Stocks seesawed in early trading Tuesday as investors weighed strong earnings reports from Johnson & Johnson and Goldman Sachs against a negative reading on inflation.
Goldman Sachs Group Inc. posted solid second-quarter results, surpassing analysts' expectations, thanks to strength in its trading and underwriting businesses.
The New York-based financial giant -- long considered one of the strongest banks on Wall Street -- earned $2.72 billion, or $4.93 per share, after preferred stock dividends, well above analysts' forecasts of $3.54 per share.
Investors also cheered a better-than-expected report from Dow Jones industrial component Johnson & Johnson. The health care products maker said its profit fell 3.5 percent, but it still handily topped analysts' estimates.
A positive report on retail sales also helped buoy stocks. The Commerce Department said retail sales rose in June by the largest amount in five months.
In the negative column, a separate report showed that wholesale prices rose far more than expected in June and the most since November 2007, due partly to higher energy prices.
The 1.8 percent jump in the Producer Price Index, which tracks the costs of goods before they reach store shelves, follows a 0.2 percent increase in May and was much more than the 0.9 percent gain economists had expected.
That sent Treasury yields higher on worries about inflation. The yield on the 10-year note rose to 3.40 percent from 3.35 percent as its price fell 13/32.
In early trading, the Dow fell 17.54, or 0.2 percent, to 8,314.14. The Standard & Poor's 500 index slipped 1.04, or 0.1 percent, to 900.01, while the Nasdaq composite index lost 6.25, or 0.4 percent, to 1,786.96.
Yesterday’s Top Performing Small Cap stock:
U.S. Geothermal Inc. (AMEX: HTM) was a SmallCapVoice.com top performer closing up over 8% on trading volume 294,518 shares.
U.S. Geothermal Inc., a renewable energy company focused on the production of electricity from geothermal energy, owns and operates geothermal power plants at Raft River, Idaho and San Emidio, Nevada, and is developing the Neal Hot Springs project in Oregon.
Today’s SmallCapVoice.com Hot Stock to Watch:
GWS Technologies, Inc. (OTC BB: GWSC)
SmallCapVoice.com, Inc. announced today that a new audio interview featuring, GWS Technologies, Inc. an alternative energy company developing renewable energy solutions. The interview can be heard at http://smallcapvoice.com/blog/7-13-09-audio-interview-with-gws-technologies-inc-otcbb-gwsc/.
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