Stocks moved in mixed fashion Thursday but ultimately end lower,
snapping a six-day streak of gains for the Dow Jones Industrial
Average. The averages all end down around 1%.
Light early support for stocks stemmed from a report showing a
decline of 12,000 weekly jobless benefits claims. The number of
unemployed Americans who continue to collect benefits fell by 139,000
to 5.63 million. That's the lowest since March.
Wal-Mart (
WMT) twisted between negative and positive territory after mixed results and guidance.
U.S. stocks finished higher Wednesday on back of Federal Reserve
speeeches that convinced market bulls low interest rates will remain in
place for some time. The Dow reached a new 2009 high. The broader
S&P 500 finished just short of 1,100, a line it's yet to cross in
2009.
Energy stocks fell as crude oil ends down 3% at $76.94 a barrel.
Crude supplies rose in the latest week as demand eased, according
to the Energy Information Administration. Crude stockpiles rose by 1.8
million barrels in the week ended Nov. 6, the EIA reported.
Analysts polled by Platts had expected an increase of 1 million
barrels. Gasoline inventories rose 2.5 million barrels and distillate
stockpiles, which include heating oil and diesel, added 300,000
barrels. Demand for gasoline dropped 1.9% from a week ago to 8.8
million barrels a day, the EIA said
In other company news, HP (
HPQ) and 3Com Corporation (
COMS)
announced late Wednesday they've inked a definitive agreement under
which HP will purchase 3Com at a price of $7.90 per share in cash or an
enterprise value of approximately $2.7 billion. Brocade (
BRCD) is an
active volume decliner amid disappointment it didn't strike a deal with
H-P.
United Technologies (
UTX) has reached an agreement to purchase the
GE Security business from GE (
GE) for $1.82 billion. UTX expects this
transaction will be earnings neutral in 2010, after restructuring and
transaction costs, and anticipates that the cost synergies will make it
accretive in 2011 and beyond. Both shares gained in pre-market action.
AMD (
AMD) was higher after winning a $1.25 billion settlement
payment from Intel (INTC). In response, INTC adjusted its Q4 spending
and tax rate expectations.
-NYSE down 92.31 (1.3%) to 7,063.05.
-DJIA down 93.79 (0.9%) to 10,197.
-S&P 500 down 11.3 (1%) to 1,087.
-Nasdaq down 17.9 (0.8%) to 2,149.
GLOBAL SENTIMENT
Hang Seng down 1.01%
Nikkei down 0.68%
FTSE up 0.15%
UPSIDE MOVERS
(+) COMS sold to H-P (HPQ).
(+) ETRM releases positive EMPOWER study review.
(+) ADUS results top year ago period.
(+) ATK EPS top Street estimate, sales meet.
(+) ATVI out with early favorable Call of Duty 2 sales.
(+) GRRF tops Q3 estimates.
(+) HPJ tops year-ago results.
(+) CAAS beats with Q3.
(+) WMT tops with Q3 EPS but sales, comp sales disappoint, raises FY EPS view to meet or beat Street.
(+) KSS erases early losses; beats with Q3, offers mixed guidance.
(+) URBN turns higher; beats by a penny with Q3 EPS.
DOWNSIDE MOVERS
(-) UTX buying GE's security business.
(-) GE gives up early gain; sells security business to United Technologies (UTX) for $1.82 bln.
(-) HPQ buying 3Com (COMS).
(-) BRCD continues evening decline on disappointment no deal with H-P.
(-) BUD profit doubles but misses estimate.
(-) JRCC selling debt.
