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Minyanville's Market Recap: Financials Fall, Investors are Oogly Googly, Stocks End Mixed

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Fugly financials shook up banking stocks, but tech continued to shine. Stocks ended mixed.

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Stocks were mixed today. The Dow Industrials fell -0.03% to 13,888, the S&P 500 fell -0.08 to 1540, but the Nasdaq Composite gained +0.24% to 2799.

The morning started on shaky ground for the financials. Bank of America (BAC) reported earnings of $0.82 per share, $0.24 worse than analyst estimates. Revenues fell 11.8% year-over-year to $16.3 billion versus $18.01 billion consensus. Bank of America CEO Kenneth Lewis took much of the blame. Lewis stated in a conference call about a third of the situation was due to the market with two-thirds caused by mistakes in judgment by the company. Lewis was also quoted with saying he's "had all of the fun he can stand in investment banking at the moment," signaling the company was not going to pursue any opportunities in that area. BAC's performance dragged down other stocks in the financial sector. Lehman Brothers (LEH) lost -1.05%, Bear Stearns (BSC) lost -0.89%, and Merrill Lynch (MER) fell -2.18%. Read Professor Depew's Five Things You Need To Know for more insight into BAC's earnings.

As stock traded flat for much of the morning, tech stocks seemed to lead a midday recovery. Nokia (NOK) likely helped that sentiment reporting solid numbers. Professor Katsenelson stated the important number neglected by the media was "on operating basis (the one that really matters) sales were up 11.3%." Get the full article here. Other tech stocks closed higher. Apple (AAPL) added +0.43%, Research In Motion (RIMM) added +2.52%, and Baidu (BIDU) added +1.70%.

In other earnings news, the highly anticipated performance of Google (GOOG) came out after the bell. The company reported $0.14 above analyst expectations of $3.91 per share. CEO Eric Schmidt stated "we are very pleased with the impressive growth we experienced across our business lines." Professor Udall chimed in with a late-day Buzz agreeing with the CEO that it was a solid quarter, and "more importantly, worries of slowing growth seem ill-conceived." For more summaries, click here to read our Buzz Bits.

In economics, Initial claims came in at 337 k slightly above consensus estimates of 312 k. Leading indicators were in-line at +0.3%, and the Philadelphia Fed was reported at 6.8 versus 7.0 consensus.

In commodities news, crude oil settled up $2.07 at $89.47 per barrel. Gold gained +10.0 to 772. Silver gained +0.13 to 13.88, and Copper fell -0.05 to 3.54.

The radar is light tomorrow with no economic events.

Here are some estimates for some companies reporting tomorrow Before Market Open:

MMM: $1.27 EPS; $6.2 bln revs
CAT: $1.43 EPS; $10.68 bln revs
HOG: $1.04 EPS; $1.52 bln revs
HON: $0.82 EPS; $8.58 bln revs
SLB: $1.06 EPS; $5.88 bln revs
WB: $1.06 EPS; $1.05 bln revs

Click here for the full trading radar.

Below is a recap of some of the idea flow on today's Buzz & Banter. Please note that stocks may appear in both bullish and bearish categories, due to long and short term trades by our many Minyanville professors.

Some bullish trade or investment ideas: CTXS, PCLN, CSX, BCSI, AMX, gold, GS

Some bearish trade or investment ideas: FXI, LVS, WYNN, VRTX, FRE, FNM, UA, LULU, MA, DECK

Make sure you clear the schedule and meet us at the Bull and Bear tomorrow after the bell. Have a great night!
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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