Date: Thursday 15 Jul 2010
The Dow rallied late to erase almost all of its early heavy losses. After hours,Google's latest numbers disappointed, but there was better news from BP in the Gulf of Mexico.
Dow Jones closed down 7 points at 10,359, having been over 100 points lower at one stage. Nasdaq was flat at 2,249. The S&P 500 gained 1 at 1,096.
Google's second quarter figures fell short of expectations, even though net income increased to $1.84bn. Underlying earnings rose 24% to $6.45 per share, slightly shy of forecasts of $6.51 per share. Sales rose to $6.82bn and to $5.1bn excluding partnership revenue.
The search engine giant added that the average per-click rate it charges advertisers has been rising, helping its results.
Goldman Sachs, meanwhile, is to pay $550m and change its business methods as part of a settlement with the Securities and Exchange Commission over allegations of misleading marketing of sub-prime mortgage backed products.
Goldman Sachs acknowledged it made a “mistake” and that marketing materials for the instruments had “incomplete information,” the SEC said.
BP has temporarily stopped the oil spillage into the Gulf of Mexico from its leaking well. It is the first time the flow has stopped since the Deepwater Horizon rig blew up on 20 April. The well has been sealed with a cap as part of a 48 hour pressure test.
US President Barack Obama said the development was a "positive sign" but added BP was still in the testing phase. The US president also got a lift from the passing of the financial reform bill in the Senate.
Elsewhere, the regional manufacturing indexes in New York and Philadelphia missed expectations. The Empire State index fell to 5.08, while the Philadelphia Fed index dropped to 5.1 for July.
Wholesale prices fell a seasonally adjusted 0.5% in June, according to the Commerce Department. The index was expected to have fallen 0.1% in June after dropping 0.3% in May.
On the positive side, the Department of Labor’s weekly jobless claims fell 29,000 to a seasonally adjusted 429,000 last week, beating expectations of a smaller drop to 450,000.
In corporate news, JPMorgan Chase smashed second quarter earnings forecasts thanks to a much lower provision for credit losses. Earnings per share soared to $1.09 in the three months to 30 June from just 28 cents at the same time last year. Analysts were looking for about 68 cents.
Net income increased to $4.8bn from $2.7bn the year before. A $1.5bn reduction of loan loss reserves, worth 36 cents a share, was partially offset by a $550m, or 14 cent, charge for the UK bonus tax. Total net revenue fell by 8% to $25.6bn.
NBTY surged when the markets open after the vitamin maker agreed to be bought by the Carlyle Group for $3.8bn.
Drugs firm GlaxoSmithKline expects to record legal costs for the second quarter of 2010 of £1.57bn. These relate to an investigation by the US Government into the company's former manufacturing site at Cidra, Puerto Rico; product liability and anti-trust litigation relating to Paxil (paroxetine), and product liability cases regarding Avandia (rosiglitazone) and other products.
Generic drugs maker Mylan is paying $550m for Bioniche Pharma Holdings. Health companies are performing strongly with King Pharmaceuticals and Monsanto among the best performers.
S&P 500 - Risers
King Pharmaceuticals (KG) $8.77 +5.28%
Goldman Sachs Group Inc. (GS) $145.22 +4.43%
Whole Foods Market Inc. (WFMI) $38.99 +4.39%
Dean Foods Co (DF) $11.71 +4.37%
S&P 500 - Fallers
Mcafee Inc. (MFE) $31.02 -4.20%
Host Hotels & Resorts Inc. (HST) $14.18 -3.86%
International Game Tech (IGT) $15.76 -3.25%
Nvidia Corp. (NVDA) $10.69 -3.08%
Dow Jones I.A - Risers
Merck & Co. Inc. (MRK) $36.49 +0.80%
Cisco Systems Inc. (CSCO) $23.92 +0.76%
McDonald's Corp. (MCD) $71.33 +0.61%
Intel Corp. (INTC) $21.46 +0.47%
Dow Jones I.A - Fallers
Travelers Company Inc. (TRV) $50.30 -2.12%
Bank Of America Corp. (BAC) $15.39 -1.79%
Alcoa Inc. (AA) $10.84 -0.64%
American Express Inc. (AXP) $43.43 -0.62%
Dow Jones closed down 7 points at 10,359, having been over 100 points lower at one stage. Nasdaq was flat at 2,249. The S&P 500 gained 1 at 1,096.
Google's second quarter figures fell short of expectations, even though net income increased to $1.84bn. Underlying earnings rose 24% to $6.45 per share, slightly shy of forecasts of $6.51 per share. Sales rose to $6.82bn and to $5.1bn excluding partnership revenue.
The search engine giant added that the average per-click rate it charges advertisers has been rising, helping its results.
Goldman Sachs, meanwhile, is to pay $550m and change its business methods as part of a settlement with the Securities and Exchange Commission over allegations of misleading marketing of sub-prime mortgage backed products.
Goldman Sachs acknowledged it made a “mistake” and that marketing materials for the instruments had “incomplete information,” the SEC said.
BP has temporarily stopped the oil spillage into the Gulf of Mexico from its leaking well. It is the first time the flow has stopped since the Deepwater Horizon rig blew up on 20 April. The well has been sealed with a cap as part of a 48 hour pressure test.
US President Barack Obama said the development was a "positive sign" but added BP was still in the testing phase. The US president also got a lift from the passing of the financial reform bill in the Senate.
Elsewhere, the regional manufacturing indexes in New York and Philadelphia missed expectations. The Empire State index fell to 5.08, while the Philadelphia Fed index dropped to 5.1 for July.
Wholesale prices fell a seasonally adjusted 0.5% in June, according to the Commerce Department. The index was expected to have fallen 0.1% in June after dropping 0.3% in May.
On the positive side, the Department of Labor’s weekly jobless claims fell 29,000 to a seasonally adjusted 429,000 last week, beating expectations of a smaller drop to 450,000.
In corporate news, JPMorgan Chase smashed second quarter earnings forecasts thanks to a much lower provision for credit losses. Earnings per share soared to $1.09 in the three months to 30 June from just 28 cents at the same time last year. Analysts were looking for about 68 cents.
Net income increased to $4.8bn from $2.7bn the year before. A $1.5bn reduction of loan loss reserves, worth 36 cents a share, was partially offset by a $550m, or 14 cent, charge for the UK bonus tax. Total net revenue fell by 8% to $25.6bn.
NBTY surged when the markets open after the vitamin maker agreed to be bought by the Carlyle Group for $3.8bn.
Drugs firm GlaxoSmithKline expects to record legal costs for the second quarter of 2010 of £1.57bn. These relate to an investigation by the US Government into the company's former manufacturing site at Cidra, Puerto Rico; product liability and anti-trust litigation relating to Paxil (paroxetine), and product liability cases regarding Avandia (rosiglitazone) and other products.
Generic drugs maker Mylan is paying $550m for Bioniche Pharma Holdings. Health companies are performing strongly with King Pharmaceuticals and Monsanto among the best performers.S&P 500 - Risers
King Pharmaceuticals (KG) $8.77 +5.28%
Goldman Sachs Group Inc. (GS) $145.22 +4.43%
Whole Foods Market Inc. (WFMI) $38.99 +4.39%
Dean Foods Co (DF) $11.71 +4.37%
S&P 500 - Fallers
Mcafee Inc. (MFE) $31.02 -4.20%
Host Hotels & Resorts Inc. (HST) $14.18 -3.86%
International Game Tech (IGT) $15.76 -3.25%
Nvidia Corp. (NVDA) $10.69 -3.08%
Dow Jones I.A - Risers
Merck & Co. Inc. (MRK) $36.49 +0.80%
Cisco Systems Inc. (CSCO) $23.92 +0.76%
McDonald's Corp. (MCD) $71.33 +0.61%
Intel Corp. (INTC) $21.46 +0.47%
Dow Jones I.A - Fallers
Travelers Company Inc. (TRV) $50.30 -2.12%
Bank Of America Corp. (BAC) $15.39 -1.79%
Alcoa Inc. (AA) $10.84 -0.64%
American Express Inc. (AXP) $43.43 -0.62%
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