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US close: Amazon fails to deliver
Tue, 22 May, 2012
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US close: Amazon fails to deliver
Tue, 31 Jan 2012, 23:09:00
The venerable Dow Jones industrial average fell for the fourth day in succession to notch up its longest losing streak since August of last year, but the picture in the broader market was more mixed, as optimism over the European Union's 'fiscal compact' offset some of the gloom engendered by some slightly worse than expected economic data releases and company earnings reports. 
 
 Shares of <b>RadioShack</b> fell after the electronics retailer cancelled its share buyback programme and provided fourth quarter projections that were much lower than expected.
 
 The company expects earnings per share (EPS) to come in at between $0.11 and $0.13 instead of the consensus estimate of $0.38. The company explained that it was affected by <b>Sprint Nextel's</b> weak wireless business.
 
 The company also stated that the big discounts offered during the Christmas campaign lowered its earnings margins. As such, the gross margin is expected to fall to 35% from 41% in the year-ago period.
 
 Integrated oil giant <b>Exxon</b> was another to disappoint with its earnings, as its fourth quarter EPS of $1.90, while it was up from the previous year's fourth quarter figure of $1.85, was below the $1.98 expected by the market.
 
 The company reported total earnings of $9.4bn as opposed to $9.25bn in the last quarter of 2010, while revenue rose 35% in the year to $41.1bn as a result of higher crude oil prices.
 
 Capital spending for the latest quarter remained flat at $10bn and production fell 9% from a year ago on an oil-equivalent basis.
 
 The company indicated that it bought back shares for $5bn in the fourth quarter.
 
 Internet retail leviathan <b>Amazon</b>'s share price headed down the river in after-hours trading as its net income in the final quarter of 2011 slumped to $177m from $416m in the corresponding period of 2010. This was despite revenues rising 35% year-on-year to $17.43bn.
 
 The company warned it may even slide into the red in the first quarter of 2012, as it continues its policy of growing the top line at the expense of margin. The company reckoned its operating profit/loss in the first quarter could be anywhere between a loss of $200m to a profit of $100m. 
 
 Results from steel maker <b>US Steel</b> and toys firm <b>Mattel</b> were more pleasing to the market. 
 
 
 <b>MACRO-ECONOMY</b>
 
 The Chicago NAPM manufacturing sector purchasing managers' index for the month of January has come in at 60.2, versus 62.5 the month before (Consensus: 63.3).
 
 The S&P Case Shiller home price index for the month of January fell by 3.7% on the year (Consensus: -3.2%).
 
 The Conference Board's consumer confidence index for the month of January has come in at 61.1, versus the 64.5 seen the month before (Consensus: 68.0).
 
 The employment cost index rose by 0.4% on the quarter in the last three months of 2011, as expected.
 
 <b>OTHER MARKETS</b>
 
 West Texas intermediate crude for March delivery was 30 cents cheaper by the end of the day at $98.48 a barrel mark on the NYMEX.
 
 10-year US Treasuries rose by 27/64 dollars, with yields down half a percentage point at 1.80%. 
 
 
 <b>S&P 500 - Risers</b>
 CBRE Group Inc (CBG) $19.30 +5.70%
 Edwards Lifesciences Corp. (EW) $82.67 +5.62%
 United States Steel Corp. (X) $30.19 +5.08%
 Mattel Inc. (MAT) $31.00 +4.98%
 Harris Corp. (HRS) $41.00 +4.57%
 
 <b>S&P 500 - Fallers</b>
 Tellabs Inc. (TLAB) $3.80 -9.31%
 Best Buy Co. Inc. (BBY) $23.95 -5.63%
 Avery Dennison Corp. (AVY) $27.15 -5.40%
 MEMC Electronic Materials (WFR) $4.57 -4.99%
 Alpha Natural Res (ANR) $20.12 -4.69%
 Sears Holdings Corp. (SHLD) $42.15 -4.27%
 Netflix Inc. (NFLX) $120.20 -4.17%
 
 <b>Dow Jones I.A - Risers</b>
 American Express Co. (AXP) $50.14 +2.08%
 United Technologies Corp. (UTX) $78.35 +0.95%
 Bank of America Corp. (BAC) $7.13 +0.85%
 
 <b>Dow Jones I.A - Fallers</b>
 Exxon Mobil Corp. (XOM) $83.74 -2.05%
 Merck & Co. Inc. (MRK) $38.26 -1.62%
 Alcoa Inc. (AA) $10.16 -1.55%
 Intel Corp. (INTC) $26.42 -1.20%
 Caterpillar Inc. (CAT) $109.12 -1.17%
 General Electric Co. (GE) $18.71 -1.01%
 
 <b>Nasdaq 100 - Risers</b>
 Vertex Pharmaceuticals Inc. (VRTX) $36.95 +6.36%
 Hologic Inc. (HOLX) $20.39 +6.20%
 Mattel Inc. (MAT) $31.00 +4.98%
 Electronic Arts Inc. (EA) $18.58 +3.02%
 
 <b>Nasdaq 100 - Fallers</b>
 Sears Holdings Corp. (SHLD) $42.15 -4.27%
 Staples Inc. (SPLS) $14.63 -3.94%
 First Solar Inc. (FSLR) $42.28 -3.47%
 Baidu Inc. (BIDU) $127.52 -2.46%
 Research in Motion Ltd. (RIMM) $16.63 -2.29%
 
 
 <i>jh</i>
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