Weak Earnings Reports Pressure Stocks At The Open
The market opened under selling pressure, but has since bounced with the Dow moving back into positive territory.
Amex (AXP), Texas Instruments (TXN), SanDisk (SNDK), and Wachovia (WB) all reported weak earnings that weighed on the market. Wachovia also cut its dividend, while UPS called the economy "bleak".
But there were some strong earnings reports as well. Catepillar (CAT) beat estimates, and the bounce in that stock is helping the Dow outperform today. Surprisingly, a handful of airlines (UAL, US Airways, Supervalu) also topped earnings expectations. Go figure.
Oil is under pressure again this morning, trading down to the $127 mark. This is weighing on the whole energy complex, including natural gas stocks, steel, coal, gold/copper, etc.
Short likely pressed their bets after last night's round of weak earnings, but the early bounce in the market from its lows this morning should keep them on their toes.
Asian markets closed mixed overnight, with Japan bouncing +3%. The 10-year yield is up to 4.09%. The put/call ratio opened at 0.91.