4:24 PM, Sep 23, 2010 --
- NYSE down 69.38 (-1%) to 7,141.45
- DJIA down 76.89 (-0.7%) to 10,662
- S&P 500 down 9.45 (-0.8%) to 1,125
- Nasdaq down 7 (-0.3%) to 2,327
GLOBAL SENTIMENT
- Hang Seng up 0.21%
- Nikkei down 0.37%
- FTSE down 0.09%
UPSIDE MOVERS
(+) RHT continues evening gain that followed earnings, guidance beat.
(+) BBBY continues evening gain that followed results.
(+) NVDA upgraded.
(+) NFLX gaining as rival Blockbuster files for bankruptcy.
DOWNSIDE MOVERS
(-) MCD gives up early gain; raises dividend.
(-) RAD loss widens.
(-) MSFT pricing notes.
(-) NOVL auction for netware and identity management products reportedly dragging.
(-) AMTD upgraded.
MARKET DIRECTION
Major stock averages end preliminarily down 0.3%-0.8% as extended losses late in the day for financials tugged the broader market lower as well. Mixed economic data, including on the job market, housing, and eurozone business sentiment, jostled stocks for much of today's session.
Crude oil for November delivery advanced 47 cents, or 0.6%, to $75.18 a barrel on the New York Mercantile Exchange.
The dollar improved after hitting a five-month low against the euro.
European markets fell and the euro declined after a closely watched reading on business activity in the 16 countries that use the euro weakened more than expected. Stateside, the Labor Department said claims jumped by 12,000 and are still at levels that signal employers are not significantly adding new jobs. Economists polled by Thomson Reuters had forecast claims would remain unchanged.
Existing home sales rose 7.6% in August from July to a seasonally adjusted annual rate of 4.13 million, the National Association of Realtors said Thursday. Sales were down 19% from the same month a year earlier. July was the worst month for sales in 15 years. That was unchanged by a slightly upward revision.
Also reported today, the Conference Board said its index of leading economic indicators rose 0.3% in August, compared to 0.1% in the previous month. Economists had expected a 0.2% increase.
In company news, Microsoft Corp. (MSFT) is trying to persuade lawmakers to overhaul laws that govern electronic privacy in an effort to pave the way for so-called cloud computing, a technology that could double sales in five years, Bloomberg reported. "The law needs to catch up," said Brad Smith, Microsoft's general counsel, as reported by Bloomberg. The technology is a critical part of the future and quite central to all that we're doing."
Edwards Lifesciences (EW) shares are higher on news the company's heart valve may become the first treatment in the U.S. for elderly patients after a study found it slashed deaths when used, Bloomberg reported. Edwards plans to seek FDA approval for the treatment next year, the report said.
Meanwhile, GlaxoSmithKline (GSK) is down on an announcement by the FDA on whether to allow the company to continue marketing its Type 2 diabetes drug Avandia. Avandia had been one of Glaxo's top-selling drugs, but Avandia has come under scrutiny for possibly causing heart attacks. In July, an FDA panel advised the agency to allow Avandia to remain on the market but recommended stricter guidelines for its use.
Dynegy (DYN) is down after it says the 40-day "go-shop" period during which advisors solicited alternative proposals to the previously announced merger agreement has expired without any alternative offers. A previous merger agreement is for the acquisition of DYN by Denali Parent Inc., an affiliate of The Blackstone Group L.P. (BX).
Novell (NOVL) is down as the software manufacturer's auction process faces setbacks. The company is having issues selling its NetWare and identity management products to private equity groups that are unwilling to pay Novell's asking price.
In earnings news, Bed Bath and Beyond Inc (BBBY) shares are higher after reporting second quarter results that beat expectations. The household goods retailer posted a profit of $181.8 million, or 70 cents a share, compared with $135.5 million, or 52 cents a share, a year ago. Revenue rose 12% to $2.14 billion.
Rite Aid Corp (RAD) is down after it cut back its sales projection for the fiscal year. The drugstore group expects sales to reach $25.4 billion, down from its earlier projection of $25.6 billion. In the second quarter, Rite Aid posted a loss of $199.3 million, or 23 cents a share, compared to a loss of $120.4 million, or 14 cents a share, a year ago. Analysts polled by Bloomberg had expected a loss of 16 cents on average.
