Stock Market Wrapup Aug. 14th
Stocks slid yet again today on increased credit fears and sluggish retail earnings. At the close, the Dow Jones finished down -208 points, marking the fourth-consecutive down day for the index. The tech-laden Nasdaq fell -43 points, while the broader S&P 500 dropped -26 points. Oil rose 76 cents to $72.38 a barrel.
In economic news today, the Labor Department said the Producer Price Index jumped a larger-than-expected 0.6% in July as energy prices led the way with a 2.5% gain. Excluding food and energy prices, core prices rose 0.1%, which was in line with expectations.
Over in the credit markets arena, Sentinel Management Group, a firm that manages $1.6 billion in assets, asked regulators for permission to freeze withdrawals because credit market turmoil has made it impossible to meet investors' needs without liquidating assets at a steep discount.
Earnings report cards came out for two major retailers. The first was the nation's largest home-improvement company, Home Depot (NYSE: HD - News), which reported a -15% drop in second-quarter profit. For the quarter, the company said net income came in at $1.59 billion, or 81 cents a share, down from $1.86 billion, or 90 cents a share, in the year-ago period. Excluding one-time items, EPS was 77 cents, which was down from 82 cents last year but higher than analyst estimates of 72 cents. Sales fell -1.8% to $22.18 billion. Sales at stores open at least a year dropped -5.2%. The stock fell -4.9%.
Wal-Mart (NYSE: WMT - News), the world's largest retailer, posted a lower-than-expected quarterly profit today and lowered Q3 and full-year guidance. The company said second-quarter net income totaled $3.1 billion, or 76 cents a share, up from $2.08 billion, or 50 cents a share, last year. Excluding items, EPS was 72 cents, a full 4 cents lower than what analysts expected. Revenues came in at $93.0 billion, up from $85.4 billion last year. The lower quarterly profit was blamed on "economic pressures around the world." Shares slid -5.1%.
In other news, toymaker Mattel (NYSE: MAT - News) announced this morning that it will be recalling 18.6 million toys made in China after the company warned that children could swallow the magnets in some toys. The toys affected include Polly Pocket and Batman among others. This is the second time in as many months the toy company had to recall toys that were made in China. Shares fell -2.4% on an overall gloomy day for equities.
In more upbeat news, shares of software company VMware (NYSE: VMW - News) debuted today in a hotly awaited IPO, and investors were not disappointed. Shares rocketed out of the gate on their first day of trading, and closed the session up 75.9%. VMware's parent EMC (NYSE: EMC - News) owns an 89% stake in the software company.
By the BullMarket.com Staff
In economic news today, the Labor Department said the Producer Price Index jumped a larger-than-expected 0.6% in July as energy prices led the way with a 2.5% gain. Excluding food and energy prices, core prices rose 0.1%, which was in line with expectations.
Over in the credit markets arena, Sentinel Management Group, a firm that manages $1.6 billion in assets, asked regulators for permission to freeze withdrawals because credit market turmoil has made it impossible to meet investors' needs without liquidating assets at a steep discount.
Earnings report cards came out for two major retailers. The first was the nation's largest home-improvement company, Home Depot (NYSE: HD - News), which reported a -15% drop in second-quarter profit. For the quarter, the company said net income came in at $1.59 billion, or 81 cents a share, down from $1.86 billion, or 90 cents a share, in the year-ago period. Excluding one-time items, EPS was 77 cents, which was down from 82 cents last year but higher than analyst estimates of 72 cents. Sales fell -1.8% to $22.18 billion. Sales at stores open at least a year dropped -5.2%. The stock fell -4.9%.
Wal-Mart (NYSE: WMT - News), the world's largest retailer, posted a lower-than-expected quarterly profit today and lowered Q3 and full-year guidance. The company said second-quarter net income totaled $3.1 billion, or 76 cents a share, up from $2.08 billion, or 50 cents a share, last year. Excluding items, EPS was 72 cents, a full 4 cents lower than what analysts expected. Revenues came in at $93.0 billion, up from $85.4 billion last year. The lower quarterly profit was blamed on "economic pressures around the world." Shares slid -5.1%.
In other news, toymaker Mattel (NYSE: MAT - News) announced this morning that it will be recalling 18.6 million toys made in China after the company warned that children could swallow the magnets in some toys. The toys affected include Polly Pocket and Batman among others. This is the second time in as many months the toy company had to recall toys that were made in China. Shares fell -2.4% on an overall gloomy day for equities.
In more upbeat news, shares of software company VMware (NYSE: VMW - News) debuted today in a hotly awaited IPO, and investors were not disappointed. Shares rocketed out of the gate on their first day of trading, and closed the session up 75.9%. VMware's parent EMC (NYSE: EMC - News) owns an 89% stake in the software company.
By the BullMarket.com Staff
posted by Stock Administrator @ 9:07 PM
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