Equities Roundup: Dow's January Decline Is Biggest in 11 Months

by: Midnight Trader

4:21 PM, Jan 29, 2010 --

  • NYSE down 73 (1%) to 6,883.78.
  • DJIA down 53 (0.5%) to 10,067.33.
  • S&P 500 down 10 (1%) to 1,073.87.
  • Nasdaq down 21 (1.5%) to 2,147.35.


  • Hang Seng down 1.15%
  • Nikkei down 2.08%
  • FTSE up 0.83%


(+) AMZN continues evening gain that followed beat, buyback news.

(+) PDLI to pay special dividends.

(+) PCAR beats with Q4 results.

(+) SPPI gets payment from Asian pact.

(+) SNV shrinks loss.

(+) WMT gets analyst upgrade.


(-) KERX says Perifosine to be in research article.

(-) MSFT continues evening gain that followed Q2 beat.

(-) CVX misses with Q4 EPS but sales top.

(-) YTEC misses with results, guidance.

(-) HON beats, reaffirms 2010 view.

(-) AVY misses with Q4 EPS though sales beat.

(-) SHIP prices shares.

(-) ACI misses with Q4 results.

(-) SNDK continues evening decline that followed earnings beat.


Stock averages close lower and near the bottom of Friday's range after a volatile session. The major averages shed between 0.5% and 1.5%. The blue-chip DJIA ends January down 3.5%, its biggest monthly decline in 11 months. The S&P 500 ends January down 3.7%. The tech-heavy Nasdaq shed 5.4% in January.

Tech share weakness and linging global credit concerns trumped a stronger-than-expected Q4 GDP reading early in the day.

The Commerce Department said in the report that the gross domestic product grew at 5.7%, the fastest rate in six years, easily topping economists' forecast for 4.5% growth.

The economy shrank 2.4% in 2009, the worst year for GDP since the 10.9% drop in 1946. Consumer spending increased at a 2% annual rate, down from 2.9% in the third quarter when the government's cash-for-clunkers program boosted auto sales.

Although the pace of growth was torrid in the fourth quarter, many analysts also believe the expansion is being driven by businesses replenishing inventories after a long period of slashing stockpiles to save money. The quarter was marked by sharp jump in business spending on equipment and software.

Microsoft (NASDAQ:MSFT) was a key driver of early broad-market trading, but lost its early upside to finish down 3%. Microsoft reported Q2 revs of $19.02 B and income of $0.74 per share. Adjusting for deferred revenue recognition, second-quarter revenue totaled $17.31 billion, and diluted earnings per share totaled $0.60 per share. The Street was at $17.9 B in revenue and earnings of $0.59 per share.

Juniper (NYSE:JNPR) guided in line to above the Street during last evening's extended-hours period.

Amazon.com (NASDAQ:AMZN) gained on better-than-expected results and plans to buy back up to $2 billion worth of its shares.

Honeywell (NYSE:HON) reported Q4 sales of $8.1 billion, matching the analyst mean on Thomson Reuters. EPS was $0.91 per share, a penny ahead of expectations. Honeywell also reaffirmed its previously stated 2010 sales guidance of $31.3-32.2 billion, earnings per share of $2.20-2.40, and free cash flow of $2.4-2.7 billion (cash flow from operations of $3.1-3.4 billion). The Street view is $31.8 billion in revenue and earnings of $2.40 per share.

Chevron (NYSE:CVX) gained after the company says it earned $1.53 per share in Q4, below the Thomson Reuters mean for $1.70. Sales were $48 billion, more than forecasts for $40.44553 billion. The stock has turned lower, however, at mid-day.

Wal-Mart (NYSE:WMT) was reportedly upgraded by Goldman Sachs to "buy" from "neutral." The stock is holding gains.