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


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

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!
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No positions in stocks mentioned.

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