U.S. stocks ended higher, with the Dow posting a late dash into the green after coming under pressure for most of the day in the wake of results from components IBM (IBM) and General Electric (GE). Results from tech giants Microsoft (MSFT) and Google (GOOG) helped support upside momentum.
GE's Mixed Report
With no economic data to influence market direction, stock prices were largely driven by earning results. Earlier Friday, GE reported Q1 operating EPS of $0.39, which was above the street's view by $0.05, but revenue in several categories was softer than expected, including a 26% drop for its Power & Water division, while its industrial operating profit margins declined 320 basis points year over year to 16%.
IBM also disappointed, reporting a Q1 profit of $3.00 per share, ex items, $0.05 below analyst estimates. Revenue declined 5% year over year to $23.4 billion, trailing forecasts by $1.2 billion. Big Blue plans to accelerate the pace of job cuts after software and mainframe sales slowed.
In commodities, gold futures managed to close higher today, tacking on 0.2% to close at $1,395.60 an ounce. This was the second straight session in which gold closed higher, but it was not enough to recoup losses suffered earlier in the week. For the week, gold shed 7.1%.
May oil tacked on some modest gains today, closing up 0.3% at $88.01 a barrel, boosted by rumors that OPEC is considering supply cuts. For the week, oil shed 3.6% of its value.
Here's Where The U.S. Markets Stood At Day's End
- Dow Jones Industrial Average up 10.37 (+0.07%) to 14,547.51
- S&P 500 up 13.64 (+0.88%) to 1,555.25
- Nasdaq Composite up 39.70 (+1.25%) to 3,2006.06
- Nikkei 225 Index up 0.73%
- Hang Seng Index up 2.33%
- Shanghai China Composite Index up 2.14%
- FTSE 100 Index up 0.69%
- (+) VRTX, Releases positive study data for prospective Cystic Fibrosis drug therapy.
- (+) CMG, EPS of $2.45 tops forecasts by $0.32. Reports $726.8 million in quarterly sales, also beating estimates looking for $725.13 million in sales.
- (-) DELL, Blackstone pulls out of bidding for the computer-maker.
- (-) PAY, Compass Point downgrades to Neutral from Buy. The price target also was lowered by $5 to $20 a share.
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