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Stocks Fall on Google (GOOG) Results, Data; Clearwire (CLWR) Drops

 October 18, 2012 04:33 PM
 

(By Balachander) U.S. stocks ended in the red after disappointing quarterly results from Google and a mixed set of economic data.

The S&P 500 Index fell 0.24 percent to end at 1,457.34. The Dow Jones Industrial Average shed 0.06 percent to finish at 13,548.94. The Nasdaq Composite Index retreated 1.01 percent to close at 3,072.87.

The number of Americans who continued to receive jobless benefits jumped last week, government data showed. Jobless claims increased 46,000 to 388,000 for the week ended October 13 from a revised 342,000, also coming in higher than projections of 365,000 applications.

In other domestic data, the Conference Board's leading economic indicators for September increased 0.6 percent, after a decline of 0.1 percent in August, and topped expectations of a 0.2 percent rise. Another report showed the Philadelphia Federal Reserve index of business confidence improved to 5.7 in October from minus 1.9 in September.

Hot Stocks Of The Day: GOOG, MSFT, MS, EBAY, CLWR, TRV, ABT, ALGN, SVU, MLNX, SCSS, WCC

In corporate news, Google Inc. (NASDAQ: GOOG) slumped 8.01 percent after the search-engine giant posted weaker-than-expected quarterly earnings and revenue. Google shares were halted after results were released prematurely during regular trading hours.

Microsoft Corp. (NASDAQ: MSFT) reported lower earnings and revenue for the first quarter, and its shares dropped 2.19 percent in extended trading. On an adjusted basis, the company posted earnings per share (EPS) of 65 cents on revenue of $17.36 billion. Results, however, topped market expectations.

Morgan Stanley (NYSE: MS) shed 3.79 percent after the New York-based financial services giant posted its quarterly results. The bank reported a quarterly loss amid a 46 percent drop in revenue.
 
Clearwire Corp. (NASDAQ: CLWR) retreated 10.18 percent after Sprint Nextel Corp. (NYSE: S) disclosed it has acquired voting control of the company.
 
eBay Inc. (NASDAQ: EBAY) jumped 5.46 percent after the online auction site reported better-than-expected quarterly earnings, boosted by strong performance of its PayPal and marketplaces businesses. The company also raised its forecast for 2012.

Abbott Laboratories (NYSE: ABT) retreated 3.48 percent after the company disclosed that its partner Reata Pharmaceuticals is stopping a late-stage trial of their experimental kidney disease treatment, citing safety concerns.
 
Travelers Companies Inc. (NYSE: TRV) added 3.59 percent after the property insurer reported a surge in quarterly earnings, helped by lower catastrophe losses and higher underlying underwriting results.

Align Technology Inc. (NASDAQ: ALGN) tumbled 20.42 percent after the maker of Invisalign clear braces issued a downbeat forecast for the fourth quarter.
 
SUPERVALU INC. (NYSE: SVU) jumped 4.90 percent following its better-than-expected quarterly sales, and the company confirmed it is in "active talks" with several parties as part of a strategic review.
 
Mellanox Technologies Ltd. (NASDAQ: MLNX) tumbled 20.54 percent after the fabless semiconductor company issued a downbeat fourth-quarter revenue forecast.
 
Wesco International Inc. (NYSE: WCC) surged 13.89 percent after the distributor of electrical products posted better-than-expected quarterly results and said it has agreed to acquire Canada-based rival Eecol Electric Corp. for about C$1.14 billion.
 
Select Comfort Corp. (NASDAQ: SCSS) shed 6.53 percent after the bed manufacturer reported higher quarterly earnings and sales, though full year revenue forecast fell short of expectations.
 
Global Markets:

European markets ended mixed, with Germany's DAX up 0.09 percent to close at 7,401.03. France's CAC40 declined 0.53 percent to finish at 3,508.89. The U.K.'s FTSE 100 shed 0.20 percent to end at 5,898.88.

Among Asian markets, China's Shanghai Stock Exchange Composite Index added 1.24 percent to end at 2,131.69. Japan's Nikkei 225 jumped 2.00 percent to finish at 8,982.86. Hong Kong's Hang Seng Index rose 0.48 percent to close at 21,518.71. India's BSE Sensex finished at 18,791.93, up 0.97 percent.

Commodity & Currency Scan:

Crude oil futures declined 0.18 percent to $91.95 per barrel, while natural gas futures rose 3.26 percent to $3.583 per million metric British thermal units. Gold futures dropped 0.64 percent to $1,741.8 per ounce and silver futures dropped 1.36 percent to $32.78 per ounce. 
 
In the currency market, the euro shed 0.37 percent against the U.S. dollar to 1.3070. The British pound fell 0.64 percent against the greenback to 1.6047, while the dollar added 0.35 percent against the Japanese yen to 79.2500.


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