Stock Market News for October 29, 2010 - Market News

Stocks had a mixed day on Thursday as investors weighed mixed earnings reports and a possible announcement from the Federal Reserve to buy bonds. 3M Co.’s downbeat earnings and its tepid full-year outlook wiped off market’s initial advance that was fueled by a surprise drop in initial claims.

The unexpected drop in first-time claims for unemployment benefits sent the Dow average up 53 points in the morning session. However, as the session progressed the advance petered out and the blue-chip average closed with a loss of 12 points. 3M’s (NYSE:MMM) narrower profit outlook for 2010 and its dim view of the U.S. and European economies weighed in the minds of investors.

3M (NYSE:MMM) weighed heavily on the DJIA after it lowered its 2010 profit view by $0.06 to a range of $5.70 to $5.74 a share, citing recent acquisitions. Shares in the company fell 6.5% to $84.52 and led the Dow average lower. Among other Dow components, networking gear maker Cisco Systems (NASDAQ:CSCO) fell 0.4% and Caterpillar (NYSE:CAT) fell 0.6%. This was the Dow average’s second successive drop.

The broader indexes, however, managed some gains on the day. The tech-heavy Nasdaq Composite index edged up more than 4 points, or 0.2%, to 2507.37. The S&P’s 500 stock index gained 1.33 points to close at 1183.78. Advancing issues beat those that fell in price by a narrow margin.

Eastman Kodak (NYSE:EK) was a notable gainer yesterday. Shares in the company jumped 15% to $4.58 after the company reported estimate-topping results. During the quarter, the company witnessed strength in its digital business and took fewer charges.

Even as Apple’s (NASDAQ:AAPL) iPad continued to pose a formidable challenge to traditional PC makers, Microsoft (NASDAQ:MSFT) beat expectations as it reported a 55% surge in profits. Revenues grew 25% to $16.2 billion.

Symantec’s (NASDAQ:SYMC) better-than-expected outlook sent its shares up 4.1% yesterday. Jabil Circuit (NYSE:JBL) shares jumped 4.3% after Needham & Co. upgraded the shares citing strength in its earnings.

This morning’s futures suggest softness, following weakness in Asian shares that was built on downbeat industrial production numbers from Japan and South Korea, as well as talks of further tightening in Beijing. Japan’s Nikkei fell 1.8% to a 7-week closing low, while China’s Shanghai Composite fell 0.2% for its fourth straight daily drop.

Allstate (NYSE:ALL) fell 6.3% after posting an earnings miss, with third quarter results of $0.83 from operations off 16% YoY and shy of estimates of $0.95.

AutoNation (NYSE:AN) shed 7.5% after its earnings fell short of estimates, with profit from continuing operations at $0.39 versus estimates of $0.42.

Avon Products (NYSE:AVP) lost 5.6% after its earnings miss, and following the firm’s warning that operating margins for the full year are expected flat, even as sales growth of at least mid-single digit gains is expected.

Exxon Mobil’s (NYSE:XOM) results blew past projections on higher oil prices and increased production levels. For the quarter, the company earned $1.44 per share, up from $0.98 a year ago and up from Street estimates of $1.38. The shares closed up 0.8%.

Today’s top earnings reports are scheduled from Chevron (NYSE:CVX), Merck (NYSE:MRK), CIGNA (NYSE:CI), Weyerhaeuser (NYSE:WY) and Newell Rubbermaid (NYSE:NWL).

Stock Market News for October 29, 2010 – Market News

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