Stocks are stuck below the unchanged mark in early afternoon trading on Friday, as traders have turned to profit taking amid a day with no significant economic news. The major averages are all in negative territory, moving further off of the yearly highs set on Tuesday.
Some of the day's pullback has come amid a negative reaction to quarterly results from computer marker Dell (DELL), which reported third quarter earnings and revenues that came in below analyst estimates.
Retailer Ann Taylor (ANN), homebuilder D.R. Horton (DHI) and branded food products maker J. M. Smucker (SJM) also reported their quarterly results.
In other corporate news, mobile phone giant Nokia Corp. (NOK) said this morning that it plans to align its research and development operations in Finland and Denmark, effectively eliminating up to 330 R&D jobs.
On the global economic front, the Bank of Japan unanimously decided to retain the overnight call rate at 0.1 percent, in line with economist expectations. The last change in the rate was a 0.1 percentage point cut in interest rates at the December 2008 meeting.
The major averages have all seen choppy movement in recent trading, lingering firmly in negative territory. The Dow is currently down 48.89 at 10,283.55, the Nasdaq is down 18.44 at 2,138.38 and the S&P 500 is down 7.00 at 1,087.90.
Sector News
Housing stocks continue to post steep losses in early afternoon trading, with the Philadelphia Housing Sector Index currently down by 2.9 percent. Despite the pullback, the index remains stuck in a recent trading range.
D.R. Horton is one of the leading decliners in the sector, falling by 9.9 percent and setting its lowest intraday level in three weeks. The stock is on pace to end the session at its worst closing price in almost seven weeks.
The sharp pullback by the homebuilder comes after the firm reported a fourth quarter net loss of $0.73 per share, far wider than the forecast loss of $0.30 per share. Revenues also fell short of the consensus estimate, coming in at $1.01 billion compared to expectations of $1.11 billion.
Networking stocks are also markedly weaker, as reflected by the 1.9 percent loss currently being shown by the NYSE Arca Networking Index. Disappointing earnings and guidance from ADC Telecommunications (ADCT) have contributed to the selling pressure in the sector.
Computer hardware, semiconductor, oil service, gold and steel stocks are also considerably lower, further representing the day's weakness in the tech and resource segments.
Stocks In The News
Chordiant Software (CHRD) is moving considerably lower in early afternoon trading after the company reported a fourth-quarter net loss that was wider than analysts had anticipated. Revenues also failed to meet analyst estimates. The stock has fallen by 6.5 percent, hitting an eight month intraday low earlier in the session.
Business and financial management solutions provider Intuit (INTU) is also retreating after forecasting a second quarter profit ranging from $0.29 to $0.32 per share compared to the Wall Street forecast of $0.37 per share. The stock is currently down by 3 percent.
On the other hand, Hibbett Sports (HIBB) is on the rise after the firm increased its full year 2010 earnings forecast to a range between $0.95 and $1.02 per share, from prior expectations of $0.85 to $0.95 per share. The stock has jumped by 3.7 percent, although it remains in a trading range.
In Focus: Earnings News
As mentioned above, Dell reported third quarter earnings that fell to $0.17 per share from $0.37 per share in the year-ago quarter. Excluding one-time items, the company earned $0.23 per share compared to analyst estimates of $0.28 per share.
Revenue for the quarter fell 15 percent to $12.9 billion, coming in below analyst estimates of $13.18 billion. Looking forward, Dell said it expects fourth quarter revenue to improve over the third quarter.
Ann Taylor Stores reported third quarter net income of $0.03 per share, compared to a net loss $0.24 per share last year. Adjusted net income, excluding items, was $0.20 per share, beating the forecast of $0.07 per share. Despite topping on the bottom line, the firm's revenues fell short of expectations.
J. M. Smucker Co. said its adjusted second-quarter net income rose to $1.22, beating the forecast of $1.04 per share for the quarter. Net sales for the latest quarter rose 52 percent to $1.28 billion, exceeding the $1.24 billion estimated by analysts.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region closed mostly lower on Friday. Japan's benchmark Nikkei 225 Index fell by 0.5 percent, while Hong Kong's Hang Seng Index closed down by 0.8 percent.
The major European markets also closed moderately lower, with the U.K.'s FTSE 100 Index falling by 0.3 percent, while the French CAC 40 Index and the German DAX Index closed down by 0.8 percent and 0.7 percent, respectively.
In the bond markets, treasuries remain little changed. Subsequently, the yield on the benchmark ten-year note is holding at 3.347 percent.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.