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Closing Update: Stocks Rebound Partially From Tuesday's Pounding, Earnings Help
By: Midnight Trader   Wednesday, October 20, 2010 4:31 PM
Symbols: ABT, ALTR, AMLN, GOOG, LLY, MRK, NVO, PFE, WFC, YHOO
No specific value was placed on the deal.

Earnings season pressed on before the bell this morning, moving stocks throughout the first half of the regular session.

Shares of Wells Fargo & Co. (WFC) are higher following the company's third-quarter earnings report this morning. The bank reported Q3 EPS of $0.60 per share, a nickel better than the Street view. Revenue was $20.87 billion, vs. expectations of $20.94 billion.

Shares of Altera (ALTR) are lower even after the company reported third quarter earnings results that beat Street expectations. Altera (ALTR), the largest U.S. tobacco company, reported Q3 EPS of 69 cents per share compared to Street estimates of 65 cents a share. Revenue of $527.5 million is higher than Street estimates of $525.98. For Q4, company sees sales growth up 3% to 6%. Profit rose by higher prices for its Marlboro cigarettes and snuff sales, Bloomberg reported. Altera shares are down 0.59%, or $0.18, to $29.32.

Abbott Labs (ABT) reports Q3 adjusted EPS at $1.05, just topping the Thomson Reuters mean analyst estimate for $1.04. Sales of $8.7 billion are up from $7.8 billion. The Street looked for $8.9 billion. ABT sees adjusted 2010 EPS at $4.16 to $4.18. The Street is at $4.16.

Yahoo Inc. (YHOO) is higher, even though the Internet group reported disappointing revenue growth for the fourth quarter. The company expects revenue to reach between $1.125 billion to $1.225 billion, while analysts polled by Thomson Reuters on average had expected the figure to reach $1.26 billion. As a result, speculation is growing that Yahoo may consider a buyout and start discussions with private equity firms.

Airline stocks were trending higher following positive earnings numbers.

Delta (DAL) posted a profit of $929 million, or $1.10 a share excluding one-time items, having posted a loss of $161 million, or 19 cents a share, a year ago. Analysts polled by Thomson Reuters on average had expected earnings of 94 cents a share.

US Airways (LCC), meanwhile, reported a profit of $243 million, or $1.23 a share, which was above the $1.17 a share expected by analysts.

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