Stock Market News for April 27, 2010 - Market News
U.S. stocks started a busy earnings week on a dull note as worries about financial reform and Greece’s lingering debt concerns hit the broader market.
Caterpillar’s (NYSE:CAT) strong earnings report and a flurry of corporate deals gave an initial lift to stocks but financial concerns sent the financial sector and the broader market lower. The blue-chip Dow average ended just above unchanged, helped in part by Caterpillar’s strong earnings. The average, nevertheless, managed to end at a fresh 19-month high.
A 1.6% drop in financial sector shares sent the broader S&P 500 index down 0.4% to 1,212. The tech-heavy Nasdaq retreated 7 points, or 0.3%, after ending the previous session at the highest point in almost two years. Market’s measure of volatility, the CBOE Vix, jumped 5.1% to 17.47. Crude prices slid 92 cents to $84.20 on expectations for a build in US crude stockpiles. US Treasuries were in demand, with the 10-year up 2/32 in price as its yield eased to 3.809%.
U.S. stock futures are seeing some initial weakness this morning ahead of Goldman’s (NYSE:GS) testimony on the Hill and Greece’s debt problems. This week at least 164 S&P 500 firms are scheduled to reporting their earnings results.
On the Hill, Goldman Sachs's Chief Executive, Lloyd Blankfein, and another top executive, Fabrice Tourre, testify. While Goldman continues to maintain that it did not benefit from the housing’s decline during the financial crisis, it remains to be seen how the investment bank defends itself from charges of misleading investors and hiding details about some of the securities it sold.
The still-gripping Greek solvency issue continued to weight on sentiments yesterday, a Germany's fight for strict austerity measures in Greece paralleled societal unrest there. This morning's euro-supportive comments from German Chancellor Angela Merkel and Weber were welcomed by traders, lifting euro trade against the dollar.;
Nevertheless, amid all the activity on the Street and signs of an ongoing economic recovery, traders appear concerned about a pullback given the recent rally in stocks.
Caterpillar was clearly in focus on Monday. Its strong profit report and an upbeat guidance indicated an improving economy. Whirlpool (NYSE:WHR) also reported estimate-beating numbers as the company witnessed strong demand for its appliances during the quarter. Shares in Whirlpool jumped 14%. After-the-close, Texas Instruments’ (NYSE:TXN) revenue and profit numbers beat Street projections. Meanwhile, Hertz Global Holdings Inc. (NYSE:HTZ) agreed to acquire rival Dollar Thrifty Automotive Inc. (NYSE:DTG) in a cash-and-stock deal valued at about $1.2 billion.
Among the many firms due to report earnings today, key company releases are slated from: 3M (NYSE:MMM), Ford (NYSE:F), US Steel (NYSE:X) and UPS (NYSE:UPS).
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