Date: Wednesday 14 Jul 2010
US stocks recovered their early losses but closed flat after disappointing retail sales figures and caution from the Fed.
Across the markets, the Dow Jones is up 3 points at 10,366, while the Nasdaq added 7 points ahead at 2,249. The S&P 500 was flat at 1,097.
Minutes from the last Federal Reserve meeting indicated the bankers talked about possible responses if the economy turned down sharply. The Fed also trimmed its growth forecast to 3.0% and 3.5% this year, down from 3.2% to 3.7%. Unemployment rate will range between 9.2% to 9.5% this year, the Fed added.
June retail sales disappointed but were not as bad as last month, dropping 0.5% due to a drop in sales of petrol and cars. Retailers, such as Home Depot and Loews, have fallen today.
Microchip manufacturer Intel posted earnings and revenue that beat analysts' expectations after the close last night. Net income was $2.89bn in the quarter ended June 26 against a loss of $398m last year. It also raised its forecast for the year.
Revenue for the period was $10.8bn and the firm forecasts improved revenues of $11.6bn for the three months to the end of September. “Strong demand from corporate customers for our most advanced microprocessors helped Intel to achieve the best quarter in the company’s 42-year history," said Paul Otellini, chiefexecutive
Advanced Micro Devices has gained on the back of the Intel figures.
The seemingly inexorable rise in the share price of consumer electronics colossus Apple was halted on Tuesday as calls grew for a ‘Toyota-style’ product recall for its much ballyhooed iPhone 4.
Apple’s product development programme is much admired but the developers appear to have dropped the ball with the iPhone 4 with a number of users reporting signal reception problems when using the phone.
Nokia Siemens Networks is thought to be in negotiations to acquire Motorola’s telecommunications-equipment business.
Cargo ship manager Expeditors International of Washington reported better than expected second quarter profits of 38 cents a share. AK Steel has been upgraded from neutral to buy by Goldman Sachs. A potential cooling of interest from bidders knocked consumer electronics retailer Radioshack.
S&P 500 - Risers
Expeditors International Of Washington Inc. (EXPD) $39.60 +6.58%
A K Steel Holdings Corp. (AKS) $14.21 +6.52%
Monsanto Company (MON) $54.55 +4.56%
Motorola Inc. (MOT) $7.46 +3.47%
S&P 500 - Fallers
Lincoln Natl Corp. (LNC) $24.04 -5.69%
Lexmark International Inc. (LXK) $33.01 -5.66%
Radioshack Corp. (RSH) $21.17 -5.53%
Lennar Corp. Class A (LEN) $14.59 -4.27%
Dow Jones I.A - Risers
Cisco Systems Inc. (CSCO) $23.74 +2.82%
Intel Corp. (INTC) $21.36 +1.67%
Hewlett-Packard Co. (HPQ) $47.34 +1.22%
Microsoft Corp. (MSFT) $25.43 +1.19%
Dow Jones I.A - Fallers
Home Depot Inc. (HD) $28.28 -1.26%
American Express Inc. (AXP) $43.70 -1.06%
Alcoa Inc. (AA) $10.91 -0.82%
Merck & Co. Inc. (MRK) $36.20 -0.69%
Across the markets, the Dow Jones is up 3 points at 10,366, while the Nasdaq added 7 points ahead at 2,249. The S&P 500 was flat at 1,097.
Minutes from the last Federal Reserve meeting indicated the bankers talked about possible responses if the economy turned down sharply. The Fed also trimmed its growth forecast to 3.0% and 3.5% this year, down from 3.2% to 3.7%. Unemployment rate will range between 9.2% to 9.5% this year, the Fed added.
June retail sales disappointed but were not as bad as last month, dropping 0.5% due to a drop in sales of petrol and cars. Retailers, such as Home Depot and Loews, have fallen today.
Microchip manufacturer Intel posted earnings and revenue that beat analysts' expectations after the close last night. Net income was $2.89bn in the quarter ended June 26 against a loss of $398m last year. It also raised its forecast for the year.
Revenue for the period was $10.8bn and the firm forecasts improved revenues of $11.6bn for the three months to the end of September. “Strong demand from corporate customers for our most advanced microprocessors helped Intel to achieve the best quarter in the company’s 42-year history," said Paul Otellini, chiefexecutive
Advanced Micro Devices has gained on the back of the Intel figures.
The seemingly inexorable rise in the share price of consumer electronics colossus Apple was halted on Tuesday as calls grew for a ‘Toyota-style’ product recall for its much ballyhooed iPhone 4.
Apple’s product development programme is much admired but the developers appear to have dropped the ball with the iPhone 4 with a number of users reporting signal reception problems when using the phone.
Nokia Siemens Networks is thought to be in negotiations to acquire Motorola’s telecommunications-equipment business.
Cargo ship manager Expeditors International of Washington reported better than expected second quarter profits of 38 cents a share. AK Steel has been upgraded from neutral to buy by Goldman Sachs. A potential cooling of interest from bidders knocked consumer electronics retailer Radioshack. S&P 500 - Risers
Expeditors International Of Washington Inc. (EXPD) $39.60 +6.58%
A K Steel Holdings Corp. (AKS) $14.21 +6.52%
Monsanto Company (MON) $54.55 +4.56%
Motorola Inc. (MOT) $7.46 +3.47%
S&P 500 - Fallers
Lincoln Natl Corp. (LNC) $24.04 -5.69%
Lexmark International Inc. (LXK) $33.01 -5.66%
Radioshack Corp. (RSH) $21.17 -5.53%
Lennar Corp. Class A (LEN) $14.59 -4.27%
Dow Jones I.A - Risers
Cisco Systems Inc. (CSCO) $23.74 +2.82%
Intel Corp. (INTC) $21.36 +1.67%
Hewlett-Packard Co. (HPQ) $47.34 +1.22%
Microsoft Corp. (MSFT) $25.43 +1.19%
Dow Jones I.A - Fallers
Home Depot Inc. (HD) $28.28 -1.26%
American Express Inc. (AXP) $43.70 -1.06%
Alcoa Inc. (AA) $10.91 -0.82%
Merck & Co. Inc. (MRK) $36.20 -0.69%
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