Wednesday, May 11, 2011

Wall Street Falls As Commodities Drop, Citigroup (NYSE: C) Slumps

US stocks closed lower on Wednesday as energy and materials stocks were particularly hit hard by a sell-off in oil futures.

The Dow Jones Industrial Average dropped 139.41 points, or 1.10%, to finish at 12,584.17. The S&P 500 shed 12.22 points, or 0.91%, to close at 1,335.10. The Nasdaq Composite declined 13.51 points, or 0.48%, to 2,814.72.

The Commerce Department reported Wednesday that the U.S. trade deficit widened to $48.2 billion in March. Economists were looking for a $47.7 billion trade deficit.

Walt Disney Co. (NYSE: DIS) reported late Tuesday that its fiscal second-quarter profit slipped 1% to  $942 million, or 49 cents a share, compared with a year-ago profit of $953 million, or 48 cents a share. Revenue increased 6% to $9.08 billion from $8.58 billion. Analysts, on average, expected the company to report earnings of 56 cents per share on revenue of $9.13 billion. Shares of the company slumped $2.39, or 5.44%, to $41.52.

Macy's Inc. (NYSE: M) reported Wednesday that its first-quarter profit jumped to $131 million, or 30 cents a share, from $23 million, or 5 cents, in the year-ago quarter. Revenue increased 5.7% to $5.89 billion. Same-store sales rose 5.4%. The company also lifted its full-year same-store sales growth guidance to a gain of about 4.3% from a prior forecast of a 3% increase. Earnings per-share guidance is raised to a range of $2.40 to $2.45 a share, compared with previous outlook of $2.25 to $2.30. The company also doubled its quarterly dividend to 10 cents a share. Shares of the company surged $2.03, or 7.71%, to close at $28.36.

Shares of Citigroup, Inc. (NYSE: C) slumped $1.28, or 2.90%, to close at $42.92. 

Molycorp Inc. (NYSE: MCP) reported late Tuesday that its first quarter net loss narrowed to $909,000, or 3 cents a share, compared with a loss of $7.7 million, or 16 cents a share, in the year earlier quarter. On an adjusted basis, the company earned 1 cent per share in the latest quarter. Revenue surged to $26.3 million, an increase of 21% sequentially and 770% year over year. Analysts, on average, expected the company to post earnings of 10 cents per share on revenue of $41.68 million. Molycorp sank $3.81, or 5.73%, to $62.66.

European stocks closed mixed. The UK FTSE fell 42.89 points, or 0.71% to 5,976. The German DAX fell 0.09% while French CAC increased 0.14%.

Asian stocks finished mixed. The Nikkei 225 rose 45.50 points, or 0.46%, to 9,864.26. The Hang Seng index of Hong Kong fell 44.20 points, or 0.19%, to 23,291.80.

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