Stocks retreat amid 'lingering anxieties'

@CNNMoneyInvest April 19, 2012: 11:42 AM ET
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NEW YORK (CNNMoney) -- U.S. stocks closed down modestly Wednesday, as investors found new reasons to worry about Europe's economy. Less-than-stellar earnings from two big tech companies added to sluggish trading throughout the day.

The Dow Jones industrial average (INDU) ended the day down 83 points, or 0.6%. The S&P 500 (SPX) lost 6 points, or 0.4%. The Nasdaq (COMP) moved down 11 points, or 0.4%.

"Investors are thinking again that the calm about Europe over the last three to four months may have been premature," said BTIG's chief strategist Dan Greenhaus.

Spain released data showing that Spanish banks held more problem loans than expected, sending its stock market down and causing other European markets to fall.

That news added to worries over whether the government in Madrid may be forced to seek a bailout. On Wednesday, German two-year debt sold at a record-low yield, with investors fleeing to the perceived safety of Europe's largest economy amid the troubles elsewhere.

"It's indicative of lingering anxieties among investors -- the willingness to hold low yields," said Mark Luschini, chief investment strategist at Janney Montgomery Scott.

The yield on the German two-year note sat at 0.14% early Wednesday. Meanwhile, Spanish bond yields have been trending higher recently, with the 10-year note hovering just under 6%.

Several tech heavy-hitters released first-quarter earnings after Tuesday's closing bell.

Shares of IBM (IBM, Fortune 500) dropped after its earnings beat analysts' profit estimates but missed on sales. Intel's (INTC, Fortune 500) sales and earnings beat expectations, but the stock also fell Wednesday.

"I think that the performance of IBM and Intel today tells you that even beating estimates isn't enough, and that the market may have run too far," said Joe Saluzzi, co-head of equity trading at Themis Trading.

Overall, earnings have been better than expected.

Of the 56 companies in the S&P 500 that have reported their quarterly results thus far, 44 have beat analyst estimates, with seven matching and just five coming up short, according to Capital IQ.

U.S. stocks rallied Tuesday as worries about Europe eased and investors parsed the latest round of corporate results. The Dow and S&P 500 posted the best one-day gains since March 13; the Nasdaq had the best gains since December 20, 2011.

Companies: Shares of Berkshire Hathaway (BRK-A) traded down slightly after its chairman and CEO Warren Buffett announced he has prostate cancer.

Shares of Chesapeake Energy (CHK, Fortune 500) hit a 52-week low after Reuters reported that Chesapeake's CEO borrowed more than $1 billion to finance stakes in the company's wells, and used those same stakes as collateral for additional loans

Yahoo (YHOO, Fortune 500) reported profits late Tuesday that topped analyst estimates, sending shares higher Wednesday as investors hope the turnaround strategy of new CEO Scott Thompson will work.

Financial stocks were back in the spotlight Wednesday, with several notable firms reporting earnings.

Bank of New York Mellon (BK, Fortune 500) reported its quarterly results before the opening bell, posting earnings and revenue in line with analyst expectations. PNC (PNC, Fortune 500) reported earnings of $1.44 a share, in line with expectations, on $3.73 billion in revenue.

First Republic Bank (FRC) beat on revenue and reported earnings in line with expectations. The firm also announced that it was initiating a quarterly dividend of 10 cents a share.

Asset manager BlackRock (BLK, Fortune 500) posted earnings of $3.16 a share, beating analyst projections of $3.04, on $2.25 billion in revenue.

Oilfield services giant Halliburton (HAL, Fortune 500) also reported better-than-expected earnings, sending shares higher.

After Wednesday's close, investors saw the latest numbers from American Express (AXP, Fortune 500), eBay (EBAY, Fortune 500), Qualcomm (QCOM, Fortune 500) and YUM! Brands (YUM, Fortune 500).

Qualcomm's shares fell sharply in after-hours trading after it beat on earnings but lowered its guidance.

American Express, eBay and YUM! Brands all beat analysts' expectations. eBay's stock rose in after-hours trading, while American Express' rose slightly and YUM!'s shares dropped.

Economy: A report on crude inventories showed that inventories had increased slightly more than economists predicted.

Currencies and commodities: The dollar fell against the British pound but gained against the euro and the Japanese yen.

Oil for May delivery fell $1.53 to $102.67 a barrel.

Gold futures for April delivery fell $9.90 to $1,641.20 an ounce.

World markets: European stocks closed lower. Britain's FTSE 100 (UKX) slipped 0.4%, the DAX (DAX) in Germany shed 1.1% and France's CAC 40 (CAC40) dropped 1.6%.

Asian markets ended higher. The Shanghai Composite (SHCOMP) added 1%, the Hang Seng (HSI) in Hong Kong climbed 1.1% and Japan's Nikkei (N225) gained 2.1%.

Bonds: The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 1.98%. To top of page

Index Last Change % Change
Dow 27,201.52 373.05 1.39%
Nasdaq 10,998.40 57.23 0.52%
S&P 500 3,327.77 21.26 0.64%
Treasuries .54 0.03 5.44%
Data as of 9:46pm ET
Company Price Change % Change
Ford Motor Co 8.29 0.05 0.61%
Advanced Micro Devic... 54.59 0.70 1.30%
Cisco Systems Inc 47.49 -2.44 -4.89%
General Electric Co 13.00 -0.16 -1.22%
Kraft Heinz Co 27.84 -2.20 -7.32%
Data as of 2:44pm ET
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15 yr fixed3.20%3.23%
5/1 ARM3.84%3.88%
30 yr refi3.82%3.93%
15 yr refi3.20%3.23%
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