Stock Market Wrapup July 19th
Equities rallied across the board fueled by upbeat corporate earnings. The Dow ended the session up 82 points, while the Nasdaq gained 20.5. The benchmark S&P 500 also rallied, rising 7 points. For the Dow, it marks the first time the index has closed above 14,000. Investors' moods were not dampened by rising energy prices, as crude rose 87 cents to close at $75.92.
On the economic front today, the Conference Board said that U.S. leading economic indicators fell more than expected in June, dropping -0.3% after a revised gain of 0.2% in May. The decline was mostly due to slumping building permits. The index closely gauges the economy's outlook for the next 3-6 months.
On the earnings front, the nations second-largest bank, Bank of America (NYSE: BAC - News), reported a 5.2% rise in profits to $5.76 billion, or $1.28 a share. This compares to a year-ago profit of $5.48 billion, or $1.19 a share. Profits rose fueled by gains in private equity and investment banking revenue. Analysts were looking for earnings to come in at $1.20 a share.
Online auction site eBay (Nasdaq: EBAY - News) said a 34% revenue rise in its PayPal division helped its profit rise nearly 50% in the second quarter to $375.8 million, or 27 cents a share. In the same period a year ago, it earned $250 million, or 17 cents a share. Revenue climbed 30% to $1.83 billion. Excluding stock-based compensation and other costs, EPS would have been 34 cents a share, 2 cents ahead of analyst estimates. Wall Street, however, was unenthused, sending shares down -1.6% due to a continued slowdown in auction listings.
Software and hardware giant IBM (NYSE: IBM - News) reported a 12% rise in earnings compared to year-ago levels, as net income climbed to $2.26 billion, or $1.55 a share. Sales in its second quarter were $23.8 billion, beating analyst estimates of $23.1 billion. Strength in Big Blue's software division and improvements in its services unit helped drive profit in its second quarter.
Industrial heavyweight Honeywell (NYSE: HON - News), meanwhile, earned $611 million, or 78 cents a share, beating estimates of 75 cents a share. Sales climbed to $8.54 billion from $7.90 billion a year ago. The company also lifted its full-year 2007 earnings and sales forecast to $3.10-3.16 a share on revenue of $33.9 billion. Its Board also announced plans to buy back an additional $3 billion worth of its own stock. Shares finished the day higher by 0.7%.
Lastly, Continental Airlines (NYSE: CAL - News) said earnings rose due to strength in its transatlantic flights. Profit rose 15% to $228 million, or $2.03 a share. Excluding a settlement charge, EPS came in at $2.10, ahead of analyst estimates of $1.84. Revenue rose 5.8% to $3.7 billion. The stock slid -2.8% on reports that rising costs are in the cards in future quarters.
By the BullMarket.com Staff
On the economic front today, the Conference Board said that U.S. leading economic indicators fell more than expected in June, dropping -0.3% after a revised gain of 0.2% in May. The decline was mostly due to slumping building permits. The index closely gauges the economy's outlook for the next 3-6 months.
On the earnings front, the nations second-largest bank, Bank of America (NYSE: BAC - News), reported a 5.2% rise in profits to $5.76 billion, or $1.28 a share. This compares to a year-ago profit of $5.48 billion, or $1.19 a share. Profits rose fueled by gains in private equity and investment banking revenue. Analysts were looking for earnings to come in at $1.20 a share.
Online auction site eBay (Nasdaq: EBAY - News) said a 34% revenue rise in its PayPal division helped its profit rise nearly 50% in the second quarter to $375.8 million, or 27 cents a share. In the same period a year ago, it earned $250 million, or 17 cents a share. Revenue climbed 30% to $1.83 billion. Excluding stock-based compensation and other costs, EPS would have been 34 cents a share, 2 cents ahead of analyst estimates. Wall Street, however, was unenthused, sending shares down -1.6% due to a continued slowdown in auction listings.
Software and hardware giant IBM (NYSE: IBM - News) reported a 12% rise in earnings compared to year-ago levels, as net income climbed to $2.26 billion, or $1.55 a share. Sales in its second quarter were $23.8 billion, beating analyst estimates of $23.1 billion. Strength in Big Blue's software division and improvements in its services unit helped drive profit in its second quarter.
Industrial heavyweight Honeywell (NYSE: HON - News), meanwhile, earned $611 million, or 78 cents a share, beating estimates of 75 cents a share. Sales climbed to $8.54 billion from $7.90 billion a year ago. The company also lifted its full-year 2007 earnings and sales forecast to $3.10-3.16 a share on revenue of $33.9 billion. Its Board also announced plans to buy back an additional $3 billion worth of its own stock. Shares finished the day higher by 0.7%.
Lastly, Continental Airlines (NYSE: CAL - News) said earnings rose due to strength in its transatlantic flights. Profit rose 15% to $228 million, or $2.03 a share. Excluding a settlement charge, EPS came in at $2.10, ahead of analyst estimates of $1.84. Revenue rose 5.8% to $3.7 billion. The stock slid -2.8% on reports that rising costs are in the cards in future quarters.
By the BullMarket.com Staff
posted by Stock Administrator @ 9:47 PM
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