The market was conflicted today, as financial and technology stocks rose while industrials dropped. The Dow Jones Industrial Average fell 45.24 points (-.56%) while the S&P 500 gained 4.45 points (.54%). The biggest stories on Wall Street recently have been the release of earnings reports, and the overall decline in the markets has been a result of worse than expected numbers in these reports. Today was no exception, as poor numbers were released yet again.
General Electric (GE) reported a 4th quarter net income of 35 cents per share, or $3.7 billion dollars compared to 66 cents a share, or $6.7 billion from the last quarter of last year. The reported income was slightly less than analysts’ expectations that were at 36 cents per share. While some argue that investors already anticipated the lowered earnings and have already factored the drop into stock prices, when numbers do come in below expectations, the markets still fall. GE’s shares fell $1.45, or 10.76%, on the day.
Financial stocks rallied today, as Citigroup (C) gained 36 cents, or 11.58%, Bank of America (BAC) rose 53 cents, or 9.28%, and JP Morgan chase jumped $1.18, or 5.11%.
Investors are still nervously looking towards Washington, waiting to see if Obama will pass his stimulus plan despite increasing Republican dissent. In the mean time, the main indexes seem set on continuing their volatile and uncertain path. In the season of dismal earnings reports and unsure political expectations, investors are attempting to hold their ground.
Have a great weekend,
Matt Schwartz
College Trillionaire
CT Note – We were not able to write a Stock of the Day or a Term of the Day due to time constraints. We will post them tomorrow morning, so check back over the weekend!
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