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4:23 PM, Jan 21, 2010 --

  • NYSE down 155.37 (-2%) to 7,174.46.
  • DJIA down 213 (2%) to 10,390
  • S&P 500 down 21 (1.9%) to 1,116.
  • Nasdaq down 25.6 (1.1%) to 2,266.


GLOBAL SENTIMENT

  • Nikkei up 1%.
  • Hang Seng down 2%.
  • FTSE-100 up 0.2%


UPSIDE MOVERS

(+) EBAY continues evening run that followed earnings beat.

(+) XRX gains after beat.

(+) GS gains after beat.

(+) FITB gains after results.

(+) FFIV continues evening gain that followed earnings beat.

DOWNSIDE MOVERS

(-) PNC declines after results.

(-) LM declines after results.

MARKET DIRECTION

Stock averages tumble 1% to 2%, the second straight day for declines and enough to wipe out 2010 gains for the blue-chip average and the Nasdaq.

Diving financial and materials stocks are a drag on the broader stock market Thursday. The blue-chip DJIA remained down over 200 points inside the final half-hour of trading.

Financials fell broadly amid the stiffest proposal yet from the Obama administration on bank risk-taking.

The move could mean changes for how big financial institutions like Bank of America (BAC), Citigroup Inc (C). and JPMorgan Chase & Co. (JPM) are structured. Each of the stocks fell more than 5 percent.

At last check, the Dow Jones Industrial Average is down 215 points, or 2.1%, at 10,384, after ranging between 10,375 and 10,615. The move erases the blue-chip index's 2010 gain.

The S&P 500 is down 20 points, or 1.8%, at 1,118, after ranging between 1,115 and 1,142.

The Nasdaq Composite is down 22 points, or 1%, at 2,239, after ranging between 2,260 and 2,309.

Economic data also weighed on stocks and oil.

Crude oil futures shed 2% after a report of a drop in U.S. supplies wasn't enough to offset concerns about low demand and about China's efforts to cool its growth. Crude oil for March is down $1.66, or 2.1%, at $76.08 a barrel. It rose to a high of $78.36 a barrel earlier.

Two reports showed a still-spotty economic recovery.

The Philadelphia Federal Reserve said manufacturing in its region fell in January from December. Its index of regional manufacturing conditions fell to 15.2 from a revised 22.5 last month.

Earlier, the Labor Department said workers filing for unemployment benefits for the first time rose by 36,000 to 482,000 last week. Economists polled by Thomson Reuters were expecting a small drop. The four-week average rose for the first time since August.

The broader market jumped earlier in the week only to see the Dow Jones Industrial Average suffer a 122-point slide Wednesday, with global investors spooked by prospects for tighter lending in China slowing growth too dramatically there. Worries about Greece's debt also rattled global markets. Wednesday's slide was the DJIA's biggest drop since December 17.

Earnings continue to flow.

Xerox (XRX) was an early gainer after it reports Q4 adjusted EPS of $0.25 per share, ahead of the analyst mean of $0.22 per share on Thomson Reuters. Revenue was $4.2 bln, better than the Street view of $3.93 bln.

For the full year 2010, Xerox expects adjusted EPS in the range of $0.75 to $0.85 per share, vs. the Street view of $0.70 per share.

eBay (EBAY) was continuing its evening advance after beating Q4 expectations and setting its guidance in line to above the Street estimates.

Goldman Sachs (GS) reports Q4 EPS of $8.20 vs a loss of $4.97 in the same period last year. The Thomson Reuters mean analyst estimate was for $5.20.
Net revenues were $9.62 billion, in line with the Street view. In comments, the company says it sees "signs of growth."

KeyCorp (KEY) was also firmer after reporting a smaller-than-expected loss. Fifth Third Bancorp (FITB) is up some 6% after its latest results.

Source: Equities Update: Another Steep Drop