4:29 PM, May 5, 2011 --
- DJIA down 139.41 (-1.1%) to 12,584.17
- S&P 500 down 12.22 (-0.9%) to 1,335.10
- Nasdaq down 13.51 (-0.5%) to 2,814.72
GLOBAL SENTIMENT
- Nikkei closed.
- Hang Seng down 0.2%.
- Shanghai Composite up 0.2%.
- FTSE-100 down 1%.
UPSIDE MOVERS
(+) WFMI continues evening gain that followed earnings beat.
(+) ERTS continues evening gain that followed earnings beat, mixed guidance.
(+) JDSU continues evening gain that followed Q3 beat.
(+) LTD raises guidance after April results.
(+) COST reports upbeat April sales.
(+) CBEY upgraded.
(+) OPEN upgraded.
(+) KNDL sold for $15.25 per share.
(+) M gaining after April sales.
(+) GPS down after April results.
(+) NWSA continues evening decline after Q3 miss.
(+) CVS beats with revenue.
DOWNSIDE MOVERS
(-) RDN swings to profit.
(-) TKLC beats with Q1 results.
(-) GM beats with results but other details mixed.
(-) DEG downgraded.
(-) LYG swings to loss.
(-) RIG down despite evening earnings beat.
(-) RAME reports unexpected loss.
(-) MCD downgraded.
MARKET DIRECTION
Stock averages end mostly sharply lower. The tech-heavy average had crossed in and out of positive territory after three days of declines, but it too fell late, stretching that slide to four sessions.
Energy stock weakness was helping to pull the broader market lower as oil futures prices tumbled today. Oil futures end down 8.6% to close under $100 a barrel.
Worrisome economic data over the past two days is adding to selling pressure.
Ahead of Friday's monthly payrolls report, the government on Thursday said claims for unemployment benefits unexpectedly climbed last week. Claims rose 43,000 to 474,000.
A separate report said U.S. productivity slowed in the first quarter, rising at an annual rate of 1.6% compared to a 2.9% increase in the prior quarter.
Most retailers reported much improved results in April, with help from Easter. Those missing with sales are citing weather factors.
In company news:
Pfizer (PFE) today announced that its drug Revatio (sildenafil citrate) has been approved by the European Commission for the treatment of pediatric patients aged one to 17 years old with pulmonary arterial hypertension. The approval was based on the results of a dose-ranging phase 3 study that demonstrated Revatio's efficacy in terms of improvement of exercise capacity or pulmonary hemodynamics in patients who had primary pulmonary hypertension and pulmonary hypertension associated with congenital heart disease. Revatio was first approved by the European Commission in October 2005 for the treatment of adult patients.
Shares of Cisco Systems (CSCO) were higher after the company announced significant changes to its business structure and operations, according to a statement this morning. The networking equipment maker said it will streamline its sales, services and engineering organizations as it moves to focus on the five growth areas: routing, switching and services; collaboration; data center virtualization and cloud; video; and architectures for business transformation. According to a Bloomberg report, Cisco is seeing an exodus of executives that former employees say shows dissatisfaction with the management structure at the tech company.
Shares of GlaxoSmithKline (GSK) were down after Bloomberg reported that the drug maker is set to resolve 1,000 more lawsuits over medicines including the diabetes drug Avandia, citing a lawyer for the patents. Glaxo is in settlement talks with attorneys for an estimated 1,000 former Avandia users.
The Pep Boys-Manny, Moe & Jack (PBY) announced Thursday that it has acquired Big 10 Tires and Automotive, an automotive service provider in the Southeast, operating 85 stores throughout Florida, Georgia and Alabama. It has acquired 92 operating locations in 2011 with $93 million in annual sales for an aggregate purchase price of $41 million. With the addition of these locations, PBY now operates 147 service and tire Centers and is well ahead of the targeted total of 55 new stores for fiscal 2011, the company said.
Bank of America (BAC) shares were down after the bank announced a move to triple its number of facilities that will be aimed at assisting struggling mortgage borrowers. The bank will boost the number from 12 to 40, the statement said. Two days ago, the bank had its servicer-quality ratings cut by Moody's after delaying foreclosures due to concerns it had mishandled mortgage paperwork. The ratings firm reportedly cited deterioration in the company's collections and loss-mitigation, the report said.
In earnings news:
- Pinnacle Airlines (PNCL) today reported Q1 net income of $119,000 or $0.01 per share, excluding non-recurring items, down from $1.69 million or $0.09 per share in the prior-year quarter. Revenues grew 43.3% to $298.2 million from $208 million in the same period last year.
- Orbitz (OWW) fell after it says its Q1 loss was $0.11 per share, meeting the Thomson Reuters mean. Sales were $184.9 million, above forecasts for $180.5 million. It sees Q2 sales between $194 million and $200 million, versus forecasts for $197.73 million.
- Domino's Pizza (DPZ) reported Q1 net income of $27.1 mln compared with last year's $24.5 mln, a 10.6% increase. Q1 EPS was $0.43 against the prior-year quarter's $0.41. Adjusted EPS was $0.42 compared to last year's $0.35, and tops the Thomson Reuters mean of $0.34.
- Shares of Murphy Oil (MUR) are higher after the company reported Q1 EPS of $1.38 on sales of 7.351 billion. The Street view was for EPS of $1 on sales of $7.57 billion.
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