US midday: Stocks fall on worries for growth and profits
Mon 08 Oct 2012
LONDON (SHARECAST) - -Barclays raises S&P 500 target to 1,395 from 1,330
Dow Jones Industrial: -0.19%
Nasdaq Comp.: -0.74%
S&P 500: -0.35%
Concerns about the global economy are weighing on US equities today.
The World Bank has cut its 2012 growth estimate for China from 8.2% to 7.7%, saying that the economy has been hit by weak export demand and investment growth. "China's slowdown this year has been significant, and some fear it could still accelerate," the World Bank said.
This follows the leaked estimates of the International Monetary Fund (IMF) forecasts last week. The IMF is expected to announce tomorrow that it has revised down its global growth expectations for this year and the next.
Lending credence to the above, car maker General Motors (GM) has added to the air of gloom by revealing that its September sales in China grew at the slowest rate in eight months. Deliveries of GM cars and mini-vans in the People's Republic rose by 1.7% last month.
Fears regarding the crisis in the Eurozone periphery are not far from investors´ minds either.
All of the above ahead of the semi-official start to the corporate earnings season Stateside, tomorrow, when Alcoa releases its latest quarterly earnings. Earnings at S&P 500 companies are expected to decline for the first time in twelve quarters; by 2.7% according to FactSet. The biggest drops are expected at Energy and Materials firms, while the bottom-line at Financials is expected to rise by 10%. The latter, coming on the back of improved capital markets activity and a buoyant mortgage market, will be the largest of all industry groups.
A rebound in levels of corporate profitability is currently being forecast for the last quarter of this calendar year, but investors will be watching to what degree exactly -or not- these forecasts survive the earnings season unscathed.
Amongst some of the companies which have warned recently are: Monsanto, Intel, Nike, FedEx and Hewlett Packard.
Social network giant Zynga is still seeing selling pressure early on after its downbeat trading update on Friday.
Within the same sector BTIG has downgraded Facebook to neutral form buy.
One bright spot however is media streaming firm Netflix, which has been upgraded by Morgan Stanley to "overweight" from "equal weight".
In other company news, United Health will acquire 90% of Brazilian peer Amil for $4.7bn.
Front month West Texas crude futures are now falling by 0.5% to the 89.42 dollar level on the NYMEX.
10 year US Treasuries are flat, with yields at 1.74%.
S&P 500 - Risers
Netflix Inc. (NFLX) $73.49 +10.41%
Carmax Inc. (KMX) $32.11 +10.00%
Marathon Petroleum Corporation (MPC) $57.93 +5.58%
Cliffs Natural Resources Inc. (CLF) $40.31 +5.08%
Alpha Natural Res (ANR) $6.84 +3.95%
Sears Holdings Corp. (SHLD) $58.62 +3.24%
Abercrombie & Fitch Co. (ANF) $33.71 +3.21%
Chipotle Mexican Grill Inc. (CMG) $289.15 +2.93%
AutoNation Inc. (AN) $47.69 +2.49%
Eli Lilly and Company (LLY) $49.36 +2.34%
S&P 500 - Fallers
JDS Uniphase Corp. (JDSU) $10.91 -3.92%
Eastman Chemical Co. (EMN) $56.93 -3.72%
Jabil Circuit Inc. (JBL) $17.38 -3.71%
PulteGroup Inc. (PHM) $16.07 -3.40%
LSI Corporation (LSI) $6.87 -3.24%
Masco Corp. (MAS) $15.58 -2.44%
D. R. Horton Inc. (DHI) $21.15 -2.31%
Citrix Systems Inc. (CTXS) $69.95 -2.26%
Apple Inc. (AAPL) $637.91 -2.25%
Alexion Pharmaceuticals Inc. (ALXN) $115.55 -2.20%
Dow Jones I.A - Risers
Cisco Systems Inc. (CSCO) $18.96 +0.53%
McDonald's Corp. (MCD) $91.45 +0.50%
3M Co. (MMM) $95.35 +0.41%
Alcoa Inc. (AA) $9.11 +0.22%
Merck & Co. Inc. (MRK) $46.34 +0.13%
Wal-Mart Stores Inc. (WMT) $75.21 +0.11%
Travelers Company Inc. (TRV) $69.61 +0.07%
Dow Jones I.A - Fallers
Home Depot Inc. (HD) $62.25 -1.50%
Walt Disney Co. (DIS) $52.20 -1.45%
Hewlett-Packard Co. (HPQ) $14.55 -1.22%
Intel Corp. (INTC) $22.47 -0.95%
Mondelez International Inc. (MDLZ) $27.57 -0.88%
General Electric Co. (GE) $22.93 -0.82%
Verizon Communications Inc. (VZ) $46.67 -0.82%
Procter & Gamble Co. (PG) $69.21 -0.60%
AT&T Inc. (T) $37.67 -0.50%
International Business Machines Corp. (IBM) $209.71 -0.42%
Nasdaq 100 - Risers
Netflix Inc. (NFLX) $73.49 +10.41%
Sears Holdings Corp. (SHLD) $58.62 +3.24%
Green Mountain Coffee Roasters Inc. (GMCR) $22.63 +2.27%
Dell Inc. (DELL) $9.81 +1.55%
Bed Bath & Beyond Inc. (BBBY) $62.36 +1.23%
Viacom Inc. Class B (VIAB) $56.50 +1.06%
Research in Motion Ltd. (RIMM) $8.30 +0.97%
Staples Inc. (SPLS) $11.74 +0.95%
Akamai Technologies Inc. (AKAM) $39.62 +0.53%
Cisco Systems Inc. (CSCO) $18.96 +0.53%
Nasdaq 100 - Fallers
Vertex Pharmaceuticals Inc. (VRTX) $58.02 -2.36%
Citrix Systems Inc. (CTXS) $69.95 -2.26%
Apple Inc. (AAPL) $637.91 -2.25%
Alexion Pharmaceuticals Inc. (ALXN) $115.55 -2.20%
eBay Inc. (EBAY) $47.69 -2.13%
Autodesk Inc. (ADSK) $32.40 -2.11%
VeriSign Inc. (VRSN) $48.35 -1.75%
Infosys Technologies Ltd. (INFY) $47.93 -1.68%
Expedia Inc. (EXPE) $56.71 -1.55%
Avago Technologies Ltd. (AVGO) $33.92 -1.51%
LONDON (SHARECAST) - -Barclays raises S&P 500 target to 1,395 from 1,330
