Stock Market News for April 15, 2011 - Market News

On the second day featuring a choppy session, markets posted marginal gains as investors chose to overlook disappointing jobless data in favor of upcoming earnings announcements. Markets lacked definite direction at the beginning of the earnings season and late-day activity was reflective of investors’ hopes for after-the-close earnings announcements. However, disappointing earnings results from Google dragged the tech sector lower and also affected the tech-laden Nasdaq Composite Index. Financials edged lower while investors preferred stocks of a lesser volatile nature in a weak economic environment.

The Dow Jones Industrial Average (DJIA) gained 0.1% and the Standard & Poor 500 (S&P 500) gained almost 0.1% to close at 12,285.15 and 1,314.52, respectively. The Nasdaq could not match the performance of these two benchmarks and in fact, shed 0.1% to finish at 2,760.22. Composite volumes continued to be tight and only around 6.91 billion shares were traded the New York Stock Exchange, NYSE Amex and Nasdaq against last year’s estimated daily average of 8.47 billion. On the NYSE, consolidated volumes were at 4 billion shares and for every four stocks that advanced, three stocks declined.

Markets declined initially after a disappointing report from the Labor Department showed an increase in weekly US initial claims. For the week ending on 9^th April, initial claims increased to 412,000 against the expected decrease to 378,000, after decreasing to 385,000, the revised level for the previous week. This increase interrupts a downward trend that has kept jobless claims below the 400,000 level for four weeks. The 4-week moving average increased to 395,750, from the previous week’s revised average of 390,250. Jobless claims have soared to their highest level in two months thus creating a bearish sentiment.

In other news, the Producer Price Index increased by 0.7% in March to 189.4, lower than the expected 1.0% increase, following a 1.6% increase in February and a 0.8% increase in January. Over the year, the index has advanced 5.8%, the largest 12-month increase since a 5.9% rise in March 2010. The index for energy goods increased by 2.6% in March, the sixth straight monthly increase. Over 80% of the March increase can be attributed to the gasoline index, which surged 5.7%. However, prices for consumer foods decreased 0.2%, the first decline since August 2010. Leading the March decrease, the index for fresh and dry vegetables dropped 21.4 percent. Excluding food and energy prices, Core PPI increased by 0.3% after increasing by 0.2% in February. Around a third of this increase is attributable to prices for light motor trucks, which rose 0.7%.

Shares of Google Inc. (NASADQ:GOOG) slipped 5.5% in after hours trading after earnings failed to beat estimates. The technology sector also suffered the burn as research firm Gartner reported global shipments of personal computers have declined 1.1% in the first quarter. The report suggests a decline in demand as customers prefer tablets and other devices over personal computers. This trend is also suggestive of a seasonally weaker period. Consequently, Microsoft Corporation (NASDAQ:MSFT), Intel Corporation (NASDAQ:INTC), Dell Inc. (NASDAQ:DELL), Hewlett-Packard Company (NYSE:HPQ), Research In Motion Limited (NASDAQ:RIMM) shed 0.8%, 1.0%, 3.1%, 1.9% and 1.7%, respectively.

Financial stocks were also dragged lower as Carl Levin, the Democratic chairman of the Senate permanent subcommittee on investigations reported that a two-year investigation into financial institutions has revealed that a few major banks had misled investors and mis-sold mortgage-backed securities. The Goldman Sachs Group, Inc. (NYSE:GS) was one of the prime accused and its shares slipped 2.7%, dragged down the broader index. Other shares to have fallen included, JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Company (NYSE:WFC), Bank of America Corporation (NYSE:BAC), Citigroup, Inc. (NYSE:C) and American International Group, Inc. (NYSE:AIG) and they declined 2.8%, 1.7%, 1.1%, 1.6% and 1.0%.

Stock Market News for April 15, 2011 – Market News

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