- DJIA down 53.59 (-0.46%) to 11,493.72
- S&P 500 down 4.94 (-0.41% to 1,188.04
- Nasdaq down 1.86 (-0.07%) to 2,521.28
GLOBAL SENTIMENT
- Nikkei down 0.40%
- Hang Seng up 0.14%
- Shanghai Composite down 0.10%
- FTSE-100 down 0.3%
- DAX-30 down 1.2%
Stocks were mixed Tuesday as investors digested news from the IMF and FOMC, but were hesitant to choose a direction considering the instability still underlying the markets. The Dow Jones Industrial Average was poised to close modestly lower, a slight relief after dropping up to 108 points at its low today.
Earlier, U.S. stocks grabbed some optimism after the International Monetary Fund offered new credit to address contagion risks and Federal Reserve minutes showed some favor a further easing of monetary policy.
Treasury prices cleared losses Tuesday after the U.S. government garnered strong demand for its auction of five-year notes, even at the lowest yield on record. Stocks were hit earlier in the day after a disappointing estimate of U.S. economic growth in the third quarter. The Bureau of Economic Analysis said its second read on third quarter gross domestic product growth came in at 2%, down from its prior estimate of 2.5% growth. A poll of economists by Reuters expected no change to the original estimate.
Trading volume was light ahead of the Thanksgiving holiday weekend. With less than two hours left before the close, some 2.5 billion shares changed hands on the New York Stock Exchange and about 1.2 billion on the Nasdaq.
In end-of-day company news:
Shares of Trailer Bridge (TRBR) rallied after reporting a net loss of $1.9 million, or $0.16 per share in Q3. A year ago, it earned net income of approximately $6,900, or $0.00 per basic share and diluted share. Sales were $31.1 million, up 6.1% from a year ago. On November 16, TRBR filed for bankruptcy under Chapter 11.
Shares of Groupon Inc. (GRPN), were down but plunged as much as 15% earlier in the day, pushing the shares near their initial public offering price for the first time. The stock fell for a second day amid concern that it may struggle to reach profitability because of surging marketing costs and competition from rivals, Bloomberg reported.
Shares of Alcatel Lucent(ALU) were down sharply as comments by Goldman Sachs and Morgan Stanley sparked concerns over the company's financial stability. On Monday, Goldman Sachs analyst Tim Bobby reportedly gave the company a Neutral rating and cut his 2012 earnings expectation to $0.06 per share from $0.19. Separately, Morgan Stanley analyst Francois Meunier cut his earnings expectations for ALU's Q4 by 10%, reports said.
Shares of Suntech Power (STP) climbed despite the company posting a Q3 loss of $0.64 compared to income of $0.18 a year earlier and deeper than the Street view for a loss of $0.21.Revenue, though, rose to $809.8 million from $743.7 million a year ago. The Street had forecast revenue of $779.5 million.
Brocade (BRCD) surged in afternoon action, holding near the session high of 5.10. Late Monday, Brocade reported Q4 revenue of $550 mln, better than the analyst consensus of $527 mln on Thomson Reuters. EPS was $0.16, vs. expectations of $0.10 per share.
Commodities finished higher, with crude-oil futures climbing Tuesday as violent protests in Egypt and sanctions on Iran helped put an end to a three-session losing streak and sent prices back above $98 a barrel. Oil for January delivery was up $1.09, or 1.1%, to settle at $98.01 a barrel on the New York Mercantile Exchange. Gold for December delivery gained $23.80, or 1.4%, to settle at $1,702.40 an ounce on the Comex division of the New York Mercantile Exchange.
DOWNSIDE MOVERS
(-) HPQ Q4 results top expectations
(-) FRO swings to Q4 losses
(-) LEN proposes convertible notes offering
(-) NFLX prices $400 million equity, convertible notes financing
(-) XOM Iraq considering sanctions against refiner
UPSIDE MOVERS
(+) CVX Brazil regulator levies fines for spill
(+) NVDA Needham has upgraded NVIDIA (NVDA) to Buy from Underperform.
(+) BRCD reports Q4 revenue beat.
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