Stock Market Watch

Stocks in Red in Early Trading

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U.S. stocks slipped in early trading as investors weigh stronger than expected home prices data against disappointing first-quarter results from Pfizer Inc. (NYSE: PFE).

At last check, the Dow Jones Industrial Average Index fell 0.21%; the NASDAQ Composite Index slipped 0.05% while the S&P 500 Index lost 0.10%

The S&P/Case-Shiller home prices index, a gauge on single family homes prices, rose 9.3% annualized rate in February against analysts’ consensus forecast for 9% gain. This was the biggest gain in U.S. home prices since May 2006.

Although Pfizer said that its net income jumped 53% in fiscal first quarter, shares fell in early trade after the U.S.’s leading drug maker handed lower than expected quarterly earnings and revenue and provided downbeat guidance on full-year earnings. Pfizer now expects non-GAAP earnings of $2.14 to $2.24 a share, down from its original guidance of $2.20 to $2.30, on revenue of $55.3 billion to $57.3 billion.

Shares of Buffalo Wild Wings (NASDAQ: BWLD) tumbled in early trade after the restaurant chain, late last evening said that fiscal first quarter income fell by 10% due to higher wing costs. Although revenue soared 21% during the quarter and topped analysts’ expectation, adjusted earnings fell short of consensus estimate.

In the euro zone, the annual inflation rate fell 1.2% in April which is the lowest level since February 2010 while the unemployment level in the region stood at record high level of 12.1% in March, raising expectations that the European Central Bank (ECB) might further slash its benchmark interest rate. The ECB is expected to announce its policy rate statement on Thursday.

The U.S. dollar traded broadly lower as speculation is rife that the Federal Reserve, which is scheduled to announce its policy rate statement on Wednesday, might decide against tapering its ongoing monetary easing measures.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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