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U.S. Stocks Fall, Led by UnitedHealth, eBay on Earnings

*from www.bloomberg.com, April 18, 2013 (To view original article click here.)

Take Away #1: U.S. stocks fell, sending the S&P 500 Index to a one-month low, as earnings from UnitedHealth Group Inc. to eBay Inc. disappointed investors.

Key Facts and Figures:

  • UnitedHealth (UNH) slumped 3.8%, the biggest drop in three months.
  • eBay Inc. (EBAY) slid 5% after reporting revenue that missed some estimates.
  • Morgan Stanley lost 3.8% after posting the biggest drop in trading revenue among the largest U.S. banks.
  • Verizon Communications Inc. (VZ) gained 4.6% as growth in wireless customers helped profit beat estimates.
  • PepsiCo Inc. added 3.6% after snack sales increased.
  • The S&P 500 fell 0.2% to 11,548.38 at 1:11 p.m. in New York, the lowest level since March 21.
  • The Down Jones Industrial Average slipped 26.20 points, or 0.2%, to 14,592.39.
  • Trading in S&P 500 stocks was 20% higher than the 30-day average at this time of day.

Take Away #2: The S&P 500 briefly dipped below its 50-day moving average for the first time this year.

Key Facts and Figures:

  • The S&P 500 briefly dipped below its 50-day moving average for the first time this year.
  • That level, currently at around 1,543, is watched by some analysts to gauge the trend of the market.
  • Stocks kept losses after a measure of manufacturing in the Philadelphia region expanded at a slower pace.
  • The index of U.S. leading indicators unexpectedly declined for the first time in seven months.
  • The S&P 500 reached an all-time high of 1,593.37 on April 11.
  • The index has since dropped 3.2% as China’s economic growth unexpectedly slowed, commodities tumbled, and data on U.S. employment and retail sales missed forecasts.

Take Away #3: Almost 30 companies in the S&P 500 are scheduled to post results today.

Key Facts and Figures:

  • Of the 82 that have reported since the season began, 74% have beaten analysts’ estimates for profit.
  • 49% have exceeded sales forecasts, according to data compiled by Bloomberg.
  • Analysts project first-quarter results dropped 1.4%, the first contraction since 2009.

Take Away #4: Five out of the 10 S&P 500 industries declined today while the VIX increased.

Key Facts and Figures:

  • Health-care, consumer-discretionary, and technology companies fell the most, sinking at least 0.8%.
  • The VIX increased 4.7% to 17.29.
  • The VIX, which moves in the opposite direction of the S&P 500 about 80% of the time, reached a six-year low in March and has since risen 52%.
  • “When we were heading into this earnings season, the estimates had come down, but the S&P itself was still in a situation where sentiment was high and correcting,” said Sam Turner of Riverfront Investment Group LLC.

Take Away #5: Health-care companies in the S&P 500 fell 1% as a group.

Key Facts and Figures:

  • UnitedHealth, the biggest U.S. health insurer, dropped 3.8% to $59.70.
  • UnitedHealth reported higher costs for patients on Medicare, the U.S.-funded program for the elderly.
  • UnitedHealth also trimmed its full-year revenue forecast by about $2 billion because a private employer converted to a less-profitable contract.
  • Humana Inc., the second-largest Medicare insurer, slipped 2.6% to $72.59.

Take Away #6: eBay, Morgan Stanley, Bank of America, and Philip Morris see declines.

Key Facts and Figures:

  • eBay, operator of the largest internet marketplace, slumped 5% to $53.28.
  • First quarter sales amounted to $3.75 billion, missing the average analyst estimate of $3.77 billion.
  • Second-quarter revenue will be $3.8 billion to $3.9 billion, lower than the average projection for $3.95 billion.
  • Morgan Stanley fell 3.8% to $20.65.
  • Bond-trading revenue plunged 42% in the first quarter and stock-trading revenue declined 19%, the company said.
  • Bank of America Corp. dropped 3.7% to $11.17, extending a 4.7% slump from yesterday, when the lender reported profit that missed analysts’ projections.
  • Philip Morris International Inc., the world’s largest publicly traded tobacco company, slipped 2.6% to $91.64.
  • Philip Morris posted earnings that fell more than analysts estimated as tax increases and economic weakness hurt shipments.

Take Away #7: Verizon, PepsiCo, Union Pacific, Peabody Energy, and American Express advance.

Key Facts and Figures:

  • Verizon, the second-largest U.S. phone company, climbed 4.6% to a 12-year high of $51.31.
  • Verizon exceeded analysts’ profit estimates after attracting more wireless customers and getting them to sign up for lucrative data contracts.
  • PepsiCo, the world’s largest snack-food maker, jumped to a record $81.72.
  • PepsiCo posted earnings that beat the average analyst estimate after global snack sales increased.
  • Union Pacific Corp., the biggest US. Railroad, advanced 4.5% to $143.14.
  • Union Pacific reported profit that topped analysts’ estimates as higher pricing overpowered a decline in cargoes.
  • Peabody Energy Corp., the largest U.S. coal company, rallied 8%, the most in the S&P 500, to $20.53.
  • Peabody reported a loss that was narrower than expected as U.S. demand for coal used to make electricity rose.
  • American Express, the biggest U.S. credit-card issuer by customer spending, added 1.7% to $65.21.
  • American Express reported profit that exceeded analysts’ estimates as consumers boosted purchases.

*To view original article from www.bloomberg.com click here.

Filed in: Latest, Markets

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