Earnings Optimism, Positive Data Lift Stocks

by: Midnight Trader

4:29 PM, Jul 7, 2010 --

Here's where markets stand at the close:

  • NYSE up 199.66 (+3.08%) to 6,685.78
  • DJIA up 274.66 (+2.82%) to 10,018.28
  • S&P 500 up 32.21 (+3.13%) to 1,060.27
  • Nasdaq up 65.59 (+3.13%) to 2,159.47


  • Hang Seng down 1.13%
  • Nikkei down 0.63%
  • FTSE up 1%


(+) BP (+4.01%) reportedly may seek Middle East funds.

(+) IMAX (+5.22%) inks new deal.

(+) ZANE (+11.05%) reports record contracts.

(+) DTG (+5.1%) issues Q2, FY update.

(+) ATLS(+6.3%) reports Q2 production, FY11 outlook.

(+) STT (+9.9%) sees EPS above Street view.

(+) VRSN (+5.5%) upgraded.

(+) USAT (18%) increases devices connected to its network.

(+) BPHX (7.5%) gets contracts.

(+) POL (13%) retires credit facility.


(-) AFFX (-27.2%) sees Q2 revenue below forecast.

(-) ENWV (-13.4%) warns of sales miss.

(-) FCN (-25.7%) downgraded.

(-) DPTR (-1%) names new CEO and ends deal with Opon.

(-) FDO (-8%) beats by a penny, cautious on Q4.


Stocks rallied as financials pulled shares higher on optimism for a strong earnings season. Increased projections from State Street Corp. (NYSE:STT) helped lead the market higher. Positive data on credit-card delinquencies and a rise in home-loan applications -- although mainly refinancings -- also cheered investors eager for good news. The major indexes all ended the day at or near session highs.

Consumers behind on their credit-card payments fell to an eight-year low in Q1, the American Bankers Association said. The group said 3.88% of bank credit-card accounts were past due by 30 days or more in Q1. The rate hasn't been below 4% since 2002. That cheered financial shares across the board including major credit card issuers like Bank of America (NYSE:BAC), Citigroup (NYSE:C) and JPMorgan Chase (NYSE:JPM).

Meanwhile, home loan applications jumped by 7% last week as consumers raced to mainly refinance their current loans at some of the lowest rates since records started being kept, the Mortgage Bankers Association reported.

State Street said it expects second-quarter results to top Wall Street's expectations. The money-management group anticipates earnings of 93 cents a share and $2.2 billion in revenue, while analysts polled by Thomson Reuters forecast earnings of 72 cents a share on revenue of $2.21 billion. State Street will release its official results July 20.

Shares of Affymetrix Inc. (NASDAQ:AFFX) fell sharply after the company said second-quarter revenue would be below its previous forecast due to lower sales and foreign academic research standing, according to Reuters. Second quarter revenue is expected to be in the range of $71 to $72 million compared with previous outlook of $80 to $82 million, the report said. Analysts had expected revenue of $82.1 million, according to a Thomson Reuters poll.

Delta Petroleum (DPTR) was down more than 10% for most of the regular session after it said it named Carl Lakey chief executive and terminated discussions with Opon. But a last-hour rally lifted the shares near the break-even point to close just 1% lower.

Google Inc. (NASDAQ:GOOG) moved higher as it awaits a decision from China's Ministry of Industry and Information Technology about renewing the company's provider license.

PolyOne (NYSE:POL) jumped after the company says it has fully repaid $40 million of outstanding borrowings from Citicorp and terminated the related commitments.

BP's (NYSE:BP) CEO Tony Hayward, who is holding meetings in Abu Dhabi, may seek support from Middle East sovereign funds after the oil spill in the Gulf of Mexico halved its share price, UBS AG said. BP shares rose about 4% on the day.

Commodities followed equities higher. Crud oil for August delivery settled up $2.09, or 2.9%, to $74.07 a barrel. Gold rose $3.80, or 0.3%, to $1,198.90 an ounce.

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