Equities Update: Markets Rise on Earnings

by: Midnight Trader

4:32 PM, Apr 20, 2010 --

  • NYSE up 72.5 (0.9%) to 7,669.11.
  • DJIA up 25.09 (0.2%) to 11,117.
  • S&P 500 up 9.65 (0.8%) to 1,207.
  • Nasdaq up 20 (0.8%) to 2,500.


  • Hang Seng up 1.02%
  • Nikkei down 0.07%
  • FTSE up 0.98%


(+) ESLR preliminary revenue beats.

(+) ARRY adds to evening gains that followed development deal.

(+) CKR reports superior takeover proposal.

(+) CYTR jumps on positive drug news.

(+) MGM added to Goldman Conviction Buy list.

(+) JSDA says Target to offer product nationwide.


(-) JNJ slightly lower after results.

(-) DAL turns down after mixed results.

(-) HGSI declines on news from lupus trial.

(-) GS beats with results but turns lower.

(-) MTG issuing stocks and notes.

(-) KO beats with earnings but revenue shy.

(-) NTRS misses Q1 estimates.

(-) SVU misses with sales.


Stocks closed with moderate gains, in the upper end of the day's range as improved earnings helped Wall Street buck two days of sharp declines. Commodities also rebounded. Key tech earnings are on tap in after-hours trading.

The Goldman Sachs (NYSE:GS) beat is largely behind the market's rebound even as GS, the subject of civil fraud charges Friday, sent global markets spinning lower.

Goldman reported Q1 revenue of $12.78 bln and EPS of $5.59 per share, both ahead of the analyst mean of $11.06 bln in revenue and EPS of $4.01 per share, according to Thomson Reuters. However, shares have surrendered early gains and are down around 1% at mid-day.

UnitedHealth (NYSE:UNH) was just higher, giving up most of its early gains. It reports Q1 earnings of $1.03 per share, up 27% from last year's quarter. Revenue was $23.1 bln, up from $22 bln in the year ago quarter. The Street view was $0.69 per share in earnings on revenue of $22.7 bln.

Also reporting this morning, Harley-Davidson (NYSE:HOG) reports Q1 revenue of $1.04 bln, just ahead of the Street view of $1.02 bln. EPS was $0.29 per share, vs. expectations of $0.22 per share. The company reiterated its expectation to ship 201,000 to 212,000 Harley-Davidson motorcycles to dealers and distributors worldwide in 2010, a reduction of five to ten percent from 2009.

Johnson & Johnson (NYSE:JNJ) reports adjusted Q1 EPS of $1.29 vs $1.26 in the year ago period and topping the Thomson Reuters mean analyst estimate for $1.27. However, shares are tipping just lower around mid-day.

Sales of $15.6 billion is an increase of 4% as compared to Q1 2009. The Street looked for $15.6 billion. The company updated its earnings guidance for full-year 2010 to $4.80 - $4.90 per share to reflect recent changes in foreign currency exchange rates. The Street is at $4.90.

In non-earnings news, Array (NASDAQ:ARRY) soars on an agreement with Novartis for the worldwide development of the small-molecule MEK inhibitors ARRY-162, currently in a Phase 1 cancer trial, its back-up, ARRY-300, and other MEK inhibitors.

Under the terms of the agreement, Array will initially receive $45 million
comprising an upfront and milestone payment and is eligible to receive an
additional $422 million if certain clinical, regulatory and commercial
milestones are achieved.

CytRx (NASDAQ:CYTR) rises after the company says bafetinib (formerly known as INNO-406) has received official notification from the Committee for Orphan Medicinal Products (COMP) of the European Medicines Agency (EMEA) that a positive opinion was made regarding the application for orphan medicinal product for the treatment of chronic myeloid leukemia (NYSE:CML).

Interpublic Group (NYSE:IPG) was up after an upgrade to "buy" from "hold" at Argus Research, which said sales "appear poised to improve," Bloomberg reports.

Oil was bouncing back on Tuesday, rising above $83 a barrel, as Asian and European bourses gained ground after banking worries abated slightly.

Gold was up at $1,142 per ounce.