Mid-Day Market Summary on 5th August, 2011

admin Wall Street News August 05, 2011

Mid day market update

MARKETS

US stocks gave back early gains on a better than expected jobs report to extend losses to an eight-month low. Weak US manufacturing and consumer spending data this week as well as European debt crisis fears are giving investors reason to sell stocks to yearly lows.

Larger economic concerns are overshadowing any slight improvement in the jobs numbers. Leading economic indicators are turning very negative to the point where investors are seriously talking about another recession.

Crude oil declined for a sixth day on fears of a global economic slowdown. Financials were also lower in mid-day trading.

Additionally, Europe debt fears are back in investors’ minds as the European Central Bank resumed its bond buying program but left Spain and Italy out of the program.

Dow NASDAQ S&P 500 10 Yr Bond Oil Gold
-184.59 (-1.62%) -79.66(-3.12%) -26.55(-2.21%) 2.4570% 84.93 1658.30

ECONOMIC CALENDAR

Employment 8:30 AM

Non-farm payrolls for July increased to 117,000 from the previous month.

UPGRADES/DOWNGRADES

  • Global Hunter Securities upgraded Continential Resources (CLR) to Buy from Accumulate
  • Stifel Nicolaus upgraded Canandian Natl Rail(CNL) to Buy from Hold
  • Longbow upgraded Kroger (KR) to Buy from Neutral
  • Global Hunter upgraded Transocean (RIG) to Buy from Accumulate
  • Morgan Keegan downgraded Diana Shipping (DSX) to Mkt Perform from Outperform

EARNINGS

  • EOG Resources (EOG) announced adjusted 2Q EPS of $1.11, beating analyst estimates. Shares of the oil and gas explorer are up over 5.0%
  • Fluor Corp (FLR) reported 2Q EPS of 94 cents a share, beating the street estimate of 81 cents. Shares traded higher by 5.00%
  • SandRidge (SD) reported adjusted 2Q profits of $0.00 a share, missing the average analyst estimate of 3 cents a share. The natural gas explorer and producer share’s are down over 19.0%
  • Proctor & Gamble (PG) reported fiscal 4Q profits of 84 cents a share, beating analyst estimates of 84 cents a share.
  • Priceline.com (PCLN) reported adjusted 2Q earnings of $5.02 a share, beating analyst estimates of $4.85. Shares are up over 6.0%.

CORPORATE NEWS

  • Brocade Communications Systems (BRCD) shares fell over 27.0% after the company reported revenue and profit that fell below analyst estimates.
  • Cogo Group (COGO) shares fell over 26.0% after the cell phone manufacturer lowered earnings forecasts below analyst estimates.
  • WMS Industries (WMS) dropped over 20.0% after it announced it would lay off 10% of its workers and reduced 2012 profit guidance.
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