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RealTime IT News

Strong Earnings No Help For Stocks

Strong earnings from the likes of Intel and Yahoo were no help for stocks on Wednesday, as the broader market tumbled on the latest signs of inflation.

Yahoo gained 4% on the day, and Intel eked out a small gain, but the rest of the market sank under a stronger than expected consumer inflation reading and a Federal Reserve report that expressed concern about inflation pressures and high oil prices.

The Nasdaq fell 18 to 1913, the S&P 500 lost 15 to 1137, and the Dow tumbled 115 to 10,012. Volume rose to 2.2 billion shares on the NYSE, and 2.05 billion on the Nasdaq. Decliners led 24-8 on the NYSE, and 21-9 on the Nasdaq. Downside volume was 84% on the NYSE, and 66% on the Nasdaq. New highs-new lows were 16-104 on the NYSE, and 21-144 on the Nasdaq.

After the close, eBay and Motorola continued the run of strong earnings reports. eBay reported earnings of 20 cents a share, two cents better than analysts were expecting. Revenues rose 36% to $1.032 billion, matching estimates and topping $1 billion for the first time. The online auction king's forward guidance was pretty much in line with estimates, if a little light on the sales forecast. Motorola trounced estimates with 28-cent earnings and $8.8 billion revenues, and the wireless giant raised guidance too. Qualcomm warned, however.

During the day, Juniper , Imation , Real Networks , Tellabs and Seagate rose on their results.

Avaya plunged 25% after the company missed estimates and warned, and Checkfree lost 9% on its results.