At midday in New York, the blue-chip Dow Jones Industrial Average Index was down 76.86 points (-0.60%), to trade at 12,748.16. The tech-laden Nasdaq Composite Index shed 17.41 points (-0.72%), to reach 2,390.63. And the broader Standard & Poor’s 500 Index decreased 8.41 points (-0.61%), to hit 1,379.76.

Most sectors were down, with the energy sector (up 0.43%) and the basic materials sector (up 0.08%) posting the only gains. The consumer cyclical sector (down 1.75%) and the technology sector (down 1.12%) had the largest declines.

“Earnings and earnings estimates are coming down,” Mike Ryan, the New York-based head of wealth management research for the Americas at UBS Financial Services Inc., which oversees about $734 billion, said in an interview on Bloomberg Television. “We’re likely to see stocks continuing to be under pressure” in the first half of 2008.

Despite a 24% increase in profit, McDonald’s Corp. (MCD) slumped after it announced a slight decrease in same-store sales for March.

Shares of UnitedHealth Group Inc. (UNH) and Texas Instruments Inc. (TXN) were also down sharply after announcing first quarter results.

In overseas markets earlier today, Japan’s Nikkei 225 Index lost 1.1% with a decrease of 148.73 points to close at 13,547.82. Hong Kong’s blue-chip Hang Seng Index gained almost 1% with a 217.48-point climb, to 24,939.15.

European bourses were down, with the Paris-based CAC40, London’s FTSE 100, Madrid’s IBEX 35 and the Frankfurt-based DAX all posting losses.

At midday, the dollar had lost ground against the euro (down 0.457%) and the pound sterling (down 0.812%), but gained ground against the yen (up 0.204%).

At midday in New York, the blue-chip Dow Jones Industrial Average Index was down 40.87 points (-0.32%), to trade at 12,578.40. The tech-laden Nasdaq Composite Index dropped 20.58 points (-0.88%), to reach 2,329.53. And the broader Standard & Poor’s 500 Index decreased 6.31 points (-0.46%), to hit 1,358.40.

Most sectors were down, with the transportation sector (down 1.31%) posting the largest decline.

“Analysts are expecting a pretty dour earnings season, and so are portfolio managers,” Charles Reinhard, director of portfolio strategy at Neuberger Berman, a unit of Lehman Brothers Holdings Inc. (LEH) that manages $129 billion, said in a Bloomberg Television interview. “The market is discounting a lot.”

Pharmaceutical firm Pfizer Inc. (PFE) dropped after announcing a 19% drop in first quarter profits as generic drugs continue to take a hit on the drug giant’s bottom line.

But blue-chip technology stock, International Business Machines Corp. (IBM), gained after the Dow component announced a 26% increase in first quarter profit, beating analyst estimates, and boosted its outlook for full-year 2008.

“IBM beat revenue and earnings expectations substantially with strength across the board,” American Technology Research Analyst Shaw Wu told MarketWatch. “We find this quite impressive in light of the tough economic environment.”

In overseas markets earlier today, Japan’s Nikkei 225 Index gained 1.9% with an increase of 252.17 points to close at 13,398.30. Hong Kong’s blue-chip Hang Seng Index rose 1.6% with a 380.61-point increase, to close at 24,258.96.

In Europe, most major bourses were down, with London’s FTSE 100, Madrid’s IBEX 35 and the Frankfurt-based DAX all posting losses. Only the Paris-based CAC40 managed to eke out a slight 7.04-point gain.

At midday, the dollar had gained ground against the euro (up 0.251%) and the yen (up 0.778%), but lost ground against the pound sterling (down 0.811%).

At midday in New York, the blue-chip Dow Jones Industrial Average Index was down 25.57 points (-0.21%), to trade at 12,276.49. The tech-laden Nasdaq Composite Index dropped 6.65 points (-0.29%), to reach 2,269.17. And the broader Standard & Poor’s 500 Index decreased 3.31 points (-0.25%), to hit 1,325.01.

The basic materials sector (up 0.87%) and the conglomerates sector (up 0.61%) posted the biggest gains, while the capital goods sector (down 0.42%) and the technology sector (down 0.49%) posted the largest declines.

“The market is digesting the whole banking and financial issues, but the market has still to digest the recession story and how much of a damage to earnings we’ll get,” Owen Fitzpatrick, head of the U.S. equity group at Deutsche Bank AG (DB), told MarketWatch.

Tech shares such as Dow-component International Business Machines Corp. (IBM) and Cisco Systems Inc. (CSCO) were down. Intel Corp.’s (INTC) earnings release is slated for after the market the closes this evening.

Oil futures traded near $114 a barrel, boosting energy stocks such as Exxon Mobil Corp. (XOM) and Chevron Corp. (CVX).

In overseas markets early today, Japan’s Nikkei 225 Index gained 0.6% with an increase of 73.07 points to close at 12,990.58. Hong Kong’s blue-chip Hang Seng Index inched up 0.4% with a 90.13-point gain, to close at 23,901.33.

European bourses were up, with the Paris-based CAC40, London’s FTSE 100, Madrid’s IBEX 35 and the Frankfurt-based DAX all posting slight gains.

At midday, the dollar had gained ground against the yen (up 0.486%) and the pound sterling (up 0.540%), but lost ground against the euro (down 0.051%).

At midday in New York, the blue-chip Dow Jones Industrial Average Index was up 92.42 points (0.74%), to trade at 12,619.68. The tech-laden Nasdaq Composite Index gained 34.57 points (1.49%), to reach 2,356.69. And the broader Standard & Poor’s 500 Index increased 9.73 points (0.72%), to hit 1,364.22.

The technology sector (up 1.23%) and the transportation sector (up 0.92%) posted the biggest gains, while the utilities sector (down 0.24%) and the basic materials sector (down 0.12%) posted the only declines.

“Bigger picture, we’re still in a trading range for the most part. Folks are still trying to figure out which direction we’re headed, and investors are waiting for more earnings reports to see where the economy stands and where the sectors are headed,” Robert Pavlik, chief investment officer at Oaktree Asset Management told MarketWatch.

Wal-Mart Stores Inc. (WMT) gained after bargain hunters helped the retail giant beat sales estimates, and an upgrade by Bank of America Corp. (BAC) gave Intel Corp. (INTC) stock a boost.

Financial shares, such as Citigroup Inc. (C) and Wachovia Corp. (WB), rallied after Goldman Chief Executive Officer Lloyd Blankfein said “we’re closer to the end than the beginning” of the credit crisis, Bloomberg News reported.

In overseas markets early today, Japan’s Nikkei 225 Index lost 166.59 points to close at 12,945.30. Hong Kong’s blue-chip Hang Seng Index had a 202.53-point gain, to close at 24,187.10.

European bourses were down, with the Paris-based CAC40, London’s FTSE 100, Madrid’s IBEX 35 and the Frankfurt-based DAX all posting losses.

At midday, the dollar had gained ground against the euro (up0.165%), but lost ground against the yen (down 0.552%) and the pound sterling (down 0.253%).

At midday in New York, the blue-chip Dow Jones Industrial Average Index was down 45.43 points (-0.36%), to trade at 12,567.00. The tech-laden Nasdaq Composite Index decreased 12.87 points (-0.54%), to reach 2,351.96. And the broader Standard & Poor’s 500 Index shed 5.84 points (-0.43%), to hit 1,366.70.

“We’ll be lucky to see earnings be flat for the year and we’ll probably see earnings decline,” Steven Bleiberg, who helps manage about $6 billion as head of global investment strategy at Legg Mason Asset Management (LM) in New York, said in an interview with Bloomberg Television. “Ultimately you’ve got to have earnings growth, that’s the driver, and I just don’t see it happening. There are so many negative signs out there.”

Washington Mutual Inc. (WM) led financial shares lower as the thrift was forced to slash its dividend even after a $7 billion cash infusion, which was more than the $5 billion expected.

Aluminum manufacturer Alcoa Inc. (AA) dropped after announcing a 50% reduction in earnings after Monday’s close. Advanced Micro Devices Inc. (AMD) shares dropped after announcing a 22% decline in sales.

“Ultimately we’re still in a bear market, and it’s going to take some more digestion and some more sideways movement to get out,” Doug Sandler, chief equity officer at Riverfront Investment Group, told MarketWatch.

In overseas markets, Japan’s Nikkei Index reversed Monday’s gains with a loss of 199.80 points to close at 13,250.43. Hong Kong’s blue-chip Hang Seng Index had a 267.07-point decline, to close at 24,311.69.

European bourses were down with the Paris-based CAC40, London’s FTSE 100, Madrid’s IBEX 35 and the Frankfurt-based DAX all posting losses.

Source:http://www.moneymorning.com/2008/04/08/midday-market-update-stocks-head-lower-on-weak-first-quarter-earnings/

Early morning losses were due to the high number of initial jobless claims and talk of a U.S. recession from Federal Reserve Chief Ben S. Bernanke in his second day of testimony before the Joint Economic Committee.

At midday in New York, the blue-chip Dow Jones Industrial Average Index was down 41.52 points (-0.33%), to trade at 12,564.31. The tech-laden Nasdaq Composite Index increased 9.22 points (0.39%), to reach 2,371.97. And the broader Standard & Poor’s 500 Index rose 2.30 points (0.17%), to hit 1,372.48.

The basic materials sector (up 1.39%) and the energy sector (up 1.01%) posted the biggest gains, while the conglomerates sector (down 0.94%) and the consumer cyclical sector (down 0.95%) posted the largest declines.

Shares of Exxon Mobil Corp. (XOM) and seed producer Monsanto Co. (MON) gained as oil prices climbed and corn rose to a record high.

Initial jobless claims for the week ended March 29 jumped by 38,000 to reach 407,000, marking the highest level seen for this economic indicator since mid-September 2005, MarketWatch reported.

In overseas markets, Japan’s Nikkei Index gained 200.54 points to close at 13,389.90. Hong Kong’s blue-chip Hang Seng Index had a 392.20-point increase, to close at 24,264.63.

European bourses reversed a two-day streak of gains with the Paris-based CAC40, London’s FTSE 100, Madrid’s IBEX 35 and the Frankfurt-based DAX all posting slight losses.

At midday, the dollar had gained ground against the euro (up 0.224%) and the yen (up 0.157%), but lost ground against the pound sterling (down 0.456%).