Stock Market Wrapup Aug. 2nd
Stocks seesawed throughout most of the session before rallying into the close. At the end of the trading day, all the major market averages closed with solid gains, the second day in a row we've seen heavy buying late. Corporate earnings helped drive bears indoors as credit market jitters appeared to take a backseat.
Earning report cards from many of America's largest companies came out today, among them CVS Caremark (NYSE: CVS - News) which saw profits rise 114% due to its recently completed merger with Caremark. Profits hit $724 million, or 47 cents a share, compared to $337.9 million, or 40 cents, in the year-ago period. Excluding merger-related charges, EPS would have been 48 cents a share. Revenues nearly doubled to $20.7 billion. The new company cited strength in its core retail pharmacy business as helping fuel increased profits. Shares rose 3.5%.
Hotel operator Starwood Hotels & Resorts (NYSE: HOT - News) said net income came in at $145 million, or 67 cents a share, down from $680 million, or $3.01 a share, last year when the company booked a one-time gain. Excluding special items, its EPS was 82 cents, up from 74 cents in the same period last year. The figures easily beat analyst estimates of 63 cents a share. Revenues rose 4.5% to $1.57 billion as revenue per available room (revpar) rose 8.4%. The company also raised its full-year EPS guidance to $2.78, up from $2.57 previously. Its shares rose 2.1%.
Shares of Walt Disney (NYSE: DIS - News) rose 1.6% after the media and theme park operator reported a third-quarter profit of $1.18 billion, or 57 cents a share, up from $1.13 billion, or 53 cents a share, last year. The 4.7% profit increase was attributed to higher advertising rates at its ABC television unit as well as merchandising from films. Revenues rose 6.7% to $9.05 billion. The company also said it acquired Club Penguin for $350 million in cash, as well as saying it could pay out an additional $350 million if certain profit goals are met.
Nokia (NYSE: NOK - News), the world's largest maker of mobile phones, said net income more than doubled to 2.82 billion euros, or 0.72 euros a share, up from 0.28 euros a share, last year. Excluding extraordinary items, it would have reported earnings of 0.32 euros a share, easily beating estimates of 0.28 euros. Sales rose 28% to 12.6 billion euros. The Finland-based company said it grabbed more market share in the second quarter. Shares surged 8.8%.
In other company news, Mattel (NYSE: MAT - News) shares fell -1.7% after the toymaker said it has recalled 1.5 million toys that are tainted with lead. It blamed the recall on a supply manufacturer in China.
By the BullMarket.com Staff
Earning report cards from many of America's largest companies came out today, among them CVS Caremark (NYSE: CVS - News) which saw profits rise 114% due to its recently completed merger with Caremark. Profits hit $724 million, or 47 cents a share, compared to $337.9 million, or 40 cents, in the year-ago period. Excluding merger-related charges, EPS would have been 48 cents a share. Revenues nearly doubled to $20.7 billion. The new company cited strength in its core retail pharmacy business as helping fuel increased profits. Shares rose 3.5%.
Hotel operator Starwood Hotels & Resorts (NYSE: HOT - News) said net income came in at $145 million, or 67 cents a share, down from $680 million, or $3.01 a share, last year when the company booked a one-time gain. Excluding special items, its EPS was 82 cents, up from 74 cents in the same period last year. The figures easily beat analyst estimates of 63 cents a share. Revenues rose 4.5% to $1.57 billion as revenue per available room (revpar) rose 8.4%. The company also raised its full-year EPS guidance to $2.78, up from $2.57 previously. Its shares rose 2.1%.
Shares of Walt Disney (NYSE: DIS - News) rose 1.6% after the media and theme park operator reported a third-quarter profit of $1.18 billion, or 57 cents a share, up from $1.13 billion, or 53 cents a share, last year. The 4.7% profit increase was attributed to higher advertising rates at its ABC television unit as well as merchandising from films. Revenues rose 6.7% to $9.05 billion. The company also said it acquired Club Penguin for $350 million in cash, as well as saying it could pay out an additional $350 million if certain profit goals are met.
Nokia (NYSE: NOK - News), the world's largest maker of mobile phones, said net income more than doubled to 2.82 billion euros, or 0.72 euros a share, up from 0.28 euros a share, last year. Excluding extraordinary items, it would have reported earnings of 0.32 euros a share, easily beating estimates of 0.28 euros. Sales rose 28% to 12.6 billion euros. The Finland-based company said it grabbed more market share in the second quarter. Shares surged 8.8%.
In other company news, Mattel (NYSE: MAT - News) shares fell -1.7% after the toymaker said it has recalled 1.5 million toys that are tainted with lead. It blamed the recall on a supply manufacturer in China.
By the BullMarket.com Staff
posted by Stock Administrator @ 7:58 PM
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