Stock Market News for January 12, 2010 - Market News
U.S. markets ended Monday on a mixed note as an advance in industrial stocks, helped by a record rise in Chinese exports, was offset by a selloff in technology shares. Stocks seesawed in a narrow range as traders refrained from making big moves ahead of the upcoming earnings season.
After the bell, Alcoa’s (NYSE:AA) numbers failed to impress and it CEO said results suffered due to "tough year for the aluminum industry -- a price crash, demand destruction, and credit crunch." This morning Goldman Sachs (NYSE:GS), which had forecast strong quarterly numbers from Alcoa last week, downgraded the stock to “sell" from “neutral."
The Dow Jones industrial average gained 46 points, or 0.4%. The S&P 500 index added 2 points, or 0.2%. The Nasdaq composite lost 5 points, or 0.2%. On the New York Stock Exchange, advancing shares beat those that declined three to two on volume of 970 million shares.
A Citigroup (NYSE:C) upgrade yesterday sent Chevron (NYSE:CVX) shares up 1.8%. Citigroup (NYSE:C) said the company offers the "greatest sensitivity to changes in oil prices." However, after the close, Chevron (NYSE:CVX) warned its fourth-quarter profit would be lower than the third-quarter numbers due to weak refining margins.
Nevertheless, news from China continued to impress, sending industrial shares higher (+0.8%). Caterpillar (NYSE:CAT) jumped 6.3% and was the leading gainer on the DJIA. Argus Research analysts cited Caterpillar as an early cycle play. However, in a clear signal that tightening measures are in the offing amid inflationary and potential asset bubble build up concerns, the China Central bank today sold bills at a higher yield for the second time in a week.
Meanwhile, the Atlanta Fed President Lockhart noted "the policy rate will be kept low until recovery has shown momentum that is based on private business and consumer demand, job growth is established or at least imminent, and the downside risks appear to be safely navigable." Lockhart was also skeptical about a "gangbuster recovery."
Companies reporting their numbers include: Great Atlantic and Pacific Tea (NYSE:GAP), Infosys (NASDAQ:INFY), KB Home (NYSE:KBH) and Supervalu (NYSE:SVU). Infosys (NASDAQ:INFY) reported a smaller than anticipated third quarter profit decline, and raised its full year outlook, underscoring a strong outlook for Indian tech company returns.
The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
