Stocks Shrug Off Tepid Earnings (C, FRX, DAL, AAPL, PLUG, JDSU)

Stocks shrugged off lackluster earnings reports from Citigroup (C) and Delta (DAL) as well as the news that Apple (AAPL) CEO Steve Jobs was going on medical leave to post another day of gains. Right now, the market has solid momentum, and the bulls are running. While we think investors should enjoy the ride, we’re also expecting a pullback in the coming months and would urge investors not to get too exuberant and stick with their investment strategies.

The Fuel Cell Stocks Index was the top performing tickerspy Index on the day, led by Plug Power (PLUG) with a 25% gain. The Optical Networking Stocks Index was the day’s worst performing tickerspy Index, with JDS Uniphase (JDSU) down -4%.

Stocks rose on the day, with the Dow up 51 points to 11,838. The S&P added 2 points to 1,295, while the Nasdaq jumped 11 points to 2,766. Oil slipped -16 cents to $91.38 a barrel, while gold advanced $7.70 to $1,368.20 an ounce.

In economic news, the New York Federal Reserve Bank said its Empire State Manufacturing Index jumped to 11.9 in January from a revised reading of 9.9 in December. Economists, however, were expecting the January number to check in at 13.0. The inventories index rose above zero while the survey’s gauge of future manufacturing activity rose to its highest level in six months, suggesting improvement in the manufacturing sector over the next six months.

In earnings news, shares of Citigroup, the third-largest U.S. bank by assets, tumbled -6.4% after the company missed analysts’ estimates for fourth-quarter earnings. The New York-based bank said it earned $1.3 billion, or 4 cents a share, compared with a loss of -$7.6 billion, or -33 cents a share, a year earlier. Revenue surged to $18.4 billion compared to $5.4 billion a year earlier. Analysts were expecting a profit of 7 cents a share. Citi posted a full-year profit of $10.6 billion on revenue of $86.6 billion, good for its first annual profit since 2007. More than 120 pros held Citigroup in their portfolios at the end of the third quarter and almost 7,700 tickerspy members own the stock in their portfolios.

Shares of Forest Laboratories (FRX) gained 2.6% after the pharmaceuticals maker said its fiscal third-quarter profit increased to $320.7 million, or $1.11 per share, from $210.2 million, or 69 cents per share, a year earlier. Adjusted EPS came in at $1.34. Revenue gained 6% to $1.13 billion. Analysts were expecting a profit of 99 cents a share on sales of $1.1 billion. The company said it reduced its research and development costs by almost $33 million, and it cut its selling, general, and administrative costs by about $21 million.

Shares of Delta Airlines, the largest U.S. airline, plunged -8.2% after the Atlanta-based carrier said it earned $19 million, or 2 cents a share, in the fourth quarter, compared with a loss of -$25 million, or -3 cents a share, a year earlier. Excluding one-time items, Delta earned 19 cents a share, but analysts were expecting a profit of 24 cents a share. Operating revenue popped 14% to $7.79 billion, beating the estimate of $7.74 billion, but fuel costs soared 13% to $1.93 billion.

Shares of Apple slid -2.3% in the first trading day following the company’s announcement that co-founder and CEO Steve Jobs will take a leave of absence for medical reasons. Jobs, who has undergone treatment for pancreatic cancer and a liver transplant, will cede day-to-day operations of the maker of iPads, iPhones, and Macs to Chief Operating Office Tim Cook. Cook has previously filled in for Jobs during other medically related leaves. Apple did not disclose further details regarding Jobs’s medical condition. Nearly 720 pros held Apple in their portfolios at the end of the third quarter. and almost 6,800 tickerspy members own the stock in their portfolios.

Tags: AAPL, C, DAL, FRX, JDSU, PLUG