Wall Street Fights to Break Even on Mixed Earnings, Economic News

Michael Teague |

Wall Street FinancialsOrders for items meant to last more than three years were down nearly 6 percent in March, nearly doubling the drop that had been expected by economists. Aside from computers and electronics, up about 1 percent on the month, declines were registered in every other category of durable good.

The report comes ahead of Friday’s GDP reading that is expected to show 3 percent growth in the domestic economy in the first quarter of 2013.

After a fairly huge Tuesday, Wall Street cooled off a little, on the durable goods news, but more so as a result of somewhat disappointing news from both Apple (AAPL) and AT&T (T).

Apple’s earnings report, released during late trading on Tuesday, confirmed investor and analyst fears alike regarding the company’s slowing growth, to the extent that news of a $100 billion cash distribution plan seemed to elicit almost no excitement. Apple closed the day on a slight gain of 0.3 percent, to $407.31.

AT&T, meanwhile, broke even on earnings, but missed on revenue, with the help of a 3.4 percent decrease in Business services sales. The nation’s second largest provider of wireless services dropped over 5 percent on the day to close at $37.01.

The S&P 500 broke even at 1,578.79, with a number of tech stocks performing considerably well. First Solar (FSLR) was up 11.53 percent to close at $44.99, Broadcom Corp. (BRCM) up 7.19 percent to $35.35, Corning Inc. (GLW), the maker of Gorilla Glass, up 6.02 percent to $13.92, and NVIDIA Corp. (NVDA) up 3.87 percent to $13.42.

The index was weighted, however, by high-volume drops not only from AT&T, but also Juniper Networks, down 9.74 percent to $15.67, and Proctor & Gamble (PG) down 6.15 percent to $77.46.

The Dow closed on the day’s biggest percentage loss, dropping 0.29 percent to 14,676.30, propped up by gains from Microsoft (MSFT) who closed on a 4.16 percent gain to $31.78, Bank of America (BAC) up 1.99 percent to $12.31 on high volume, and General Electric (GE) up 2.37 percent to $22.01.

Aside from Proctor & Gamble and AT&T, the Dow was held back by Cisco Systems (CSCO) down 2.39 percent to close at $20.41, and Pfizer (PFE), down 1.34 percent to $30.66.

The Nasdaq posted a valiant 0.01 percent gain to close at 3,269.65, with solar stocks getting caught in the upward draft of Solar City. Real Goods Solar (RSOL) was up 18 percent to $1.90, and SunPower Corp (SPWR) was up 10.36 percent to $12.25, while DayStar Technologies (DSTI) was up 10.71 percent to $0.31.

Zynga (ZNGA) was up 5.31 percent to $3.35, while Blackberry (BBRY) jumped nearly 4 percent to close at $14.90.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
AAPL Apple Inc. 113.95 0.86 0.76 29,645,623
BAC Bank of America Corporation 15.38 0.09 0.59 66,076,402
BBRY BlackBerry Limited 8.33 0.45 5.71 23,407,251
BRCM Broadcom Corp. n/a n/a n/a 0
CSCO Cisco Systems Inc. 31.50 0.02 0.06 15,840,958
FSLR First Solar Inc. 39.08 -0.01 -0.03 3,294,809
GE General Electric Co 29.90 0.02 0.07 26,750,633
GLW Corning Incorporated 23.63 0.30 1.29 11,990,036
MSFT Microsoft Corporation 58.03 0.08 0.14 20,536,400
NVDA NVIDIA Corporation 66.78 0.24 0.36 7,994,701
OPY Oppenheimer Holdings Inc. Class A (DE) 13.92 -0.10 -0.71 24,561
PG Procter & Gamble Company (The) 89.46 1.10 1.24 89,805,967
RSOL Real Goods Solar Inc n/a n/a n/a 0
SPWR SunPower Corporation 9.09 0.39 4.48 2,998,838
T AT&T Inc. 40.85 -0.61 -1.47 26,340,209
ZNGA Zynga Inc. 2.82 -0.06 -2.08 10,752,210

Comments

Emerging Growth

IGEN Networks Corp.

iGen Networks Corp is engaged in investing in and managing for growth private high-tech companies that offer products and services in the domains of wireless broadband, software as a service,…

Private Markets

XY Find It

Founded by serial entrepreneur Arie Trouw, XY Findables follows a single guiding principle: customers should never lose anything important again. With over 50,000 users around the world, more than 100,000…

Trustify

Trustify provides trust and safety in both the digital and physical worlds through our vast network of on-demand Private Investigators.By removing the large retainers and high hourly rates that traditional…