U.S. Stocks Rally As Earnings Buoy Sentiment
Tuesday, January 10, 2022 12:42 PM

U.S. stocks rallied in mid-day trade, with support coming from encouraging start to the corporate earnings season driven by bullish outlook from Alcoa.S&P 500 Index advanced 0.98 percent to trade at 1,293.25. The Dow Jones Industrial Average gained 0.73 percent to trade at 12,483.09. The Nasdaq Composite Index rose 1.00 percent.

In corporate news, Alcoa Inc. (NYSE: AA) is up 0.6 percent to trade at $9.49. The company said it expects global aluminum demand to grow 7 percent this year. Fourth- quarter revenue rose 6 percent to $6 billion, topping analysts’ expectations of $5.7 billion. The company reported a quarterly loss, its first since 2009. Excluding items, loss from continuing operations was 3 cents per share, wider than Wall Street projections of a loss of 2 cents per share.

Tiffany & Co. (NYSE: TIF) slumped 11.2 percent to $59.40. The luxury jewelry retailer cut its annual profit forecast, blaming markedly weak sales in the United States and Europe during the holiday season. The New York-based company, which joins other retailers in issuing disappointing earnings outlook, said it now expects earnings per share between $3.60 and $3.65 from prior expectations of $3.70 to $3.80. Wall Street analysts expect earnings of $3.76 per share.

WebMD Health Corp. (NASDAQ:WBMD) plunged 24.9 percent to $27.55. The New York-based company said it has terminated talks with potential acquirers and its process to review a potential sale of the company. It also announced the resignation of Chief Executive Wayne Gattinella and the health information services provider also warned of lower revenue for 2012.

Cirrus Logic Inc. (NASDAQ: CRUS) jumped 12.6 percent after the integrated circuits developer lifted third-quarter revenue forecast, above Wall Street expectations and also issued fourth quarter guidance ahead of consensus. It sees third quarter revenue of about $122 million, up from its prior view of between $102 million and $108 million. For the fourth quarter, CRUS projects revenue of $105 million, while analysts expect $98.49 million.

Liz Claiborne Inc. (NYSE:LIZ) dropped 12.6 percent to $8.67 after the company trimmed its 2012 forecast for adjusted earnings before interest, taxes, depreciation and amortization in the range of $125 million to $140 million, from prior view $130 million to $150 million. The New York-based company also said its chief financial officer Andrew Warren will be resigning effective March 16.

hhgregg Inc. (NYSE:HGG), an appliance and electronics retailer, trimmed its full-year earnings view and expects a fall in third quarter profit, citing lower-than-expected margins in the video category and higher advertising spending. The Indianapolis-based company now expects earnings per share in the range of $1.05 to $1.15 from prior expectations of $1.26 to $1.41. Analysts expect earnings of $1.34 per share. For the third quarter, hhgregg expects earnings per share of 60 cents, down from 66 cents in the year-ago quarter, while Wall Street projects 77 cents. Shares are off 15.2 percent to $11.13 in mid-day trade.

The euro advanced 0.10 percent to 1.2743 against the dollar and the greenback edged down 0.01 percent against the yen.

Crude oil futures strengthened 1.63 percent to $102.96/barrel, while gold futures were sharply higher by 1.82 percent.

The European markets ended sharply higher, supported by upbeat industrial production data from France and encouraging comments from Fitch Ratings about the region as well as bullish outlook from Alcoa. U.K. FTSE 100 closed 1.67 percent higher, German DAX30 gained 2.43 percent and French CAC 40 closed 2.58 percent higher.