Stock Market Wrapup July 24th
The major market averages all closed decidedly lower on the session, with the Dow closing down -226 points and the tech-heavy Nasdaq losing nearly -51 points. The broader S&P 500 also ended the session lower by -30 points. Equities sold off amid continued weakness in the mortgage markets as was evident with earnings news out by one of its largest players. Investors did not get much of a boost from a sell-off in the price of crude, as prices ended down -$1.33.
Corporate earnings continued to stream in on the day. Chemical giant DuPont (NYSE: DD - News) reported earnings of $972 million, or $1.04 a share, compared to earnings of $975 million, or $1.04 a share, a year ago. Sales grew 6% to $7.9 billion in the period ended June 30th. Analysts were expecting the company to report EPS of $1.06 a share on sales of $7.86 billion. It cited weak auto and housing industries that contributed to the miss on both EPS and revenue. Shares finished the session down -6.3%.
The biggest U.S. mortgage lender, Countrywide Financial (NYSE: CFC - News), reported a -33% drop in earnings to $485 million, or 81 cents a share, compared to earnings of $722.2 million, or $1.15 a share, last year. Revenue fell -15% in the latest quarter to $2.55 billion. The lender also slashed its 2007 profit forecast to $2.70-3.30 a share, down from its April estimate of $3.50-4.30 a share.
Not all earnings were lackluster, however, as beverage giant PepsiCo (NYSE: PEP - News) said earnings rose to $1.56 billion, or 94 cents a share. Total revenues rose 10% to $9.61 billion, from 8.71 billion a year ago. The results easily topped Wall Street analyst estimates of 89 cents a share. The company now sees 2007 EPS of $3.35, compared to previous estimates of $3.30. In the defense arena, Lockheed Martin (NYSE: LMT - News) said profits rose citing strength in all four of its major divisions. For the second quarter, the company reported earnings of $778 million, or $1.82 a share, up from $580 million, or $1.34 a share, in the year-ago period. Sales rose to $10.65 billion. The results handily beat analyst estimates of a profit of $1.53 a share. The defense contractor also raised its 2007 profit forecast to $6.65-6.80 a share, up from $6.20-6.35 a share, and upped its sales guidance to $41-41.75 billion, up from its previous view of $40.35-41.35 billion. Shares rose 3.6% on the session.
Elsewhere, financial services company American Express (NYSE: AXP - News) posted a 12% rise in quarterly profit fueled by cardmember spending. Net income totaled $1.1 billion, or 88 cents a share, up form $945 million, or 77 cents a share, in the year-ago period. Revenue net of interest expense rose 9% to $7.1 billion, up from $6.5 billion. Analysts were looking for EPS of 86 cents. Shares of Quest Diagnostics (NYSE: DGX - News), meanwhile, rose 6.9% after the firm reported results that beat analyst EPS estimates by 5 cents. Earnings rose 7% to $141.3 million, or 73 cents per share, up from $132 million, or 66 cents per share, a year ago.
By the BullMarket.com Staff
Corporate earnings continued to stream in on the day. Chemical giant DuPont (NYSE: DD - News) reported earnings of $972 million, or $1.04 a share, compared to earnings of $975 million, or $1.04 a share, a year ago. Sales grew 6% to $7.9 billion in the period ended June 30th. Analysts were expecting the company to report EPS of $1.06 a share on sales of $7.86 billion. It cited weak auto and housing industries that contributed to the miss on both EPS and revenue. Shares finished the session down -6.3%.
The biggest U.S. mortgage lender, Countrywide Financial (NYSE: CFC - News), reported a -33% drop in earnings to $485 million, or 81 cents a share, compared to earnings of $722.2 million, or $1.15 a share, last year. Revenue fell -15% in the latest quarter to $2.55 billion. The lender also slashed its 2007 profit forecast to $2.70-3.30 a share, down from its April estimate of $3.50-4.30 a share.
Not all earnings were lackluster, however, as beverage giant PepsiCo (NYSE: PEP - News) said earnings rose to $1.56 billion, or 94 cents a share. Total revenues rose 10% to $9.61 billion, from 8.71 billion a year ago. The results easily topped Wall Street analyst estimates of 89 cents a share. The company now sees 2007 EPS of $3.35, compared to previous estimates of $3.30. In the defense arena, Lockheed Martin (NYSE: LMT - News) said profits rose citing strength in all four of its major divisions. For the second quarter, the company reported earnings of $778 million, or $1.82 a share, up from $580 million, or $1.34 a share, in the year-ago period. Sales rose to $10.65 billion. The results handily beat analyst estimates of a profit of $1.53 a share. The defense contractor also raised its 2007 profit forecast to $6.65-6.80 a share, up from $6.20-6.35 a share, and upped its sales guidance to $41-41.75 billion, up from its previous view of $40.35-41.35 billion. Shares rose 3.6% on the session.
Elsewhere, financial services company American Express (NYSE: AXP - News) posted a 12% rise in quarterly profit fueled by cardmember spending. Net income totaled $1.1 billion, or 88 cents a share, up form $945 million, or 77 cents a share, in the year-ago period. Revenue net of interest expense rose 9% to $7.1 billion, up from $6.5 billion. Analysts were looking for EPS of 86 cents. Shares of Quest Diagnostics (NYSE: DGX - News), meanwhile, rose 6.9% after the firm reported results that beat analyst EPS estimates by 5 cents. Earnings rose 7% to $141.3 million, or 73 cents per share, up from $132 million, or 66 cents per share, a year ago.
By the BullMarket.com Staff
posted by Stock Administrator @ 9:13 PM
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