Business & Money News

Earnings news continued to drive stocks in early afternoon trade, as indexes powered into positive territory after a steep sleep earlier this morning.

The NYSE composite was up 0.2%, and the Nasdaq, S&P 500 and Dow were all up 0.3% at 12:55 p.m. EST. Small caps continued to outperform: The S&P 600 surged 1.4%. NYSE volume soared 53%, and the Nasdaq 33%, compared with the above-average pace seen Wednesday.

The Retail-Discount & Variety group led all industries with an 8% gain for the day. Dollar Tree Stores () and Family Dollar Stores () all racked up solid gains.

MasterCard () charged ahead 25.54 to 214.54 on heavy volume. The 14% leap cleared the stock’s 50-day moving average, putting shares within 6% of their Dec. 11 high. The global credit and transaction services provider’s Q4 earnings nearly tripled to 89 cents as share, easily topping views of 72 cents. Sales jumped 28% to $1.07 billion from $839.2 million a year ago.

Amazon () rebounded from a 7% loss in early trade to gain 0.50 to 74.71, showing the biggest volume percentage change on the S&P 500. On Wednesday, the Web’s top retailer met views with a 109% surge in fourth-quarter profit. Sales growth of 42% topped estimates, but shares slumped on weak profit margins. The stock remains below its 10- and 40-week moving averages, and is 26% below its October high.

Cameron International () tumbled 2.93 to 40.13, as volume swelled to more than four times its norm. The oil and gas drilling equipment maker reported better-than-expected Q4 earnings, but lowered its guidance for Q1. The 7% stumble drove shares well-below their 200-day moving average.

CVS Caremark () staged a powerful gap up, adding 2.60 to 38.62 in fast trade. The pharmacy chain reported Q4 earnings above views, boosted by widening margins on both its pharmacy and retail sides. The company also cited benefits of scale from its acquisition last year of heavyweight Caremark. Management also halved its original estimates for a $2 billion loss in government contracts in 2008 related to the Caremark acquisition. The 7% jump pushed the stock above its 200-day line, and now is trying to regain its 50-day line.

11:15 a.m. Update: Stocks Rise Off Lows After Early Sled Ride

By ALAN R. ELLIOTT

Stocks climbed off their early lows as investors digested a heavy dose of earnings reports and economic data.

The Nasdaq composite had slumped 0.7%, the NYSE composite 0.8% at 10:54 a.m. EST. The S&P 500 and the Dow each slipped 0.5%. Small caps moved ahead of the general market, with the S&P 600 rising 0.2%.

Transports provided a bright spot for the second day in a row. Nasdaq’s Transportation index moved up 1.1%. Dry-bulk shippers, trucking and logistics operators were that sector’s winners.

Indexes fell across Europe and China. London’s FTSE 100 dropped 1.2%, while France’s CAC-40 was off 1.5%. The Hand Seng index in Hong Kong and the Shanghai composite both slipped 0.8%. Markets in Japan and Korea notched solid gains: Tokyo’s Nikkei 225 jumped 1.9% and the Seoul composite rebounded 2.2%.

Online mortgage and credit information provider Bankrate () jumped 1.20 to 54.85, its seventh straight winning session. The heavy-volume, 4% move extends the stock’s break above resistance at 53 this week.

Nike () added 1.22 to 60.62, extending a rebound from support at its 200-day moving average. The athletic apparel maker is still off 11% from its Dec. 3 high.

On the downside, energy industry valve and fittings maker FMC Technologies () gapped down 3.05 to 47.66. The high-volume drop pushed shares back below their 200-day moving average, 30% below its October high. Analysts expect a solid 55% earnings gain in Q4 when the company announces results Feb. 14.

Covance () gapped down and plunged 6.32 to 81.78 in wicked volume. The drug development services specialist met Q4 earnings and topped revenue consensus. The gap-down loss clearly pierced the stock’s 50-day moving average and left it 16% below its Jan. 14 high.

10:15 a.m. Update: Indexes Slide At Open, But Off Lows

By Vincent Mao

Stocks stumbled out of the gate Thursday as earnings, bond insurer woes and economic news weighed. But they have shaved some losses.

At 10:04 a.m. EST, the energy-heavy NYSE composite slumped 1.3% and the financials-heavy S&P 500 1.1%. The Dow slid 1% and the Nasdaq 0.9%.

The Chicago purchasing managers index fell to 51.5 in January from 56.4 last month. That was below estimates for a dip to 52. Subindexes for jobs and new orders are below the neutral 50 level.

New Oriental Education & Technology Group () gapped down, stumbling 4% in brisk trading. Due to severe winter weather, the Chinese school operator now sees fiscal Q3 sales of $42.1 million to $44.2 million vs. analysts’ estimates of $44.74 million.

Nasdaq Stock Market () tumbled 4% in brisk trading. The exchange operator reported a 100% surge in Q4 profit, but missed views by a penny. Revenue rose nearly 16%, above views. Nasdaq didn’t give an outlook due to certain transactions that are expected to close in the first quarter.

On the upside, Gilead Sciences () gained 2%. Wachovia upgraded the biotech to outperform from market perform on valuation.

Allergan () gapped up 4%. The drug maker rallied on news that the FDA rejected competitor Medicis’ Reloxin application. Reloxin is seen as a threat to Allergan’s Botox aesthetic treatment.

9:15 a.m. Update: Stocks Set To Tumble

By VINCENT MAO

Stock futures pointed to a much weaker open Thursday on bond insurer fears and a big jump in jobless claims.

Nasdaq futures dropped 27 points vs. fair value, S&P 500 futures lost 22 points and Dow futures gave up 173 points.

In economic news, initial jobless claims jumped by 69,000 to 375,000 last week. That was the highest level since early October and much higher than economists’ expectations of 320,000. Analysts suggest the spike might be due to seasonal factors, but it’s still a sign of a weak labor market. Futures extended losses on the news.

The January jobs report will be out tomorrow.

Personal spending rose 0.2% in December, slightly above forecasts. Income climbed 0.5%, above estimates of 0.4%.

The core PCE deflator remained unchanged at 0.2%. On a year-over-year basis, core inflation rose 2.2%, or above the Fed’s comfort zone.

Meanwhile, the employment cost index rose 0.8% as expected in the fourth quarter.

The Chicago purchasing managers index for January will be out at 9:45 a.m. EST.

MBIA () fell 5% in pre-market trading. The bond insurer reported a Q4 loss of $2.3 billion, or $18.61 a share, vs. a profit of $1.32 a share in the year-ago quarter. Analysts expected a loss of $2.97 a share. The company booked $3.5 billion in write-downs on credit derivatives. MBIA also received a $500 million cash injection from private equity firm Warburg Pincus.

Group mate Ambac Financial Group () slumped 8% in the pre-market.

Amazon.com () tumbled 10% in pre-open trade. Late Wednesday, the Web’s top retailer reported a 109% surge in fourth-quarter profit, meeting views. Sales gained 42%, also above estimates. But shares slumped on weak profit margins.

This morning, Amazon said it would buy Audible.com () for $300 million in cash. Audible.com provides audio editions of books, newspapers and magazines, television and radio programs and original programming.

Cameron International () slumped 8% in the pre-open, even though the oil and gas equipment maker delivered fourth-quarter earnings of 61 cents a share, up 33% from a year earlier and a penny above views. Revenue climbed 25%, also above estimates. But it guided Q1 and full-year income below views.

MasterCard () charged up 5% in the pre-open. Excluding a one-time gain, the credit card firm’s Q4 earnings nearly tripled to 89 cents as share, easily topping views of 72 cents. Sales jumped 28% to $1.07 billion from $839.2 million a year ago.

Internet giant Google () reports after the close. Analysts expect earnings of $4.44 a share, up 40% from a year ago.

Commodities were down broadly on Monday as investors booked profits on the rally of the past weeks amid a flight from risk in financial markets.

Fresh worries about the U.S. economy, as well as lingering problems from the crisis in credit markets, have made investors more cautious after many had leveraged heavily to push up energy, grains and agricultural prices last month.

Crude oil fell more than $2 from last week’s record high above $90 a barrel.

In agricultural markets, corn and soybeans futures tumbled, while only wheat bucked the trend.

In metals, prices of almost all assets, from gold to platinum and copper, were down.

U.S. shares sank in Monday’s early trade before rebounding on the strength in technology stocks led by expectations of bullish quarterly results by Apple () released after the market close.

Citigroup () said a severe economic slowdown in the U.S. could knock mining firms heavily and downgraded its recommendations for diversified miners Anglo-American BHP Billiton, () Rio Tinto, () Kazakhmys and Vedanta.

Finance leaders from the Group of Seven industrialized nations said over the weekend that the world economy was fine but that financial market conditions required close monitoring because of shortcomings exposed by the global credit crisis which began earlier this year in the U.S.

U.S. crude ended down $1.04 or 1.2% at $87.56 a barrel, retreating from Friday’s $90.07 peak. In spite of the correction, the market was still up 12% from the lows of Oct. 8, when prices suddenly took off due to tensions in the Middle East and forecasts for tight energy inventories ahead of the Northern Hemisphere winter. London Brent crude closed 52 cents lower at $83.27.

U.S. gold futures fell 1% in heavy turnover after hitting a 10-day low. Most-active December gold on the Comex division of the New York Mercantile Exchange settled down $8.40 at $760 an ounce.

January platinum futures on the same exchange fell $8.80 to end at $1,439.80 an ounce.

U.S. copper futures settled at their lowest levels in five weeks, extending a pullback from five-month highs reached in early October and swept up in a broad-based commodity sell-off.

Comex copper for December delivery ended down 6.50 cents to $3.4865 a pound, its weakest settlement since Sept. 18.

In agricultural markets, corn for December delivery on the Chicago Board of Trade ended down 5-3/4 at $3.64-1/2 per bushel. CBOT soybeans for November settled 6-3/4 cents lower at $9.76-1/2 per bushel.

CBOT wheat for December delivery closed up 15-1/2 cents at $8.71 per bushel.

Stocks’ sell-off ramped up in the last hour of trade Wednesday, sending the major indexes back down near their intraday lows.

According to preliminary data, the NYSE composite finished with a 1.8% loss, the Dow and S&P 500 lost 1.6% each, and the Nasdaq dropped 1.3%.

The day’s action wiped out the S&P 500’s gain for the year, while a 1.3% decline put the small-cap S&P 600 down 4% year-to-date.

At 10% off their recent highs, the S&P 500 and Nasdaq are both officially in an intermediate correction.

As expected, volume was lighter going into the holiday. Decliners beat advancers by nearly a 4-to-1 margin on both exchanges.

ITC Holdings () plunged 7.35, or 13%, to 47.59 in more than eight times usual trade. That was its first close below its 50-day moving average since July. Lehman Bros. cut the electric utility to equal weight from overweight, citing downside risk if a pending ITC acquisition fails.

A handful of foreign telecoms retreated in heavier turnover. Telefonos de Mexico () gave back 1.24 to 34.37, Telefonica () 1.60 to 99.60 and Turkcell () 2.13 to 24.77.

Foreign banks were the day’s biggest losers, as Banco Itau () fell 1.82 to 23.54, Icici Bank () 4.33 to 56.10 and Credicorp () 2.32 to 69.18. All three are now below their 50-day lines.

On the upside, Deere () rose 7.06 to 152.06, regaining its 50-day line in triple normal action. The farming equipment maker reported fiscal Q4 profit that increased 57% and topped views by 33 cents a share. Increased ethanol production boosted demand for its gear.

3 p.m. ET update: Indexes Pare Losses In Late Trading

By Nancy Gondo

Stocks were off earlier lows, but continued trading in the red in late dealings.

As of 2:45 p.m. EST, the NYSE composite was down 1.1%, the Dow and S&P 500 each had lost 0.7%. The tech-heavy Nasdaq dipped 0.5%.

Volume remained lower on both exchanges ahead of the Thanksgiving holiday.

Trina Solar () gapped down and fell 11.21, or 23%, to 37.67 in more than seven times normal trade. The Chinese solar module maker reported Q3 sales above views, but its profit fell short of forecasts. The stock was trading at its lowest levels since March.

Among other solar power stocks, JA Solar () shed 3.44 to 59.61 and SunPower () 1.63 to 104.74. Both are testing their 50-day moving averages.

Investment managers extended their recent decline. Eaton Vance () lost 2.07, or nearly 5%, to 41.50, touching its 200-day moving average for the first time in two months.

T. Rowe Price Group () gave up 2.74 to 58.08 in triple average turnover. It fell below its 50-day line in its third straight down session.

On the upside, TransDigm Group () recovered 1.20 to 48.10 in above-average volume. The stock is 3% shy of its record high from Monday. The maker of aircraft engine systems and other parts recently stepped up fiscal Q4 profit growth to 63%, up from 54% and 51% in the prior two quarters.

1 p.m. ET update: Indexes Down, But Rebounding

By Vincent Mao

Stocks remained in negative territory at midday Wednesday, but they were well off session lows.

At 12:43 p.m. EST, the NYSE composite had lost 1.3%, the Nasdaq 0.9%, S&P 500 0.8% and Dow 0.6%.

Volume was tracking lower on both exchanges. That may continue for the rest of the session, as many traders were off ahead of Thanksgiving.

Crude oil reversed, falling $1.34 to $96.69 a barrel despite another drawdown in supplies.

Bidz.com () dropped 1.55, or 8%, to 17.45 in heavy trading. The online jewelry retailer was pulling back after a run-up following its quarterly earnings, posted Nov. 12.

Many Chinese and foreign issues took heat as overseas markets sold off.

China Life Insurance () slumped further south of its 50-day moving average. Shares gapped down, falling 5.55, or 7%, to 76.25.

On the upside, Bucyrus International () headed higher after a recent bounce off its 50-day moving average. Shares rose 1.17, to 81.96.

MWI Veterinary Supply () rose 0.88 to 41.63. The animal health products distributor was heading higher for the fourth straight session. Its Relative Strength line is already at a new high.

11:15 a.m ET Update: Stocks Make Sharp, Broad Declines

By Alan R. Elliott

Stocks burrowed deeper into losses in late-morning trading as oil prices nudged above $98 a barrel.

The NYSE and Nasdaq composites were both down 1.9% at 10:56 a.m. EST. The S&P 500 was down 1.5% while the Dow showed a 1.1% loss.

Volume was slightly higher on the NYSE, lower on the Nasdaq.

Crude prices held near yesterday’s close at just above $98 a barrel until Energy Information Administration data showed a second week of declining supplies. Gasoline and some gasoline blend inventories increased. But distillates, which include heating oil, dropped sharply. Crude contracts for January delivery were up 30 cents at $98.33 a barrel.

Still, energy stocks were mostly lower. Selling was broad, with only a handful of IBD’s 197 industry groups showing increases.

One energy name that was higher was Royal Dutch Shell (), which climbed 1.32 to 82.91. The natural gas and oil giant’s stock attempted to break out of a 15-week consolidation Oct. 26. It has now slipped back and is battling resistance at its 10-week moving average.

Buckle () tanked, dropping 5.24 to 32.95. The young men and women’s apparel retailer beat Q3 revenue, but fell short of earnings views. The stock cleared an 18-week consolidation on Oct. 11. It has now slipped off its Oct. 31 high to well below its 10- and 40-week moving averages.

On the upside, Siemens () rose 0.49 to 142.09. The stock was apparently unscathed by the expansion to Nigeria of bribery probes in its worldwide operations. The stock had attempted to break out of a 16-week consolidation Nov. 8. It has pulled back to test support at its 10-week moving average line.

PepsiCo () ticked up 1.16 to 76. The snack and soft drink heavyweight’s shares are etching new highs on solid volume.

10:15 a.m. ET Update: Stocks Open Lower

By Vincent Mao

Investors don’t have much to be thankful for, as the major stock indexes stumbled in early trading Wednesday.

At 10:07 a.m. EST, the NYSE composite dropped 1.3% and the Nasdaq 1.2%. The S&P 500 gave up 1.1% and the Dow 1%. A brief flurry of buying failed in the last few minutes as the major averages moved back toward their lows of the day.

Decliners swamped advancers by about 3-to-1 on the NYSE and 2-to-1 on the Nasdaq.

January crude slipped 12 cents to $98.15 a barrel ahead of the inventories report due out at 10:30 EST.

China Finance Online () gapped down and dived 4.45, or 15% to 25.15. Late Tuesday, the financial data provider reported Q3 earnings that missed First Call estimates.

Crocs () gapped down, falling 1.57 to 37.11. The footwear and apparel retailer is opening two East Coast locations on Friday, in time for the holiday shopping season.

On the upside, Google () added 3.40 to 651.94. The Internet search giant recently found support at its 50-day moving average. A few other top-tier leading stocks have made a stand at their 50-day lines.

Financial stocks continue to struggle, with the SPDR Financial ETF () down 1.7%. Mortgage giant Countrywide (), which nearly erased all of Tue.’s 20% intraday loss, is down 9% today.

9:15 a.m. ET Update: Stocks Set For Big Tumble

By Vincent Mao

Stock futures pointed to a much lower open Wednesday. Nasdaq futures tumbled 23 points vs. fair value, S&P 500 futures dropped 12 points and Dow futures lost 145 points.

Stocks’ late Tuesday rebound looks set to be short-lived.

Overseas markets were vastly lower. Hong Kong’s Hang Seng index plunged 4.1% and the Shanghai composite skidded 3.5%.

The German Dax dropped 2% and London’s FTSE 100 lost 1.5%.

Crude oil rallied as high as $99.29 a barrel in electronic trading, breaking the prior intraday record of $98.62 set last week. Worries over supply, refinery woes and the weaker dollar fueled gains. January crude oil was last up 63 cents to $98.66 a barrel ahead of the weekly energy inventory due at 10:30 a.m.

Meanwhile, the dollar continued its slide against the euro, hitting another record low. It was sharply lower against the yen, as risk-averse investors continued to unwind the yen carry trade.

In economic news, initial jobless claims fell by 11,000 last week to 333,000, matching expectations.

Yields on 10-year Treasury notes briefly slipped below 4% for the first time in two years.

Trina Solar () took heat after it reported Q3 earnings below analysts’ views. Shares swooned 14% in pre-market trading. Other solar firms looked set to decline.

Deere & Co. () ran 2% in the preopen after it delivered fiscal Q4 results comfortably above Wall St. estimates. “In 2007, Deere benefited from an improving global farm economy yet saw weakening in the construction, forestry, commercial and consumer sectors, chiefly as a result of the U.S. housing downturn,” the company said.

Patterson Cos. () tumbled 15% in the premarket. The dental supplies distributor reported fiscal second-quarter profit and sales below views. And it guided Q3 and full-year earnings below estimates.

China Medical Technologies () climbed 5% in the preopen. Late Tuesday, the maker of ultrasound products easily topped views with a 43% rise in fiscal Q2 earnings. Sales jumped 72% to $28.6 million.

The major indexes trimmed their earlier losses as the session headed toward the close, but were unable to rise to positive territory.

The Dow did venture back above the break-even mark momentarily but was down 0.4% around 2:45 p.m. EST. The S&P 500 was down 0.9% after retaking some of the territory it gave up earlier. But the Nasdaq continued to suffer and was down 2.1%. The NYSE composite was also underwater, with a 1.7% loss.

Volume was mixed a bit lower on the NYSE and a bit higher on the Nasdaq compared with this time yesterday.

The question of whether the economy has slipped into a recession and how harsh it may be is on the minds of many on Wall Street.

“Judging from recent indicators we are now prepared to say that the U.S. economy is in recession,” Sherry Cooper, chief economist at BMO Capital Markets, wrote in a newsletter today. “The marked and widespread deterioration of business, consumer and investor sentiment since the start of 2008 has prompted us to revisit and revise our forecast.”

Computer makers, farm machinery makers and steel companies have been some of the day’s worst performers. On the flip side, home builders and large regional banks both groups that have suffered nasty slides for months have seen some of the day’s biggest gains. But such beaten down stocks can be dangerous particularly in the grip of a nasty bear market like the one we’re in.

Sectors traditionally seen as defensive, such as health care, haven’t been spared from sellers.

Coventry Health Care () plunged 3.53 to 55.20, slicing through both its 50-day and 200-day moving averages. Volume was more than three times heavier than usual.

Parexel () slipped 2.11 to 49.22 on more than three times typical trade. It has fallen 10% since hitting a record high Jan. 17. The drug testing company is scheduled to release its quarterly earnings results after today’s close.

Green Mountain Coffee Roasters () dropped 2.26 to 32.83 as trade more than tripled. Yesterday it dropped below its 50-day moving average on drastic volume.

1 p.m. EST update: Indexes Testing Fresh Session Lows

By MARIE BEERENS

Major indexes sank further by early afternoon after an earlier attempt at recovery failed.

By 1 p.m. EST, the Nasdaq composite dropped 3.4%, while the NYSE sank 3.2%. The S&P 500 was off 2.5%, the Dow fell 2.2%. Volume was still tracking lower on both the NYSE and the Nasdaq.

The declines came after cautious outlooks by several companies and the European Central Bank’s statement that it would not lower interest rates.

Siemens () sank 8.92, or 7%, to 116.26, further sliding below its 200-day moving average on 3 1/2-times normal turnover. The German industrial conglomerate is facing a bribery scandal.

Core Laboratories () fell 6.62, or 6%, to 105.62 on more than triple is usual trade. The Dutch provider of petroleum reservoir management services peaked in early November and has been sliding since.

Solar power stocks sold off as crude prices pulled back on concerns of lower demand.

Suntech Power Holdings () sank 7.43, or 13%, to 48.92 on triple its regular volume. The Chinese solar-cell maker has sunk to its 200-day line.

First Solar () tumbled 27.15, or 15%, to 155.63 on more than double its average turnover. Wedbush Morgan initiated coverage on the Phoenix-based solar firm with a hold rating on Wednesday.

11:15 a.m. Update: Stocks Climb Off Early Lows

By ALAN R. ELLIOTT

A steep slide, fed by some high-profile earnings outlooks and mounting economic fears, eased in late-morning trading. But indexes remained in negative territory.

The Nasdaq composite had slumped 1.6%, and the NYSE had ceded 1.8% after recovering slightly from another poor opening. The Nasdaq’s computer and telecommunications indexes were pulling hardest, down 2.7% and 2.5%, respectively. The S&P 500 sank 1.2%, the Dow 1.1%. Volume was about 15% lower on both sides of the aisle.

Crude oil prices slid $1.44 to $87.77 a barrel. Concerns that economic slowing will cut into demand led crude’s decline. Some reports also said traders were selling commodities to cover margin calls in other markets. Oil dipped as low as 85.42 in intraday trading Tuesday.

A number of stocks managed gains.

Stanley () jumped 1.53 to 31.15 on strong volume. The gap-up gain follows Tuesday’s 5% spike, and adds a second day to the IT enterprise engineer’s recovery from an analyst downgrade Jan. 18. The stock is just below its 50-day moving average, and 20% below its Dec. 4 high. Stanley plans to announce its fiscal Q3 earnings Jan. 31. Analysts expect a 367% increase.

Somanetics () popped up 1.31, or 5%, to 21.26 on very heavy volume. The maker of medical blood-oxygen monitors topped sales and earnings views, nailing EPS of 67 cents vs. estimates of 65 cents for the fiscal year. The stock rebounded from support at its 40-week moving average, nearly retaking its 10-week line. It has been consolidating since Dec. 27 and is 14% below its high.

Federated Investors () tipped up 1.34 to 42.04. The move hoisted the investment adviser off its 50-day moving average after slumping out of a breakout from a nine-week cup-shaped base.

On the downside, CNH Global () toppled 9.34 to 50.30 after beating 2007 views but offering 2008 guidance below consensus estimates. The move dragged the agricultural equipment maker, the old Case-New Holland, off its 50-day moving average to well below 200-day support.

10:15 a.m. Update: Indexes Fight Back From Bad Open

By VINCENT MAO

Stocks plunged out of the gate Wednesday, but they are off session lows thus far.

At 10 a.m. EST, the NYSE composite shed 1.7%, the Nasdaq 1.5%, the S&P 500 1.2% and the Dow 1%.

Shares of Apple (), which sank 12%, pressured techs. The Nasdaq 100, which excludes financials, plunged 2.6% and the Philadelphia semiconductor index stumbled 3.2%.

Volume was tracking much lower on both exchanges.

Research In Motion () dropped 5.56, or 6%, to 84.50. The BlackBerry device maker managed to bounce off its 200-day moving average in Tuesday’s session.

Nokia () gapped down, falling 1.34 to 30.35. The cell phone maker reports Q4 results Thursday. Analysts expect profit of 62 cents a share on revenue of $21 billion.

Google () sliced its 200-day line. Shares dived 22.20 to 561.95. The Internet search firm’s Accumulation/Distribution Rating is now at E, down from A in November.

Freeport-McMoRan Copper & Gold () also gapped down, tumbling 8.51, or 11%, to 73.01 in heavy trading. The mining firm reported Q4 earnings of $1.07 a share, down 46% from the prior year and well below views of $1.68. But sales more than doubled to $4.18 billion.

9:15 a.m. EST update: Stocks Headed For Another Nasty Open

By Vincent Mao

Stock futures pointed to another dismal open Wednesday, hurt by a weak outlook from Apple and ongoing recession woes.

Nasdaq futures tumbled 112 points vs. fair value, S&P 500 lost 69 points and Dow futures dropped 273 points.

Asian markets bounced back. Hong Kong’s Hang Seng rocketed 10.7%, the Shanghai composite gained 3.1% and Nikkei rose 2%. European indexes continued to bleed. The Dax tumbled 3.4% and the FTSE 100 gave up 1.8%.

There are no economic reports on the session. The yen hit a 2 1/2 year high against the dollar.

Apple () skidded 10% in the pre-market despite a strong fiscal Q1 earnings report. Late Tuesday, the company posted profit of $1.76 a share, up 54% from a year earlier and well above views of $1.62. Sales climbed 35%, also above views. But sales of its iPod music players were up only 5% during the quarter. And Apple guided earnings and sales for the current quarter below analysts’ estimates.

Motorola () tumbled 10% in the pre-open. The telecom equipment maker reported fourth-quarter earnings of 4 cents a share, down 82% from the year-ago quarter, missing views of 13 cents. Sales fell 18% to $9.65 billion. The company also warned that a turnaround in its handsets unit will take more time than anticipated. Motorola predicted a loss of 5 cents to 7 cents a share in the first quarter. Analysts expected a profit of 10 cents a share.

Coach () climbed 5% in pre-market trading. The handbag and luxury goods retailer reported fiscal Q2 earnings of 69 cents a share, up 21% from a year earlier and a penny above views. Sales rose 21% to $978 million, also above views. Despite a slowdown in consumer spending, Coach sees full-year profit of $2.06 a share vs. views of $2.04. But it guided revenue at $3.15 billion vs. estimates of $3.16 billion.

Ebay () slipped 2% in pre-open trading. The Internet auction firm reports earnings after the close. Analysts see profit rising 32% to 41 cents a share. Chief Executive Meg Whitman is expected to announce her retirement.

Earnings news continued to drive stocks in early afternoon trade, as indexes powered into positive territory after a steep sleep earlier this morning.

The NYSE composite was up 0.2%, and the Nasdaq, S&P 500 and Dow were all up 0.3% at 12:55 p.m. EST. Small caps continued to outperform: The S&P 600 surged 1.4%. NYSE volume soared 53%, and the Nasdaq 33%, compared with the above-average pace seen Wednesday.

The Retail-Discount & Variety group led all industries with an 8% gain for the day. Dollar Tree Stores () and Family Dollar Stores () all racked up solid gains.

MasterCard () charged ahead 25.54 to 214.54 on heavy volume. The 14% leap cleared the stock’s 50-day moving average, putting shares within 6% of their Dec. 11 high. The global credit and transaction services provider’s Q4 earnings nearly tripled to 89 cents as share, easily topping views of 72 cents. Sales jumped 28% to $1.07 billion from $839.2 million a year ago.

Amazon () rebounded from a 7% loss in early trade to gain 0.50 to 74.71, showing the biggest volume percentage change on the S&P 500. On Wednesday, the Web’s top retailer met views with a 109% surge in fourth-quarter profit. Sales growth of 42% topped estimates, but shares slumped on weak profit margins. The stock remains below its 10- and 40-week moving averages, and is 26% below its October high.

Cameron International () tumbled 2.93 to 40.13, as volume swelled to more than four times its norm. The oil and gas drilling equipment maker reported better-than-expected Q4 earnings, but lowered its guidance for Q1. The 7% stumble drove shares well-below their 200-day moving average.

CVS Caremark () staged a powerful gap up, adding 2.60 to 38.62 in fast trade. The pharmacy chain reported Q4 earnings above views, boosted by widening margins on both its pharmacy and retail sides. The company also cited benefits of scale from its acquisition last year of heavyweight Caremark. Management also halved its original estimates for a $2 billion loss in government contracts in 2008 related to the Caremark acquisition. The 7% jump pushed the stock above its 200-day line, and now is trying to regain its 50-day line.

11:15 a.m. Update: Stocks Rise Off Lows After Early Sled Ride

By ALAN R. ELLIOTT

Stocks climbed off their early lows as investors digested a heavy dose of earnings reports and economic data.

The Nasdaq composite had slumped 0.7%, the NYSE composite 0.8% at 10:54 a.m. EST. The S&P 500 and the Dow each slipped 0.5%. Small caps moved ahead of the general market, with the S&P 600 rising 0.2%.

Transports provided a bright spot for the second day in a row. Nasdaq’s Transportation index moved up 1.1%. Dry-bulk shippers, trucking and logistics operators were that sector’s winners.

Indexes fell across Europe and China. London’s FTSE 100 dropped 1.2%, while France’s CAC-40 was off 1.5%. The Hand Seng index in Hong Kong and the Shanghai composite both slipped 0.8%. Markets in Japan and Korea notched solid gains: Tokyo’s Nikkei 225 jumped 1.9% and the Seoul composite rebounded 2.2%.

Online mortgage and credit information provider Bankrate () jumped 1.20 to 54.85, its seventh straight winning session. The heavy-volume, 4% move extends the stock’s break above resistance at 53 this week.

Nike () added 1.22 to 60.62, extending a rebound from support at its 200-day moving average. The athletic apparel maker is still off 11% from its Dec. 3 high.

On the downside, energy industry valve and fittings maker FMC Technologies () gapped down 3.05 to 47.66. The high-volume drop pushed shares back below their 200-day moving average, 30% below its October high. Analysts expect a solid 55% earnings gain in Q4 when the company announces results Feb. 14.

Covance () gapped down and plunged 6.32 to 81.78 in wicked volume. The drug development services specialist met Q4 earnings and topped revenue consensus. The gap-down loss clearly pierced the stock’s 50-day moving average and left it 16% below its Jan. 14 high.

10:15 a.m. Update: Indexes Slide At Open, But Off Lows

By Vincent Mao

Stocks stumbled out of the gate Thursday as earnings, bond insurer woes and economic news weighed. But they have shaved some losses.

At 10:04 a.m. EST, the energy-heavy NYSE composite slumped 1.3% and the financials-heavy S&P 500 1.1%. The Dow slid 1% and the Nasdaq 0.9%.

The Chicago purchasing managers index fell to 51.5 in January from 56.4 last month. That was below estimates for a dip to 52. Subindexes for jobs and new orders are below the neutral 50 level.

New Oriental Education & Technology Group () gapped down, stumbling 4% in brisk trading. Due to severe winter weather, the Chinese school operator now sees fiscal Q3 sales of $42.1 million to $44.2 million vs. analysts’ estimates of $44.74 million.

Nasdaq Stock Market () tumbled 4% in brisk trading. The exchange operator reported a 100% surge in Q4 profit, but missed views by a penny. Revenue rose nearly 16%, above views. Nasdaq didn’t give an outlook due to certain transactions that are expected to close in the first quarter.

On the upside, Gilead Sciences () gained 2%. Wachovia upgraded the biotech to outperform from market perform on valuation.

Allergan () gapped up 4%. The drug maker rallied on news that the FDA rejected competitor Medicis’ Reloxin application. Reloxin is seen as a threat to Allergan’s Botox aesthetic treatment.

9:15 a.m. Update: Stocks Set To Tumble

By VINCENT MAO

Stock futures pointed to a much weaker open Thursday on bond insurer fears and a big jump in jobless claims.

Nasdaq futures dropped 27 points vs. fair value, S&P 500 futures lost 22 points and Dow futures gave up 173 points.

In economic news, initial jobless claims jumped by 69,000 to 375,000 last week. That was the highest level since early October and much higher than economists’ expectations of 320,000. Analysts suggest the spike might be due to seasonal factors, but it’s still a sign of a weak labor market. Futures extended losses on the news.

The January jobs report will be out tomorrow.

Personal spending rose 0.2% in December, slightly above forecasts. Income climbed 0.5%, above estimates of 0.4%.

The core PCE deflator remained unchanged at 0.2%. On a year-over-year basis, core inflation rose 2.2%, or above the Fed’s comfort zone.

Meanwhile, the employment cost index rose 0.8% as expected in the fourth quarter.

The Chicago purchasing managers index for January will be out at 9:45 a.m. EST.

MBIA () fell 5% in pre-market trading. The bond insurer reported a Q4 loss of $2.3 billion, or $18.61 a share, vs. a profit of $1.32 a share in the year-ago quarter. Analysts expected a loss of $2.97 a share. The company booked $3.5 billion in write-downs on credit derivatives. MBIA also received a $500 million cash injection from private equity firm Warburg Pincus.

Group mate Ambac Financial Group () slumped 8% in the pre-market.

Amazon.com () tumbled 10% in pre-open trade. Late Wednesday, the Web’s top retailer reported a 109% surge in fourth-quarter profit, meeting views. Sales gained 42%, also above estimates. But shares slumped on weak profit margins.

This morning, Amazon said it would buy Audible.com () for $300 million in cash. Audible.com provides audio editions of books, newspapers and magazines, television and radio programs and original programming.

Cameron International () slumped 8% in the pre-open, even though the oil and gas equipment maker delivered fourth-quarter earnings of 61 cents a share, up 33% from a year earlier and a penny above views. Revenue climbed 25%, also above estimates. But it guided Q1 and full-year income below views.

MasterCard () charged up 5% in the pre-open. Excluding a one-time gain, the credit card firm’s Q4 earnings nearly tripled to 89 cents as share, easily topping views of 72 cents. Sales jumped 28% to $1.07 billion from $839.2 million a year ago.

Internet giant Google () reports after the close. Analysts expect earnings of $4.44 a share, up 40% from a year ago.