The markets opened lower as wholesale prices grew modestly when adjusted for the volatile oil and food components. Manufacturing output fell for the month of May to fan recessionary worries. The Dow lost 22 points to 12,246 while Nasdaq edged down a point to 2473.
On the upside
Goldman Sachs (NYSE: GS) posted a small drop in earnings due to higher fees from asset management and stock underwriting services. The results easily surpassed investor's lowered expectations.Wyeth (NYSE: WYE) and Elan Corp. (NYSE: ELN) reported mixed results for its mid-stage drug tests to treat Alzheimer's disease and planned to proceed with late-stage studies.
Genco Shipping & Trading (NYSE: GNK) announced the purchase of six drybulk newbuildings for $530 million to grow its current fleet of 28 drybulk vessels.
On the downside
Best Buy (NYSE: BBY) reported a small decline in 1st quarter profits as same-store sales rose 3.7%. The better than expected results were tempered by a slower pace of store openings in China.Adobe Systems (Nasdaq: ADBE) posted a sharp jump in 2nd quarter revenues and earnings. However, some analysts that international growth may be slowing due to capital spending being diverted to higher oil prices.
The president and chief operating officer of Tween Brands (NYSE: TWB) stepped down and would not be replaced. The company sells apparel to young girls.
In the broad market, advancing issues outpaced decliners by a margin of 10 to 9 on the NYSE, but were edged out by a margin of 5 to 4 on Nasdaq. The Russell 2000 which tracks small cap stocks gave up 2 points to 738.
