Late Move Lands Stocks Mostly Higher, Dow Streak Ends

|
Includes: BP, DIA, GS, JPM, QQQ, SPY
by: Midnight Trader

4:44 PM, Jul 15, 2010 --

  • NYSE up 13.5 (+0.2%) to 6,916.81
  • DJIA down 7 (-0.07%) to 10,359
  • S&P 500 up 1 (+0.1%) to 1,096
  • Nasdaq down 0.8 (-0.03%) to 2,249

GLOBAL SENTIMENT

  • Hang Seng down 1.48%
  • Nikkei down 1.12%
  • FTSE down 0.80%

UPSIDE MOVERS

(+) GSK gains after WSJ report says FDA panel recommends continued marketing of diabetes drug Avandia.

(+) NTY going private, sold to Carlyle Group for $55 per share.

(+) SKH agrees to stay all legal proceedings.

(+) SNSS gets European patent for Voreloxin with Cytarabine.

(+) NVS gains after earnings.

DOWNSIDE MOVERS

(-) AMZN downgraded.

(-) MFE downgraded.

(-) BMTI prices shares.

(-) JPM reports jump in profit.

MARKET DIRECTION

Stock averages tried for a full late-day recovery and briefly reclaimed positive ground inside the final minutes. Eventually, averages end narrowly mixed, well off lows struck earlier in the session as investors weighed disappointing economic data against mostly upbeat earnings. The Dow did end its recent win streak at seven sessions but had been down as much as 120 points earlier in the day. Reports cite late day moves for BP (NYSE:BP), as a test cap on the Gulf spill reportedly is working, and for Goldman Sachs (NYSE:GS), as speculation of an SEC settlement grew.

Thursday began with earnings-inspired gains but that advance was erased by disappointing economic data.

Stocks gained intially after mostly positive results from JP Morgan Chase (NYSE:JPM), but even JPM turned lower as trading progressed. CEO Jamie Dimon offered cautious remarks about future economic growth.

Attention shifted to the economy and Wall Street was treated to a round of data.

The steep drops reported Thursday in the Empire State and Philadelphia Fed Manufacturing indexes dented optimism about the manufacturing industry, which had shown the most consistent growth coming out of the recession, the AP said.

The Empire State index fell to 5.08, well below the 18.50 economists had predicted and the 19.57 reported last month. The Philly Fed index dropped to 5.1 for July. Economists had predicted it would rise to 10.0.

The Fed's report on industrial production showed output at the nation's factories, mines and utilities rose by 0.1% in June, better than the 0.1% drop economists forecast.

The Labor Department did say earlier Thursday that initial claims for jobless benefits fell by 29,000 to a seasonally adjusted 429,000, the lowest level since August 2008. Economists polled by Thomson Reuters had predicted claims would drop to 450,000.

Finally, a look at June producer prices showed a deeper-tha-expected 0.5% decline overall. The core rate, which excludes volatile energy and food prices, rose 0.1%, the eighth consecutive monthly gain. Economists surveyed by MarketWatch had expected overall producer prices to fall 0.1% and the core to gain 0.1%.

Commodities were mixed to lower in late trading with gold ending slightly higher and crude ending lower for the day.

Crude oil for August delivery ended down 0.6%, or $0.42, to $76.62 a barrel on the New York Mercantile Exchange.

In other energy futures, heating oil fell 1.28%, or $0.02, to $2.01 a gallon while natural gas rose 6%, or $0.26, to $4.57 per million British thermal units.

Meanwhile, gold futures rose as buyers sought money safe havens.

Gold for August delivery rose $1.30, or 0.1%, to $1,208.30 an ounce. In other metal futures, silver rose $0.07, or 0.38%, to $18.36 a troy ounce while copper rose 0.07% to $3.01 a pound.