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U.S. Stocks End Mixed Amid Weak Jobs Data; Hot Stocks: CHK, CVS, SMSC, CHRS, AEO, TRIP, CNW, ASNA, ENR

 May 02, 2012 04:38 PM
 

(By Balachander) U.S. stocks ended on a mixed note, weighed by weak reports on American private-sector hiring and eurozone unemployment.

S&P 500 Index dropped 0.25 percent to finish at 1,402.31. The Dow Jones Industrial Average edged 0.08 percent lower to end at 13,268.73. The Nasdaq Composite Index closed at 3,059.85, up 0.31 percent.

Companies in the U.S. added 119,000 jobs in April versus 209,000 new jobs in March, according to ADP National Employment Report, while economists expected the private sector to create 177,000 jobs. The private-sector jobs data is viewed as a preview to the keenly anticipated government employment report due Friday.

On the European news front, the jobless rate in the eurozone increased to 10.9 percent in March, the highest since April 1997, from 10.8 percent in February, according to Eurostat. A survey by Markit Economics showed that the Purchasing Managers' Index for eurozone manufacturing dropped to a near three-year low of 45.9 last month from 47.7 in March.

Hot Stocks Of The Day: CHK, CVS, SMSC, CHRS, AEO, TRIP, CNW, ASNA, ENR

In corporate news, Chesapeake Energy Corp. (NYSE:CHK) tumbled 14.2 percent after the company cut its 2012 and 2013 operating cash flow estimates by up to 48 percent. CHK's first-quarter adjusted earnings fell short of analysts' estimates. Excluding items, CHK earned 18 cents, while analysts expected 29 cents. Brokerage R.W. Baird downgraded its rating on Chesapeake to "Neutral" from "Outperform".

CVS Caremark Corp. (NYSE:CVS) added 2.7 percent after the health care company raised its earnings forecast for the full year following better-than-expected quarterly earnings helped by jump in revenue. For the full year, the company now expects adjusted EPS in the range of $3.23 to $3.33 from prior expectations of $3.18 to $3.28.

American Eagle Outfitters (NYSE:AEO) soared 16.8 percent after after the teen-apparel retailer lifted its first-quarter earnings forecast, citing better-than-expected sales and less promotional activity. AEO now sees EPS in the range of $0.18 to $0.20, up from prior view of $0.08 to $0.10.

Tripadvisor Inc. (NASDAQ:TRIP) shot up 16.2 percent after the online travel research company's first-quarter numbers came in ahead of Wall Street expectations.


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