Market Minute: Yahoo, Intel Earnings Set Up Market Decline

Earnings from Yahoo (YHOO) and Intel (INTC) set the stage for a market decline.

The market recouped more than half of the losses from Monday's big selloff. The Dow Industrials rallied 150 points, the S&P 500 gained 21 and the Nasdaq rose 48.

Yahoo's earnings rose 36 percent from a year ago, but the company's new management team remains under pressure to prove that its turnaround plan is working. Investors are concerned about a drop in revenue from display ads. Analysts say the company is losing advertisers to Facebook (FB) and Google (GOOG). Yahoo shares, up 20 percent so far this year, are set to slide this morning.

Declining sales of PCs continue to drag on Intel. Its net fell 25 percent. The company has been trying to grow its business of selling chips for servers and mobile phones, but personal computers still account for the bulk of the company's revenue. Intel does say that revenue in the current quarter could beat Street expectations.

It's not high tech, but American Girl dolls remain red hot. As a result, Mattel's (MAT) net soared nearly five-fold. After the closing bell we'll hear from American Express (AXP) and eBay (EBAY).

Amgen (AMGN) has agreed to settle federal charges that it paid kickbacks to Omnicare and other pharmacy providers to boost sales of its anemia drug. The biotech giant will pay $25 million dollars.

Amazon (AMZN) is eating into Apple's (AAPL) big lead in music downloads. NPD Group says Amazon captured 22 percent of the paid downloads in the U-S last year, up from 15 percent the year before.

And it's not quite a blockbuster sequel, but the movie studio 20th Century Fox is getting an update. The News Corp. (NWS) unit will be renamed – drumroll please – 21st Century Fox. That will be the name of the new independent media company formed when News Corp. completes its separation into two companies later this year.

–Produced by Drew Trachtenberg

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