July 21, 2009 -- 16:30 ET Dow +67.8 at 8915.9, Nasdaq +6.9 at 1916.2, S&P +3.5 at 954.6:
Moving the Market:
Caterpillar's Q2 earnings easily beat consensus expectations. Texas Instrument's beats earnings and revenue consenus; issues upside Q3 guidance. China stocks slide 1.6%, biggest drop in 5 weeks. Ben Bernanke Addresses Congress on Monetary Policy.
Materials; Industrials; Heathcare
07/21/09 16:30 ET Dow +67.8 at 8915.9, Nasdaq +6.9 at 1916.2, S&P +3.5 at 954.6: [BRIEFING.COM] As the quantity of earnings releases steadily builds, the market has become increasingly acclimated with the trend that many companies have had little trouble topping analyst s more conservative expectations. After another round of generally solid earnings reports, the market had a more muted response today, but still managed to close out with modest gains. It took a late day rally to move the averages into positive territory, but the higher finish extends the Nasdaq s winning streak to ten straight sessions.
The company that captured the most headlines due to the magnitude of its earnings beat was Caterpillar (CAT 39.46 +2.81). The world s largest agriculture equipment maker, and Dow component, reported second quarter earnings per share of $0.72, which was a stunning $0.50 better than consensus estimates. Caterpillar also provided a more optimistic view of its near-term prospects, by stating, There is still a great deal of economic uncertainty in the world, but we are seeing signs of stabilization that we hope will set the foundation for an eventual recovery. Credit markets have improved significantly. Fiscal policy and monetary stimulus have been introduced around the world, and we are seeing signs, particularly in China, that they are beginning to work.
Evidence that the market may be becoming somewhat apathetic to the better-than-expected earnings results, is that shares of Texas Instruments (TXN 23.07 -0.54) finished lower by 2.5%, even though the chip maker reported what appeared to be one of its strongest quarters in recent history last night (relative to consensus). After fellow semiconductor bellwether Intel (INTC 18.90 +0.00) reported upside results on July 14th, Texas Instruments expectations as well as its share price increased to the point where the upside potential vanished as the surprise factor faded.
In addition to key corporate earnings reports, participants paid close attention to Fed Chairman Ben Bernanke s testimony to Congress, with text from his speech hitting the wires at around 10:00ET. While there didn t appear to be any new revelations from the script, the overall tone seemed cautious, which may have subdued some of the optimism that has characterized the market recently. Specifically, Mr. Bernanke stated that despite some positive signs, the rate of job loss remains high and the unemployment rate has continued its steep rise. The recovery is expected to be gradual in 2010, with some acceleration in activity in 2011. Although the unemployment rate is projected to peak at the end of this year, the projected declines in 2010 and 2011 would still leave unemployment well above FOMC participants' views of the longer-run sustainable rate.
Tomorrow will be a very busy day in terms of earnings releases, with several closely followed names set to report, including Morgan Stanley (MS 27.56 -0.78), Wells Fargo (WFC 25.35 -0.17), Mosaic (MOS 49.13 +0.01), Qualcomm (QCOM 47.98 +0.95), and Boeing (BA 43.02 +0.82). The economic calendar is fairly light, although crude inventories are scheduled to be released at 10:30 ET, and Fed Chairman Bernanke will again be in front of Congress discussing monetary policy.
Nasdaq +6.9 at 1916.2... NYSE Adv/Dec 1609/1387... Nasdaq Adv/Dec 1134/1475.
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Weekly & Daily Stock Earnings Calendar:
Apple AAPL 7/21
Advanced Micro Devices AMD 7/21
Merck MRK 7/21
Starbucks SBUX 7/21
Yahoo YHOO 7/21
Eli Lilly ELY 7/22 8am
PepsiCo PEP 7/22 8am
Pfizer PFE 7/22 8am
Boeing BA 7/22 8am
U.S Bancorp USB 7/22 8am
Wells Fargo WFC 7/22 8am
Ebay EBAY 7/22 4pm
Qualcomm QCOM 7/22 4pm
SanDisk SNDK 7/22 4pm
AT&T T 7/23 8am
Chicago Mercantile Exchange CME 7/23 8am
Potash POT 7/23 8am
United Parcel Service UPS 7/23 8am
McDonald's MCD 7/23 8am
Ford F 7/23 8am
American Express AXP 7/23 4pm
Broadcom BRCM 7/23 4pm
Microsoft MSFT 7/23 4pm
Netflix NFLX 7/23 4pm
Amazon AMZN 7/23 4pm
Baidu BIDU 7/24 8am
Amgen AMGN 7/27 4pm
United Steel X 7/28 8am