U.S. Stocks Struggle; Durable Orders Fall 1.3%

123jump.com Staff
23 Apr, 2010
New York City

U.S. stocks in early trading searched for a direction after Microsoft and Amazon.com reported higher earnings but some analysts were looking for larger gains. March durable goods orders declined 1.3%. U.S. Senate approves $3.7 trillion tax plan.

[R]9:35 AM New York – U.S. stocks in early trading searched for a direction after Microsoft and Amazon.com reported higher earnings but some analysts were looking for larger gains. March durable goods orders declined 1.3%. U.S. Senate approves $3.7 trillion tax plan.[/R]

Stocks in the early trading searched for a direction after Amazon.com and Microsoft reported higher earnings. Stocks of both companies traded lower after some analysts were looking for larger gains.

Durable goods orders declined 1.3% in March and February orders were revised higher to 1.1%. Orders excluding volatile transportation and defense orders increased.

U.S. Senate Approves Tax Plan

The U.S. Senate panel has approved a $3.7 trillion budget plan to review government spending. The Senate Budget Committee anticipates next fiscal deficit will total $1.26 trillion, down from the panel’s estimate of $1.44 trillion in the current fiscal year.

Durable Goods and New Home Purchases Improving

March durable goods orders decreased 1.3% or $2.2 billion to $176.7 billion from the revised February orders increase of 1.1%. This decrease followed three consecutive monthly increase including 1.1% in February. Orders excluding transportation orders increased 2.8% and defense increased 4%.

Commodities, Currencies and Yields

Dollar edged lower against euro to $1.3308 and increased against the Japanese yen to 93.51.

Crude oil decreased $0.06 to $83.64 a barrel for a front month contract, natural gas edged lower $0.03 cent to $4.10 per mBtu and gasoline increased 0.170 cents to 230.19 cents.

Gold decreased $2.20 in New York trading to close at $1,140.70 per ounce, silver closed lower $0.104 to $17.93 per ounce and copper for the front month delivery decreased 0.250 cents to $3.50 per pound.

Yields on 10-year U.S. bonds increased to 3.78% and on 30-year U.S. bonds traded at 4.64%.

Stock Movers

Acura Pharmaceuticals, Inc. plunged 43.5% after the company did not have enough evidence to support the approval of the new drug application for Acurox(R) tablets for the treatment of moderate to severe pain.

Amazon.com declined 3.2% after it first quarter sales rose 46% and net surged 69%.

American Express Company rose 1.7% after the credit-card issuer first quarter net income rose 103%.

Microsoft Corp declined 0.9% after third quarter revenues increased 6.6% and net jumped 34.5%.

Synaptics Incorporated increased 8.5% after the maker of touch pads for digital music players and electronic devices said third quarter revenue increased 16% to $116.2 million from $100.6 million a year ago.

Earnings Review

Amazon.com, Inc. ((AMZN)) the online retailer said first quarter sales rose 46% to $7.13 billion from $4.89 billion a year ago. Net income in the quarter rose 69% to $299 million or 66 cents per diluted share compared to net income of $177 million or 41 cents per share a year ago.

Arthur J. Gallagher & Co. ((AJG)), the insurance broker said first quarter revenue rose 20.3% to $482.4 million from $401.1 million a year ago. Net income in the quarter rose 10.6% to $29.2 million or 28 cents per diluted share compared to net income of $26.4 million or 27 cents per share a year ago.

The Chubb Corporation ((CB)), the insurance company said first quarter net premiums written rose 1% to $2.77 billion from $2.74 billion a year ago. Net income in the quarter rose 36% to $464 million or $1.39 per diluted share compared to net income of $341 or 95 cents per share a year ago.

Microsoft Corporation ((MSFT)), the software company said third quarter revenue rose 6.6% to $14.5 billion from $13.6 billion a year ago. Net income in the quarter rose 34.5% to $4.01 billion or 45 cents per diluted share compared to net income of $2.98 billion or 33 cents per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 34.63 or 0.32% to 10,914.46, Hang Seng index in Hong Kong decreased 210.45 or 0.98% to 21,244.49 and CSI 300 index in China lower 11.54 or 0.36% to 3,190.00. ASX 200 index in Australia decreased 25.90 or 0.53% to 4,881.50. The FTSE Bursa KL Composite index in Malaysia closed lower 0.23 or 0.02% to 1,336.78.

The Kospi Index in South Korea decreased 2.49 or 0.14% to close at 1,737.03. SET index in Thailand closed lower 6.60 or 0.87% to 754.58 and JSE Index in Indonesia decreased 1.80 or 0.06% to 2,924.73. The Sensex index in India increased 120.21or 0.68% to 17,694.20.

Europe Markets Review

In London FTSE 100 Index closed higher 44.94 or 0.79% to 5,710.27, in Paris CAC 40 Index increased 27.43 or 0.70% to close at 3,952.08, in Frankfurt DAX index higher 81.64 or 1.32% to close at 6,250.36. In Zurich trading SMI increased 27.87 or 0.41% to close at 6,747.96.