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Market Updates: Bank of America (NYSE:BAC), Yahoo (NASDAQ:YHOO), Goldman Sachs (NYSE:GS), U.S. Steel (NYSE:X), United Technologies (NYSE:UTX)

01/27/10 by  
Filed under Bourbon & Bayonets

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In credit markets, the extra yield investors demand to own corporate bonds instead of Treasuries held at 164 basis points, or 1.64 percentage points, yesterday, Bank of America (NYSE:BAC) Global Broad Market Corporate Index showed. The spread has widened from this year’s low of 160 basis points on Jan. 14. Bond sales by U.S. and European companies have slowed this week as spreads widen, falling to $14.6 billion, down 20 percent from the $18.3 billion of issuance in the same period a week ago, according to data compiled by Bloomberg. –Bloomberg

Yahoo (NASDAQ:YHOO) earned $153 million, or 11 cents per share, compared with a loss of $303 million one year ago. But revenue continued to fall 4%, even if at a slower rate than in the first three months of the year, when revenue slipped 12%. –Daily Finance

Goldman Sachs (NYSE:GS)
downgraded U.S. Steel (NYSE:X) to neutral from buy and calls chance of near-term profitability “a distant dream.” The stock fell almost 12% yesterday following X’s 4Q results. Goldman last week cut the stock to buy from conviction buy on concerns about Chinese demand and rate tightening. This time it’s guidance. “Our constructive call on US Steel hinged on our view that, as the utilization rate in the US approaches and crosses the 70% mark, X would return to the black,” firm writes. But X’s guidance for a flat first-quarter “shattered this view.” Goldman upgrades AK Steel (NYSE:AKS) to buy from neutral, crediting company’s lower operating costs and predicting improvement in “highly profitable” electrical steel. X down another 0.5% to $49.37 premarket; AKS up 1.7%. –The Wall Street Journal

United Technologies (NYSE:UTX)
reported fourth-quarter profit fell 6% on lower demand for its aerospace and ventilation products, and it affirmed its 2010 profit outlook. For the most recent quarter, the Hartford, Conn., conglomerate earned $1.07 billion, or $1.15 a share, compared with $1.15 billion, or $1.23, in the year-earlier period. -MarketWatch

President Barack Obama will give $8 billion in economic stimulus money to 13 U.S. rail corridors tomorrow, mostly for high-speed passenger service, an administration official said. Obama will announce the biggest single U.S. investment in high-speed rail very soon. The spending “will yield significant benefits to the states and regions that receive the funds in the short-term, including job creation, particularly in the construction sector,” said Peter Gertler, high-speed rail services chairman for engineering firm HNTB Corp. States receiving funds will “implement track improvements, grade separation, signal improvements and other tasks that need to be completed to deliver a high-speed rail system,” he said. -Bloomberg

-Roundup provided by Jutia Group

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