Nasdaq Salvages Thin Gain in Otherwise Bumpy Session

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 |  Includes: ANN, DELL, DIA, GDXJ, GLDB, HPQ, KOG, LLY, QQQ, SLV, SPY, TYC, USO, YHOO
by: Midnight Trader

4:30 PM, Aug 20, 2010 --

  • DJIA down 57.6 (-0.6%) to 10,214
  • S&P 500 down 4 (-0.4%) to 1,072
  • Nasdaq up 0.8 (+0.04%) to 2,180


GLOBAL SENTIMENT

  • Hang Seng down 0.43%
  • Nikkei down 1.96%
  • FTSE down 0.31%


UPSIDE MOVERS

(+) MRVL continued evening climb that followed earnings beat.

(+) HRL beats with results, hikes guidance.

(+) SJM beats with EPS, guides in range that straddles Street view.

DOWNSIDE MOVERS

(-) ANN misses with sales, guides mostly in line.

(-) COCO meets with Q4 EPS, beats with sales, guides below Street for
Q1.

(-) BCSI downgraded.

(-) AMR may face FAA fine: Wall Street Journal.

(-) GPS gains on earnings, buyback.

(-) LO hikes dividend, sets buyback.

MARKET DIRECTION


Worries about an economic slowdown weighed on most stocks yet again Friday and for the blue-chip Dow Jones Indusrial Average and broader S&P 500 contributed to back-to-back weekly declines. The tech-heavy Nasdaq managed to close just higher Friday and is up 0.3% for the week. Each average ended near its best level of the day. The DJIA is off 0.9% from last Friday.

In company news, Eli Lilly & Co. (NYSE:LLY) gave up an early gain to end just in negative territory after getting backing from an outside advisory panel to the U.S. Food and Drug Administration to expand the use of the antidepressant Cymbalta in lower back pain and chronic knee pain, according to a Bloomberg report. That could help the drug maker, which faces competition from generic counterparts in its top three products within three years, the report said.

Yahoo Inc. (NASDAQ:YHOO) slipped as a report said it could purchase a "considerable" stake in video website Hulu LLC if it pursues an initial public offering, according to a Bloomberg report, citing Stifel Nicolaus & Co. Hulu is planning a sale of shares as early as this year that would value the company at more than $2 billion, the report said, citing a person with knowledge of the situation. Yahoo, however, slipped into the red after a solid opening and is trading near the low end of its range, after Wedbush initiated with an "underperform" rating and a $13.25 target, below the low end, $13.52, of its 52-week range.

Also, Kodiak Oil & Gas (NYSE:KOG) gets a a warning letter from the NYSE Amex LLC that KOG is not in compliance because its board of directors does not have a majority of independent directors and its audit committee is not comprised of at least three independent directors.

Tyco International Ltd (NYSE:TYC) gained after it was picked to replace Smith International Inc (SII) on the Standard & Poor's 500 Index at the close of trading Aug. 26. Smith will be bought out by Schlumberger in a $11 billion deal that was announced in February.

In earnings news, AnnTaylor Stores (NYSE:ANN) was on the rise after the clothing retailer reported second quarter profit rising on the back of strong sales. The company also projected third quarter revenue in line with analysts' expectations.

Hewlett-Packard Co. (NYSE:HPQ) fell after it reported adjusted fiscal Q3 EPS of $1.08 vs $0.75 a year earlier. Revenue was $30.7 billion, up from $27.6 billion. HPQ had released preliminary results on Aug. 6, the day it also announced the resignation of Chief Executive Mark Hurd. At that time, the company was expected to report earnings of $1.07 a share on sales of $30.1 billion.

Meanwhile, Dell Inc. (NASDAQ:DELL) edged higher after it reports Q2 EPS of $0.32 vs $0.29 a year earlier and topping the Thomson Reuters mean analyst estimate for $0.30. Total revenue in the quarter ended July 30 was $15.5 billion, a 22% increase from a year ago. The Street looked for $15.2 billion.

Commodities were broadly lower amid a tough regular session for equities. Both gold and crude futures finished lower

Crude-oil for September delivery closed down $0.97, or 1.3% at $73.46 a barrel on the New York Mercantile Exchange.

In other energy futures, heating oil was down $0.02 to $2.00 a gallon while natural gas fell 1.63%, to $4.17 per million British thermal units.

In energy ETFs, the United States Oil Fund (NYSEARCA:USO) was down 0.9% and the United States Natural Gas fund (NYSEARCA:UNG) was down 1.3%. In precious metal ETFs, the SPDR Gold Trust (NYSEARCA:GLD) was up down 0.4%. Market Vectors Gold Miners (NYSEARCA:GDX) was down 0.9%. iShares Silver Trust (NYSEARCA:SLV) was down 1.8%.