Tech Stocks Boost NASDAQ While Broader Market Weakened Before the Fed

Published on Wednesday, 25 January 2012 13:09 Written by J Hawk

New York, January 25^th (TradersHuddle.com) - U.S. stocks opened mixed this morning, with the Dow Jones Industrial Average and the S&P 500 indexes down while the NASDAQ index traded higher. Analysts continue attributing stock market weakness to uncertainty in Europe over the as of yet unresolved Greek debt swap, and to corporate earnings that continue showing mixed results.

 The Dow Jones Industrial Average opened -0.7% lower and was off -56 points or -0.44% to 12,620 midday after declining 33 points yesterday. Despite weakness in the blue chip and S&P indexes, the NASDAQ traded higher led by Apple Corp., which beat all analyst estimates for earnings after yesterday’s close.

The NASDAQ composite was up +13 points or +0.48%, while the S&P 500 dropped 3 points or -0.20% to 1,312 midday. Economic data this morning also weighed on indexes, with U.S. Pending Home Sales declining by -3.5% in December, versus an expected decline of only -0.6%. Traders are patiently awaiting the Federal Funds Rate and FOMC Statement, which will be released at 12.30 PM EST, for indications on upcoming Fed monetary and interest rate policy.

U.S. Stocks in the News

Apple Corp. (NASDAQ: AAPL) stock surged in after-hours trading yesterday after the company blew away all analyst estimates for its first quarter 2012 earnings. At midday AAPL was trading at 448.71, up +28.33 or +6.74% on volume of 22 million shares.    

Apple Corp. is now the highest valued company in the U.S. market, beating out Exxon (NYSE: XOM), with the stock making a new all-time high of $454.45 per share on the opening. The company earned $13.06 billion or $13.87 per share, more than double last year’s results and significantly higher than the analyst consensus of $10.15 per share.

Delta Air Lines (NYSE: DAL) stock was up +0.61 or +6.56% to $9.99 per share midday after the company reported better than expected earnings of $0.50 per share, beating analyst estimates of $0.37 EPS on net income of $425 million in the fourth quarter.

ConocoPhillips (NYSE: COP) stock was down -1.12 or +1.49% to $74.24 per share midday, after the company reported quarterly earnings results of $2.02 per share (EPS) for the quarter, beating the consensus estimate of $1.79 by $0.23. The company was hit with a rating downgrade by UBS AG (UBS) on Monday which now has a $60 price target on the stock, down from $68. Also, Goldman Sachs (GS) reiterated their “neutral” outlook on the stock on Tuesday, putting pressure on the stock.  

Boeing (NYSE: BA) stock was down -0.36 or -1.08% to 32.84 midday after the company reported better than expected fourth quarter earnings. The company reported Q4 earnings of $1.84 per share, which was 80% higher than the analyst consensus of $1.00 per share.  Boeing expected stronger revenues of $78 to $80 billion in 2012, but weaker earnings.

United Technologies (NYSE: UTX) was unchanged at $77.78 per share midday after having been down earlier in the session. The company reported earnings or $1.47 per share for the fourth quarter, beating the consensus estimate of $1.46 by $0.01. Zack’s Investment Research reiterated its “neutral” rating on shares in a research note to investors on Tuesday.