Corporate earnings are the strongest they’ve been in years, but there remains quite a gap between the haves and the have nots.
AT&Tplunged 10% Thursday after warning that revenues this year will come in well below estimates, battered by pricing pressures and the potential loss of discount local wholesale prices.
University of Phoenix Onlineand its parent, Apollo Group, fell 5% each on forward guidance that wasn’t as robust as investors had hoped. The education sector in general has been treated with skepticism by investors lately, as companies like Career Educationand Corinthian Collegeshave been hit by accounting and operations issues.
And Micronslipped after missing revenue estimates.
Coupled with weaker than expected durable goods orders and rising jobless claims, stocks spent the day on the defensive.
The Nasdaq lost 5 to 2015, the S&P 500 gave back 3 to 1140, and the Dow fell 35 to 10,443. Volume declined to 1.4 billion shares on the NYSE, and 1.69 billion on the Nasdaq. Advancers led 16-15 on the NYSE, and 16-14 on the Nasdaq. Downside volume was 56% on the NYSE, and 53% on the Nasdaq. New highs-new lows were 205-23 on the NYSE, and 127-30 on the Nasdaq.
After the close, palmSourcebeat estimates and raised guidance. Lawsonbeat estimates, Manugisticsmet estimates, and Paychexmissed. Silicon Imageraised guidance, and Veritywarned.
During the day, Omnivision, ATIand Cognosgained on better than expected results.
Roxiosoared 24% on a Napster deal with Best Buy.
The IPO of storage firm Xyratexreceived a lukewarm welcome.
Callidus Softwareplunged 26% after losing its CEO and warning.
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