*from www.bloomberg.com, April 24, 2013 (To view original article click here.)
Take Away #1: U.S. stocks were little changed, after a three-day gain for the S&P 500 Index, as companies from Boeing Co. to Apple Inc. reported earnings.
Key Facts and Figures:
- Apple slipped 1.3% amid its first profit decline in a decade and concern that a new handset won’t arrive until at least September.
- AT&T Inc. slid 5.7%, the most since October, as sales trailed expectations.
- Proctor & Gamble Co. (PG) fell 6% after its full-year earnings forecast missed analyst projections.
- Boeing and Yum! Brands Inc. advanced at least 3.4% after reporting its first-quarter earnings that topped estimates.
- The S&P 500 fell less than 0.1% to 1,578.09 at 12:55 p.m. in New York.
- The Dow Jones Industrial Average dropped 40.55 points, or 0.3%, to 14,678.91.
- Trading in the S&P 500 stocks was 19% higher than the 30-day average during this time of day.
Take Away #2: Forty-Seven S&P 500 companies post earnings today.
Key Facts and Figures:
- Of the 174 companies that have published results so far in this reporting season, 73% have exceeded analysts’ predictions for earnings.
- Profit at S&P 500 companies dropped 1.1% in the first three months of the year, according to forecasts compiled by Bloomberg.
- That would mark the first year-over-year decrease since 2009.
- Analysts have trimmed their projections for the current quarter, forecasting earnings to expand 5.5%, data compiled by Bloomberg show.
- They had expected an increase of 6.2% at the beginning of April.
Take Away #3: Orders for durable goods fell in March by the most in seven months as demand slumped for commercial aircraft and business investment cooled.
Key Facts and Figures:
- Bookings for goods meant to last three years decreased 5.7% after a revised 4.3% gain the prior month that was smaller than previously estimated, the Commerce Dept. reported.
- Orders excluding transportation equipment, which is volatile month to month, unexpectedly fell for a second month.
- The S&P 500 has surged 134% from a 12-year low in 2009 as corporate earnings beat estimates and the Fed embarked on three rounds of bond purchases to stimulate the economy.
- Benchmark indexes reached record highs on April 11.
Take Away #4: U.S. stocks suffered declines during the second quarter in each of the past three years, with losses averaging 5.2%.
Key Facts and Figures:
- “The earnings season has been enough to hold stocks where they are in light of some less-than-hoped-for macro data,” said Lawrence Creatura of Federated Investors Inc.
- The VIX, which moves in the opposite direction to the S&P 500 about 80% of the time, increased 1% to 13.61.
- The VIX is down 24% for the year.
- Six out of 10 S&P 500 industries gained as commodity and industrial companies climbed the most rising at least 1.2%.
Take Away #5: Apple (AAPL) slumped 1.3% to $400.89.
Key Facts and Figures:
- Apple forecast sales that missed analysts’ predictions.
- CEO Tim Cook outlined plans to debut new products starting late this year.
- However, analysts including Gene Munster at Piper Jaffray Cos. had expected the iPhone 5S in June and now anticipate the new handset may not ship until September at the earliest.
- Cook yesterday boosted Apple’s quarterly dividend and allotted more cash to buybacks, adding $55 billion to its plan to return cash to shareholders.
- This brings the total to $100 billion through 2015.
- Apple shares have slumped nearly 43% this year amid signs of slowing growth.
Take Away #6: Proctor & Gamble (PG) slipped 6% to $77.56.
Key Facts and Figures:
- P&G slipped after predicting full-year core earnings will be in the range of $3.96 to $4.04 a share.
- Analysts surveyed by Bloomberg had estimated earnings at $4.06 per share for 2013.
- Results in the current quarter will be affected by increased marketing expenses for new product introductions, CFO Jon Moeller said.
- Foreign currency exchange is also expected to reduce net sales by 2% in the period, P&G said.
Take Away #7: Amgen misses, AT&T declines, Edward Lifesciences Corp. tumbles, and Motorola slips.
Key Facts and Figures:
- Amgen Inc. declined 6% to $106.06.
- Revenue increased 5% to $4.24 billion, less than the $4.37 billion estimated by analysts.
- This is the first time in 11 quarters that the company has missed expectations, according to Bloomberg Industries.
- AT&T lost 5.7% to $36.79.
- The largest U.S. phones company said sales dropped 1.5% to $31.4 billion in the first quarter.
- AT&T said sales were dragged down by a sluggish landline business and competition with Verizon Wireless.
- Analysts on average forecast $31.7 billion.
- Edwards Lifesciences Corp. (EW) tumbled 23%, the largest drop since 200, to $63.71.
- The biggest maker of aortic heart valve implanted with a catheter cut its 2013 forecast as first-quarter sales were slower than anticipated.
- Motorola Solutions Inc. declined 9.9% to $55.62.
- The maker of industrial gear such as two-way radios and bar-code scanners reported quarterly profit and sales that trailed analysts’ estimates.
- Motorola CEO Greg Brown said corporate customers are still working to rebound from the economic slump, causing them to put off orders.
Take Away #8: Boeing gains and Yum! Brands Inc. advances.
Key Facts and Figures:
- Boeing gained 3.4% to $91.17.
- The aircraft maker said earnings were $1.73 per share in the first quarter, topping the average analyst estimate of $1.49 per share.
- Increased deliveries for 777- and 737-model jets made up for the halt in buyers picking up Dreamliners while that plane was grounded.
- Yum! Brands Inc. increased 7.8% to $69.12.
- The owner of KFC and Pizza Hut dining chains said profit excluding certain items was 70 cents a share as new menu items helped Taco Bell’s domestic sales.
- Analysts estimated 60 cent, the average of 25 projections compiled by Bloomberg.
Take Away #9: Energy shares saw a 1.4% gain led by companies like Newfield, and WellPoint, General Dynamics, and Buckeye Technologies also advanced.
Key Facts and Figures:
- Newfield Exploration Co. climbed 7.9% to $24.41, leading energy stocks to a 1.4% gain.
- WellPoint Inc. gained 5.5% to $73.12.
- The second-biggest U.S. health insurer reported profit that outpaced analysts’ estimates and raised its forecast.
- WellPoint was fueled by the acquisition of Amerigroup Corp. and lower-than-anticipated medical costs.
- General Dynamics Corp., the maker of Abrams tanks and Gulfstream business jets, advanced 5.5% to $70.77.
- General Dynamics Corp. beat analysts’ estimates for first-quarter profit as the company is focusing on cost-cutting and increasing margins.
- Buckeye (BKI) Technologies Inc. surged 26% to a record $37.58.
- The manufacturer of specialty-cellulose products agreed to be bought by Georgia-Pacific LLC for $37.50 a share in cash.
- The transaction is valued at about $1.5 billion, including debt.
*To view original article from www.bloomberg.com click here.