Stock Market Wrapup July 31st
Equity prices started the day strong on upbeat economic data, but the rally evaporated in the afternoon heat as credit market fears once again took hold of the market. At the close, the Dow Jones Industrials lost -146 points, while the Nasdaq dropped -37. The broader S&P also gave up -19 points on the session. Crude oil ended the day at an all-time closing high of $78.21, up $1.38 on the day.
Several data points came out today in the economic arena, chief among them consumer spending figures. The Commerce Department reported that consumer spending rose 0.1% in June, down from 0.5% in May. The dropoff in spending was due to still falling home prices as well as higher fuel costs. Incomes rose 0.4%. The Conference Board also said today that consumer confidence rose to a six-year high of 112.6. Meanwhile, the Association of Purchasing Management said that construction spending unexpectedly fell last month.
On the corporate earnings front, General Motors (NYSE: GM - News) said net income hit $891 million, or $1.56 a share, compared to a loss of -$3.48 billion, or -$5.98 a share. The automotive giant said revenues declined -13% to $46.8 billion. Excluding charges related to its restructuring, it would have earned $2.48 a share, which handily beat analyst estimates of $1.13 a share. Investors sent the shares up mid-day, but they fell with the overall market at the end of the day.
Elsewhere in earnings, tech giant Sun Microsystems (Nasdaq: SUNW - News) said it earned $329 million, or 9 cents a share, in its fiscal fourth quarter. It reported a loss of -$301 million, or -9 cents a share, in the same period a year ago. Revenues were little changed at $3.84 billion from $3.83 billion last year. Analysts were looking for a profit of 5 cents a share. Its management attributed its profit beat to cost cutting measures as its operating expenses fell by -25% in the quarter compared to last year. Shares rose 4.3% on the trading session.
Shares of the largest U.S. refiner Valero (NYSE: VLO - News) fell 3.0% after the company said it earned $2.25 billion, or $3.89 a share, up from $1.9 billion, or $2.98 a share, last year. Revenues fell -5.7% to $24.2 billion from $25.6 billion last year. Despite the falloff in revenue, higher refining margins and strong demand for petroleum products drove profits.
In other news, consumer products and pharmaceutical maker Johnson & Johnson (NYSE: JNJ - News) said that it would be eliminating -4% of its workforce, which will save the company $1.3-1.6 billion next year. The move comes amid two of its top-selling drugs facing generic competition. Shares rose 0.7%.
By the BullMarket.com Staff
Several data points came out today in the economic arena, chief among them consumer spending figures. The Commerce Department reported that consumer spending rose 0.1% in June, down from 0.5% in May. The dropoff in spending was due to still falling home prices as well as higher fuel costs. Incomes rose 0.4%. The Conference Board also said today that consumer confidence rose to a six-year high of 112.6. Meanwhile, the Association of Purchasing Management said that construction spending unexpectedly fell last month.
On the corporate earnings front, General Motors (NYSE: GM - News) said net income hit $891 million, or $1.56 a share, compared to a loss of -$3.48 billion, or -$5.98 a share. The automotive giant said revenues declined -13% to $46.8 billion. Excluding charges related to its restructuring, it would have earned $2.48 a share, which handily beat analyst estimates of $1.13 a share. Investors sent the shares up mid-day, but they fell with the overall market at the end of the day.
Elsewhere in earnings, tech giant Sun Microsystems (Nasdaq: SUNW - News) said it earned $329 million, or 9 cents a share, in its fiscal fourth quarter. It reported a loss of -$301 million, or -9 cents a share, in the same period a year ago. Revenues were little changed at $3.84 billion from $3.83 billion last year. Analysts were looking for a profit of 5 cents a share. Its management attributed its profit beat to cost cutting measures as its operating expenses fell by -25% in the quarter compared to last year. Shares rose 4.3% on the trading session.
Shares of the largest U.S. refiner Valero (NYSE: VLO - News) fell 3.0% after the company said it earned $2.25 billion, or $3.89 a share, up from $1.9 billion, or $2.98 a share, last year. Revenues fell -5.7% to $24.2 billion from $25.6 billion last year. Despite the falloff in revenue, higher refining margins and strong demand for petroleum products drove profits.
In other news, consumer products and pharmaceutical maker Johnson & Johnson (NYSE: JNJ - News) said that it would be eliminating -4% of its workforce, which will save the company $1.3-1.6 billion next year. The move comes amid two of its top-selling drugs facing generic competition. Shares rose 0.7%.
By the BullMarket.com Staff
posted by Stock Administrator @ 9:14 PM
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