Markets Lower, Closing News 4/18/12

Stocks retreated today, as the major averages took a breather after not so stellar earnings from tech giants Intel and IBM.  Spain’s sovereign debt crisis also continued to weigh on investors. 


The IMF said European banks could be forced to sell as much as $3.8 trillion in assets through 2013 and curb lending if governments fall short of their commitment to stem the financial crisis.  In a survey of European banks, the IMF said GDP would be lower than previously expected.


The Department of Labor said today in reviewing the procedures of how it releases economic data that it will require media organizations to remove computer software, hardware and communication lines they have installed at the department to transmit news. Instead, reporters will have to use government equipment, software and Internet connections.


According to reports, the Treasury Department is considering a proposal that Fannie Mae and Freddie Mac be replaced with a government safety net for the mortgage finance system and continued federal backing for loans to lower-income homebuyers.


Market Indices/Statistics:



  • Dow closed down 82.79 pts/-0.63% to 13,032.75

  • S&P closed down  5.64 pts/-0.41% to 1,385.14

  • Nasdaq closed down 11.37 pts/-0.37% to 3,031.45

  • 23 of the 30 Dow stocks closed lower

  • Only 1 of the 10 S&P 500 sectors closed up

  • Consumer Discretionary was the only positive sector

  • The VIX ended up 0.18 at 18.64

  • Oil is down $1.03 to $103.15

  • Nat Gas is down $0.011 to $2.157

  • Gold is down $10.50 to $1,640.20

  • Euro vs. Dollar is down $0.0010 to $1,3118

  • Dollar vs. Yen is up $0.448 to $81.3260

Companies in the News:


At the annual meeting of Citigroup’s (C ) shareholders rejects the $15 million pay raise for CEO, Vikram Pandit.  Pandit had made $1 the year before.  It's the first time shareholders have rejected the executive pay packages of a major bank since Dodd-Frank made the votes mandatory a year ago.  Citigroup closed at $35.08, the stock closed flat.


Reports indicate Facebook founder Mark Zuuckerberg did not alert his board prior to discussing with Instagram that he was in talks to acquire the company.  Instagram is Facebook’s largest acquisition, which the board later approved.


Earnings


American Express (AXP) reported Q1 EPS $1.07 , vs. Est $1.00 and revenue $7.61B , vs. Est $7.57B. on strong loan growth.  American Express closed at $58.04, down $0.14


Ebay Inc. (EBAY) reported Q1 EPS $0.55, vs. Est $0.52 and Q1 revenue $3.28B, vs. Est $3.15B.  The company also boost its forecast.  Ebay closed at $35.87, up $1.39.


Bank of New York Mellon (BK) reported quarterly earnings in line with analyst expectations.  The company reported Q1 EPS $0.52, vs. Est $0.52 and Q1 provision for credit losses $5M vs. $23M in Q4 of 2011 and no provision in Q1 of 2011.  Bank of New York closed at $23.08, down $0.72


BlackRock (BLK) reported total net income of $527 million, a profit of $3.14 a share vs. $3.04 est. due to a large inflow of investments into ETFs.  Although over half of the company’s inflow went to bond ETFs, CEO Laurence Fink believes that equity markets are currently the best opportunity for investors.  Blackrock closed at $196.01, down $5.80.


Halliburton (HAL) reported record high earnings with a profit of $0.68 per share vs. $0.85 Est and income of $ 627M.  Record setting revenues are contributed to new oil and drilling activity which helped overshadow falling natural gas prices.  Halliburton closed at $34.17, up $1.51


Coming ThursdayBank of America (BAC), Morgan Stanley (MS), Verizon (VZ), Travelers (TRV), Capital One (COF)


Economic Reports:  Jobless Claims, Existing Home Sales, Philadelphia Fed Survey, and Leading Indicators.


 


Paras Madho


NYSE Euronext


Market Watch & Corporate Actions


212 656 5404


pmadho@nyx.com


 


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