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4:20 PM, Aug 26, 2009 --

  • NYSE down 9 (0.1%) to 6,687.94.
  • DJIA up 4.23 (0.04%) to 9,544.
  • S&P 500 up 0.12 (0.01%) to 1,028.
  • Nasdaq up 0.20 (0.01%) to 2,024.


GLOBAL SENTIMENT

  • Hang Seng up 0.1%
  • Nikkei up 1.36%
  • FTSE down 0.38%


UPSIDE MOVERS

(+) Alcatel-Lucent (NYSE:ALU) inks contract with China Telecom, gets analyst upgrade.

(+) AVI Biopharma (AVII) reports positive Phase I study results in Duchenne Muscular Dystrophy.

(+) Kirkland's (NASDAQ:KIRK) swings to Q2 profit.

(+) Williams-Sonoma (NYSE:WSM) beats with Q2 results, revenue guidance straddles Street view.

(+) Human Genome Sciences (HGSI) added to gains seen on M&A speculation.

(+) Canadian Solar (NASDAQ:CSIQ) inks development rights deal.

(+) CAE (NYSE:CAE) inks military deals.

(+) Peregrine (NASDAQ:PPHM) gets grant for hemorrhagic fevers antibody studies.

(+) Razer (RZ) says electric Hummer H3E drives over 50 miles on battery.

(+) Dollar Tree (NASDAQ:DLTR) beats with Q2 results, guides above Street view.

(+) Cardiome Pharma (NASDAQ:CRME) says management to buy stock.

DOWNSIDE MOVERS

(-) Thompson Creek (NYSE:TC) selling shares.

(-) Fannie Mae (FNM) reopening $1 bln of $4 bln in 3-year benchmark note offering.

(-) Astronics (NASDAQ:ATRO) cuts FY sales guidance.

MARKET DIRECTION

Stock averages finish flat to positive owing to a late-session run that capped a day marked largely by profit-taking. The Dow's slim gain was enough to stretch its win streak to seven sessions.

Positive reports on new-home sales and factory orders offered support to the broader stock market but failed to inspire a fresh run at new highs. Stock averages hit their best levels of the year Tuesday and the broad S&P 500 is up nearly 50% since the 12-year lows hit in March.

Tech and financial shares were mixed. Energy issues declined. Retailers were mostly higher as many sector earnings results continue to show improvement.

Economic news did offer support to other recent news in support of a modest economic recovery. The Commerce Department said new home sales rose 9.6 percent in July for the fourth straight monthly increase. Sales rose to 433,000, the strongest pace since September and well above the 390,000 figure economists expected, the AP said.

A recovery in the housing market was just what investors were looking for to push stocks higher in step with evidence of improving consumer sentiment and employment, which sent stocks to fresh 2009 highs yesterday. However, some analysts say more positive data are likely to be needed to form a sustainable stock rally able to push through bouts of profit taking.

Separately, the Commerce Department said orders for goods expected to last at least three years rose 4.9 percent in July -- the biggest jump in two years and more than the 3 percent increase economists had expected. Volatile airline orders plumped up July's figure.

October crude fell $0.62, or 0.9%, to end at $71.43 a barrel, after falling as low as $70.67. The loss builds on the 3% drop recorded Tuesday after oil cleared $75 earlier this week for the first time in 10 months.

The federal Energy Information Administration reported a 200,000 barrel gain in crude inventories, compared with a drop of 2.7 million barrels projected by analysts surveyed by Platts for the week ended Aug. 21. Gasoline inventories fell 1.7 million barrels nearly matching analysts' call for a 1.5 million barrel decrease, but distillate inventories rose by 800,000 barrels compared with a projected decrease of 700,000 barrels.

December gold settled at $945.80 an ounce, down 20 cents, on the Comex division of the New York Mercantile Exchange. It fell as low as $941.20 earlier.

As for individual movers, Williams-Sonoma (WSM) jumped after it reported Q2 non-GAAP EPS of $0.05 vs $0.09 in the year-ago quarter and better than the Thomson Reuters mean analyst estimate for a loss of $0.09. Revenue fell 18% to $672 million. The Street looks for $658.3 million. Same-store sales fell 15.3%. Revenue guidance straddles the Street view.

Dollar Tree (DLTR) gained after it says it earned $0.63 per share in Q2, topping the Thomson Reuters estimate for $0.54. Sales were $1.22 billion, versus the consensus for $1.21559 billion.

DSW (NYSE:DSW) was firm after it earned $0.17 per share in Q2, better than the First Call consensus of $0.11. Sales were $369.5 million, versus the $370 million consensus. For FY10, DSW sees EPS of $0.37-0.45, above the $0.34 consensus and up from previous guidance of $0.30-0.35.

On the downside, Concurrent (NASDAQ:CCUR) slid after missing Q4 and FY estimates. Q4 sales were $15.9 million, below the Thomson Reuters estimate for $18.75 million. EPS were $0.03, below expectations for $0.15. FY sales were $71.6 million, below estimates for $74.45 million. EPS, less items, were $0.26, below forecasts for $0.39.

Brown Shoe (NYSE:BWS) missed Q2 sales estimates and forecasting FY sales below expectations. It lost $0.10 per share in Q2, including items. The consensus was for a loss of $0.07, typically without items. Revenues were $511.6 million, below the $539.27 million consensus.

It sees FY net sales between $2.18 billion and $2.20 billion, below the
consensus of $2.22B. Famous Footwear same-store sales are expected to decline
in the low- to mid-single digit range in the back half of 2009.

Source: Closing Update for Wednesday, August 26: Scrapping Back