Jul 18, 2008 3:53 pm US/Eastern
Stocks Mixed On Earnings Reports
NEW YORK (AP) ―
Wall Street fluctuated Friday as investors had little appetite to buy stocks after disappointing earnings from technology companies offset an upbeat report from Citigroup Inc.
Blue chips traded in a tight range after a huge two-day rally lifted the Dow Jones industrials by more than 480 points. Investors were concerned about earnings; though Citi's loss was less than analysts had forecast, the market was clearly let down by the tech reports.
Google's results were lower than expected, the result of the weakening economy hurting advertising revenue, while Microsoft missed forecasts by a penny. Also, Advanced Micro Devices Inc.'s chief executive stepped down after the chip maker posted a wider-than-expected loss.
Citi reported a $2.5 billion second-quarter loss due to write-downs tied to deteriorating credit markets. The results surpassed projections, and helped to mitigate some of the market's concerns following a big loss from Merrill Lynch & Co. reported late Thursday.
"Considering the strength we had in the past few days, the market is handling itself quite nice and trying to hold on to the gains," said Peter Cardillo, chief market economist at New York-based brokerage house Avalon Partners. "Investors are also positioning ahead of a barrage of earnings and economic reports due next week."
In late afternoon trading, the Dow fell 1.87, or 0.02 percent, to 11,444.79 but was moving in and out of positive territory.
Broader stock indicators were also lower. The Standard & Poor's 500 index fell 4.74, or 0.38 percent, to 1,255.58, and the technology-focused Nasdaq composite index dropped 33.49, or 1.45 percent, to 2,278.81.
Bond prices were little changed Friday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 4.05 percent from Thursday's 4.00 percent.
The dollar was mixed against other major currencies, while gold prices fell.
Meanwhile, oil prices retreated after rising earlier in the session. A barrel of light, sweet crude fell 29 to $129 on the New York Mercantile Exchange.
With no economic data slated for release Friday, investors were basing their decisions on the week's stream of earnings reports.
Google fell $52.21, or 9.9 percent, to $480.60 after it posted disappointing results late Thursday. Microsoft dropped $1.86, or 6.4 percent, to $25.65, while AMD fell 61 cents, or 11.7 percent, to $4.68.
Financial stocks were mixed after Citi's results. Merrill shed 81 cents, or 2.7 percent, to $29.90, while Citi added $1.77, or 9.8 percent, to $19.74.
Honeywell International Inc. fell 25 cents to $50.61 after it reported second-quarter earnings rose 18 percent and surpassed forecasts. The aerospace company also boosted its 2008 forecast.
Mattel Inc. surged $2.37, or 13 percent, to $20.66 after the toymaker said its reported profit was cut in half, but still beat Wall Street expectations.
Israeli drugmaker Teva Pharmaceutical Industries Ltd. said Thursday it will buy rival generic drug company Barr Pharmaceuticals Inc. for more than $7 billion, in a move to expand its presence in U.S. and Eastern European markets. Teva rose $2.28, or 5.5 percent, to $43.32, while Barr shot up $6.33, or 11.1 percent, to $63.50.
The Russell 2000 index of smaller companies fell 4.06, or 0.58 percent, to 692.57.
Declining issues were about even with advancers on the New York Stock Exchange, where 1.3 billion shares exchanged hands.
Overseas, Japan's Nikkei stock average fell 0.65 percent. Britain's FTSE 100 rose 1.70 percent, Germany's DAX index added 1.78 percent, and France's CAC-40 rose 1.74 percent.
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