Stocks Tumble 2% on European Debt Fears

 |  Includes: DD, DIA, F, MMM, QQQ, SPY, TXN, UPS
by: Midnight Trader

4:26 PM, Apr 27, 2010

  • NYSE down 214.5 (2.8%) to 7,463.09.
  • DJIA down 213.04 (1.9%) to 10,991.99.
  • S&P 500 down 28.3 (2.3%) to 1,184.
  • Nasdaq down 51.5 (2%) to 2,471.


  • Hang Seng down 1.51%
  • Nikkei up 0.42%
  • FTSE down 2.61%


(-) DD beats wih results and raises guidance.

(-) CIT reports unexpected profit.

(-) ICGN reports positive trial news.

(+) BA upgraded.

(+) STSA gets investment from Thomas H. Lee Partners.

(-) F beats with Q1 results, largely priced into recent stock action.

(-) TXN continues evening decline seen despite beat, raised guidance.

(-) UPS results top year-ago quarter.

(-) PMI prices offering.

(-) X tops with Q1 results.

(-) GOOG removed from Goldman's Conviction Buy list.


(+) TASR upgraded.

(+) MMM beats with results and hikes FY view.


Stocks end sharply lower in the wake of credit downgrades for Greece and Portugal. The DJIA sheds nearly 2%, while the broader S&P 500 sheds 2.3% and the tech-heavy Nasdaq Composite drops 2%.

Stocks had climbed off the day's worst levels but are pushing back toward the bottom of the session's range very late in the day.

Stock indexes extended what had been only modest morning losses after Standard & Poor's cut Greece's debt to BB+, or junk, and lowered Portugal's long-term ratings by two notches.

Financials in general were lower, including insurer AIG, tumbling double digits after an analyst downgrade.

The indexes had bounced off their lows after the Conference Board reported that consumer confidence climbed in April. The Standard & Poor's/Case-Shiller home-price index showed its first yearly growth in three years, yet 11 of the 20 cities tracked in the gauge showed a decline in prices.

Gold ends $8.20 higher as part of a flight-to-quality move on Greek contagion fears.

As for earnings-driven movers:

Ford (NYSE:F) reports Q1 net income of $0.50 per share, up from year ago levels. Pre-tax operating profit was $0.46 per share, an increase over Q1 last year. The Street view was $0.31 per share, according to Thomson Reuters. Revenue was $31.6 bln, up $from $24.4 bln in last year's quarter. The analyst consensus was $30.4 bln. The stock gained Monday ahead of today's results.

3M (NYSE:MMM) reports Q1 earnings of $1.29 per share and ex-items EPS of $1.40 per share, better than the analyst mean of $1.21 per share. Sales were $6.3 bln, ahead of expectations of $5.94 bln. Looking forward, 3M increased its full-year 2010 performance expectations. The company now expects organic sales volumes to grow 10 to 12 percent versus a prior expected range of 5 to 7 percent.

Texas Instruments (NYSE:TXN) reports Q1 earnings of $0.52 per share, a penny better than the analyst mean on Thomson Reuters. Revenue was $3.21 bln, ahead of expectations of $3.13 bln. For Q2, the company is guiding for revenue of $3.31 to $3.59 bln, vs. the analyst targets of $3.21 bln. EPS is seen in the range of $0.56 to $0.64 per share, vs. expectations of $0.53 per share.

UPS (NYSE:UPS) reports Q1 adjusted earnings of $0.71 per share, up from $0.52 per share in the prior year period. Revenue was up 7% to $11.7 bln.

UPS recently raised adjusted earnings guidance for the year to a range of $3.05 to $3.30 per diluted share, an increase of 32% to 43% over adjusted 2009 results.

DuPont (NYSE:DD) reports Q1 EPS of $1.24 compared to $0.54 a year earlier and topping the Street view for $1.06. Sales rose 23% to $8.5 billion. The company raised its full-year earnings guidance to $2.50 to $2.70 a share from a previous forecast of $2.15 to $2.45. The Street is at $2.39.