Thursday, July 19, 2007

Late Surge Takes Struggling Dow Past 14,000; Google Misses

While the Dow spent all of the day in positive territory, it only broke through 14,000 briefly at various points during the session, and actually looked like it was not going to make it as of around 2:30 when the index hung about 40 points below the psychological barrier.

Dow 14,000.41 +82.19; NASDAQ 2,720.04 +20.55; S&P 500 1,553.08 +6.91; NYSE Composite 10,194.01 +45.73

A late-day surge sent the Dow over the top, setting another in a series of all-time closing highs. The NASDAQ and S&P followed suit as a spate of earnings eased investor fears, though there still were more than a fair share of misses on Wall Street. Technology stocks carried the day, with IBM leading the way.

Among companies reporting second quarter results, were:

  • Bank of America (BAC): Net income rose to $5.76 billion, or $1.28 per share, from $5.48 billion, or $1.19 per share, a year ago, though the company set aside 1.81 billion to credit losses. Analysts were seeking $1.20. The stock traded marginally lower.

  • Capital One Financial (COF): Net income totaled $750.4 million, or $1.89 per share, in the April-June period, up from $552.6 million, or $1.78 per share, in the year-ago quarter. Analysts were looking for $1.68 per share on revenue of $4.07 billion. The company reported revenue of $3.57 billion. Shares were off 87 cents prior to the after the bell announcement, but improved in after-hours trade.

  • Google (GOOG): The Mountain View-based company earned $925.1 million, or $2.93 per share, during the three months ended in June. That compared with net income of $721.1 million, or $2.33 per share, at the same time last year. Analysts were looking for $3.59 per share. Shares were off more than 30 points (6%) in after-hours trading

  • Honeywell (HON): Quarterly earnings rose to $611 million, or 78 cents per share, for the three months ended June 30 from $521 million, or 63 cents per share, in the year-ago period. Analysts expected 0.75 per share.

IBM, which announced earnings after Wednesday's close, rose another 4.78 to 115.86 after it reported a profit increase of 12% on unexpected gross income. The stock's stellar performance was responsible for much of Thursday's gain, though that may well be offset by Google's missing the mark. Google reported after the close on Thursday, so Friday may be a rocky session, with options expiration also occurring.

Advancing issues led decliners by a 19-12 margin. New highs moved back ahead of new lows, 464-220, a sharp reversal from yesterday.

Oil closed at its highest level of the year, $75.92, up another 87 cents on the day. Gold and silver traded higher with gold at $678.10, a $4.40 gain. Silver was up 9 cents to $13.38.

On tap for tomorrow (with analyst expectations):

  • Caterpillar Inc. (CAT) 1.49

  • Citigroup Inc. (C) 1.13

  • Schlumberger (SLB) 0.95

  • Wachovia Corporation (WB) 1.22

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