October 14, 2009
US stocks limped to a mixed close overnight as jitters about the upcoming wave of corporate earnings offset the positive impact of a big acquisition in the tech sector.
The Dow Jones Industrial Average dropped 14.74 points (0.15 per cent) to 9871.06 at the closing bell as the indexes alternated between modest gains and losses.
The Nasdaq composite edged up 0.75 points (0.04 per cent) to 2139.89, helped by news of Cisco System's deal to buy mobile infrastructure firm Starent Networks.The broad-market Standard & Poor's 500 index shed 3 points (0.28 per cent) to a close of 1073.19.
In the absence of major economic data, the focus was squarely on the corporate front and earnings.
The market gave a lukewarm response to earnings from Johnson & Johnson as the pharmaceutical giant topped estimates with a profit of $US3.3 billion ($3.64 billion) but "failed to impress with its sales," which fell 5.3 per cent, said Patrick O'Hare at Briefing.com.
"Some traders may have decided to take some profits ahead of the big wave of earnings reports that will hit the tape today and extend for the next month," noted Fred Dickson at DA Davidson & Co.
"A solid earnings reporting season is necessary to fuel the current bull market for stocks."
The market was awaiting earnings reports from computer chip giant Intel, a tech bellwether, due at the close of trade, and banking giant JPMorgan Chase early on Wednesday.
"Expectations are relatively high for both companies," said O'Hare.
"Negative surprises would throw a wrench in recovery arguments and invite closer scrutiny of valuation levels that could lead to some more concerted selling interest."