US open: Stocks shake off GDP effect
30 Jul 2010
US stocks got off to a poor start after disappointing US economic data. Gross domestic product (GDP) data rose at an annualised rate of 2.4% in the second quarter, a significant slow-down from the 3.7% annualised gain in the first quarter. Meanwhile, US consumer sentiment tumbled in July to its lowest level since November 2009.
Buyers emerged at the lower levels, however, giving the market some momentum and pushing the major indices into positive territory. The Dow Jones 30-share industrial average is up 11 points at 10,478, the S&P 500 is 1 point firmer at 1,12.50 and the NASDAQ Composite is 3 points to the good at 2,254.
Corporate news flow fails to engender much enthusiasm. Oil giant Chevron's second quarter earnings more than tripled but the shares fell back as revenues came in below analysts' estimates.
Drug company Merck was another casualty as second quarter earnings more than halved, due to acquisition and other exceptional charges. The company also trimmed the upper end of the guidance range for full year sales.
Theme park operator and film studio Walt Disney wilted after announcing it will sell Miramax Films to a consortium of investors for more than $660m after a six-months search to find a buyer.
"Our current strategy for the Walt Disney Studios is to focus on the development of great motion pictures under the Disney, Pixar and Marvel brands," said Disney chief executive Robert Iger.
S&P 500 - Risers
Expedia Inc. (EXPE) $22.26 +5.65%
Eastman Chemical Co. (EMN) $62.17 +4.03%
McAfee Inc. (MFE) $31.41 +3.83%
MetLife Inc. (MET) $41.45 +3.11%
Tenet Hlthcre Corp. (THC) $4.54 +2.95%
S&P 500 - Fallers
MEMC Electronic Materials (WFR) $9.27 -17.67%
Genworth Financial Inc. (GNW) $13.86 -12.22%
Tellabs Inc. (TLAB) $6.90 -6.63%
Micron Technology Inc. (MU) $7.28 -6.36%
First Solar Inc. (FSLR) $126.95 -6.31%
Dow Jones I.A - Risers
Bank of America Corp. (BAC) $14.13 +0.71%
Boeing Co. (BA) $67.69 +0.70%
Dow Jones I.A - Fallers
Merck & Co. Inc. (MRK) $33.95 -3.17%
Microsoft Corp. (MSFT) $25.45 -2.23%
Nasdaq 100 - Risers
Warner Chilcott Plc (WCRX) $26.08 +6.91%
Expedia Inc. (EXPE) $22.26 +5.65%
Baidu Inc. (BIDU) $80.60 +1.77%
Nasdaq 100 - Fallers
First Solar Inc. (FSLR) $126.95 -6.31%
Wynn Resorts Ltd. (WYNN) $83.46 -5.00%
Citrix Systems Inc. (CTXS) $54.84 -3.23%
