The New York equities markets were higher in the afternoon on Thursday, with the Dow Jones Industrial Average up 0.4 percent to 12,299.57 after going as high as 12,325.91 earlier in the session, a new all-time high. The Nasdaq Composite had added 0.2 percent to 2,447.67, while the S&P 500 was 0.3 percent higher to 1,400.89.
Dell Computer dropped 3.5 percent to $24.86 after it delayed its preliminary third-quarter report due to a Securities and Exchange Commission inquiry into the company’s accounting practices. On the other hand, Hewlett Packard added 0.7 percent to $40.07 ahead of its quarterly report, due to be released after the close of trade.
Elsewhere among technology-related sectors, Applied Materials was 4.2 percent lower to $17.87 on a warning that sales will decline on the order of 5 to 10 percent. Internet search engine Google, however, added 0.8 percent to $495.80.
There was bids news in the media sector. Clear Channel Communications, the radio station operator, added 3.9 percent to $35.46 and went as high as $35.88 after it agreed to be acquired by a group of private equity firms for $19 billion. Meanwhile, Readers Digest added 7.8 percent to $16.69 after it agreed to be purchased by a group of investors.
In the retail sector, Sears dropped 5.4 percent to $169.51 after earnings were lower than had been anticipated.
Prices for government bonds were up both in the United States and in Europe and the UK on Tuesday as producer price inflation fell more than had been anticipated. Core inflation was down more than in any month since August 1993. Meanwhile, while retail sales were down a bit less than had been expected in October, September’s numbers were revised downward. Both reports led to renewed hopes in some quarters that the Federal Reserve might drop interest rates early in the new year.
Yields on the two-year US Treasury bond dropped 3 basis points to a yield of 4.747 percent, while the ten-year bond was 3.7 basis points lower to 4.575 percent by the middle of the session in New York.
The price gains in the US helped Eurozone bonds. Economic growth in the region has been weaker than had been expected, while business sentiment in German was lower. Late in the day in London, the two-year Schatz had dropped 0.6 basis points to 3.703 percent, while the ten-year Bund was 1.5 basis points lower to a yield of 3.714 percent.
Inflation came in lower than expected in the UK. While October’s inflation was at 2.4 percent on an annualized basis, above what the Bank of England wants, it was less than analysts had thought it would be. The two-year gilt was yielding 4.957 percent, down 4.6 basis points, while the ten-year gilt was down 3.3 basis points to a yield of 4.531 percent.
Bucking the trend, the yield on ten-year Japanese government bonds added 6.5 basis points to yield 1.72 percent. Prices were down on new data that had the Japanese economy growing at more than twice the rate that had been expected in the third quarter.
The New York equities markets were higher at noon on Friday, with the Dow Jones Industrial Average 0.9 percent higher to 12,176.54, while the Nasdaq Composite was up 2.3 percent to 2,384.64 and the S&P 500 had added 1.1 percent to 1,378.94.
Defense companies that saw losses right after Tuesday’s elections regained some of those declines later in the week but still ended the week below their starting levels. Raytheon fell 0.2 percent during the week to $48.90, while Lockheed Martin dropped 1 percent to $86.10 and Northrop Grumman was 1.8 percent lower to $64.73.
Health sectors were affected by the elections on concerns that their prices could be driven down by decisions from the new Democratic majority in Congress. Among the pharmaceuticals companies, Johnson & Johnson fell 3 percent to $65.80, while Pfizer declined 3.7 percent to $25.58 and Merck ended the week 4.9 percent lower to $42.88.
Wal-Mart was 2.2 percent lower on the week to $46.49 on the fears of investors that the new Congress could raise the minimum wage and move to regulate labor more closely.
Homebuilders saw declines as the housing market continued to suffer. Toll Brothers dropped 2.3 percent to $27.59, while DR Horton fell 2.4 percent on a downgrade from Merrill Lynch and Pulte Homes was 2.6 percent lower to $29.32.
Gainers on the week included Four Seasons Hotels, which added 28.3 percent to $81.97 after a private consortium of bidders offered $3.7 billion for the luxury hotel group. OSI Restaurant Partners was 21.6 percent higher to $39.45 after it accepted a $3 billion private bid.
Technology-related sectors were up in New York on Thursday but health care and pharmaceuticals companies were lower, resulting in mixed results on Wall Street at midday. The Dow Jones Industrial Average was 0.3 percent lower to 12,142.37, while the Nasdaq Composite added 0.42 percent to 2,395.03 and the S&P 500 dropped 0.04 percent to 1,385.12.
In health sectors, Johnson & Johnson was 1.25 percent lower to $70.29 and Pfizer fell 1.8 percent to $26.14. HealthSouth was 6.1 percent lower to $20.65 after its report for the third quarter showed losses related to price pressure in all its units, while it had fewer patients in its acute-care hospital unit. Elsewhere, 3M was a bit lower to $79.24 on the news that it is selling its pharmaceuticals interests.
Cisco Systems added 7.3 percent to $26.93 on a report that its net income was $1.61 billion in the quarter. Computer maker Dell gained 2.8 percent to $24.85 after it said it will expand its customer call center in Ottawa, adding 1,000 employees. Apple Computer, meanwhile, was 1.64 percent higher to $83.80 on reported interest in its new iPod Shuffle.
The oil sector was higher on gains in the price of crude oil, with ExxonMobil and Chevron each adding 1.1 percent, to $74.64 and $70.29 respectively.
The media sector was mixed. News Corporation added 0.2 percent to $21.90 on a better than anticipated quarterly report, while Disney gained 1.2 percent to $33.48 ahead of its report, due later in the day. Viacom, however, was 2.2 percent lower to $38.81 after its third quarter report showed that profits were down by 16 percent in the third quarter.
Prices and yields on US Treasury bonds were mixed on Thursday on data that was equally mixed. The trade deficit narrowed less than had been expected in September. On the other hand, consumer confidence was lower in the US, with the University of Michigan’s consumer confidence index down to 92.3 when a figure of 93.6 had been expected. In addition import prices were lower and unemployment claims were also down. Another factor in the day’s moves was relatively low interest in an auction of three-year paper on Wednesday; however, analysts were still optimistic for an upcoming auction of ten-year bonds.
At midday in New York, yields on the ten-year Treasury bond had dropped 0.2 basis points to 4.635 percent, but two-year yields were up b y 0.7 basis points to 4.756 percent.
In Europe, prices for longer-dated government bonds were higher but shorter-dated bonds held steady on the expectation that the European Central Bank will issue another interest rate hike in December. The two-year Schatz sat at a yield of 3.731 percent, while the ten-year Bund dropped 0.7 basis points to a yield of 3.740 percent.
Gilt prices in the UK were higher after the Bank of England’s Monetary Policy Committee raised interest rates, as had been expected. The two-year gilt fell 1.6 basis points to yield 5.073 percent, while the ten-year gilt dropped 2.9 basis points to 4.544 percent.
In Japan, the ten-year JGB dropped 2 basis points to a yield of 1.7 percent ahead of new gross domestic product date, to be released next week.
The New York equities markets were lower during the day on Wednesday in reaction to election results that put control of the US House of Representatives in the hands of the Democratic Party for the first time in 12 years. Investors believed that some sectors of the business community would be subject to stricter regulation under the Democrats than they have been with a Republican majority in power.
The Dow Jones Industrial Average was 0.2 percent lower to 12,135.16, while the Nasdaq Composite had dropped 0.08 percent to 2,373.99 and the S&P 500 fell 0.1 percent to 1,381.1.
Defense-related stocks saw declines. Boeing dropped 0.4 percent to $84.18, while Northrop Grumman lost 1.3 percent to $65.53, Lockheed Martin was 1.4 percent lower to $86.24, and Raytheon declined 2 percent to $48.70.
The pharmaceuticals sector was lower as well. Pfizer was 1.8 percent lower to $25.56, while Merck fell 3.5 percent to $44.29. On the other hand, biotech company StemCells added over 10 percent to $3.39 on the theory that it’s research into stem cell-based therapies for central nervous system diseases would get more support from a Democratic house than it has under the Republicans.
In the retail sector, Wal-Mart dropped 1 percent to $47.17 on investor concern that a Democratic House will put more pressure on the discount retailer on the issue of working conditions for its employees. Elsewhere in the sector, Federated Department stores fell 1.2 percent to $39.87 after it reported that it lost 1 cent per share in the third quarter.
The Dow Jones Industrial Average was up another 74.1 points, 0.6 percent, to 12,179.7 at midday on Tuesday after its 119-point gain on Monday. The Nasdaq Composite was also up, by 0.8 percent to 2,385.8, while the S&P 500 had added 0.45 percent to 1,385.97. The gains came as US voters went to the polls in mid-term elections.
In the telecommunications sector, Verizon was 0.2 percent higher to $37.06 on the news that it is discussing a deal with YouTube, which was recently purchased by Google, to offer YouTube’s video clips on its cell phones.
In the automobile manufacturing sector, General Motors stood unchanged at $34.70 after it revised its third-quarter figures, showing a smaller loss than previously announced. GM said that instead of losing $115 million in the quarter, it lost $91 million. Meanwhile, US-traded shares of Toyota Motor Corp. added 1.7 percent to $121.75 after its fiscal second-quarter report showed net profits up 3.5 percent over the same period last year.
Semiconductors were higher, with the Philadelphia Semiconductor Index 2.5 percent higher to 468.86 and all but one of its component stocks up on the session. Altera led the charge, with a gain of nearly 6 percent to $19.50 on a third-quarter report that exceeded expectations.
Toll Brothers added 0.2 percent to $28.11 after early declines. It said that its revenue in its fiscal fourth quarter had declined by 10 percent, while its chief executive said that signs for a recovery in the sector are not yet visible.
Equities markets were higher at midday on Monday in New York. The Dow Jones Industrial Average was 0.75 percent higher to 12,076.41, while the Nasdaq Composite was up 1.3 percent to 2,361.12 and the S&P 500 had added 0.9 percent to 1,376.69.
Four Seasons Hotels was 30 percent higher to $83.01 on a $3.7 billion bid by a group which includes current Four Seasons chairman and chief executive Isadore Sharp, Microsoft’s Bill Gates, and a Saudi Arabian prince. The bid works out to $82 per share in cash, 28 percent higher than last week’s closing share price.
In other bids news, this time in the pharmaceuticals sector, Abbott Laboratories said it will purchase Kos Pharmaceuticals for $3.7 billion cash, or $78 per share, 56 percent higher than Kos’ Friday close. Kos added 54 percent to $76.99 but Abbot dropped 0.08 percent to $47.60. Elsewhere in the sector, however, biopharmaceuticals company Adolor dropped 44 percent to $7.80 on the news that the Food and Drug Administration has asked for more testing on a new drug that had been expected to gain approval this week.
Home improvement retailers were lower on the session. Home Depot fell 0.75 percent to $36.92 on a downgrade from UBS due to the weaker housing market. Rival Lowes dropped 0.8 percent to $28.81.
Yields were up on US Treasury bonds on Friday as a new report showed that unemployment in the United States fell to 4.4 percent in October. Even though job growth was at 92,000 new jobs in the month, less than had been anticipated, the numbers from previous months were revised upward. The new data diminished the likelihood that the Federal Reserve will drop interest rates early next year, but most analysts still do not see any rate hikes coming in the near future.
In late morning trade, yields on 10-year Treasury bonds were 10 basis points higher to a yield of 4.70 percent. The jump took yields up 2 basis points on the week.
In the Eurozone, bond yields were also up as expectations continued that the European Central Bank will raise interest rates next month. Unemployment in the region remained at 7.8 percent in September, as had been anticipated. The ten-year Bund added 2 basis points to a yield of 3.76 percent but was still 5 basis points lower than at the beginning of the week. In the UK, meanwhile, ten-year gilts were up 3 basis points on the day to 4.58 percent, but were fractionally lower than the 4.59 percent level where they were trading at the beginning of the week.
The New York equities markets were lower at mid-session on Thursday, with the Dow Jones Industrial Average down 0.3 percent to 112,001.01, the Nasdaq Composite 0.1percent lower to 2,331.84, and the S&P 500 falling 0.2 percent to 1,365.19. Earlier in the day, the Dow fell below the 12,000 level for a time.
Much of the declines was due to a mixed retail sector, as several discount retailers failed to live up to analyst expectations. While Costco held steady at $52.91, Kohl’s dropped 0.6 percent to $70.65. Wal-Mart fell 1.2 percent to $48.27 on sales that grew by only 0.5 percent in October and a forecast of flat sales in November. Dillard’s and Target each dropped 1.5 percent, to $29.34 and $56.82 respectively.
On the other hand, high-end retailers showed good sales in October saw gains in share prices. JC Penney was 1.3 percent higher to $76.11, while Nordstrom gained 1.6 percent to $47.05.
Intel dropped 1.6 percent to $20.82 on a downgrade from “buy” to “neutral” from Merrill Lynch. In issuing it’s remarks, the broker cited excess capacity and weakening demand. But in other computer-related stocks, Dell Computer added 3.3 percent to $24.82 on an upgrade from “sell” to “neutral” from Goldman Sachs.
With the manufacturing index from the Institute of Supply Management down to 51.2 in October, well below the expected 53.0 level and lower than September’s figure of 52.9, prices for US Treasury bonds were up and yields declined on Wednesday. Some analysts see the new figures as beginning to contradict remarks out of the Federal Reserve that interest rates won’t be dropping anytime soon.
In late-morning trade in New York, the two-year Treasury bond was 4.6 basis points lower to 4.663 percent, while ten-year bonds had lost 2.8 basis points to a yield of 4.580 percent.
Yields were also lower in the eurozone and in the UK. Eurozone bonds were lower ahead of Thursday’s scheduled meeting of the European Central Bank, where most analysts expect interest rates to hold at 3.25 percent for the time being. Late in the trading day, the two-year Schatz was 3.9 basis points lower to a yield of 3.632 percent, while the ten-year Bund dropped 3.7 basis points to 3.703 percent. The two-year gilt fell 2.3 basis points lower to 5.010 percent, while the ten-year gilt was 0.5 basis points lower to a yield of 4.510 percent.
In Japan, government bonds were mixed, with two-year issues 2 basis points higher to 0.745 percent but ten-year bonds dropping 0.5 basis points to 1.720 percent amid speculation that the Bank of Japan could raise interest rates by March 2007.
Wall Street was flat to slightly lower at mid-session on Tuesday on new data showing that US consumer confidence dropped to 105.4 in October, down from a revised reading of 105.9 in September. The Dow Jones Industrial Average was 0.3 percent lower to 12,048.71, while the Nasdaq Composite was virtually flat after losing only 0.06 points to 2,363.71 and the S&P 500 fell 0.28 percent to 1,374.1.
In the tobacco sector, Altria fell 0.3 percent to $81.43 on the day that its Philip Morris division argues in front of the US Supreme Court in appeal to an $80 million verdict against it in an Oregon case.
Marathon Oil dropped 2.1 percent to $83.49 on profit taking even though it reported that profits were significantly higher in the quarter.
A UBS downgrade to “neutral” sent Verizon 2.6 percent lower to $36.66.
Proctor and Gamble dropped 0.9 percent to $63.21 even though profits were better than expected on improved margins and better sales in its Gillette unit.
Among gainers on the day was DaimlerChrysler, which added 4.1 percent to $57.33 on reports that it could sell its Chrysler division.
Celgene added 6.1 percent to $52.88 after an announcement Monday evening from Standard & Poor’s that the biotechnology company will replace AmSouth Bancorp on the S&P 500 after trade closes at the end of the week.
October 30, 2006
Federal Reserve official warns on inflation, interest rates
US Treasury bonds saw prices drop and yields rise after Jeffrey Lacker, the president of the Richmond, Virginia Federal Reserve bank made comments indicating that interest rate hikes were not out of the question, that there was still pressure toward inflation, and that the economy could be tightened further. Mr. Lacker was the only one to vote for a hike in rates at the Fed’s last meeting.
Elsewhere, new data showed US personal income 0.5 percent higher in September, more than had been anticipated, while personal consumption was up less than had been predicted at only a 0.1 percent rise in September. However, the PCE price index was up 2.4 percent year-on-year, more than the 2 percent gain that some Fed officials have said was the high end of the acceptable range.
At late morning in New York the two-year Treasury bond was 1.2 basis points higher to 4.767 percent, while ten-year bonds were up 0.6 basis points to a yield of 4.683 percent.
In the Eurozone, yields were mixed after sell-offs in the US bond market and slow demand for a new auction of government bonds in Italy. The two-year Schatz added 1 basis point to yield 3.723 percent, but the ten-year Bund lost 1.6 basis points to 3.789 percent.
Meanwhile, in the UK, gilts were mixed as well on strong date from the housing market. Two-year gilts added 5.9 basis points to 4.088 percent. Ten-year gilts, on the other hand, dropped 3.6 basis points to 4.564 percent.
In Japan, the ten-year government bond was 1 basis point lower to a yield of 1.730 percent after the Nikkei index dropped 1.9 percent ahead of the Bank of Japan’s latest summary of prices and the economy, published every six months and due on Tuesday.
The New York equities markets were mixed at midday on Thursday on new concerns that the housing market in the United States is continuing to slow. The Dow Jones Industrial Average had dropped 0.1 percent to 12,120.19 and the S&P 500 was 0.02 percent lower to 1,381.98. The Nasdaq Composite was 0.03 percent higher to 2,375.4.
Pulte Homes reflected the slowdown in its report of a significant drop in earnings and a warning that fourth-quarter earnings will be much lower than current estimates. Pulte’s shares were 0.7 percent lower to $31.98 in the wake of new data from the Commerce Department that shows the median price of a new home down 9.7 percent in September.
Stock exchanges were also lower on the session so far. Nasdaq dropped 0.5 percent to $36.80. Meanwhile, the Chicago Mercantile Exchange, which has agreed to take over the Chicago Board of Trade, dropped nearly 1 percent to $492.10. The Chicago Board of Trade itself dropped even more, by 1.6 percent to $145.08. The NYSE Group, which owns the New York Stock Exchange, fell 1.7 percent to $74.10 despite reporting third-quarter profits had tripled.
In the oil sector, ExxonMobil added 0.2 percent to $71.15 on operating profits that were at $10.5 billion in the quarter, the second highest quarterly profit ever reported by a US company.
Dow Chemical gained 0.9 percent to $40.52 on higher earnings and a share buyback scheme worth $2 billion.
Among retailers, Wal-Mart also added 0.9 percent to $51.30 on the announcement that it is expanding the $4 generic prescription price it introduced in Florida to 12 more states, bringing the total number of states now included in the program to twenty-seven.
Government bond prices were up and yields fell on Thursday in response to a decision by the US Federal Reserve to keep interest rates steady for the time being as well as its comments following the decision that did not sound too strong a warning on inflation. Also helping prices higher was new data on durable goods orders showing that, excluding transportation goods, orders were up just 0.1 percent in September. The ten-year US Treasury bond dropped 3.8 basis points to a yield of 4.73 percent.
In Europe, meanwhile, ten-year yields also fell in response to the Fed decision. The ten-year Bund dropped 1 basis point to 3.85 percent, while the ten-year gilt was 4 basis points lower to a yield of 4.66 percent. The price gains came as the president of the European Central Bank said that inflation would be an issue for the rest of this year and into next year.
In Japan, government bonds were helped by the US bond market, with the ten-year JGB falling 5 basis points to 1.750 percent. Shorter-dated bonds also saw prices go up and yields drop after an auction of two-year issues saw demand quadruple supply. Yields on two-year bonds were 0.3 basis points lower to 0.755 percent.
The New York equities markets were mixed in early afternoon trade on Tuesday. The Dow Jones Industrial Average was 0.02 percent higher to 12,118.91, while the Nasdaq Composite had dropped 0.4 percent to 2,342.22 and the S&P 500 was 0.1 percent lower to 1,375.57. The activity was a result of several factors, including a lack of new economic data, earnings reports that were not up to par, and unwillingness to commit ahead of the Federal Reserve’s newest interest rate decision, due Wednesday.
Texas Instruments dropped 2.9 percent to $30.97 on a quarterly report that did not meet expectations and on a disappointing prediction for fourth quarter results. Kraft Foods likewise issued a quarterly report that did not satisfy, and was in consequence 3.8 percent lower to $34.91. Even though Whirlpool’s earnings were a bit better than had been anticipated, it cut its prediction for unit shipment growth in North America. The appliance maker saw shares fall 3.9 percent to $85.86.
Not all the quarterly reports were disappointing. DuPont produced a good quarterly report and added 1.8 percent to $46.28. Lucent, which is being purchased by French telecommunications equipment maker Alcatel, added 7.7 percent to $2.52 on better than expected earnings.
Qualcomm was 3.1 percent lower to $36.91 on rumors that the patent case it filed against Nokia could be in for another look by the courts. Meanwhile, Intel added 1.1 percent to $21.69.
Amazon.com added 1.8 percent to $33.46 ahead of its quarterly report, due after the close of trade.
The New York equities markets were higher at midday on Monday as earnings reports continue to come in. Over 150 companies listed on the S&P 500 alone are expected to report this week. At mid-session the Dow Jones Industrial Average was 0.9 percent higher to 12,114.11, a new high, while the Nasdaq Composite was up 0.7 percent to 2,359.53 and the S&P had added 0.6 percent to 1,377.17.
Internet search engine Google was still benefiting form its earnings report, issued last week, adding 3.8 percent to $477.15, its highest level ever. Meanwhile in other computer-related news, Apple Computer was 2.1 percent higher to $81.65. In the semiconductors sector, Texas Instruments is expected to report after the end of today’s session.
Wal-Mart gained 3.2 percent to $50.95 after its chief financial officer said that it was planning on slowing capital spending to 2 to 4 percent in fiscal 2008, from 15 to 20 percent this year.
Chewing-gum maker Wrigley gained 14.2 percent to $53.48 on a report that earnings per share in the quarter were above predictions and that its new chief executive will be the first in the company’s history from outside the Wrigley family.
Construction machinery manufacturer Caterpillar added 2.2 percent to $60.30 after having lost 14 percent in Friday’s session on a disappointing quarterly report.
Ford Motor dropped 1.5 percent to $7.89 after it reported that it has lost 62 cents per share in the third quarter, about what had been expected by analysts.
Prices were up and yields lower on US Treasury bonds during the week as investors remained wary ahead of the next meeting of the Federal Reserve, scheduled for next week. Data releases during the week did not help determine the economy’s direction, although most analysts expect the Fed to hold interest rates at 5.25 percent again this month. At midday on Friday the ten-year Treasury bond was 0.4 basis points lower for the day to a yield of 4.786 percent. The ten-year issue had begun the week at 4.796 percent.
In the Eurozone, ten-year Bund yields were 0.2 basis points higher to 3.827 percent late in the session. European bonds were affected by the move on Thursday by two ratings agencies to downgrade Italy’s debt.
The yields on UK gilts were also higher on the day, on the expectation that the Bank of England will raise interest rates at their meeting next month. The two-year gilt was 3.8 basis points higher to a yield of 5.064 percent, while the ten-year gilt gained 2.8 basis points on the session to 4.693 percent. At the beginning of the week the two-year gilt was yielding 5.019 percent, while the ten-year gilt was at 4.642 percent. Friday’s two-year yield was its highest level since July 2002.
The New York equities markets were mixed at midday on Thursday on news from corporate earnings reports and new data from the Philadelphia Fed that showed its manufacturing index down 0.7 percent in October when an advance had been predicted. The Dow Jones Industrial Average was 0.15 percent higher to 12,011, while the Nasdaq Composite was down 0.1 percent to 2,339.57 and the S&P 500 was just 0.01 percent lower to 1,365.
Among gainers on the day were Apple Computer, which added 6.35 percent to $79.26 on higher net income on sales of both Macintosh computers and iPod music players. Also up were Yahoo, 1.1 percent higher to $23.24 and UPS, which added 4.23 percent to $75.54 on higher earnings. AT&T was up 2.9 percent to $33.89 on an upgrade from Lehman Brothers.
The semiconductors sector was significantly lower. Cypress Semiconductor was 9.1 percent lower to $17.24 on the announcement that is no longer thinking of selling. Advanced Micro Devices dropped 10.4 percent to $21.72 after it said Wednesday that its gross margins were down. AMD added, however, that it expects higher demand and sales in the fourth quarter. Intel declined a lesser 1.1 percent to $20.88 on quarterly earnings that were lower.
Other losers on the session included McDonalds, down 1.4 percent to $40.90 despite meeting its revised guidance. Citigroup dropped 0.8 percent to $49.79 on lower net income in its third quarter. In addition, General Electric was down 0.9 percent to $35.56 on the news that its NBC Universal entertainment unit will make cost-cutting moves.
There was good news and bad news on Wall Street on Wednesday. The good news was that the Dow Jones Industrial Average went above 12,000 for the first time in history, early in the session, before dropping back to end the day 0.36 percent higher to 11,992.68. The bad news was that it could not hold above 12,000 due to unfavorable earnings reports from the Apollo Group and Motorola. Meanwhile, the Nasdaq Composite ended the session 0.3 percent lower to 2,337.15, while the S&P 500 closed at 1,365.96, a gain of 0.1 percent.
Motorola dropped 4.9 percent to $23.64 after it reported that its third quarter revenues were 17 percent higher to $10.6 billion. The decline was attributed revenues not reaching levels anticipated by analysts and in-company estimates.
Apollo Group reported that quarterly earnings were down and said that an investigation into how it grants stock options had found problems. The news sent the for-profit education company’s shares 22.9 percent lower to $37.55.
The semiconductors sector saw declines, as well. The exception was Intel, which added 1 percent to $21.11 even though it reported that quarterly earnings were down. Despite the decline, earnings did better than had been anticipated. Elsewhere in the sector, Analog Devices was 3.6 percent lower to $29.68, while EMC dropped 4.1 percent to $12.18 on a decline in quarterly profits and Applied Materials was 4.6 percent lower to $17.82.
IBM did better, adding 3.3 percent to $89.82 on better earnings than had been predicted. Also helping the computer maker higher was an upgrade from “neutral” to “buy” from Goldman Sachs.
Yahoo was instrumental in the day’s decline for the Nasdaq, dropping 4.8 percent to $22.99 on a quarterly report that did not meet expectations and which brought a downgrade from “outperform” to “market perform” from Piper Jaffray.
