BOSTON (TheStreet) -- Here are the top stock market headlines for the morning of Tuesday, July 20, 2010.
Tuesday's Earnings Roundup
- Goldman Sachs (GS) - Get Report posted a second-quarter adjusted profit of $2.75 a share, which excludes charges related to the U.K. bank tax and the settlement with the Securities and Exchange Commission. Including those charges, earnings were 78 cents a share, Goldman said. Net revenue fell to $8.84 billion from $13.7 billion a year earlier, below the $8.94 billion consensus target. Net revenue from investment banking fell 23% from the first quarter, while net revenue from trading and principal investments dropped 36% from the first quarter of 2010.
- Johnson & Johnson (JNJ) - Get Report posted a second-quarter adjusted profit of $1.21 a share on revenue of $15.33 billion, compared to estimates for a profit of $1.21 a share on sales of $15.64 billion. Citing voluntary recalls, J&J cut its full-year earnings guidance to a range of $4.65 to $4.75 a share, down from the previous range of $4.80 to $4.90 a share and below the Thomson Reuters target of $4.81 a share.
- UnitedHealth Group (UNH) - Get Report said it had second-quarter earnings of 99 cents a share on revenue of $23.26 billion, compared to the Thomson Reuters average estimate for a profit of 75 cents a share on revenue of $22.97 billion. Looking ahead, UnitedHealth raised its full-year earnings guidance to a range of $3.40 to $3.50 a share, up from its prior guidance of $3.15 to $3.35 a share and better than the consensus target of $3.33 a share.
- PepsiCo (PEP) - Get Report notched a second-quarter adjusted profit of $1.10 a share, coming in 2 cents better than the Thomson Reuters average estimate. Sales of $14.8 billion was also slightly above consensus. Pepsi reaffirmed its full-year guidance, saying it still expects core constant currency earnings-per-share growth of 11% to 13%.
- Bank of New York Mellon (BK) - Get Report matched the Thomson Reuters average estimate with a second-quarter profit of 54 cents a share. Assets under custody and administration totaled $21.8 trillion, a 6% increase from a year ago.
- State Street (STT) - Get Report said it had second-quarter earnings of 93 cents a share, as the company preannounced. Revenue of $2.3 billion was in line with consensus estimates. State Street said it expects full-year earnings to be "slightly higher than" $3.32 a share, compared to the Thomson Reuters average estimate of $3.34 a share.
- Biogen Idec (BIIB) - Get Report posted a second-quarter adjusted profit of $1.31 a share on revenue of $1.21 billion, compared to the Thomson Reuters average estimate for earnings of $1.12 a share on revenue of $1.13 billion. Biogen Idec upped its full-year earnings estimate to $4.70 a share from $4.55, above the consensus target of $4.57 a share.
- Harley-Davidson (HOG) - Get Report announced second-quarter earnings of 59 cents a share on revenue of $1.14 billion, above the consensus for earnings of 41 cents a share on revenue of $1.13 billion. Harley-Davidson also increased its full-year projection for gross margins.
- IBM (IBM) - Get Report said late Monday it had a second-quarter profit of $2.61 a share on revenue of $23.72 billion, compared to the Thomson Reuters average estimate for earnings of $2.58 a share on revenue of $24.17 billion. For the full year, IBM said it expects earnings of at least $11.25 a share, up from its prior target for earnings above $11.20 a share. Analysts are forecasting a full-year profit of $11.27 a share.
Tuesday's Early Headlines
- Housing Starts Drop in June; Building Permits Rise -- The Commerce Department said U.S. housing starts fell 5% in June to an annualized rate of 549,000, the lowest level in eight months. Economists had forecasted that housing starts would slip to 575,000, according to Briefing.com. May's housing starts were revised to a 14.9% decline from the previous report of a 10% slide. On the other hand, building permits rose 2.1% last month to 586,000, above the consensus target of 572,000.
- BP Well Cap Leaky, White House Says -- BP's (BP) - Get Report new well cap is leaking at its top, although the small leaks do not appear to be "consequential," National Incident Commander Thad Allen told reporters late Monday, according several media reports. Meanwhile, BP said that seepage from the Gulf of Mexico well is "naturally occurring," according to scientists' conclusions.
- Intel Settles with FTC: Report -- Intel (INTC) - Get Report will settle charges with the Federal Trade Commission that the chipmaker used tactics to dissuade customers from making purchases from its rivals, The Financial Times reports, citing a person familiar with the matter. The settlement will not involve a fine, the report says, but will force Intel to make concessions on its business practices.
- Nokia Searching for New CEO: Report -- Nokia (NOK) - Get Report is looking to replace CEO Olli-Pekka Kallasvuo as the handset maker continues to struggle amid increasing competition, The Wall Street Journal reports. "They are serious about making a change,'' one person familiar with the matter told the Journal. Nokia's board is expected to make a decision by the end of July, the person added.
- Toyota Subpoeanaed by Federal Grand Jury -- Toyota (TM) - Get Report has been subpoenaed by a federal grand jury in New York to turn over documents related to steering problems in some of its cars. Toyota, in a statement Tuesday, said it would cooperate with the probe.
-- Written by Robert Holmes in Boston
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