Earnings and a Fall in Jobless Claims Lift Stocks on Wall Street

Nichole Harper
18 Jul, 2013
New York City

U.S. stocks gained after a flood of better than expected earnings and initial jobless claims declined to the lowest in ten weeks. Verizon, Intel, IBM, Morgan Stanley, U.S. Bancorp and eBay were among leading companies to release earnings today.

[R]12:20 PM New York – U.S. stocks gained after a flood of better than expected earnings and initial jobless claims declined to the lowest in ten weeks. Verizon, Intel, IBM, Morgan Stanley, U.S. Bancorp and eBay were among leading companies to release earnings today.[/R]

Stocks on Wall Street advanced after a flood of earnings and a fall in weekly jobless claims.

The S&P 500 index gained 0.6% and the Nasdaq Composite Index added 0.2% after earnings from Intel, IBM, eBay lifted tech stocks.

Weekly jobless claims at the end of last week fell 24,000 to a seasonally adjusted 334,000.

The drop in initial claims led the total claims to the lowest in ten weeks, Labor Department said today.

Dell Inc delayed its vote on buyout offer after the PC maker struggled to line up all votes needed for the approval of buyout proposed by its founder.

European Markets

European indexes advanced tracking the gains in international markets and investors reacted to a flood of economic news and domestic company earnings.

Market indexes in Frankfurt and Paris gained more than 0.8% and in London added 1.2% on the rising commodities prices.

Italian construction slump deepened in May and Spanish bank bad loan ratio approached record high reached in November, Bank of Spain said today.

Tech stocks in Europe were in focus after Nokia, Ericsson and SAP AG reported quarterly results that missed expectations.

Asian Markets

In Asian markets, the Nikkei index in Tokyo advanced for the fourth day in a row by 1.2% and the yen weakened after Fed Chairman reassured financial markets about the placement of the monetary stimulus plan.

Nikkei advanced for the fourth day after it dropped 18% from its May 22 peak and indexes in Hong Kong decreased 0.1% and in Shanghai fell 1.2%.

U.S. Stocks in Review

eBay Inc. ((EBAY)) declined 6.6% or $3.77 to $53.61 after the online marketplace provider reported revenue in the second quarter ending in June climbed 14% to $3.9 billion. Net earnings in the quarter slumped 7.5% to $640 million or 49 cents a diluted share compared to $692 million or 53 cents.

For the year, the company expects net revenues between $16 billion and $16.5 billion with GAAP diluted earnings per share in the range of $2.21 to $2.26 and non-GAAP diluted earnings per share in the range of $2.70 to $2.75.

Intel Corporation ((INTC)) dropped 3.5% or 84 cents to $23.31 after the computer device maker said revenues in the second quarter ending on June 29 dropped 5% to $12.8 billion. Net income in the quarter plunged 29% to $2 billion or 39 cents a diluted share compared to $2.83 million or 54 cents.

For the third quarter, Intel expects revenues of $13.5 billion.

International Business Machines Corporation ((IBM)) jumped 2.4% or $4.65 to $199.20 after the information technology company stated revenue in the second quarter ending in June fell 4% to $24.9 billion. Net income in the quarter declined 16.8% to $3.23 billion or $2.93 a diluted share compared to $3.88 billion or $3.38 a share.

Morgan Stanley ((MS)) climbed 4.9% or $1.32 to $27.86 after the financial services provider said consolidated net revenue in the second quarter ending in June climbed 23% to $8.5 billion. Net income in the quarter surged 42.2% to $802 million or 41 cents a diluted share compared to $564 million or 29 cents.

Verizon Communications Inc. ((VZ)) slipped 1.9% or 97 cents to $49.77 after the communications company reported operating revenue in the second quarter ending in June advanced 4% to $29.8 billion. Net income in the quarter climbed 21.2% to $5.20 billion or 78 cents a diluted share compared to $4.29 billion or 64 cents.

The company added operating income in the quarter jumped 16% to $6.6 billion.