Dow +41.36 (+0.32%)
Nasdaq -12.76 (-0.50%)
S&P 500 +1.28 (+0.09%)
News That Moved the Market
Stocks Lose Steam in Afternoon Trading. Buyers were in control going into the afternoon Monday, but a warning from SanDisk (SNDK, -7.5%) fueled a sell-off led by the Nasdaq. In the morning, The Conference Board announced Leading Indicators, a forecasting tool used to highlight turning points in the economy, unexpectedly rose by 0.1%. Though the number is weak, it was evidence supporting the argument that the economy is not in a recession. After the number, major indices took off, trading more than 1% higher around lunchtime. But the party ended when SanDisk CEO Eli Harari said at a conference in the early afternoon that sales last month were "soft," blaming higher energy prices for the lack of consumer demand. Though the statement was nothing mind-blowing, it spooked investors and erased gains in a short amount of time.
No Sign of a Turnaround at Lowe's. Lowe's (LOW, -2.6%) reported an 18% decrease in profits, as the home-improvement retailer struggled with tough housing and consumer environments. Investors were most disturbed by the company lowering its profit outlook for the year, as there seems no clear end in sight to the company's weakness. "No signs yet of a recovery," noted Deutsche Bank analyst Mike Baker. "We don't believe investors were looking for much improvement, but we have yet to see trends get 'less worse.'"
Quick Tics: Amazon (AMZN, +7.6%) was added to Goldman's "Americas Conviction Buy" list…Crude closed up 76 cents to $127.77/barrel...Microsoft (MSFT, -1.8%) is in talks with Yahoo (YHOO, +0.1%) about a joint-venture involving Yahoo's ads that run next to search results.
Notable Earnings (Full List Here):
Home Depot (NYSE:HD) Morning
Staples (NASDAQ:SPLS) Morning
Target (NYSE:TG) Morning
Hewlett-Packard (NYSE:HPQ) Afternoon
8:30 AM: Producer Price Index
10:00 AM: State Street Investor Confidence Index