(RTTNews) - Stocks are mixed in mid-morning trading on Monday as traders are digesting a better-than-expected reading on leading economic indicators and upbeat earnings from Citigroup (C). Meanwhile, concerns regarding the future of Goldman Sachs (GS) remain a significant overhang for the markets.
In an upbeat sign for the economy, the Conference Board released a report showing that its index of leading economic indicators rose by 1.4 percent in March following an upwardly revised 0.4 percent increase in February.
Economists had expected the index to increase by 1 percent compared to the 0.1 percent growth originally reported for the previous month.
On the earnings front today, Citigroup (C) reported first quarter net income of $0.14 per share, compared to a loss of $0.16 per share in the prior year quarter. Wall Street analysts expected the company to record breakeven results for the period.
The company said its revenues for the quarter totaled $25.42 billion, down from $26.97 billion in the prior year quarter but well above estimates of $20.77 billion for the quarter.
Additionally, Halliburton Co. (HAL) reported first quarter net income of $0.23 per share, down sharply from $0.42 per share in the same quarter a year ago. Excluding the impact of the devaluation of the Venezuelan Bolívar Fuerte, the company said it earned $0.28 per share.
On average, analysts polled by Thomson Reuters expected the company to earn $0.25 per share for the quarter. Analysts' estimates typically exclude special items.
Eli Lilly & Co. (LLY) said its adjusted first quarter net earnings came in at $1.18 per share, topping forecasts that called for $1.10 per share for the quarter. Meanwhile, net revenues of $5.49 billion missed estimates of $5.54 billion.
The major averages are currently on opposite sides of the unchanged line, with the Nasdaq posting a modest loss. While the Nasdaq is down 1.53 points or 0.1 percent at 2,479.73, the Dow is up 12.10 points or 0.1 percent at 11,030.76 and the S&P 500 is up 1.81 points or 0.2 percent at 1,193.94.
Sector News
Health insurance stocks are some of the morning's best performers, as reflected by the 2.9 percent advance by the Morgan Stanley Healthcare Payor Index. Amerigroup (AGP) is one of the sector's leading percentage gainers, rising by 2.5 percent. The upward move has lifted the stock to its best intraday price in over two years.
Banking stocks are also seeing notable buying interest as traders are doing some bargain hunting in the sector following Friday's sell-off and amid reaction to today's earnings report from Citigroup. The Kbw Bank Index is currently up by 0.7 percent and remains near last week's seventeen-month intraday high.
Commercial real estate, biotechnology and healthcare provider stocks are also notably higher, while weakness is visible among computer hardware, semiconductor and gold stocks.
Stocks Driven By Analyst Comments
AK Steel (AKS) is moving lower after being downgraded at Longbow from Buy to Neutral. The broker cited rising iron ore prices as a reason for the ratings change. The stock has lost 3 percent and has sunk to a six-week intraday low.
Lifepoint Hospitals (LPNT) is also under pressure following a downgrade at Goldman Sachs from Neutral to Sell based on valuation. Shares are currently down by 0.7 percent after setting their lowest intraday price in roughly a month's time.
On the other hand, Endo Pharmaceuticals (ENDP) is on the rise after being upgraded at Goldman Sachs from Neutral to Buy. The stock has risen by 3.6 percent, setting a three-week intraday high.
Other Markets
Overseas, stock markets across the Asia-Pacific region closed firmly lower on Monday. Japan's benchmark Nikkei 225 Index slid by 1.7 percent, while Hong Kong's Hang Seng Index fell by 2.1 percent.
The major European markets are also moving lower. The U.K.'s FTSE 100, the French CAC 40 Index and the German DAX Index are all down by roughly 1 percent.
In the bond markets, treasuries are modestly lower. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is trading at 3.790 percent, posting a gain of 2 basis points.
by RTT Staff Writer
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