Dow Jones:11,977.19 (–3.33) S&P 500:1,291.18 (+0.34) Nasdaq:2,719.25 (+1.70)
US STOCKS erased losses in a late flurry of buying to end little changed yesterday as overall optimism about earnings offset disappointing results from blue chips 3M and Johnson Johnson.
Stocks were lower for most of yesterday’s trading. Shares of 3M fell 2 per cent to $88.50 after results barely topped estimates and the manufacturer warned rising raw material costs would pressure its bottom line.
“Today the market is simply a little tired and overbought,” said Bruce Bittles, chief investment strategist at Robert W Baird in Nashville, Tennessee. “But selling has been ineffective, including today; the benefit of the doubt has to go to the bullish case,” Mr Bittles said.
The Dow Jones industrial average finished down 3.33 points, or 0.03 per cent, at 11,977.19.
The S&P’s 500 Index was up 0.34 point, or 0.03 per cent, at 1,291.18.
The Nasdaq Composite Index was up 1.70 points, or 0.06 per cent, at 2,719.25.
Investors will focus on US President Barack Obama’s State of the Union speech to Congress this morning. His remarks could have an impact on energy, infrastructure and other market sectors.
Not all blue chips disappointed investors. Verizon Communications shares rose 1.6 per cent to $35.79 after the company said it added far more wireless subscribers than expected in the quarter.
Travelers Companies rose 1.1 per cent to $56.23 after it posted a higher-than-expected quarterly profit.
The rising cost of commodities ranging from oil to food is emerging as the main threat to an earnings recovery that has pushed US stocks to their highest levels since the 2008 financial crisis.
Healthcare company J&J said US sales of consumer products fell sharply and forecast 2011 earnings below expectations, sending its shares down 1.8 per cent to $61.08.
The latest economic data showed US consumer confidence rose in January to its highest level in eight months, but single-family home prices fell for a fifth straight month in November..
American Express fell 2.2 per cent to $44.80 a day after reporting results as investors were worried of increased regulations. – (Reuters)
