The Standard & Poor’s 500 Index started the week lower fairly flat, around 1,340, amid fears of the U.S. being downgraded if even a debt ceiling agreement was reached in time. However, it has been a strong season for corporate earnings, with more than 80% of the S&P companies reporting better numbers than expected by Wall Street. As a result, the S&P 500 is up more than 2.4% during the past five days of trading.
Lorillard Industries (NYSE:LO) was off by more than 4.9% to under $106.30, shedding well over $5 a share, as a result of disappointing earnings. Profits were up and the stock was beginning to recover from heavy losses near the opening bell. Lorillard, a cigarette and consumer goods maker, is up more than 2% for the week and up more than 14% for the quarter.
Down by more than 4.47% to under $6, Tenet Healthcare (NYSE:THC) lost more than 30 cents per share in early action. HCA Holdings, the largest for-profit operator of hospitals, reported a drop of 22% in profits today for the second quarter of 2011. Tenet issues its second-quarter results for 2011 on Aug. 2. Tenet is trading beneath its 20-, 50- and 200-day moving averages. For the week, Tenet is up 3.99%.
Despite being upgraded today by Morgan Keegan, Edwards Lifesciences (NYSE:EW) declined more than $2.40 a share to under $75.50, a drop of more than 3.1%, fueled by weak earnings for the second quarter of 2011. This morning, Edwards Lifesciences also was downgraded by Rodman & Renshaw. Morgan Keegan issued a target price of $97 per share, and Rodman & Renshaw stated a $66 mark. With a relative strength index rating of only 19.57, EW is trading below its 20-, 50- and 200-day moving averages while being down for the week, month and quarter. A relative strength index rating of 30 is the standard for when a stock is considered to be overbought. It is down more than 12% for the past week alone.
Guggenheim Shipping (NYSE:SEA) was sinking by more than 1.5% to under $21.30, a loss of more than 30 cents per share. Shipping stocks have been flooded by the drop in global economic activity because of the Great Recession and higher fuel prices. Guggenheim is trading below its 20-, 50- and 200-day moving averages, with a relative strength index rating of 37.39.
E Trade (NASDAQ:ETFC) continued to surge, up by more than 5% to over $16.40, picking up more than 80 cents per share in the morning session. Last week, Citadel, a hedge fund group and the largest owner of E Trade, announced it wanted to sell. Several contenders have surfaced. E Trade is up more than 21% for the week.
Roper Industries (NYSE:ROP) was selling for more than $87 a share in early action, gaining more than $2.60, or 3.1%, as its second-quarter earnings were met with favor by Wall Street. Roper is up about 2.8% for the week and more than 3.2% for the month. It is trading above its 20-, 50- and 200-day moving averages and has a relative strength index of 67.22. A relative strength index of 70 is when a stock is viewed as being overbought.
Eaton Corporation (NYSE:ETN) was up more than $1.40 per share, or about 2.8%, to over $52.60 on the release of robust second-quarter earnings. Trading above its 20-, 50- and 200-day moving averages, Eaton is up more than 5% for the month. Eaton has a relative strength index of 60.32.
Jonathan Yates does not own any of the stocks mentioned in this article.
