Finance Markets

January 19, 2007

Dow drops at midday

Permalink: Dow drops at midday

Filed under: Equities, Economy, US

Wall Street was mixed at midday on Friday as some quarterly reports failed to inspire investors. The Dow Jones Industrial Average was 0.21 percent lower to 12,541.50, while the Nasdaq Composite had added 0.04 percent to 2,444.11 and the S&P 500 was 0.11 percent higher to 1,427.87.

IBM dropped $3.82 to $95.63 even though it reported profits that were better than anticipated in the fourth quarter. A portion of the increase in profits was due to a change in IBM’s tax rates. Meanwhile, General Electric dropped 79 cents to $37.21 on disappointing results in its fiscal first quarter.

Citigroup also saw declines, with its share price dropping 34 cents to $54.05 due to a 26 percent decrease in profits in the fourth quarter.

Motorola added 67 cents to $19.38. It had warned in January that its fourth quarter profits would not meet expectations due to discounts on mobile phones. And, indeed, its earnings were lower, but turned out to be better than the warnings had led investors to expect.

Mergers and acquisitions also played into the days results. Morgan Stanley added 55 cents to $81.76 after its real estate unit said it would buy hotel real-estate investment trust CNL Hotel & Resorts, spending $3.13 billion on the transaction. Abbott Laboratories added 61 cents to $53.40, its highest share price in a year, after it said it will sell part of its medical testing division to General Electric.

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