Equities Update: Lower Finish After Soggy Economic Data

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 |  Includes: BA, BBRY, BWLD, CBG, CMCSA, COP, DIA, IP, KODK, NVS, QQQ, SNY, SPY, WDR
by: Midnight Trader

4:36 PM, Jul 28, 2010 --

  • NYSE down 45.8 (-0.65%) to 6,999.18
  • DJIA down 39.8 (-0.4%) to 10,498
  • S&P 500 down 7 (-0.7%) to 1,106
  • Nasdaq down 23.7 (-1%) to 2,265

GLOBAL SENTIMENT

  • Hang Seng up 0.56%
  • Nikkei up 2.7%
  • FTSE down 0.86%

UPSIDE MOVERS

(+) CASY announces capitalization plan.

(+) LVS beats with earnings on strong revenue gain.

(+) HGRD jumps after latest earnings.

(+) APL selling pipeline assets to Enbridge.

(+) ILMN continues evening gain that followed earnings.

(+) MEE issues mixed Q2 results.

(+) CVS cuts earnings view.

DOWNSIDE MOVERS

(-) GLW down despite earnings beat.

(-) ALTH gives up early sharp gain as earnings follows positive trial report.

(-) BRCM continues evening decline that followed earnings.

(-) EK down after earnings disappointment.

MARKET DIRECTION

Stocks end lower, braking the DJIA's streak at four sessions as the major averages held earlier negative territory in the wake of the Federal Reserve's latest Beige Book assessment of the economy.

The report, named for the color of its cover, backed what some other reports have shown -- the recovery was moderating at the end of the second quarter.

The report found the economy continued to expand, on balance, but said the Cleveland and Kansas City Fed banks reported stalled conditions. The Atlanta and Chicago Fed banks reported that their regions' pace of growth had slowed recently. Of the few areas reporting improved conditions, they stressed that only modest improvement was seen.

Boeing (NYSE:BA) fell over 2% after a revenue miss, dragging on the blue-chip average. The S&P 500 fell as Eastman Kodak (EK) fronted declines and healthcare shares were broadly lower.

Oil fell 0.7%, with September futures ending at $76.99 a barrel, off earlier lows.

Stocks were mixed early, subjected to some profit-taking after a solid performance over several sessions. A down day was cemented with the release of a disappointing factory sector report. A report showed orders for U.S. durable goods last month fell 1%, countering expectations of a 1% gain.

In company news, International Paper Co (NYSE:IP) is down after reporting that its second quarter profit tumbled. The company expects earnings to improve in coming months, however, as the global economy rebounds. The paper and pulp group reported earnings of $93 million, or 42 cents a share. Analysts polled by Thomson Reuters had expected earnings of 41 cents a share on sales of $6.19 billion.

Shares of Comcast Corp. (NASDAQ:CMCSA) were higher after the cable provider posted a second-quarter profit and sales that topped analyst expectations. The company made $0.33 a share, beating Street estimates by a cent as the company was able to sign up more subscribers seeking greater bandwidth, according to a Bloomberg report.

Sanofi-Aventis (NYSE:SNY) sued the U.S. Food and Drug Administration to force the agency to withdraw its clearance of a lower-cost alternative to Sanofi's blood thinner, Lovenox, according to a Bloomberg report. The suit asks a federal judge to make the FDA suspend its approval of the drug, made by a Novartis (NYSE:NVS) unit, the report says.

Waddell & Reed Financial (NYSE:WDR) said it struggled in the second quarter, saying net inflows for the second quarter were $731 million, down from $2.8 billion in the first quarter, Reuters reported. The firm said investors were reluctant to invest during economic uncertainty, according to the report.

Eastman Kodak (EK) shares were lower on news the company registered a larger-than-expected quarterly loss due to slumping digital camera sales and lagging photo-processing business. Kodak said its second-quarter loss narrowed to $168 million, or $0.63 a share, from $189 million, or $0.70 a share in the same quarter a year ago. Analysts had expected a loss of $0.51 a share, according to Thomson Reuters.

CB Richard Ellis Group (NYSE:CBG) is a standout gainer in an otherwise lower financial services and real estate sector. The company posted earnings of $54.8 million, or 17 cents a share, compared to a loss of $6.63 million, or 2 cents a share, a year ago. Revenue rose by 23% to reach $1.17 billion. Analysts polled by FactSet Research had expected earnings of 8 cents a share.

ConocoPhillips (NYSE:COP) says its sees its U.S. refinery utilization to average in the low 90 percent range over the third quarter, according to a Reuters report, citing the company's quarterly conference call. Also, the company said it will sell its entire 20% stake in Russian petroleum company Lukoil, Bloomberg report. The move comes as higher crude prices spawned an increase in second-quarter profit at the oil giant, the report said.

Shares of Research In Motion (RIMM) are higher after the company alerted financial markets late Tuesday that it planned an event in New York City scheduled for next Tuesday. RIMM provided no additional details but media speculation indicates the company will use the event to show off a new operating system for its BlackBerry smartphones. It may also preview a new handset, possibly one with a slide-out keypad that has been widely rumored to be in development, MarketWatch reported.

Buffalo Wild Wings (NASDAQ:BWLD) was on the rise as its second quarter earnings beat analysts' expectations on the back of strong sales, coupled with lower prices for chicken wings. Sales were particularly strong with the World Cup, NHL, and NBA viewing season.