4:13 PM, Jan 12, 2010 --
- NYSE down 78.52 (1.1%) to 7,370.54.
- DJIA down 36.7 (0.3%) to 10,627.
- S&P 500 down 10.8 (0.9%) to 1,136.
- Nasdaq down 30.10 (1.3%) to 2,282.
GLOBAL SENTIMENT
- Hang Seng down 0.38%
- Nikkei up 0.75%
- FTSE down 0.85%
UPSIDE MOVERS
(+) SVU beats with Q3 EPS, though sales miss; guides above Street.
(+) SNTA issues positive study data.
(+) SPPI gets milestone payment.
(+) CRUS sees sales above estimates.
(+) CDII inks new deals.
(+) INFY beats with results, guidance.
(+) LFUS hikes outlook.
(+) MGM gets upgrade.
(+) VICL says licensee gets FDA OK for special protocol assessment for Phase 3 trial.
(+) VLNC gets purchase order.
DOWNSIDE MOVERS
(-) AA misses with results.
(-) NVAX turns lower despite positive preclinical results for vaccine candidate.
(-) KBH lower after latest earnings; tax benefit helped.
(-) KFN prices notes offering.
(-) TIF guides for full year results above Street estimates.
(-) ERTS continues evening slide that followed guidance warning.
MARKET DIRECTION
Stocks declined after earnings season kicks off with disappointments. Industrial bellwether Alcoa (AA) missed with results late Monday, suggesting that the economic recovery is still dicey. Its 11% decline proved a major drag on the Dow Jones Industrial Average. Chevron (CVX) also warned that Q4 EPS would fall below Q3.
The dollar was firmer, sending gold lower. Oil pulled back from 15-month highs amid warmer weather forecasts and a surprise attempt by China to tighten monetary policy. China raised the proportion of deposits that banks must hold in reserve, a step toward removing liquidity from the market. Bonds rose, pushing down Treasury yields, after a well-received 3-year note auction.
An early report showing a wider trade gap based on rising imports also weighed on stocks, though to a limited degree.
The U.S. trade deficit widened by 9.7% in November to $36.4 billion, the Commerce Department said this morning. The trade deficit was above the consensus forecast of Wall Street economists for a deficit of $34.8 billion. Exports rose for the seventh straight month, even though imports rose at a faster pace in November.
The focus keyed in on Alcoa (AA), which reported Q4 EPS, ex items, of $0.01 per share, below Street estimates of $0.06 per share.
Other decliners included Electronic Arts (ERTS) after the company set its Q3 and FY 2010 guidance below expectations.
On the upside, Novavax (NVAX) gained after announcing it successfully completed a pre-clinical safety and efficacy study of its RSV vaccine candidate in cotton rats.
Hartford (HIG) jumped after the company says it sees core Q4 EPS between $1.45 and $1.60, including an after-tax DAC unlock benefit of $110 million, or $0.26 per diluted share. It is above prior guidance, the company says. The Thomson Reuters mean, usually less items, is for $0.82.
In mergers and acquistions news, Zareba Systems (ZRBA) jumps on a $9 per share cash buyout from a unit of Woodstream.
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