Saturday, January 24, 2009
Aflac Inc. reassured investors that it had plenty of cash to maintain its credit ratings.
ASSOCIATED PRESS
NEW YORK — Investors’ ambivalence about earnings reports left Wall Street with a mixed performance Friday.
Traders pounced on companies showing signs of life and dumped companies whose quarterly results fell short of expectations.
Better-than-expected results from Google Inc. helped technology shares while lackluster numbers from General Electric Co. reinforced investors’ concerns about the depths of the recession.
Insurer Aflac Inc. helped ease some of Wall Street’s concerns about the financial industry after reassuring investors that it had more than enough cash to maintain its credit ratings.
The company’s stock tumbled 37 percent Thursday on reports it did not have adequate capital to cover risky investments. The company issued a statement, and an analyst released a research note backing the company’s financial position. Aflac rose 6.9 percent.
The results from GE weighed on industrial names and held the Dow Jones industrial average to a loss as broader indexes climbed.
The company’s results met Wall Street’s lowered expectations but investors grew worried that GE will reduce its dividend.
They are also nervous the company could lose its coveted “AAA” credit rating because of the recession that has crimped lending at GE Capital and hurt its industrial and entertainment businesses. GE fell 11 percent.
Stocks ended a volatile session well off their lows. A sizable comeback Friday was the latest back-and-forth seen throughout a turbulent week.
The Dow tumbled 4 percent Tuesday, jumped 3 percent Wednesday and fell again Thursday.
Volatility has been more the rule than the exception in recent trading as investors sort through a plethora of wide-ranging earnings reports.
According to preliminary calculations, the Dow industrials fell 45.24, or 0.56 percent, to 8,077.56.
The Dow had been down more than 200 points early in the day and briefly moved into positive territory.
Broader stock indicators rose. The Standard & Poor’s 500 index rose 4.45, or 0.54 percent, to 831.95, while the Nasdaq composite index rose 11.80, or 0.81 percent, to 1,477.29.
2008, The Associated Press. All Rights Reserved.