Wednesday, April 16, 2008

Dow higher on earnings news

Dow rocketed ahead on favorable earnings news from 3 Dow companies. JPMorgan (JPM), Coca Cola (KO) & Intel (INTC) beat earnings estimates, sending the Dow up 192, advancers ahead of decliners 4-1 & NAZ up 53. JPM reported profits down 50% from last year's 1.34, but that beat analyst forecasts of 64¢ sending the stock up 1.86, near the price on Jan 1. KO reported excellent sales & earnings beating estimates, but the stock was only up 21¢. However, they mentioned North American sales were challenging (a code word for down a little) related to sales in the US. INTC reported earnings last night, beating expectations. Wells Fargo (WFC), a stock in Warren Buffet's portfolio, reported earnings fell 11% but beat analysts forecasts sending the shares up 1.46. Loan write offs were about 1½B, more than double last year's figure.

On the economic front, the Commerce Dept reported housing took another hit. Housing construction fell 12% to a 17 year low, building permits also fell in Mar. Oil continues higher, reaching a new record of 115. Maybe tomorrow the economic news will start to sink in.

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