Dow Watch: Merck Leads, but BofA Slumps

Updated from 5:11 p.m. EST

Next Up, Kraft

(At 5:48 p.m. EST)
Disney (DIS Quote) was awful following the close, but in regular trading the Dow Jones Industrial Average had a positive day, climbing 141.53 points, or 1.8%, to 8078.36. That broke a string of three straight losses.

On Wednesday, earnings are expected from Dow component Kraft Foods (KFT Quote) ahead of the open. Disney, though, threatens to be a drag on the index once the session begins.

Not a Lot to Like Here

(At 5:01 p.m. EST)
Disney shares were getting taken apart after the close of trading Tuesday, plunging 10.2% to $18.51. What's the problem? Earnings, specifically the decline in them.

Net income for the fiscal first quarter slid 32% year over year and earnings per share dropped to 45 cents from 63 cents, falling short of expectations. Revenue was down 8% to $9.6 billion and was weaker at all three of the biggest divisions -- media networks, parks and resorts and studio entertainment.

Consumer-products revenue grew 18%, but operating income for the segment fell 8%.

Upbeat Day

(At 4:18 p.m. EST)

Preliminary closing numbers showed the Dow Jones Industrial Average up almost 142 points, or 1.8%, at 8078 on the day. Merck (MRK Quote) was the best percentage gainer, rising 6.4% to $30.24, on the heels of its quarterly report and outlook. Alcoa (AA Quote) and Hewlett-Packard (HPQ Quote) rose more than 4% each.

Seven stocks fell, and 23 rose. Among the decliners, Bank of America (BAC Quote) was the worst stock, losing 11.7% to $5.30, and was again the most heavily traded.

This Is Really Getting Ridiculous

(At 2:34 p.m. EST)

GM (GM Quote). Just horrible. But is anyone really surprised? The automaker said U.S. dealers delivered 129,227 vehicles in January, down 49% from a year ago. Fleet sales plunged 80% to the lowest point since 1975. Retail sales sank 38%.

Reading the GM press release on its performance in the first month of the year, combined with the numbers from other carmakers (Ford (F Quote), for instance, had a 40% drop), it's hard not to go along with those who have already written Detroit's obituary.