Stocks mixed on earnings, weak housing data
Sales of new homes show their largest drop in more than a year. An earnings miss from Apple and gloomy guidance from Netflix weigh on the Nasdaq. Boeing and Caterpillar raise their outlooks.
By Andrea Tse
Stocks traded mixed Wednesday as U.S. housing data came in weaker than expected and as Apple (AAPL) and Netflix (NFLX) weighed on the Nasdaq. Strong earnings and outlook from Boeing (BA) and Caterpillar (CAT) boosted the blue chips.
The Commerce Department reported that sales of new homes in the U.S. declined by 8.4% in June to a seasonally adjusted rate of 350,000 units, the largest drop in more than a year. Economists had expected a rate of 370,000 units.
Apple on Tuesday afternoon reported fiscal-third-quarter results short of consensus expectations. And while Netflix outperformed the average analysts' view in its latest quarter, it gave a bleak outlook for the third quarter.
The major U.S. averages endured an ugly session Tuesday, with sentiment soured by a batch of tepid business and economic reports from around the globe, disappointing corporate results and ongoing eurozone concerns. The Dow booked a third consecutive triple-digit decline as headlines disappointed both at home and abroad.
A handful of blue-chip earnings reports were published before the markets opened.
Boeing beat analysts' second-quarter estimates and raised its guidance as commercial aircraft deliveries rose by 27%.
Caterpillar hiked its full-year outlook, saying the global economic conditions are getting better.
Ford (F) posted near-record profit in North America but showed declines in every other area of the world and missed analysts' second-quarter estimates.
Housing cannot recover until the banks start loaning out the Trillion $ that they got from the government for just that purpose. Instead they have taken the money that they got at 0% and reinvested in Gvt. bonds at 1.3% and are making Billions on the suckers that gave them the $ in the first place.
Fixing Interest rates
Illegal Fees and Overcharges
Should have let em go to hell back in 08-It is where they belong.
Should we give up on Wall Street? Has the obvious subsidy by the Federal Government reduced the Industry to welfare status? Can any of us believe it will repair itself and again work honestly and effectively? Nearly every day now we hear the term unintended consequences and almost always this refers to a government program with short sighted dim witted planning creating havoc in the long term. Are we getting a sneak prevue of the destruction of Capitalism and personal responsibilty as we descend into the abyss referred to as the New World Order? Am I the only person who feels a dark cloud engulfing the American psyche? I remember in first year psychology class the exercise in putting a bag over a plum and as days go by it shrivels and slowly dies from lack of light. Are we being denied the light and freedom gained by knowing the truth? This is the fear I have for my kids and it makes me angry.
So a week ago housing was starting to grow and reports were optimistic and a week later housing is down. One down Spain is okay, the next in the toilet, the next it is okay, the next in the toilet. There is either the greatest incompetence in the history of incompetence or the greatest fraud and manipulation or the greatest combination of the two in the history of the world.
Did the definition of BEGGING, change perhaps?
Maybe I missed something?
If you work , all your life , pay all your taxes and expect SS, because you paid into it for 40 years, when you retire you're a "begger" ?
If you want to keep goverment small and unubtrusive , you're a begger" ?
However, if you're black and your family has been on welfare for 3 generations, full of fraud and misuse , it's not begging?
It's ENTITLEMENT ?
Here's both my middle fingers in a salute , cretins.
remember, timothy geitner is a frat member,,,,,,,,,
>>>>>Gooch - I AGREE -- I hated the bail-outs, and TARP etc., etc... Besides that - NO ONE GOT FIRED. The same people that created the mess were the same ones put in charge to "fix" it... This is what really has to change. Too big to fail? Really?<<<<<
How many of you remember being told that a repeat of the GREAT DEPRESSION could never happen again, due to all the financial tools that were put into place to prevent it! Personally, I also remember many of my external family members telling me when I worked at Eastman Kodak Company that I was all set, because I had a job for life. Luckily for me my father who was one of the smartest men I ever met in life. Taught me never to assume anything and always have plan B.
He by the way had 40 years and retired from Eastman Kodak, only he was lucky and passed away before the great Bankruptcy occured, but he was also alive long enough to see his benefits start to get cut!
I really don't know who's worse in life - Great minds wasting their abilities trying to hack and beat computer systems or Financial guru's who steal money from the ordinary hard working American people such as the Madoff's, Wall Street, Corporations, or the Banking system. Can anyone tell us who they think is really the more evil of the two.
6% of the population on government aid in 1964 and 36% on aid now. Only 48% paying taxes. Anyone see the problem?
Sure there's a big problem and it's not as simple as Democrat or Republican. If only it were. I can't argue that government has enabled a welfare class to develop and grow. Sure it has.
A more systemic issue is that as a society, we simply don't need as many people working to provide enough resources for the whole. A couple generations ago just about everyone was doing some sort of manual labor. Now with automation and computers, one man can grow enough food for thousands. We've managed to keep the economy lurching forward by convincing the people that they must have more "things" but now, especially since those "things" are being made overseas, there are fewer and fewer people needed in our workforce. We also live alot longer than we used to. Hence we have more people, fewer working people , fewer taxes, and more people on government support.
So even though our population continues to grow, we need fewer and fewer people to actually work. It's a recipe for some real drama in the future.
I grew-up in a town of about 35,000 -- we had a volunteer fire department... When the whistle blew -- all the volunteers would converge on the fire-house and spring into action... It was amazing how a community will protect itself (without government control).
You've heard of Pavlov's dog? Today is a perfect example of Pavlov's stock market. The markets going up in anticipation of Benanke and company throwing some more money at them so it will create an artificial demand.
Keep the Fed out of the market manipulation business.
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[BRIEFING.COM] The major averages ended with solid gains as the S&P 500 rose 0.8%.
Stocks reached their highs one hour into the session and drifted near those levels into the afternoon. However, equities were rattled by a Financial Times story suggesting Federal Reserve Chairman Ben Bernanke is likely to discuss tapering at his Wednesday press conference.
Although the story reiterated the need for improved economic conditions, and did not contain any new revelations, the mere ... More
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