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Oct 18, 2010 --

  • NYSE up 50.50 (+0.7%) to 7,571
  • DJIA up 80.9 (+0.7%) to 11,144
  • S&P 500 up 8.5 (+0.7%) to 1,185
  • Nasdaq up 11.9 (+0.5%) to 2,481

GLOBAL SENTIMENT

  • Hang Seng down 1.21%
  • Nikkei down 0.02%
  • FTSE up 0.69%

UPSIDE MOVERS

(+) AGAM sold for $20.80 a share to STJ.

(+) C just beats with improved profit.

(+) AAPL gains in active volume ahead of post-bell earnings.

(+) ASTM gets FDA fast track status of Phase 3 CLI program.

(+) ZOOM raises Q3 outlook.

(+) ARWR inks pact with Smith & Nephew.

(+) PPHM reports positive data from brain cancer treatment study.

(+) ISTA gets FDA OK for Bromday.

DOWNSIDE MOVERS

(-) TSTR drops on report of likely bankruptcy filing.

(-) HAL falls after results; Q3 up sharply from year ago.

(-) FLR guides for 2010 below Street.

MARKET DIRECTION

Major stock averages end moderately firmer Monday after getting off to a choppy start as Wall Street juggles earnings news on several fronts. Crude oil closes up 2.3% at $83.08 a barrel. Financial shares and home builder stocks fronted the day's gains.

Choppy trading initially followed an earnings beat from financial bellwether Citi (NYSE:C) in the pre-market hours, but banking shares eventually pushed higher and remained broadly higher late in the session. Perhaps more important for investors, Citigroup said fewer of its customers defaulted on loans, an encouraging sign that borrowers may be returning to financial health. C finished up 5.4%.

In other earnings news, Halliburton Co (NYSE:HAL) is down after the oilfield services provider reported that revenue outside of North America remained flat from the previous quarter. The company said overseas activity should pick up incrementally. Halliburton reported third quarter earnings rising to $544 million, or 64 cents a share, compared to $262 million, or 29 cents a share, a year ago. Revenue rose to $4.67 billion from $3.59 billion. Analysts polled by FactSet Research had expected earnings of 56 cents a share on revenue of $4.63 billion.

Home builder stocks were also leading gainers. The National Association of Home Builders reported that its housing market index, which measures builder confidence in the sales of new, single-family homes, rose by three points in October. It was the first time that the measure had risen since June, which came shortly after the end of a federal tax rebate for first-time homebuyers.

In the after-hours session:

Apple (NASDAQ:AAPL), which is trading at a 52-week high and just in positive territory late, is due with its Q4 results after the closing bell tonight, and analysts polled by Thomson Reuters are expecting the company to report a profit of $4.08 per share on revenue of $18.9 billion.

International Business Machines (NYSE:IBM) is due with its Q3 results in the extended-hours tonight, and analysts polled by Thomson Reuters are expecting a profit of $2.75 per share on sales of $24.12 billion.

VMware (NYSE:VMW) is due with Q3 results after the bell tonight. The average forecast in an analyst survey by Thomson Reuters is for $0.35 per share in earnings on $698 million in revenue.

Source: Stocks Rack Up Eventual Gains in Wake of Citi Results