Choppy Trading in New York; Apple, Microsoft Up

123jump.com Staff
26 Jan, 2010
New York City

Stocks in New York wavered after China tightened lending. Apple gained more than 2% after it reported quarterly sales increase of 32% and net surge of 50% and indicated higher than expected revenues in the current quarter. The dollar and yen advanced but gold, oil and copper declined.

[R]10:00 AM New York – Stocks in New York traded lower after China tightened lending. Apple gained more than 2% after it reported quarterly sales increase of 32% and net surge of 50% and indicated higher than expected revenues in the current quarter. The dollar and yen advanced but gold, oil and copper declined.[/R]

Stocks and commodities in the early trading traded lower on China worries and UK reporting lower than expected increase in GDP growth.

Chinese banks loan issuance in the first two weeks surged to 20% of its annual quota of 7.5 trillion yuan. The sharp rise prompted authorities to clamp down on additional lending.

UK reported its first quarterly economic growth of 0.1% after economy shrank 6% in the last six quarters.

Futures of crude oil declined $1.25 to $74.01 a barrel and natural gas fell 19 cents to $5.53 per mBtu. Gold dropped $5.20 to $1.91.60 an ounce.

The euro edged lower and fetched $1.4071 and the dollar traded at 89.64 yen.

Yields on 10-year U.S. Treasury bonds traded at 3.60% and 30-year bonds at 4.53%.

Stock Movers

Apple Inc gained more than 2% to $207.55 after it reported 32% increase in sales and 50% surge in its profit.

Corning Inc decreased 2.9% to $18.16 after it reported fourth quarter sales surged 42% to $1.53 billion and net income soared 197% to $740 million or 47 cents a share compared to net income of $249 million or 16 cent a share.

Delta Airlines declined 3.5% to $12.90 after it reported fourth quarter loss of 3 cents or $25 million compared to net loss of $1.4 billion or $2.11 a share a year ago.

E.I. DuPont increased 0.8% to $33.07 after it reported fourth quarter sales declined 10.3% to $6.4 billion and net income of $441 million or 48 cents a share compared to net loss of $629 million or 70 cents a share.

Verizon Communications Inc declined 2% to $30.03 after it reported lower than expected quarterly revenues.

Earnings Review

Amgen Inc, the biotechnology company said fourth quarter revenues rose 1.6% to $3.81 billion from $3.75 billion a year ago. Net income in the quarter rose 0.6% to $931 million or 92 cents per diluted share compared to net income of $925 million or 87 cents per share a year ago.

Total revenues for the fiscal year 2009 fell 2.6% to $14.6 billion from $15.0 billion a year ago. Net income for the year rose 14% to $4.61 billion or $4.51 per diluted share compared to net income of $4.05 billion or $3.77 per share a year ago.

Amgen Inc ((AMGN)) in the last one year traded as high as $64.76 in August 2009 and as low as $44.96 in April 2009. Based on the yesterday’s closing price of $55.71 the company has market cap of $56.39 billion.

Apple Inc., the manufacturer of computers and mobile communication devices said first quarter sales rose 32% to $15.68 billion from $11.88 billion a year ago. Net income in the quarter rose 49.5% to $3.38 billion or $3.67 per diluted share compared to net income of $2.26 billion or $2.50 per share a year ago.

Apple Inc. ((AAPL)) in the last one year traded as high as $215.59 in January 2010 and as low as $82.33 in March 2009. Based on the yesterday’s closing price of $202.87 the company has market cap of $182.72 billion.

Texas Instruments Incorporated, the chipmaker said fourth quarter sales rose 20% to $3.0 billion from $2.5 billion a year ago. Net income in the quarter rose 512% to $655 million or 52 cents per diluted share compared to net income of $107 million or 8 cents per share a year ago.

Net sales for the fiscal year 2009 fell 17% to $10.4 billion from $12.5 billion a year ago. Net income for the year fell 21% to $1.5 billion or $1.15 per diluted share compared to net income of $1.9 billion or $1.44 per share a year ago.