Post Market News
Stocks that were active in US trading on Wednesday were Merck & Co., Inc. (NYSE:MRK), Genworth Financial Inc (NYSE:GNW), Trulia Inc. (NYSE:TRLA), SPX Corp. (NYSE:SPW), and Dreamworks Animation Skg Inc (NASDAQ:DWA).
- U.S.: Dow Jones: 14,701.03 (-0.94%), S&P 500: 1,582.70 (-0.93%), Nasdaq: 3,299.13 (-0.89%)
- World Markets: Shanghai: 2,177.91 (-0.97%), Nikkei 225: 13,799.35 (-0.44%), Hang Seng Index: 22,737.01 (+0.69%), TSEC: 8,093.66 (+0.80%), FTSE 100: 6,451.29 (+0.33%), EURO STOXX 50: 2,711.74 (-0.21%), BSE Sensex: 19,504.18 (+0.60%)
- Metals: Gold: $1446.20 (-1.76%), Silver: $23.34 (-3.48%), Platinum: $1469.50 (-2.50%)
- Currency: EUR/USD: 1.3211 (+0.37%), USD/JPY: 97.41 (-0.12%), GBP/USD: 1.5589 (+0.37%), USD/CAD: 1.0064 (-0.10%), USD/CNY: 6.1650 (0.00%), AUD/USD: 1.0292 (-0.68%)
- 10 year U.S. Treasury: 1.63% (-0.01), 30 year U.S. Treasury: 2.84% (-0.01)
Market And Economy Update
The Federal Reserve today said it may consider boosting the stimulus program if the US economy weakens. Federal Reserve statements indicate that it is still worried the economy may slip back into recession. The Fed maintained its interest rate at zero, saying that it wouldn’t even consider raising rates until the unemployment rate comes down below 6.5 percent or inflation reached 2.5 percent.
All the major stock indexes were down today. The Dow Jones Industrial Average fell 138.77 points to 14,701.33, the S&P 500 Index was down 14.87 points to 1,582.70, while Nasdaq fell 29.66 points to 3299.13.
Southpoint Qualified Fund and Southpoint Qualified Offshore Fund returned 2.5% net for the first quarter, compared to the S&P 500's 6.2% return and the Russell 2000's 12.7% gain. During the first quarter, Southpoint's funds averaged 133% long and 70% short. Q1 2021 hedge fund letters, conferences and more The fund's long positions added 13% gross Read More
Stocks In Focus
Merck & Co., Inc. (NYSE:MRK)
The New Jersey-based pharmaceutical giant posted weaker than expected first quarter revenues. Merck said its asthma and allergy drug Singulair sales were hit by competition from generic products. Excluding one-time items, Q1 earnings came at 85 cents, compared to analysts’ estimate of 79 cents per share. Revenues for the quarter declined 9 percent to $10.671 billion. Analysts were expecting $11.09 billion in revenues. The company lowered its full-year earnings forecast to $3.45 to $3.55 per share. Shares skidded 2.79 percent to end the session at $45.69.
Genworth Financial Inc (NYSE:GNW)
The financial security company’s first quarter profits more than doubled due to better than expected performance of its mortgage insurance division. Genworth reported 30 cents in earnings and $2.30 billion in revenues. Analysts were expecting 27 cents a share in earnings and $2.49 billion in revenues. Shares were up 2.29 percent to $10.26 at market closing.
Trulia Inc (NYSE:TRLA)
The real estate search engine company first quarter losses narrowed as its revenues almost doubled compared to Q1 2012. Trulia also issued upbeat guidance for the current quarter. Shares surged 12.84 percent to end the session at $32.79.
SPX Corp. (NYSE:SPW)
The industrial equipment maker posted weaker than expected first quarter sales, especially due to sluggish growth in thermal industry where it manufactures equipment for power plants. The company also lowered its full year guidance, agitating activist investor Relational Investors which has approximately a 10 percent stake in the company. Relational Investors says underwhelming results were a consequence of past acquisitions. Shares plunged 8.39 percent to $68.26 a share.
Dreamworks Animation Skg Inc (NASDAQ:DWA)
The computer animation studio’s first quarter profits declined 39 percent due to rising overhead costs and sliding revenues. However, earnings still beat Wall Street estimates, helped by the success of The Croods, Rise of the Guardians and Madagascar 3: Europe’s Most Wanted. Dreamworks reported Q1 earnings of 7 cents on revenues of $134.6 million. Analysts were expecting a loss of 3 cents per share with $99 million in revenues. Shares rallied 7.31 percent to $20.69.