Stock Market Wrapup Aug.15th
Stocks went on another roller-coaster ride today as earlier gains were wiped out and selling increased into the close. At the end of the session, the Dow lost -167 points, while the Nasdaq dropped -40 points. The S&P, meanwhile, lost 20 points, or -1.4% of its value. Continued fears of a meltdown in credit markets persisted along with increased selling on the part of institutions. Treasuries rose on the session, with the benchmark 10-year note yielding 4.71%. Over in the energy pits, crude oil rose 95 cents to finish at $73.33 a barrel.
In economic news today, the Labor Department reported that consumer prices in the U.S. rose 0.1% in July, which represents the smallest gain in the past 8 months. Energy prices fell -1% as gasoline prices dipped -1.7%. Food prices, on the other hand, rose 0.3%. Elsewhere, capacity utilization, which measures the proportion of plants currently in use, grew to 81.9% from 81.8% in June. Production rose 0.3% in the month. Over in the housing market, the National Association of Home Builders reported that confidence among homebuilders fell to 22 from 24 in July. A reading below 50 means that the participants view the conditions as poor. It was the lowest reading in 16 years.
The nation's largest home lender Countrywide Financial (NYSE: CFC - News) fell -13.0% after Merrill Lynch reduced its rating on the company to "sell." The brokerage raised the possibility of bankruptcy due to increased fear of further credit turmoil in the mortgage market. Elsewhere in the mortgage business, shares of Thornburg Mortgage (NYSE: TMA - News) surged 38.8% after its COO stated that although the company is going through "extreme difficulties," he feels that the firm will begin to comeback in a very positive way. On Tuesday, the shares fell -47% after it delayed a dividend payment due to the company receiving margin calls.
In earnings news, shares of farm equipment maker Deere & Company (NYSE: DE - News) rose 3.0% after its third-quarter earnings results topped analyst estimates due to increased overseas sales. For the quarter, net income rose 23% to $537.2 million, or $2.37 a share, up from $436 million, or $1.85 a share, in the same period last year. Revenues rose 6% to $6.63 billion. The company now expects full-year profits to hit $1.7 billion, up from $1.6 billion in its earlier forecast. The street was expecting a profit of $1.6 billion.
Ketchup maker Heinz (NYSE: HNZ - News) told investors today that its fiscal first-quarter earnings should exceed estimates. It's predicting earnings of 62-63 cents a share with sales growth of 9%. Analysts on average were looking for earnings of 55 cents a share. It now sees full-year EPS of $2.54-2.60; analysts were expecting $2.59. The stock climbed 2.8%.
By the BullMarket.com Staff
In economic news today, the Labor Department reported that consumer prices in the U.S. rose 0.1% in July, which represents the smallest gain in the past 8 months. Energy prices fell -1% as gasoline prices dipped -1.7%. Food prices, on the other hand, rose 0.3%. Elsewhere, capacity utilization, which measures the proportion of plants currently in use, grew to 81.9% from 81.8% in June. Production rose 0.3% in the month. Over in the housing market, the National Association of Home Builders reported that confidence among homebuilders fell to 22 from 24 in July. A reading below 50 means that the participants view the conditions as poor. It was the lowest reading in 16 years.
The nation's largest home lender Countrywide Financial (NYSE: CFC - News) fell -13.0% after Merrill Lynch reduced its rating on the company to "sell." The brokerage raised the possibility of bankruptcy due to increased fear of further credit turmoil in the mortgage market. Elsewhere in the mortgage business, shares of Thornburg Mortgage (NYSE: TMA - News) surged 38.8% after its COO stated that although the company is going through "extreme difficulties," he feels that the firm will begin to comeback in a very positive way. On Tuesday, the shares fell -47% after it delayed a dividend payment due to the company receiving margin calls.
In earnings news, shares of farm equipment maker Deere & Company (NYSE: DE - News) rose 3.0% after its third-quarter earnings results topped analyst estimates due to increased overseas sales. For the quarter, net income rose 23% to $537.2 million, or $2.37 a share, up from $436 million, or $1.85 a share, in the same period last year. Revenues rose 6% to $6.63 billion. The company now expects full-year profits to hit $1.7 billion, up from $1.6 billion in its earlier forecast. The street was expecting a profit of $1.6 billion.
Ketchup maker Heinz (NYSE: HNZ - News) told investors today that its fiscal first-quarter earnings should exceed estimates. It's predicting earnings of 62-63 cents a share with sales growth of 9%. Analysts on average were looking for earnings of 55 cents a share. It now sees full-year EPS of $2.54-2.60; analysts were expecting $2.59. The stock climbed 2.8%.
By the BullMarket.com Staff
posted by Stock Administrator @ 9:38 PM
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