Glum earnings weigh down stocks

Dow fell 24, decliners over advancers 2-1 & NAZ was down 2. Sub par earnings reports are keeping stock buyers away. Banks led the retreat as the Financial Index continues to muddle along near its 190 trading range low.


S&P 500 FINANCIALS INDEX

Value 194.33

Change -1.82

% Change -0.9%

The Alerian MLP Index has been trading sideways near 290 for a week. Today it dropped 2 to the 289s. Earnings season went well with a number of qtr to qtr distribution increases but that was already factored into the prices. The Dow Jones REIT Index fell 3, also stuck in a rut over the short term. Junk bond funds were a little weak while Treasuries sold off. The yield on the 10-year Treasury bond rose 4 basis points to 3.67% ahead of another big supply of Treasury debt being auctioned next week.


Alerian MLP Index --- 2 weeks




Dow Jones REIT Index --- YTD









Oil & gold are about as flat as it comes, each attempting to reestablish the floors of 75 & 1100. Sluggish stock markets are not helping their prices.

CLH10.NYM

..Crude Oil Mar 10

..77.24

... 0.01 .......(0.0%)

GCG10.CMX

...Gold Feb 10

...1,115.30

... 2.10 .......(0.2%)

Gold Super Cycle Link! Click Here

Photo: Bloomberg


22K jobs were lost in Jan, the smallest drop in 2 years & followed a revised 61K decrease in Dec according to data from ADP Employer Services. This report gives an early signal for the Jan jobs report due on Thurs.

ADP Says U.S. Companies Cut Estimated 22,000 Jobs

Photo: Bloomberg



Pfizer (PFE), Dow stock & former Dividend Aristocratr, posted a 34% jump in revenue, $3.2B in acquisition charges & higher costs across the board weighed down profits. PFE revenues in Q4 were $16.5B, $½B above expectations. Newly acquired Wyeth products contributed $3.3B. Excluding that boost, revenues rose 7% (favorable exchange rates boosted total revenue 4%). Net income nearly tripled from last year when results were hurt by a $2.3B charge to settle federal allegations about improperly marketed drugs. EPS was 10¢ (49¢ after excluding one-time items, a penny below forecasts). PFE expects revenue this year to range from $67B-$69B & forecast EPS of 95¢ to $1.10 ($2.10-$2.20 excluding one-time items). The stock dropped 49¢ to 18.57. Their chart shows PFE has a lot of unhappy long term investors.

•Pfizer Profit, 2010 Forecast Miss Analysts' Estimates After Wyeth Purchase


Pfizer --- 5 years











The economic recovery is struggling along. Auto sales yesterday were OK, but gains are being measured against an awful Q1 last year. Plus auto companies are competing against a weakened Toyota (TM). Numbers from PFE were expected but serve as a reminder that recessionary forces in the economy continue to bite many companies very hard.

Dow Jones Industrials --- 2 weeks