (-6.6%) EPS was in-line with estimates but revenue was below consensus.
(-) ELLI (-16.4%) Q3 EPS of $0.25 missed the Capital IQ consensus by $0.05 per share. Revenue of $33 million also fell $1.34 million short of the consensus view.