Major Averages Turn Lower

By VINCENT MAO, INVESTOR’S BUSINESS DAILY 

Stock reversed lower Thursday amid a round of mixed economic data and earnings reports.

The S&P 500 fell 0.6% and the Nasdaq 0.5%. The Dow Jones industrial average slipped 0.2%. Gains in Caterpillar (CAT) and 3M (MMM) helped cushion the Dow. Volume rose on both major exchanges, according to preliminary figures.


Momenta Pharmaceuticals (MNTA) suffered its biggest loss in four months, as shares plunged 21% in more than eight times normal volume. Amphastar and Watson Pharmaceuticals won an appeals court stay to sell a generic version of blood thinner Lovenox. According to Bloomberg, Momenta holds two patents for Lovenox.

Under Armour (UA) shed 5% and breached its 50-day moving average in more than four times average trade. But it found support at its 200-day line. Before the open, the athletic apparel and footwear maker delivered Q4 earnings and sales above views, but tempered its 2012 sales outlook. Under Armour now sees sales coming in at the low end of its forecast for 20% to 25% growth. It previously expected revenue growth at the higher end of the range.

Despite reporting better-than-expected results late Wednesday, Texas Capital Bancshares (TCBI) reversed from a higher open and lost 2% in more than triple its average turnover. Despite this, it’s still 8% past a 29.08 buy point from a cup-with-handle base.

After the close, Starbucks (SBUX) reported fiscal Q1 results above views. But the coffee giant gave a disappointing full-year 2012 profit outlook. Shares slipped in extended trading.

The first read on fourth-quarter gross domestic product will be out Friday along with the University of Michigan Consumer Sentiment Index.

Altria Group (MO), Chevron (CVX), Ford (F) and Honeywell (HON) are among some notable companies reporting earnings Friday.

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