Dow -59.9 (-0.49%)
Nasdaq -6.9 (-0.29%)
S&P 500 -8.1 (-0.60%)
News That Moved the Market
Strong Earnings Not Enough to Keep Market Afloat. Despite strong earnings from General Electric (GE, +3.3%) and IBM (IBM, +2.0%), the market was not able to finish in positive territory. Investors liked that GE reaffirmed its 2008 EPS growth of at least 10% and IBM's announcement that 2008 EPS growth would come in at 15%-16%, beating expectations. Markets opened up, but gave up gains in a volatile session.
Bush Calls for Economic Stimulus. Bush, in a prepared speech, talked about implementing a new stimulus plan that would provide broad-based tax relief and amount to about 1% of GDP or about $140 billion. Many investors were disappointed that more details were not shared, though the amount of information given was about as much economists expected.
Consumer Sentiment Rebounds. Markets did get a brief boost from the University of Michigan's preliminary consumer-sentiment survey for January which jumped to 80.5 in January from the 75.5 reading in December.
Sprint Plunges. Sprint Nextel (S, -24.8%) fell hard after a wireless subscriber report sparked concerns about the company's market share. Sprint also announced it would cut 4,000 jobs and shutter 8% of its retail stores because of heavy competition.
AMD Beats. Advanced Micro Devices (AMD, +11.5%) announced fourth-quarter results that beat analysts' expectations. The company showed progress toward its goal of breaking even in the second half of 2008.
Markets will be closed Monday for Martin Luther King Jr. Day