From Briefing.com: 4:15 pm : Sellers claimed control of the stock market for the second straight session, pushing the S&P 500 2.3% lower Friday. That left stocks down 0.7% for the week.
Stocks actually began the session with a gain after investors reacted positively to a better-than-feared GDP report. However, a closer look at the data revealed conditions are hardly sound. According to the latest data, the U.S. economy contracted at an annualized rate of 3.8% during the fourth quarter, marking the steepest drop in economic activity since 1982. The decline was less severe than the 5.5% drop that was expected, but that was largely due to an unexpected increase in inventories. Consumer spending, which accounts for roughly 70% of economic activity, remains weak as consumption expenditures dropped at a 3.5% annual rate.
However, government spending increased modestly and is likely to be a bigger contributor going forward with the enactment of a major stimulus plan. Though the House of Representatives passed an $819 billion stimulus plan earlier this week, many pundits believe the plan will become ensnared in political partisanship. There is also doubt that such a plan would have an immediate stimulative impact. Other initiatives, like a plan that would allow banks to sell their risky assets to an FDIC-run "bad bank," are being treated with skepticism since the plan would like prove to be an expensive stabilization program, not a cure-all.
Without a clear, effective remedy for banks at hand, financial stocks remain under pressure. The sector closed 2.5% lower with particular weakness in regional banks (-6.5%) and diversified financial services companies (-1.8%).
A lack of leadership weighed on the other sectors. Energy periodically sported a gain throughout the session, but still finished 1.2% lower. Industry giant Exxon Mobil (XOM 76.48, -0.52) posted better-than-expected earnings, but finished lower after spending almost the entire session trading higher. It failed to inspire a broader advance even though it is the largest company by market cap.
Online retailer Amazon.com (AMZN 58.82, +8.82) bested earnings estimates with ease; its shares logged their best single session performance since mid-2007 by surging almost 18%. It failed to share its strength with other stocks, though.
In other earnings news, Procter & Gamble (PG 54.50, -3.72) met analysts' estimates, and offered an in-line outlook. Industrial outfit Honeywell (HON 32.81, +0.14) did the same. However, the earnings announcements were largely relegated, given the implications of the day's economic data.
In the end, the week finished on a disappointing note as all 10 major sectors finished the session lower. Not one sector is showing a monthly gain. DJ30 -148.15 NASDAQ -31.42 NQ100 -2.0% R2K -2.1% SP400 -2.6% SP500 -19.26 NASDAQ Adv/Vol/Dec 866/2.09 bln/1797 NYSE Adv/Vol/Dec 791/1.51 bln/2224
8:30AM TrimTabs estimates all equity mutual funds post inflow of $6.5 billion in week ended Wednesday, January 28 : TrimTabs Investment Research estimates that all equity mutual funds posted an inflow of $6.5 billion in the week ended Wednesday, January 28, versus an outflow of $138 million in the previous week. Equity funds that invest primarily in U.S. stocks posted an inflow of $5.1 billion, versus an inflow of $1.0 billion in the previous week. Equity funds that invest primarily in non-U.S. stocks had an inflow of $1.4 billion, versus an outflow of $1.2 billion in the previous week. In addition, bond funds had an inflow of $1.5 billion, versus an outflow of $4.5 billion in the previous week, and hybrid funds had an inflow of $459 million, versus an outflow of $1.4 billion in the previous week. Separately, TrimTabs reports that exchange-traded funds that invest in U.S. stocks posted an inflow of $1.8 billion, versus an outflow of $4.2 billion, in the previous week. ETFs that invest in non-U.S. stocks had an outflow of $814 million, versus an outflow of $1.8 billion in the previous week.
Ixia (XXIA) announces that it has selected Plexus (PLXS) as its strategic supply chain solutions partner. Plexus will manufacture Ixia's test, measurement and service verification solutions for its global customer base.
2:12AM Pixelworks reports EPS in-line, misses on revs; guides Q1 EPS below consensus, revs below consensus (PXLW) 0.75 : Reports Q4 (Dec) loss of $0.05 per share, excluding non-recurring items, in-line with the First Call consensus of ($0.05); revenues fell 30.0% year/year to $18.9 mln vs the $19.4 mln consensus. Co issues downside guidance for Q1, sees EPS of $(0.33)-(0.13) vs. ($0.09) consensus; sees Q1 revs of $10.0-13.0 mln vs. $18.50 mln consensus. Co expects non-GAAP gross profit margin of approx 42-46%.
08:07 am Juniper Networks (JNPR)
Juniper Networks (JNPR 16.97) reported earnings that met expectations and grew revenue despite the tough economy.
For the fourth quarter, Juniper reported earnings of $0.32 per share, in-line with the First Call consensus of $0.32. Earnings were up 19% year-over-year.
Revenues were also on the rise, jumping 14.1% year-over-year to $923.5 million. The consensus expected a bit more, forecasting revenues of $936.2 million. Juniper's revenue came in at the low end of its earlier guidance; in October the company projected fourth quarter revenue between $921 million and $971 million.
Non-GAAP operating margins increased 100 basis points year-over-year to 24.5%.
"We continue to play offense and grow market share," said Juniper's CEO, "while at the same time taking action to responsibly manage our cost structure." Juniper didn't give specific guidance.
Troubles loom on the horizon for Juniper after two of the largest buyers of communications infrastructure, AT&T (T 24.71) and Verizon (VZ 30.23) both said they would cut back on spending in 2009.
08:01 am Amazon.com (AMZN)
Online retailer Amazon.com (AMZN 50.00) reported strong earnings for its fourth quarter, sending shares more than 14% higher in Friday's premarket trade. And, unlike so many other companies, Amazon issued in-line guidance for the current quarter.
For the fourth quarter, Amazon reported earnings of $0.52 per share, $0.13 better than the First Call consensus of $0.39.
Revenues rose 18.2% year-over-year to $6.7 billion, topping the $6.44 billion consensus estimate.
Amazon saw strong sales growth in the U.S., where sales increased 18% year-over-year. International sales were up 19% year-over-year, but were up 31% excluding unfavorable foreign exchange rates.
E-books continue to gain traction, as CEO Jeff Bezos said the company was "particularly grateful for the unusually strong demand for Kindle in the fourth quarter."
Looking ahead, Amazon issued in-line guidance with room for an upside surprise for the first quarter, expecting revenues between $4.525 billion and $4.925 billion. The consensus currently projects revenues of $4.57 billion.
The company projects operating income in Q1 between $125 million and $210 million, or between a decline of 37% and 6% growth year-over-year.
finance.yahoo.com
Everyone is going to be right sooner or later. The trick learning enough to be right more often than not. I made plenty of money between 2002 and 2007. Last year I would have lost some if I had taken my losses. I wish I could be 100% bullish right now but there is nothing there technically or sentiment wise to say except we are seeing some signs of improvement.
Will the first week of February be an up week on higher than average volume? If so I would be willing to put more cash to work. But if it is an up week on low volume? Or how about another down week?
Well then I just keep my cash ready.
RtS |
