Issue link: https://www.epageflip.net/i/122900
Friday, April 19, 2013 – Daily News 3B Stock market slips on weak earnings NEW YORK (AP) — Disappointing earnings from a range of companies pushed the stock market lower on Thursday, giving major indexes their third loss this week. The stock prices of Morgan Stanley, UnitedHealth Group and others sank after they turned in weaker quarterly results. Prices of commodities held steady following a wild couple of days. Government bond yields remained near their lowest point of the year as investors sought safety. The Standard & Poor's 500 index lost 10.40 points to close at 1,541.61, a decline of 0.7 percent. Compared with the steep drops earlier this week, the losses on Thursday looked tame. The S&P 500 lost 2 percent on Monday, its worst day of the year, when a slowdown in China's economic growth set off a rout in prices for gold, oil and other commodities and pummeled the stocks of companies that make them. After reaching a record high a week ago, the index has now slumped 3 percent. Wall Street One reason behind the market's sudden turn might simply be that investors wanted to take some of their winnings off the table, said Joseph Tanious, global market strategist at J.P. Morgan Funds. At the start of April, the S&P 500 was already up 10 percent for 2013, more than investors can expect to get in a whole year. ''For a while there, it seemed like all the headlines were 'stock market hits all-time high,''' Tanious said. ''When they see things like that, investors get nervous and look for reasons to sell.'' Profit slipped at Morgan Stanley as the bank made less money from trading bonds and commodities, a common theme for many investment banks this earnings season. Morgan Stanley lost 5 percent to $20.31. UnitedHealth's profit fell short of analysts' estimates, and the country's largest health insurer said it expects federal budget cuts to pressure its earnings this year. Its stock lost 4 percent to $59.69. EBay fell 6 percent to $52.82 after the online auction company cut its forecast for profit in the current quarter. The market didn't get any help from economic news Thursday. Investors pointed to reports that more people applied for unemployment benefits last week and manufacturing slowed in the midAtlantic region. That followed several recent signs of weakness in the economy, including a sharp slowdown in hiring last month and poor retail sales. The market's drop was tempered by better profits at Verizon, Pepsi and Union Pacific. Verizon Communications' profit beat analysts' predictions as wireless revenue kept rising at a rate of 9 percent, the envy of the industry. Profit and sales for Pepsi also surpassed estimates. Verizon's stock gained 3 percent to $50.91, while Pepsi's climbed 3 percent to $81.25. Higher shipping rates pushed Union Pacific's profit up 11 percent, and the railroad said it expects to ship more goods later this year. Union Pacific rose 4 percent to $142.46. Analysts have set a low bar for first-quarter earnings. They predict that companies in the S&P 500 will report that earnings climbed just 1.5 percent in the first quarter compared with the same period a year ago, a slowdown from the 7.7 percent growth in the fourth quarter, according to S&P Capital IQ. So far, companies are easily topping the estimates of Wall Street analysts. Of the 61 companies that turned in results through Wednesday, 39 of them have exceeded forecasts. In other trading, the Dow Jones industrial average fell 81.45 points to 14,537.14, down 0.6 percent. The Nasdaq composite lost 38.31 points to 3,166.36, down 1.2 percent. In the market for U.S. government bonds, Treasury prices rose and their yields fell as traders moved money into lowrisk assets. The yield on the 10-year Treasury note slipped back to 1.68 percent, matching its lowest level of the year. The Ventriloquist to perform for business women Chico Business and Professional Women (BPW) is hosting Leadership and Consequences with ventriloquist Colleen Tanenbaum from noon to 2 p.m. on Saturday, April 27, at Panighetti's Eatery, 2760 Esplanade, Suite 100. If you've taken on the responsibility of an officer in an organization or are planning to move up in your employment position this is the program for you. Jane Goodie, cutest little ape in the world, and her partner Colleen Tanenbaum will be sharing her sage advice with humor, experience, and joy. For over 20 years, ventriloquist Colleen Tanenbaum and her quite humorous and very lovable characters Hot Diggity Dog and Jane Goodie have been bringing audiences a fun and interactive learning experience. Tanenbaum has a Masters Degree in Educational Psychology and Clinical Counseling from California State University, Hayward. She has been working with youths and adults for 31 years and has 13 years of counseling experience. She has used puppetry as an educational tool for 18 years, including 13 years as a professional ventriloquist. Colleen has developed wonderful presentations about character development, drug and alcohol awareness, nutrition, and life skills. For more information visit www.janegoodie.com This is open to the public, men and women, and free, except own lunch ordered off the menu. Bring a friend. Please RSVP by April 26 via email to IloveBPW@yahoo.com or phone Trudy Waldroop, President, at 865-5120. Check out BPW's website for further information about the organization: www.bpwcal.org. yield was 1.70 percent late Wednesday. Commodities prices held steady following sharp falls earlier this week. Crude oil rose $1.05 to $87.73 a barrel and gold edged up $9.80 to $1,392.50 an ounce. Crude had lost $10 a barrel over the past two weeks as the outlook for the global economy weakens and oil supplies remain high. On Monday, Gold fell 9 percent, its biggest plunge in 30 years, as inflation in the U.S. remained weak. ''Earnings are always important,'' said Randy Frederick, managing director of active trading and derivatives at the brokerage Charles Schwab. ''But this week they've taken a back seat to all the other headlines, like slower growth in China, the sharp sell-off in gold and then the bombing in Boston.'' For the week, the Dow is down 2.2 percent and the S&P 500 is down 2.9 percent. 2013 Fri-Sat, April 19th -20th Fri, April 19th 92nd Annual ROUND-UP, FAMILY DAY 7 pm Sat, April 20th Annual ROUND-UP PARADE 10 am Red Bluff Kiwanis PANCAKE BREAKFAST Fundraiser for Local Charity 7-10 am Elks Lodge - 355 Gilmore Road 900 JACKSON ST. • 527-1833 ✔ Home Owners ✔ Farms Lic. #0530362 ✔ Auto ✔ Commercial www.andy4ins.com 92ND