Tuesday, January 26, 2010

Tuesday Morning (TRV, JNJ, VZ)

After a weak start, the DJIA is up about half a percent.

Several Dow30 components have reported earnings. Johnson & Johnson (JNJ) shares are down but rebounding, after beating EPS expectations by 5cents. The weakness in shares is likely due to tepid 2010 guidance, which disappointed some investors.

Dow30 member Travelers (TRV) beat BIG, with q4 earnings of 2.12 per share versus the street expectation of 1.49. Says the firm, ""Our retention rates remained high and the impact of renewal rate changes on premiums remained positive across all three of our business segments. This pricing dynamic is generally better than recent industry surveys."

The weakest DJIA member is Verizon, off 2.6% despite a generally in-line quarter. Investors may be unexcited about the necessity of continued massive CAPEX, and the potential for margin destruction when the firm offers its customers the iPhone.

A S&P500 sector heatmap, from Finviz:

Copyright 2010 AlphaNinja

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