Top 3 Reasons Markets were Flat Ahead of Google Earnings
Markets closed flat on Wall Street: DJI +0.12% SP500 +0.01% Nasdaq -0.05% Gold +1.22% Oil +1.26.
Markets started down and rallied all day to get back to yesterday’s finish line. The surprise dip in Initial Unemployment Claims got the market off to a shaky start. But Bears simply can’t fight the Fed. On the commodities front, Oil (NYSE:USO) spiked $2 after pulling back this morning. Gold (NYSE:GLD) and Silver (NYSE:SLV) got their grooves back and jumped as investors clearly believe inflation is showing up in places like today’s Producer Price Index numbers.
Today’s markets were flat because:
1) Financials (NYSE:XLF) got slammed again. Yesterday JPMorgan Chase (NYSE:JPM) announced so-so earnings, but today the selling continued as Goldman Sachs (NYSE:GS) stole the spotlight for prospective perjury as outlined in a new Senate subcommittee report. Makes us wonder whether Lloyd Blankfein is the next Barry Bonds. Apparently investors are worried because Goldman’s stock was down 2.73% today. At least the Bank of Ozark (NASDAQ:OZRK) was up 3% after beating earnings.
2) Investors moved money into silly IPOs like Zipcar (ZIP). If you made 60% on your money selling your pre-IPO shares at the open this morning, you probably love Zipcar right now. If you tried to buy some anytime after that you’re most likely at a loss because anyone who had shares is locking in gains on the company without a business model. 1999? An IPO with more long term viability was McDonald’s (NYSE:MCD) Latin American franchisee Arcos Dorados Holdings Inc. (ARCO). The stock soared 27%. Finally, shares of shipping company Boxships (TEU) dropped 8.3% on their opening day of public trading.
3) Google (NASDAQ:GOOG) missed earnings! Investors and traders waited all day to hear what Larry Page had to offer during his first earnings release as the new CEO. Net income rose to $2.3 billion, ($7.04 a share) from $1.96 billion ($6.06 a share) year-over-year. Net revenues came in at $6.5 billion, beating analyst expectations for $6.3 billion. However, earnings per share of $8.08 missed Wall Street’s expectation for $8.11 a share. Google is trading down 4.8% after-hours. Now Check Out Wall St. Cheat Sheet’s coverage of Google Earnings.
Now that you’re in the know, enjoy the flood of Google coverage!