Stock Indexes Post Small Gains

The broader market ended mixed Wednesday as investors eyed reports on new home sales and durable goods. Thursday's watch list: second-quarter GDP

By Will Andrews

Major U.S. stock indexes closed slightly higher Wednesday, overcoming some earlier bouts of profit taking in the final moments of trading.

For most of the day, the market seesawed within a narrow range as investors contemplated whether to buy or take profits on recent gains. The caution came despite stronger-than-expected news concerning durable goods orders and home sales.

On Wednesday, the 30-stock Dow Jones industrial average finished higher by 4.23 points, or 0.04%, at 9,543.42. The broad Standard & Poor's 500-stock index edged higher by 0.12 points, or 0.01%, at 1,028.12. The tech-heavy Nasdaq composite index added 0.20 points, or 0.01%, to 2,024.43.

Activity in the broader market was mixed. On the New York Stock Exchange, 16 stocks were lower in price for every 14 that gained. Breadth on the Nasdaq was 14-13 positive.

While Wednesday's data suggest the housing industry is stabilizing, and the recession is ending, stock-market action indicates that equity investors "have discounted a V-shaped economic recovery", according to S&P MarketScope.

Among sectors on the move Wednesday, the S&P Homebuilding index gained 2.87% after the much better than expected news on new home sales.

The S&P General Merchandise Stores index rose 2.56% after Dollar Tree raised its fiscal 2010 guidance.

Treasuries were mixed after a successful auction of $39 billion in five-year notes. The dollar index was higher. Gold futures were lower. Crude oil futures were lower following the weekly U.S. inventory report from the Energy Dept. that showed crude oil stocks rose 200,000 barrels, gasoline fell 1.7 million barrels, and distillates rose 800,000 barrels.

On Thursday, traders will focus on the release of revised second-quarter U.S. gross domestic product (GDP) figures at 8:30 a.m. ET. S&P sees growth falling 1.5%, vs. the 1.0% decline originally reported.

In company news Wednesday, Williams-Sonoma (WSM) posted breakeven second-quarter results, vs. earnings per share (EPS) of $0.17 one year earlier, on 15% lower same-store sales and 18% lower total sales. Wall Street was looking for a loss per share of $0.09. The company sees a 12%-15% fiscal 2010 same-store sales decline, $2.844 billion-$2.944 billion in revenue, and $0.06-$0.18 GAAP EPS.

New York & Company (NWY) posted a second-quarter loss of $0.08 per share, vs. $0.14 EPS, on a 16% drop in same-store sales and a 16% total sales drop. The company said it will no longer provide specific sales and EPS guidance, but will provide meaningful trend information on business fundamentals, key metrics, and strategic initiatives. The company sees the same-store sales trend for the third and fourth quarters improving vs. the first half, with increased gross margins vs. the same periods last year.

Hain Celestial Group (HAIN) posted fourth-quarter adjusted EPS of $0.28, vs. $0.34, on a 5.5% net sales decline. Hain said foreign exchange rates negatively impacted sales by $10.7 million. Wall Street was looking for EPS of $0.30. The company sees $1.19-$1.28 fiscal 2010 EPS on sales of $1.01 billion-$1.03 billion.

Myriad Genetics (MYGN) posted $0.37 fourth quarter EPS from continuing operations, vs. $0.23, on a 33% revenue rise. The company said it is comfortable with current consensus estimate for fiscal 2010.

Dollar Tree (DLTR) reported second-quarter EPS of $0.63, vs. $0.42, on a 6.8% same-store sales rise and a 12% total sales rise. The discount retailer sees third-quarter sales of $1.19 billion-$1.23 billion, based on low to mid-single-digit positive same-store sales, and EPS of $0.58-$0.64. The company raised its fiscal 2010 guidance, and now sees sales of $5.09 billion-$5.19 billion, and EPS of $3.10-$3.25.

CNOOC Ltd. (CEO) posted first-half EPS of 0.28 renminbi, vs. 0.62 renminbi, on a 40% drop in oil and gas sales.

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