Stocks End Mixed, Bullish Momentum Remains Intact

• By the tickerspy.com Staff
• On 4:41 pm EDT, Tuesday October 13, 2009

Stocks slumbered through the day, eventually ending mixed. The market was a bit disappointed with Johnson & Johnson's (NYSE: JNJ - News) earnings, but after an early morning market sell-off, investors ultimately took the revenue miss in stride. Tomorrow's trading session will focus on Intel (Nasdaq: INTC - News), which reported strong results tonight, and JP Morgan (NYSE: JPM - News), which will announce its earnings early tomorrow morning. While today wasn't a great day for investors, the bullish momentum remains intact.

The Radio Stocks Index was the top performing tickerspy Index on the day, led by Emmis Communications Corp (Nasdaq: EMMS - News) with a 27% gain.

The market ended mixed, with the Nasdaq the only index able to squeeze out a gain, up 1 point to 2,140. The Dow fell -15 points to 9,871, while the S&P slipped -3 points to 1,073. Oil climbed 88 cents to $74.15 a barrel, while gold continued its march higher, up $7.50 to $1,065.00 an ounce.

In earnings news, healthcare giant Johnson & Johnson saw its Q3 net income rise 1% to $3.35 billion, or $1.20 per share, up from $3.31 billion, or $1.17 per share, a year ago. Revenue fell -5% to $15.08 billion. Analysts were looking for EPS of $1.13 on sales of $15.22 billion. The company raised its full-year fiscal 2010 outlook to adjusted EPS of $4.54-$4.59 from a prior forecast of $4.45-$4.55. The stock fell -2.4%. Nearly 900 Pro investors counted the stock among their top-15 holdings at the start of Q3.

Shares of Domino's Pizza (NYSE: DPZ - News) dropped -10.0% after the pizza delivery chain's Q3 top line fell short of the Wall Street consensus. For the period ended September 6th, the company earned $17.8 million, or 31 cents per share, up from $10.1 million, or 17 cents per share, a year earlier. Adjusted EPS came in at 17 cents, 2 cents ahead of analyst estimates. Revenue fell -7% to $302.7 million versus estimates of $308.9 million. Same-store sales were flat.

In M&A news, networking heavyweight Cisco (Nasdaq: CSCO - News) announced it will purchase Starent Network (Nasdaq: STAR - News) in an all cash deal. Cisco will pay $2.9 billion, or $35 a share, representing a 21% premium to Starent's closing price on Monday. The deal is expected to be dilutive to earnings in 2010 and 2011, before becoming accretive in 2012. Shares of Starent rose 16.8%. Twelve Pro investors counted Starent among their top-15 holdings at the start of Q3.

RailAmerica (NYSE: RA - News) had an inauspicious first day of trading, as the railroad freight operator fell -8.3%. The company, which was brought public by private equity firm Fortress Investment (NYSE: FIG - News), sold 22 million shares at $15 in its IPO. RailAmerica recorded a profit of $19.2 million on sales of $206.4 million in the first half of 2009. Fortress originally bought the company and took it private in 2007.

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