Amid a strong earnings season, the Standard & Poor’s 500 Index was mostly flat, losing just eight points to drop under 1,280 early Tuesday. More than 70% of companies reporting have beaten the consensus estimates from the analyst community for the second quarter of 2011. However, forward projections being released by companies are much less favorable.
The S&P 500, while up about 1.73% for the year, is down almost 4% for the past five days of trading because of gloomy economic news and a concern the United States’ credit rating might be downgraded, even if the debt ceiling is raised.
Nvidia (NASDAQ:NVDA) continued to rise on takeover speculation, up more than 4% in early morning action to go above $15, picking up about 65 cents. With the recent gains, Nvidia is trading above its 20-day moving average but still is down for the week, month and quarter. The semiconductor company is up about 60% for the year.
McGraw Hill (NYSE:MHP) was a telling a story that traders liked reading: Institutional investors are pushing for changes at the publishing giant, driving the stock up more than 5%, or about $2, to over $43. McGraw Hill is now trading above its 20-, 50- and 200-day moving averages but is down more than 5% for the week.
Cognizant Technology Solutions (NASDAQ:CTSH) was up well over $3, about 5%, to over $74 on a favorable earnings report. The software company is above its 20-, 50- and 200-day moving averages, with a recent favorable analyst recommendation adding lift to the stock.
MetroPCS Communications (NYSE:PCS) lost more than a third of shareholder value, over $5, to fall below $10.80 as its earnings, although higher, failed to please Wall Street. The wireless company is trading more than 20% below its 20-, 50- and 200-day moving averages, with a relative strength index rating of only 9.62. A relative strength index rating of 30 is when a stock is viewed as being oversold. MetroPCS is about 4.5% for the week.
Parker-Hannifin (NYSE:PH) lost about 7% to trade for under $72, losing more than $5.40 per share on disappointing second-quarter numbers. The industrial goods company has lost more than 11% during the past week. It was downgraded in early July.
Expeditors International of Washington (NASDAQ:EXPD) was down more than $2.75, about a 6% loss, to less than $44 per share in early buying and selling. The stock is trading double digits below its 20-, 50- and 200-day moving averages. The relative strength index rating for EXPD is 26.
Jonathan Yates does not own any of the stocks mentioned in this article.
