TK: U.S. Stocks Struggle; Durable Orders Fall 1.3%
9:35 AM New York – U.S. stocks in early trading searched for a direction after Microsoft and Amazon.com reported higher earnings but some analysts were looking for larger gains. March durable goods orders declined 1.3%. U.S. Senate approves $3.7 trillion tax plan.
Stocks in the early trading searched for a direction after Amazon.com and Microsoft reported higher earnings. Stocks of both companies traded lower after some analysts were looking for larger gains.
Durable goods orders declined 1.3% in March and February orders were revised higher to 1.1%. Orders excluding volatile transportation and defense orders increased.
U.S. Senate Approves Tax Plan
The U.S. Senate panel has approved a $3.7 trillion budget plan to review government spending. The Senate Budget Committee anticipates next fiscal deficit will total $1.26 trillion, down from the panel’s estimate of $1.44 trillion in the current fiscal year.
Durable Goods and New Home Purchases Improving
March durable goods orders decreased 1.3% or $2.2 billion to $176.7 billion from the revised February orders increase of 1.1%. This decrease followed three consecutive monthly increase including 1.1% in February. Orders excluding transportation orders increased 2.8% and defense increased 4%.
Commodities, Currencies and Yields
Dollar edged lower against euro to $1.3308 and increased against the Japanese yen to 93.51.
Crude oil decreased $0.06 to $83.64 a barrel for a front month contract, natural gas edged lower $0.03 cent to $4.10 per mBtu and gasoline increased 0.170 cents to 230.19 cents.
Gold decreased $2.20 in New York trading to close at $1,140.70 per ounce, silver closed lower $0.104 to $17.93 per ounce and copper for the front month delivery decreased 0.250 cents to $3.50 per pound.
Yields on 10-year U.S. bonds increased to 3.78% and on 30-year U.S. bonds traded at 4.64%.
Stock Movers
Acura Pharmaceuticals, Inc. plunged 43.5% after the company did not have enough evidence to support the approval of the new drug application for Acurox(R) tablets for the treatment of moderate to severe pain.
Amazon.com declined 3.2% after it first quarter sales rose 46% and net surged 69%.
American Express Company rose 1.7% after the credit-card issuer first quarter net income rose 103%.
Microsoft Corp declined 0.9% after third quarter revenues increased 6.6% and net jumped 34.5%.
Synaptics Incorporated increased 8.5% after the maker of touch pads for digital music players and electronic devices said third quarter revenue increased 16% to $116.2 million from $100.6 million a year ago.
