Market Flat After EU Bank Test Results

1:20pm (EST)

The market is near the breakeven line after Europe’s bank stress results were revealed a little while ago. There are lots of moving parts and Wall Street is still digesting the news but the headline is that 7 out of the 91 banks failed the stress test. The European Union say the results show the “resilience” of their banking system and we will bring you more of this story in our Weekly Wrap.

Corporate news is also hitting the wire with another mixed bag of earnings.

Microsoft (MSFT, $25.34, down $0.50) is trading lower despite reporting better-than-expected earnings on the top and bottom lines. The company said profits came in a at $4.5 billion, or $0.51 a share, versus $3 billion, or $0.34 a share, in the same quarter last year. Revenue came in at $16 billion for the quarter last year. Analysts were looking for earnings of $0.46 a share on sales of $15.3 billion.

SanDisk (SNDK, $40.10, down $3.00) is also lower but not because of its numbers. The company, which is a big player in the flash memory market, reported earnings of $258 million, or $1.08 a share, up from $53 million, or $0.23 a share, in the year ago period. Revenue shot up to $1.2 billion from $731 million a year earlier. Analysts were looking for $0.90 a share on sales of $1.16 billion. The company also announced its CEO is leaving them after 22 years of service.

As we head to press, the Dow is higher by 11 points to 10,333. The S&P 500 is off by a point and is at 1,092 while the Nasdaq is down 7 points to 2,239. Once again, the S&P 500 cannot clear 1,100 while the Nasdaq is having trouble at 2,250.

We will be back Sunday night with our Weekly Wrap and an in-depth look at what the EU bank stress tests mean for the market. Our trades are holding up well and we will be looking to add new positions on Monday.

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Market Flat After EU Bank Test Results

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