Closing Update for Wednesday, August 19: Stocks (and Crude) Scratch Back

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 |  Includes: AA, AXL, BPOP, CERS, CLZR, DE, DHI, ETFC, FLO, GENTY, GFG-OLD, HPQ, IPAS, ISR, MPS, PLAB, SHPG, TOL, TWB, YGE
by: Midnight Trader

4:19 PM, Aug 19, 2009 --

  • NYSE up 42.2 (0.7%) to 6,479.28.
  • DJIA up 61.6 (0.7%) to 9,280.
  • S&P 500 up 6.8 (0.7%) to 996.46.
  • Nasdaq up 12.2 (0.7%) to 1,969.24.


GLOBAL SENTIMENT

  • Hang Seng down 1.73%
  • Nikkei down 0.79%
  • FTSE down 0.07%


DOWNSIDE MOVERS


(-) HP (NYSE:HPQ) continues evening decline that followed mixed guidance.

(-) Shire (SHPGY) gets analyst downgrade.

(-) Alcoa (NYSE:AA) gets analyst downgrade.

(-) Flowers Foods (NYSE:FLO) misses with sales.

(-) E*Trade (NASDAQ:ETFC) reports July daily average revenue trades decline.

(-) Yingli (NYSE:YGE) beats with Q2 results.

(-) Gentium (GENT) study does not meet endpoints.

(-) Deere & Co. (NYSE:DE) turns lower after beating with Q3 results, guiding for sales decline.

(-) Photronics (NASDAQ:PLAB) gives up evening upside that followed Q3 beat after forecasting wider-than-expected Q4 loss.

UPSIDE MOVERS

(+) Cerus (NASDAQ:CERS) gets Swiss approval for Intercept.

(+) Tween Brands (TWB) reports smaller-than-expected Q2 loss.

(+) Isoray (NYSEMKT:ISR) gets FDA OK for Proxclean Cesium 131 brachytherapy seeds.

(+) MPS (MPS) gets analyst upgrade.

(+) iPass (NASDAQ:IPAS) paying extraordinary dividend.

(+) Guaranty Financial (GFG-OLD) jumps on reports of bids for company.

MARKET DIRECTION

Stock averages end higher, each up around 0.7% and in the middle of the day's range. Stocks shed early declines after government data showed shrinking oil inventories, sending up crude prices and related energy shares, and soothing the recovery concerns of a nervous Wall Street.

Stocks edged off their session lows around mid-morning as oil prices rallied. Oil gained after the Energy Department reported that crude supplies plunged by 8.4 million barrels last week instead of rising by 1.1 million barrels as analysts surveyed by Platts had expected.

The jump in oil was enough to temper worries sparked by falling Chinese stocks. Overnight, China's top stock markets saw sharp declines today, triggering the global sell-off. The Shanghai Composite Index fell 4.3% and the Shenzhen Composite Index ended 4.9% lower.

Oil closed up $3.23 or 4.7% at $72.42 a barrel, its highest closing level since early June.

Hewlett-Packard (HPQ) sat out the broad market rebound. The company beat Q3 estimates but offered mixed guidance when it released results last evening.

Alcoa (AA) fell following a Goldman Sachs downgrade to "neutral." The firm removed the stock from its "Buy list."

Deere & Co. (DE) closed down more than 3%, having given up its premarket gains made after it beat with Q3 results. The company trimmed its outlook.

Homebuilders DR Horton (NYSE:DHI) and Toll Brothers (NYSE:TOL) were both lower after Stifel Nicolaus cut each stock to "sell."

Candela (CLZR) continued last evening's sharp run-up after the company reported Q4 revs of $31.4 mln, down from $37.4 mln in the year ago quarter.
Earnings were $0.02 per share, up from a year ago loss of $0.10 per share.

Cerus (CERS) rallied on news the Swiss regulatory body, Swissmedic, has approved the use of platelet components treated with Cerus' Intercept Blood System. The approval extends permitted storage time for platelets to seven days with Intercept treatment, compared to five days without treatment.

Popular (NASDAQ:BPOP) jumped after pricing its debt exchange and getting an upgrade from Keefe Bruyette & Woods.

American Axle (NYSE:AXL) was higher for the second straight day. Credit Suisse upgraded the shares to "outperform" from "neutral" a day after the company received a credit extension and a cash infusion from GM.

After-Hours earnings are due from: JDSU, NTAP, HOTT, PVH, SMTC, SNPS.