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4:06 PM, Jul 29, 2009 --

  • NYSE down 48 (0.8%) to 6,280.51.
  • DJIA down 24 (0.3%) to 9,072.
  • S&P 500 down 4.5 (0.5%) to 975.13.
  • Nasdaq down 7.75 (0.4%) to 1,968.


GLOBAL SENTIMENT

  • Hang Seng down 2.37%
  • Nikkei up 0.26%
  • FTSE up 0.79%


UPSIDE MOVERS

(+) MEE out with better-than-expected results.

(+) CGEN swings to profit.

(+) INO reports positive animal study for H1N1 flu vaccine.

(+) CTIC starts process for European approval for Pixantrone.

(+) GD beats with results.

(+) ELRN gets FDA marketing OK for insulin pump.

DOWNSIDE MOVERS

(-) YHOO confirms search deal with Microsoft (NASDAQ:MSFT). MSFT just firm.

(-) BBOX turns lower after beating with Q1, issuing mixed guidance.

(-) S reports deeper-than-expected Q2 loss as revenue meets.

(-) TWX beats with earnings, shy with revenue.

(-) COP beats with EPS but misses on sales.

(-) RCL reports Q2 loss.

(-) UGI sales decline.

(-) WLP lowers FY guidance.

MARKET DIRECTION

Stocks close modestly lower, with all major averages down 0.3%-0.4% and ending well off session lows after a late-day rally. Wall Street absorbed mixed economic and earnings reports and remains hestitant to extend the recent rally without more positive signs.

The Federal Reserve's Beige Book report proved more upbeat than its June release. The Fed's snapshot of economic conditions issued Wednesday found that most of the Fed's 12 regions indicated either that the recession was easing or that economic activity had "begun to stabilize, albeit at a low level," the AP reported.

Earlier, stocks extended morning weakness following a worse-than-expected 2.5% decrease in durable-goods orders in June. It was the first decrease in the past three months. Orders rose a revised 1.3% in May, down from the prior estimate of a 1.8% increase. Notably, excluding a 12.8% fall for transportation equipment, durable orders rose 1.1% in June.

Oil futures tumbled nearly 6% to end below $64 a barrel Wednesday after the government reported a much bigger-than-expected buildup in U.S. crude inventories. September closed down $3.88, or 5.8%, to $63.35 a barrel. Weakness continued in after-hours though to a milder degree. On Globex, September crude futures were last down 0.8% to $62.87 a barrel.

The Energy Information Administration reported that crude supplies rose by 5.1 million barrels last week, much more than the 1.1 million barrels expected by analysts surveyed by Platts. Also, ConocoPhillips (NYSE:COP) says it earned $0.87 per share in Q2, above estimates for $0.85. Sales were $35.4 billion, below Thomson Reuters estimates for $39.08 billion.

In company news, Yahoo (NASDAQ:YHOO) shares are lower and Microsoft (MSFT) is modestly firmer as the companies confirmed earlier reports they signed a search deal. Microsoft will now power Yahoo search while Yahoo will become the exclusive worldwide relationship sales force for both companies' premium search advertisers.

A report on Briefing.com cites an analyst at Kaufman as saying the search deal is already priced into the shares of Yahoo, perhaps some evidence for why the stock shifted lower this morning.

Time Warner (NYSE:TWX) reported Q2 revs of $6.8 bln, down 9% from the year ago period and below the analyst mean of $6.9 bln on Thomson Reuters. Adjusted earnings were $0.45 per share, down from $0.47 per share a year ago and better than the Street view of $0.37 per share. The company reaffirmed its 2009 full year outlook of $1.98 per share in earnings. The Street is at $1.99 per share.

Sprint Nextel (NYSE:S) reported a Q2 loss of $0.13 per share compared to a loss of $0.12 per share a year earlier and deeper than the Thomson Reuters mean analyst estimate for a loss of $0.02. Operating revenue of $8.1 billion is down from $9 billion a year earlier, in line with the Street view.

Sprint Nextel continues to expect that both post-paid and total subscriber full-year losses should improve in 2009 as compared to 2008.

Elsewhere, Elron Electronic Industries (ELRN) said Medingo Ltd., a group company held 92% by Elron and its subsidiary, RDC Rafael Development Corporation Ltd., has received formal clearance from the Food and Drug Administration, to market its Solo MicroPump Insulin Delivery System in the United States.

Inovio (NASDAQ:INO) shares are surging after the company says its SynCon H1N1 influenza DNA vaccines achieved protection against current circulating swine origin influenza A/H1N1 viruses in animal studies.

MGM (NYSE:MGM) is softer on a downgrade to neutral from buy at Merrill Lynch/Bank of America.

Bare Escentuals (BARE), Callaway Golf (NYSE:ELY), Fiserv (NASDAQ:FISV) and LSI (NASDAQ:LSI) are among those to report earnings after the close.

Source: Closing Update for July 29, 2009: Modestly Red