Traders-Blog.com

Stocks finished mixed with the Dow Jones Industrial Average breaching record territory after upbeat earnings from JP Morgan Chase & Co. and Intel Corp. However, weakness in the technology sector persisted after lower-than-expected earnings from Yahoo Inc. and a downgrade of IBM.

Today, the Dow Jones industrial average closed up 30.80 or 0.24% to 12,803.84, ending above 12,800 for the first time ever and knocking out its previous closing high of 12,786.64 set on Feb. 20. The Dow also hit a record trading high of 12,838.46 during the session, also beating the old high from Feb. 20. The broader S&P 500 closed up 1.02 or 0.07% to 1,472.50, managed to end at a six-and-a-half-year high for the second session in a row, while the Nasdaq closed down 6.45 or 0.26% to 2510.50.

Market breadth was negative. On the New York Stock Exchange, losers beat winners 9 to 7 on volume of 1.61 billion shares. On the Nasdaq, decliners topped advancers 17 to 11 on volume of 2.1 billion shares.

The earnings picture was by and large strong, with a few disappointments. Results from Intel, JPMorgan Chase and United Technologies impressed investors, while IBM and Yahoo earnings were less upbeat. Investors are happy that first-quarter earnings are coming in higher than what the Street has been looking for. First-quarter earnings are on track to rise just 3.6% from a year ago, after growing at least 10 % a quarter for the last 14.

Shares of Intel closed up $0.37 or 1.75% to $21.35, after reporting higher first-quarter earnings that met estimates on lower revenue that missed forecasts. Its net income rose 19% to $1.6 billion, but revenue fell to $8.85 billion from $8.94 billion a year earlier. Its gross margin improved to 50.1% in the quarter from 49.6% in the previous quarter.

Stock of Yahoo closed down $3.78 or 12% to $28.31, after reporting quarterly revenue and earnings that were short of forecasts. It reported revenue of $1.67 billion, up 7% from a year earlier. The company reported net income of $142 million, down 11% from a year earlier.

Stock of IBM closed down $2.32 or 2.4% to $94.80, despite reporting higher quarterly earnings that met estimates and higher sales that topped forecasts. Its net income rose to $1.84 billion, against $1.71 billion last year. Revenue climbed 6.6% to $22.03 billion from $20.66 billion a year earlier and topped expectations of $21.9 billion.

Stock of Motorola closed up $0.27 to $18.22, despite reporting a first-quarter loss. However, results topped estimates, and shares rose. The company posted a quarterly loss on weak handset sales and gave new forecasts that raised doubts over when the company would be profitable.

U.S. light crude oil for May delivery rose 4 cents to settle at $63.14 a barrel on the New York Mercantile Exchange in volatile trading after the release of the weekly oil inventory report.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter
30-day risk-free trial