U.S. stocks were higher this morning as stocks seems poised to rebound this morning after another day of declines yesterday. Retailers earnings are in focus this morning as well as housing data. Wal-Mart helped lift stocks this morning after it reported earnings that beat the Street's expectation. Lower oil prices also helped lift stocks, now trading around $93.5 a barrel.Yesterday, U.S. stocks closed lower despite the Dow industrials gaining as much as 119 points earlier in the day. The Dow industrials ended up closing 55 points lower, or 0.42%, finishing below 13,000. the S&P 500 declined 14 points, or 1%, and the Nasdaq Composite dropped 43 points, or 1.67%.
Today, a report on September pending home sales is due at 10 a.m. EST. Any data on the slumping housing market tends to be in focus these day, as it is also related to the meltdown in mortgage market.
Overseas, Asian markets finished mixed, but mostly lower. Japan's central bank kept its benchmark interest rate unchanged at 0.5% amid deepening concerns about slower growth in the U.S. economy, a key export market.
European stocks in general fell this morning. As concerns about the state of the U.S. economy as well as data showing overseas inflation accelerating, the dollar extended declines against European rivals.
Mostly, however, it is the earnings of two Dow components that are in focus this morning:
Wal-Mart Stores Inc. (NYSE: WMT) reported its fiscal 2008 third-quarter posting an 8% growth in profit, topping Wall Street expectations. Strong international growth and improved performance in its U.S. operations. Net income grew to $2.86 billion, or 70 cents per share, beating expectations of 67 cents per share. Total revenue, including membership and other income, grew to $91.95 billion from $84.47 billion a year ago. Net sales grew nearly 9% to $90.88 billion. The company has controlled costs and improved margins. WMT shares are up 1.5% in premarket trading.
Conversely, Home Depot Inc. (NYSE: HD) reported a 26.8% drop in third-quarter profits due to the deteriorating housing market that slowed down home renovations. Earnings came in at $1.09 billion, or 60 cents a share, in-line with expectations. Revenue dropped 3.5% to $18.96 billion, falling short of analyst expectations of $19.39 billion. HD shares are down 1% in premarket trading.
Closing Bell: Economic Catapult for Thanksgiving & Black Friday (WMT, TGT, GRMN, GOOG, MSFT)
Deere up on Q4 earnings performance
Reid Hoffman: LinkedIn will go public (at some point)
