12:20pm (EST)
The bulls are trying to hold onto today’s gains as the major indexes are slightly positive but are trading in a tight range. The market got some more bad news concerning the Housing sector, and there were a couple of mixed earnings announcements it is also digesting.
The National Association of Home Builders reported its seasonally adjusted housing market index fell to 14 in July, which was down from June’s reading of 16. Homebuilders’ confidence in the housing market is now at its lowest level in more than a year and will lead to a fresh round of debates over whether or not the economic recovery is slowing. To put this in perspective, a reading below 50 indicates negative sentiment about the housing market, and the last time the index was above 50 was in April, 2006.
Turning to earnings, Halliburton (HAL, $28.73, up $1.22) turned in a great quarter despite the uncertainty surrounding the future of offshore drilling. The company reported a profit of $480 million, or $0.53 a share, versus $262 or $0.29 a share, in the year earlier period. Analysts were looking for $0.37 a share. Revenue came in at $4.4 billion which was well ahead of forecasts for $4.1 billion.
Elsewhere, Hasbro (HAS, $38.91, down $0.59) came in with numbers of $0.29 a share, versus expectations of $0.24 a share. The company missed on their revenue numbers as they reported $739 million when the Street was looking for $748 million.
We mentioned in our Weekly Wrap last night the revenue numbers will be the main catalysts with earnings analysts will be looking for, and on that end a lot of companies are missing the mark.
As we head to press, the Dow is currently up 5 points to 10,103 while the S&P 500 is is down a half point and is at 1,064. The Nasdaq is higher by a 2 points and is at 2,181.
We have a lot to cover in our Members Area today including a NEW TRADE so we are a little early. Subscribers, check for the updates.
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