Indexes drifted lower in light trading to end near the bottoms of the session’s ranges.
HMOs continued to tumble, and a broad range of industries lost ground. Oil prices pegged midday highs above $110 a barrel.
The NYSE composite dipped 0.7% and the Nasdaq 0.5% by the end of the day. Financials, transports, energy and telecommunications all took solid hits.
The S&P 500 skidded 0.9%, the Dow 0.4%.
Preliminary data showed volume well below Tuesday’s busy trading.
The market’s bearish reversal was a disappointing follow-up to Tuesday’s surge. Still, the lower volume meant institutional investors didn’t unload shares in huge quantities.
Airlines were among the hardest-hit industry groups, nailed by ballooning oil prices, a Southwest Airlines () decision to ground 44 aircraft, and a sector downgrade from JPMorgan.
Refiners were also slammed by pricey oil. The Internet content group saw the day’s healthiest performance, up about 2%.
Humana () tumbled 6.50 to 40.88, weighing heavily on the S&P 500 in a second day of heavy-volume losses. Humana’s 24% drop on Tuesday followed profit warnings from peer WellPoint (). Today’s 13% drop followed Humana’s significantly reduced Q1 and full-year outlooks.
Immucor () plunged 6.59 to 20.96. A maker of blood test systems used by hospitals, clinics and labs, the company said it had agreed to pay $117 million for Warren, N.J.-based BioArray Solutions. The company said the acquisition could cut its earnings by 20-23 cents a share in the first year.
On the upside, Caterpillar () plowed up 2.64 to 75.25 after reiterating its full-year earnings guidance and putting its revenue outlook at the upper end of previous forecasts. The company cited demand for its heavy earth-moving and construction equipment in emerging markets. The stock reclaimed its 40-week line for the first time in 14 weeks.
Russian steel producer Mechel () jumped 5.66 to 135.25. Shares are up 39% for the year and just below their March 5 record. Other steel producers also posted gains, lifting the group about 1% for the day.
3:15 p.m. Update: Indexes Turn Mixed In Late Trading
By VINCENT MAO
Stocks continued to pare gains and turned mixed in late trading Wednesday.
At 2:50 p.m. EDT, the Nasdaq was up 0.7%, the Dow 0.5%, and S&P 500 0.2%. Meanwhile, the NYSE composite eased 0.1%.
Turnover was still tracking lower on both exchanges.
The SPDR Financial ETF () reversed lower, dipping 0.11 to 25.07 after being up as much as 25.91. Financials were the big winners in Monday’s market rally.
Herbalife () gained 2.10, or 5%, to 46.60. Earlier, the nutrition and weight-management company etched a new peak. The stock made the IBD 100 this week at No. 76. Herbalife recently delivered a 34% jump in Q4 profit and raised its full-year outlook.
IHS () tacked on 2.15, or 5%, to 46.65. The provider of data and advisory services reports first-quarter results on March 19.
On the downside, LG Display () gapped down 2.27, or 9%, to 22.31 in huge trade. Shares slumped on news that Philips Electronics () was selling 23 million shares of the South Korean maker of liquid crystal flat-panel displays. Philips has been gradually reducing its stake in the joint venture.
1:15 p.m. Update: Stocks Pull Back In Midday Trading
By VINCENT MAO
The major stock indexes were off their morning highs but still sported good gains midday Wednesday.
At 12:40 p.m. EDT, the Dow and Nasdaq were up 0.7% each. Both were off their session-best 1.2%. Meanwhile, the S&P 500 rose 0.3% and the NYSE composite 0.2%.
It was encouraging to see the market make headway and not give back its heady gains from Monday. But volume was tracking lower on both exchanges. An increase in volume would bolster the day’s advances.
Advancers beat decliners by 17-to-13 on the NYSE and about 4-to-3 on the Nasdaq.
Apparel and Internet groups were among the day’s top performers. HMOs and oil-related were some of the worst groups. Airlines also took heat after JPMorgan downgraded a number of carriers and cut their earnings estimates.
Some oil-related issues shook off the pullback in crude. The April contract edged down 17 cents to $108.58 a barrel.
Hess () rallied 3.34 to 100.20 in fast trade. The oil and gas producer passed a 99.36 buy point of a 10-week cup-with-handle pattern. Volume was tracking about 80% above average.
Chart Industries () rose 0.93 to 36.23. The maker of gas production and storage equipment announced a Middle East joint venture to make equipment for the energy industry. Chart broke out of a double-bottom base Feb. 28 and has been holding above the 33.10 buy point.
Investment Technology Group () jumped 2.07, or 5%, to 47.73. That pushed the financial brokerage and technology firm above its 50-day moving average. On Monday, the company reported an 18% increase in February trading volume.
On the downside, Arena Resources () reversed lower and shed 1.68 to trade at 38.97. The Tulsa, Okla., firm reports earnings Thursday. Analysts see profit surging 118% to 37 cents a share.
11:15 a.m. Update: Stocks Grapple Higher In Weak Trade
By ALAN R. ELLIOTT
Stocks were marching higher at 10:55 a.m. EDT, tacking on some gains to Monday’s Fed-inspired surge.
The NYSE composite managed a 0.2% gain, and the Nasdaq moved up 0.5%. Financials led the NYSE’s upside, while energy stocks dipped on backtracking oil prices. The Nasdaq’s biotech index posted a 1.1% gain. The S&P 500 had edged 0.3% higher and the Dow rose 0.6%.
Advancers led decliners by about 4-to-3 and volume was sharply lower on both exchanges.
Markets traded up and down across Asia. Stocks in Tokyo and Hong Kong rose on optimism over the effort by global central banks to boost liquidity. The Hang Seng in Hong Kong added 1.9%. Tokyo’s Nikkei 225 ended with a 1.6% gain after jumping 3% in early trading. But the Shanghai composite slipped 2.3% to a seven-month low.
Stocks also rose in the U.K. and Europe. The CAC-40 in Paris rose 1.4%.
April crude futures slipped $1.20 to $107.55 a barrel as weekly data showed a much bigger-than-expected rise in crude oil inventories
S&P 500 component United Health Group () dropped 2.87 to 35.37 a second session of losses one day after Standard & Poor’s downgraded the health maintenance organization to hold. The HMO group also took a collective hit Tuesday after WellPoint () lowered its Q1 and full-year guidance. United Health slipped to its lowest point since October 2004.
On the upside, China-based Internet search engine provider Baidu.com () added 9.14 to 269.53. The second day of gains lifted shares to just below both the 50- and 200-day moving averages. The stock is 37% below its November high.
10:15 a.m. Update: Stocks Mostly Flat In Early Trade
By VINCENT MAO
The major stock indexes were little changed early Wednesday.
At 9:55 a.m. EDT, the Nasdaq and NYSE composite were each down 0.2%. The S&P 500 lost 0.1% and the Dow was mostly unchanged.
Volume was tracking sharply lower on both exchanges.
JA Solar Holdings () gapped above its 200-day moving average. Shares rallied 1.16 to 15.74 . Before the open, the maker of solar cells reported Q4 earnings of 9 cents a share, up from 7 cents the prior year and in line with views. Sales ramped up $144.2 million, easily above views. But the stock is recovering from a 52% correction.
Homex () rose 0.71 to 56.89. The Mexican home builder announced a $250 million share buyback. Homex recently found support near its 50-day moving average and 200-day moving average.
Boston Beer () gapped up and vaulted 4.80, or 13% to 40.61 in heavy trading. Late Tuesday, the company delivered better-than-expected Q4 earnings and sales. Results were boosted by higher prices and lower discounts.
On the downside, T-3 Energy Services () dropped 2.44, or 5%, to 49.26. The provider of oil field products and services reported Q4 earnings a penny above views, but sales fell shy of expectations.
9:15 a.m Update: Stocks Headed For Mixed Open
By VINCENT MAO
Stock futures pointed to a mixed open Wednesday following the prior session’s huge rally.
Nasdaq futures rose 5 points vs. fair value, S&P 500 futures slipped a fraction of a point and Dow futures fell 5 points.
Crude oil eased 13 cents to $108.62 a barrel, ahead of the weekly energy report due out at 10:30 EDT. On Tuesday, oil hit nearly $110 a barrel.
Caterpillar () climbed 2% in pre-market trading. The construction and mining equipment maker reaffirmed its full-year forecast of 5% to 15% growth in earnings and a 5% to 10% rise in sales. It expects 2010 revenue to approach $60 billion, up from a previous forecast of at least $50 billion.
Humana () plunged 23% in pre-open trading. The HMO cut its full-year profit outlook to a range of $4 to $4.25 a share, down from $5.35 to $5.55 previously.
Late Monday, WellPoint () slashed its earnings guidance due to rising medical costs, lower-than-expected enrollment and a challenging economic environment. Shares fell 3% in the pre-market.
Take-Two Interactive Software () jumped 5% in the pre-open. Late Tuesday, the video game maker said Q1 losses widened to 41 cents a share from 14 cents a year earlier. That was still better than estimates for a loss of 51 cents. It also guided Q2 income from $1 to $1.10 a share vs. views of $1.04.
For the full fiscal year Take-Two expects to earn $1.35 to $1.55 vs. estimates of $1.35. Its highly anticipated Grand Theft Auto IV hits store shelves April 29. Last month, the company rejected a $2 billion buyout offer from rival Electronic Arts (). Shares of EA slipped 2% in the pre-open.
Thornburg Mortgage () surged 37% in the pre-open after Bear Stearns upgraded the troubled lender to peer perform from outperform.