Wall St. cheers Intel, CSX earnings

The companies' first-quarter profits exceed estimates and could give stocks a boost on Wednesday. The Dow closes up 13 points. Alcoa's revenue falls short.

By Elizabeth Strott and Charley Blaine Apr 13, 2010 8:38AM

Market DispatchesUpdated at 6:45 p.m. ET

 

Shares of semiconductor giant Intel (INTC) and railroad operator CSX (CSX) were surging after hours as both companies easily beat analyst estimates.

 

Intel was up 3.9% after hours to $23.66 after rising 1% to $22.77 in regular trading. CSX rose 1.1% after hours to $53.85 from a regular close of $53.28. Futures trading suggests stocks will open higher on Wednesday. 

The surge came after the stock market recovered from a morning slump. The Standard & Poor's 500 Index ($INX) finished at 1,197, up 1 point on the day. The index was unable to reach 1,200, a psychologically important resistance level. The Dow Jones Industrial Average ($INDU) closed up 13 points to 11,019, its second straight close above 11,000 after being below that level since September 2008.


The Nasdaq Composite Index ($COMPX) added 8 points to 2,464, helped by gains from Google (GOOG), Research In Motion (RIMM), News Corp. (NWSA) and Celgene (CELG).


Intel and CSX should put traders in a good mood on Wednesday. The big report due before the open is JPMorgan Chase (JPM), expected to report earnings of 63 cents a share, up 57% from a year ago.

 

Intel said it earned $2.44 billion, or 43 cents a share, on revenue of $10.3 billion, up 288% from $629 million a year ago.

 

The earnings per share beat the Street estimate of 38 cents a share. Revenue was up 43% from a year ago's $7.15 billion. Intel


Intel's gross profit margin was 63%, higher than expected, and it expects the margin to rise to 64% in the second quarter.


The company boosted its guidance to $10.2 billion, plus or minus $400 million. The Street estimate has been $9.7 billion.

 

Rival Advanced Micro Devices (AMD) was up 2.5% to $9.80 after hours from a regular finish of $9.56. Graphics chip maker NVIDIA (NVDA) added 2% after hours to $18.02.CSX

 

CSX earned $306 million, or 78 cents a share, up from $254 million, or 64 cents a share, a year earlier. Revenue rose 11% to almost $2.5 billion as the railroad operator pointed to the continued recovery of the economy.

 

Railroads have been reporting increasing traffic volumes in the last month or so, including rising shipments of key building materials as lumber and crushed stone.


Energy prices -- New York close
 

Tues.

Mon.

Month chg.

YTD chg.
Crude oil 

$84.05

$84.34

0.35%

5.91%
(per barrel)











Heating oil

$2.2142

$2.2189

1.62%

4.66%
(per gallon)











Natural gas 

$4.1600

$4.0080

7.52%

-25.34%
(per mil. BTU)











Unleaded gasoline

$2.3093

$2.2958

-0.03%

12.49%
(per gallon)











Retail gasoline

$2.8580

$2.8600

2.14%

8.30%
(per gallon; AAA)












Market shrugs off Alcoa results

Today's finish came even as energy prices moved lower and aluminum giant Alcoa (AA) disappointed investors with its first-quarter results.

 

Alcoa earned 10 cents a share after one-time items were taken out. But revenue of $4.89 billion, while up from $4.15 billion a year ago, came in below analysts' expectations of $5.2 billion.

Alcoa shares were down 1.6% to $14.34, the worst performer among the 30 Dow stocks.

The market recovery from the doldrums of the morning was due in part to a rise in energy prices from early declines today and expiration of options in the S&P 500. 


Fifteen of the 30 Dow stocks were higher, led by Home Depot (HD), up 2.6% to $34.34. Meanwhile, 260 S&P 500 stocks and 65 Nasdaq-100 ($NDX.X) stocks were higher. JetBlue (JBLU) was the top Nasdaq-100 stock, up 8% to $6.35 on strong traffic and revenue growth in March.

Why energy shares moved lower

The one area of weakness today was energy stocks, a reflection of a decline in oil prices early in the day due to a forecast of growing global oil supplies.


Crude fell to a low of $82.51 a barrel but recovered to $84.05. That was still down 29 cents on the day.


The Philadelphia Oil Service Sector Index ($OSX) was down 1.1% to 210. The NYSE Arca Oil Index ($XOI.X) was down 0.4% to 1,117.


Exxon Mobil (XOM) was off slightly at $68.66.


The International Energy Agency raised its global oil demand forecast for 2010, increasing it by 30,000 barrels a day. Oil demand is now expected to grow by 1.7 million barrels a day to 86.6 million barrels a day in 2010, the IEA said today in its monthly oil report.

But the IEA cautioned that higher crude prices could "stall (wealthy nations') economic recovery or render it more 'oil less' than we currently envisage."


Gold also fell $8.80 to $1,153.40 an ounce.


Strong demand seen at Greece auction

Greece sold more than 1.5 billion euros in Treasury bills today, passing its first big test since the European Union and the International Monetary Fund rescue plan was outlined over the weekend.


The 26-week auction produced a uniform yield of 4.55% and a bid-to-cover ratio, or the proportion of bids received to bids accepted, of 7.67 to 1. The 52-week auction produced a uniform yield of 4.85% with a bid-to-cover ratio of 6.54 to 1. The sub-5% yields stood around half a percentage point below current market rates.


"The result confirms that the package which was put in place on Sunday has enabled Greece to fund itself in the near term," David Owen, chief European financial economist at Jefferies International, told Bloomberg News. "But the longer-term fundamental issues in terms of where we go from here haven’t changed. Greece has to put its finances in order against the backdrop of an economy that currently is shrinking."

Short hits from the markets -- New York close
 
  Tues.

Mon.

Month chg.

YTD chg.
Treasury yields




 





13-week Treasury bill

0.150%

0.135%

0.00%

200.00%
5-year Treasury note 

2.564%

2.593%

0.16%

-4.54%
10-year Treasury note

3.811%

3.846%

-0.57%

-0.83%
30-year Treasury bond

4.669%

4.698%

-0.98%

0.60%
Currencies







 

 
U.S. Dollar Index

80.625

80.692

-0.82%

3.07%
British pound

$1.5370

$1.5370

1.32%

-4.98%
(in U.S. $)











U.S. $ in pounds

£0.6506

£0.6506

-1.30%

5.24%
Euro in dollars

$1.3581

$1.3594

0.35%

-5.24%
(in U.S. $)











U.S. $ in euros

€ 0.7363

€ 0.7356

-0.35%

5.53%
U.S. $ in yen 

93.37

93.19

-0.28%

0.40%
Canada dollar

$0.998

$0.998

1.17%

4.92%
(in U.S. $)











U.S. dollar 

$1.003

$1.002

-1.15%

-4.69%
(in Canadian $)











Commodities

 

 

 

 
Gold

$1,153.40

$1,162.20

3.49%

5.22%
(per troy ounce)











Copper

$3.6005

$3.5645

1.32%

7.59%
(per pound)











Silver

$18.2490

$18.4140

4.13%

8.33%
(per troy ounce)











Corn

$3.5250

$3.4825

2.17%

-14.96%
(per bushel)











Crude oil 

$84.05

$84.34

2.25%

5.91%
(per barrel)










 

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