Equities Mixed as Earnings Pour In

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Includes: AABA, AAPL, DIA, MCD, MS, QQQ, SPY, USO, WFC
by: Midnight Trader

4:21 PM, Apr 21, 2010 --

  • NYSE down 24.4 (0.3%) to 7,644.67.
  • DJIA up 7.8 (0.07%) to 11,125.
  • S&P 500 up 1.24 (0.1%) to 1,206.
  • Nasdaq up 4 (0.2%) to 2,505.


GLOBAL SENTIMENT

  • Hang Seng up 0.52%
  • Nikkei up 1.74%
  • FTSE down 1.04%


UPSIDE MOVERS

(+) AAPL easily beats with results.

(+) MS tops Q1 expectations.

(+) MO beats with Q1 earnings, backs outlook.

(+) CYBS sold to Visa for $26 a share.

(+) BNVI wins patent.

(+) BA beats with Q1 results.

DOWNSIDE MOVERS

(-) T beats with Q1 earnings.

(-) YHOO down despite earnings beat.

(-) WFC profit below year ago, though beats Street view.

(-) TSFG continues evening slide after latest results.

(-) RIG reports Gulf of Mexico fire.

MARKET DIRECTION

The major averages close little changed, but the slim gain for the DJIA and Nasdaq are enough to stretch their most recent win streak to three days.

Stocks traded in a mixed fashion all day long as investors digested earnings reports from Morgan Stanley (NYSE:MS), McDonald's (NYSE:MCD), and Apple (NASDAQ:AAPL) among others and await more economic reports that provide some direction on the economy.

Questions as to whether Greece's aid package will be enough as interest-rate costs remain elevated on goverment bonds there weighed on global stock sentiment.

Investors are also keeping one eye on Congress. It's considering a tax on banks that could raise $90 billion over the next decade, but weigh on the financial industry and the broader market. The measure would be included in a bill to tighten financial regulation in the wake of the devastating credit crisis. A banking tax is expected to be on the Group of 20 finance ministers' weekend agenda as well.

Corporate news was the dominant driver in trading today.

Apple provided some lift for tech stocks after its earnings easily topped expectations thanks to strong sales of iPhones. The computer maker joined Intel Corp. (NASDAQ:INTC) and IBM Corp. (NYSE:IBM), which also posted stronger sales and profits. Apple shares are up near 6% at mid-day.

Yahoo (YHOO) reported Q1 earnings of $310 million, or 22 cents a share, up from $118 million, or 8 cents a share in the same period last year. Net revenue for the period ended in March came in at $1.16 billion, ex Traffic Acquisition Costs. Analysts polled by Thomson Reuters had expected Yahoo to post first-quarter earnings of 9 cents a share, and $1.17 billion in net revenue.

Morgan Stanley's Q1 profit surged to $1.41 billion on strong results from its trading operations, easily topping analysts' expectations and joining Goldman Sachs (NYSE:GS), which also posted blow out earnings yesterday.

Also in the financial sector, Wells Fargo (NYSE:WFC) reported Q1 EPS of $0.45 vs $0.56 a year ago but topping the Thomson Reuters mean analyst estimate for $0.42. Revenue of $21.4 billion is up 2% from the same period a year earlier. The Street looked for $21.7 billion.

McDonald's reported Q1 profit of $1.09 billion, or $1.00 per share, up from $979.5 million, or 87 cents a share, a year earlier. Ex items, McDonald's earned $1.03 a share. Analysts' average forecast had called for a profit of 96 cents per share, according to Thomson Reuters.

Crude futures finished Wednesday's session with a minor loss as a surprise gain in inventories overshadowed some optimism about demand for refined products. Crude oil for June delivery finished 17 cents, or 0.2%, lower at $83.68 a barrel.