Stock Market Wrapup Aug. 3rd
Equities once again fell hard in afternoon trading after credit worries and some rather soft economic news brought the bears out of their two-day hibernation. The Dow, Nasdaq, and S&P 500 all ended the week on a sour note with each losing more than -2%. In the energy pits, news of a slowing economy helped drive down the price of oil, with crude ending the session lower by -$1.38 to $75.48.
On the economic docket today, the Labor Department said that employers added fewer jobs in July than forecast. For the month just ended, payroll growth slowed to 92,000 jobs, down from 126,000 in the prior month. The jobless rate increased to 4.6% from 4.5%. In a separate report, the Institute for Supply Management showed service industries, which include banks and retailers, expanded less than expected.
Shares of Bear Sterns (NYSE: BSC - News) plunged -5.9% on the day after the company said its profitability in the current quarter may sink to a historical low following losses in its hedge funds as well as exposure to the tumbling mortgage market. However, top brass at the Wall Street investment firm defended its company stating, "The firm's liquidity position, capital adequacy, and funding capacity remains extremely solid, notwithstanding the current market conditions." Also on the day, Standard & Poor's downgraded Bear's long-term credit to negative from stable.
On the earnings front, Japanese automaker Toyota Motor (NYSE: TM - News) posted a 32% jump in profits in its fiscal fourth quarter. The company reported net income of 491.5 billion yen on sales of 6.52 trillion yen, an increase of 15.7% over the same period last year. Profits were fueled by increased sales of vehicles overseas.
Consumer product giant Proctor & Gamble (NYSE: PG - News) earned $2.27 billion, or 67 cents a share, in its fourth quarter, up from $1.9 billion, or 55 cents a share, in the year-ago period. Sales rose 8% to $19.27 billion. Analysts were looking for a profit of 66 cents per share on revenue of $19.11 billion. The company also said it would buy back $24-30 billion of its own stock over the next three years and that it expects to post earnings of 88-90 cents for the first quarter. It sees full-year earnings coming in at a range of $3.44-3.47. Shares fell -0.5%. Subscribers can read our analysis of Proctor & Gamble in today's issue.
Timber company Weyerhauser (NYSE: WY - News) said net earnings plunged -89% on the back of a weak housing market. For the second quarter, the company reported net earnings of $32 million, or 15 cents a share, down from $298 million, or $1.19 a share, last year. Excluding one-time items, it earned $104 million, or 48 cents a share. Revenue declined -11% to $4.33 billion. Shares reversed earlier gains and ended the session down -3.1%.
By the BullMarket.com Staff
On the economic docket today, the Labor Department said that employers added fewer jobs in July than forecast. For the month just ended, payroll growth slowed to 92,000 jobs, down from 126,000 in the prior month. The jobless rate increased to 4.6% from 4.5%. In a separate report, the Institute for Supply Management showed service industries, which include banks and retailers, expanded less than expected.
Shares of Bear Sterns (NYSE: BSC - News) plunged -5.9% on the day after the company said its profitability in the current quarter may sink to a historical low following losses in its hedge funds as well as exposure to the tumbling mortgage market. However, top brass at the Wall Street investment firm defended its company stating, "The firm's liquidity position, capital adequacy, and funding capacity remains extremely solid, notwithstanding the current market conditions." Also on the day, Standard & Poor's downgraded Bear's long-term credit to negative from stable.
On the earnings front, Japanese automaker Toyota Motor (NYSE: TM - News) posted a 32% jump in profits in its fiscal fourth quarter. The company reported net income of 491.5 billion yen on sales of 6.52 trillion yen, an increase of 15.7% over the same period last year. Profits were fueled by increased sales of vehicles overseas.
Consumer product giant Proctor & Gamble (NYSE: PG - News) earned $2.27 billion, or 67 cents a share, in its fourth quarter, up from $1.9 billion, or 55 cents a share, in the year-ago period. Sales rose 8% to $19.27 billion. Analysts were looking for a profit of 66 cents per share on revenue of $19.11 billion. The company also said it would buy back $24-30 billion of its own stock over the next three years and that it expects to post earnings of 88-90 cents for the first quarter. It sees full-year earnings coming in at a range of $3.44-3.47. Shares fell -0.5%. Subscribers can read our analysis of Proctor & Gamble in today's issue.
Timber company Weyerhauser (NYSE: WY - News) said net earnings plunged -89% on the back of a weak housing market. For the second quarter, the company reported net earnings of $32 million, or 15 cents a share, down from $298 million, or $1.19 a share, last year. Excluding one-time items, it earned $104 million, or 48 cents a share. Revenue declined -11% to $4.33 billion. Shares reversed earlier gains and ended the session down -3.1%.
By the BullMarket.com Staff
posted by Stock Administrator @ 8:15 PM
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