The Markets Now: Stocks Slump, Toyota Up 3%
Zynga and Biogen also rise on good news.
Most stocks slumped Wednesday amidst continued deficit wrangling in Congress and weakness in European stocks.
In economic news, President Obama continues to urge Congress to pass a new package that would hold off on huge spending cuts and increase taxes. Senate Minority Leader Mitch McConnell has stated his opposition to the new package.
Biogen Idec Inc. (NASDAQ:BIIB) shares were buoyed by the announcement that it will purchase Elan Pharmaceutical's interest in TYSABRI for $3.25 billion. The stock went up 2.75% to $161.68.
After Quartz reported that Hewlett-Packard (NYSE:HPQ) executives may be considering a breakup of the company, shares inched up 1.14% to $16.80.
Walt Disney (NYSE:DIS) shares rose to $54.76, up 0.87% after releasing better-than-expected earnings.
BlackBerry (NASDAQ:BBRY) CEO Thorsten Heins suggested that the new BlackBerry may not arrive in the US until as late as May or June. The stock declined 1.12% to $15.84.
C.H. Robinson (NASDAQ:CHRW) reported higher fourth quarter profit with net income rising to $1.58 a share compared to $0.67 a year ago. Transportation revenue went up 14% to $409 million. The stock sank 9.86% to $60.40.
Green Mountain Coffee Roasters (NASDAQ:GMCR) will report earnings after the close. Analysts expect earnings per share of $0.65 compared to $0.60 last year due to the success of its Keurig single-cup brewing system. Shares rose 1.94% to $43.39.
Visa (NYSE:V) is expected to post a profit of $1.70 per share on revenue of $2.81 billion. Visa exceeded expectations in the fourth quarter reporting earnings per share of $1.54 compared with analyst predictions of $1.50. Its stock moved up 0.22% to $159.91.
Zynga (NASDAQ:ZNGA) surged 8.21% to $2.96 after the gaming company reported strong earnings Tuesday, bringing in $261 million in revenue. The number of people playing the games has also increased to 60 million, compared to 11% a year ago.
Yelp (NYSE:YELP) is expected to post a loss of $0.04 a share. Investors will pay close attention to Yelp's international markets where revenue growth should be higher. Shares rose 1.46% to $21.48.
Time Warner (NYSE:TWX) stock moved up 4.06% after the cable company reported a 51% rise in fourth quarter earnings and increased its quarterly dividend 11%. Net income went up $1.21 a share compared to $0.76 a share a year ago.
France Telecom (NYSE:FTE) moved down 2.36% to $10.75 after the UK mobile phone company it owns part of, EE, reduced rates for its 4G phone services.
Unilever (NYSE:UN) shares declined 1.11% to $39.85 after choosing marketers Hugo Verkuil and Andrea Martens as its new marketing and managing directors.
Toyota Motor Corporation (NYSE:TM) stock rose 3.17% to $101.99 after the car manufacturer raised its 2013 outlook to a net profit of $9.3 billion or 860 billion yen from 780 billion yen. Toyota has recently taken back the title of world's top automaker.
Provider of equipment and services for the oil and gas industry, National-Oilwell Varco Inc. (NYSE:NOV) said drilling for oil and natural gas is stagnant in North America compared to international markets. Its stock moved down 2.58% to $66.43.
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