NYSE Dow Jones finished today at:

[bigdog]

Source: http://finance.yahoo.com

The stock market ended a quiet Monday mostly where it began as investors shut their books for what has been an extraordinary year on Wall Street.

Traders had little corporate or economic news to work through. The bond market was quiet as well. The yield on the benchmark 10-year Treasury note continued to hover near 3 percent.

The Dow Jones industrial average moved less than 30 points the entire day, the narrowest range for the index since February 2007. Approximately 2.3 billion shares changed hands on the New York Stock Exchange, 40 percent less than average.

The Dow ended the day up 25.88 points, or 0.2 percent, to 16,504.29.

"The very narrow range reflects that there's not a lot of news out there and a lot of investors' positions are closed for the year," said Alec Young, chief global strategist with S&P Capital IQ.

The Standard & Poor's 500 index fell less than a point to 1,841.07 and the technology-heavy Nasdaq composite fell 2.40 points, or 0.1 percent, to 4,154.20.

Walt Disney rose $1.88, or 3 percent, to $76.23, the most in the S&P 500. Analysts at Guggenhiem Securities upgraded Disney's stock to a "buy" from a "hold" on Friday.

With just one trading day left in the year, 2013 is looking to be a memorable one for investors. The S&P 500 is up 29.1 percent so far, on pace for its best year since 1997. The Dow is up 26 percent, the most since 1996.

With 2013 in the books, investors have turned their attention to the beginning of 2014. Few expect next year to be as good to investors as 2013 was.

"After a year like this, people start to think a 30 percent-plus year is normal," said Ron Florance, deputy chief investment officer for Wells Fargo Private Bank. "We need to be realistic going into next year."

The next big piece of news investors will have to work through will be the December jobs report, which will be released Jan. 10. There is also corporate earnings season, which will start in the second half of January. Corporate earnings will be important, particularly since this upcoming season will encompass the closely watched holiday shopping period.

"The market is rallying on the idea that economic growth is picking up globally and in the U.S., so investors need to see those expectations matched," Young said.

Bond yields continue to tread water around the 3 percent level. The yield on the U.S. 10-year note fell to 2.98 percent Monday from 3 percent Friday.

The market is expected to be a holding pattern until next week, once all the mid-week holiday disruptions are over, Florance said. Both the NYSE and the Nasdaq Stock Market will be closed Wednesday for New Year's Day.

In overseas markets, Japan's Nikkei stock index closed higher for a ninth straight day Monday. The index ended 2013 up 57 percent. Japanese markets will be closed Tuesday for New Year's Eve.

The NYSE DOW closed HIGHER ▲ 25.88 points or ▲ 0.16% on Monday, 30 December 2013
Symbol …........Last ......Change.....
Dow_Jones 16504.29 ▲ 25.88 ▲ 0.16%
Nasdaq___ 4154.2 ▼ -2.4 ▼ -0.06%
S&P_500__ 1841.07 ▼ -0.33 ▼ -0.02%
30_Yr_Bond 3.91 ▼ -0.04 ▼ -0.91%

NYSE Volume 2,271,586,250
Nasdaq Volume 1,345,599,250

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6731.27 ▼ -19.6 ▼ -0.29%
DAX_____ 9552.16 ▼ -37.23 ▼ -0.39%
CAC_40__ 4275.71 ▼ -1.94 ▼ -0.05%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5358 ▲ 34.2 ▲ 0.64%
Shanghai_Comp 2097.53 ▼ -3.72 ▼ -0.18%
Taiwan_Weight 8623.43 ▲ 88.39 ▲ 1.04%
Nikkei_225____ 16291.31 ▲ 112.37 ▲ 0.69%
Hang_Seng____ 23244.87 ▲ 1.63 ▲ 0.01%
Strait_Times___ 3153.29 ▲ 3.53 ▲ 0.11%
NZX_50_Index__ 4768.98 ▲ 1.62 ▲ 0.03%

http://finance.yahoo.com/news/stocks-barely-budge-quiet-end-212212981.html

Stocks barely budge in quiet end-of-year trading

US stocks close mostly flat on Wall Street as investors start to close out the books for 2013

By Ken Sweet, AP Markets Writer

The stock market ended a quiet Monday mostly where it began as investors shut their books for what has been an extraordinary year on Wall Street.

Traders had little corporate or economic news to work through. The bond market was quiet as well. The yield on the benchmark 10-year Treasury note continued to hover near 3 percent.

The Dow Jones industrial average moved less than 30 points the entire day, the narrowest range for the index since February 2007. Approximately 2.3 billion shares changed hands on the New York Stock Exchange, 40 percent less than average.

The Dow ended the day up 25.88 points, or 0.2 percent, to 16,504.29.

"The very narrow range reflects that there's not a lot of news out there and a lot of investors' positions are closed for the year," said Alec Young, chief global strategist with S&P Capital IQ.

The Standard & Poor's 500 index fell less than a point to 1,841.07 and the technology-heavy Nasdaq composite fell 2.40 points, or 0.1 percent, to 4,154.20.

Walt Disney rose $1.88, or 3 percent, to $76.23, the most in the S&P 500. Analysts at Guggenhiem Securities upgraded Disney's stock to a "buy" from a "hold" on Friday.

With just one trading day left in the year, 2013 is looking to be a memorable one for investors. The S&P 500 is up 29.1 percent so far, on pace for its best year since 1997. The Dow is up 26 percent, the most since 1996.

With 2013 in the books, investors have turned their attention to the beginning of 2014. Few expect next year to be as good to investors as 2013 was.

"After a year like this, people start to think a 30 percent-plus year is normal," said Ron Florance, deputy chief investment officer for Wells Fargo Private Bank. "We need to be realistic going into next year."

The next big piece of news investors will have to work through will be the December jobs report, which will be released Jan. 10. There is also corporate earnings season, which will start in the second half of January. Corporate earnings will be important, particularly since this upcoming season will encompass the closely watched holiday shopping period.

"The market is rallying on the idea that economic growth is picking up globally and in the U.S., so investors need to see those expectations matched," Young said.

Bond yields continue to tread water around the 3 percent level. The yield on the U.S. 10-year note fell to 2.98 percent Monday from 3 percent Friday.

The market is expected to be a holding pattern until next week, once all the mid-week holiday disruptions are over, Florance said. Both the NYSE and the Nasdaq Stock Market will be closed Wednesday for New Year's Day.

In overseas markets, Japan's Nikkei stock index closed higher for a ninth straight day Monday. The index ended 2013 up 57 percent. Japanese markets will be closed Tuesday for New Year's Eve.

 

[bigdog]

Source: http://finance.yahoo.com


U.S. financial markets will be closed on Wednesday for New Year's Day.

The stock market closed out a record year with more all-time highs on Tuesday, giving U.S. indexes their biggest annual gains in almost two decades.

The Standard & Poor's 500 index notched its best year since 1997; The Dow Jones industrial average rose the most since 1995.

While trading was light on the last day of the year, investors were able to rally behind a report that showed U.S. consumer confidence improved significantly in December.

The early signs for the stock market in 2014 are also encouraging.

"I expect a lot of good things for the new year," Karyn Cavanaugh, market strategist with ING U.S. Investment Management, said. "The economy is getting better and corporate earnings are improving. That's going to drive the market higher next year as well."

On Tuesday the Standard & Poor's 500 rose 7.29 points, or 0.4 percent, to 1,848.36. The index ended 2013 up 29.6 percent. With dividends included, the total return was 31.9 percent.

The Dow Jones industrial average rose 72.37 points, or 0.4 percent, to 16,576.66. The blue chips ended the year up 26.5 percent.

Lastly, the Nasdaq composite rose 22.39 points, or 0.5 percent, to close out 2013 at 4,176.59. The Nasdaq did far better than the Dow and S&P, rising 38.3 percent for the year.

While stocks clawed higher for most of 2013, the rally accelerated into the end of the year. The Federal Reserve's announcement on Dec. 18 that it would start paring back, or "tapering," its economic stimulus pushed stocks further into record territory.

"Since the Fed announced it was tapering its stimulus program two weeks ago, investors that were underinvested in stocks have pulled out of gold and bonds and moved it into stocks," said J.J. Kinahan, chief strategist with TD Ameritrade. "It's been a quiet rally."

All 10 sectors of the S&P 500 ended the year higher, but the year's biggest gainers were companies most exposed to the U.S. economic recovery. Consumer discretionary stocks in the S&P 500 rose 40 percent this year. Close behind were industrial stocks with a gain of 37 percent.

As it has been for the last two weeks of the year, trading volume was very low Tuesday. Roughly 2.3 billion shares were traded on the New York Stock Exchange, about 40 percent below average. Most investors closed their books before the week of Christmas.

2013's rally took many investors by surprise.

Any number of things could have derailed the market's rally: The U.S. government shutdown, the possibility of a default, the threat of military action in Syria, budget cuts and new worries about European government debt. Instead, the market just kept on going.

Skittish investors who jumped out of stocks this year not only lost out, but were punished for it.

Bond investors lost money this year, according to Barclays Capital U.S. Aggregate Bond Index, a broad measure of the debt market. The index fell 3 percent this year, the first decline since 1999.

If bond investors had a disappointing year, gold investors got slammed. Gold lost 28 percent of its value in 2013, its worst year since 1981.

The NYSE DOW closed HIGHER ▲ 72.37 points or ▲ 0.44% on Tuesday, 31 December 2013
Symbol …........Last ......Change.....
Dow_Jones 16576.66 ▲ 72.37 ▲ 0.44%
Nasdaq___ 4176.59 ▲ 22.39 ▲ 0.54%
S&P_500__ 1848.36 ▲ 7.29 ▲ 0.40%
30_Yr_Bond 3.96 ▲ 0.06 ▲ 1.46%

NYSE Volume 2,292,183,000
Nasdaq Volume 1,391,031,000

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6749.09 ▲ 17.82 ▲ 0.26%
DAX_____ 9552.16 ▼ -37.23 ▼ -0.39%
CAC_40__ 4295.95 ▲ 20.24 ▲ 0.47%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5353.1 ▼ -4.9 ▼ -0.09%
Shanghai_Comp 2115.98 ▲ 18.45 ▲ 0.88%
Taiwan_Weight 8611.51 ▼ -11.92 ▼ -0.14%
Nikkei_225____ 16291.31 ▲ 112.37 ▲ 0.69%
Hang_Seng____ 23306.39 ▲ 61.52 ▲ 0.26%
Strait_Times___ 3167.43 ▲ 14.14 ▲ 0.45%
NZX_50_Index__ 4737.01 ▼ -31.97 ▼ -0.67%

http://finance.yahoo.com/news/p-500-index-best-since-215535493.html

S&P 500 index has its best year since 1997

S&P 500 index has its best year since 1997; US stocks rise on the last trading day of 2013

By Ken Sweet, AP Markets Writer

The stock market closed out a record year with more all-time highs on Tuesday, giving U.S. indexes their biggest annual gains in almost two decades.

The Standard & Poor's 500 index notched its best year since 1997; The Dow Jones industrial average rose the most since 1995.

While trading was light on the last day of the year, investors were able to rally behind a report that showed U.S. consumer confidence improved significantly in December.

The early signs for the stock market in 2014 are also encouraging.

"I expect a lot of good things for the new year," Karyn Cavanaugh, market strategist with ING U.S. Investment Management, said. "The economy is getting better and corporate earnings are improving. That's going to drive the market higher next year as well."

On Tuesday the Standard & Poor's 500 rose 7.29 points, or 0.4 percent, to 1,848.36. The index ended 2013 up 29.6 percent. With dividends included, the total return was 31.9 percent.

The Dow Jones industrial average rose 72.37 points, or 0.4 percent, to 16,576.66. The blue chips ended the year up 26.5 percent.

Lastly, the Nasdaq composite rose 22.39 points, or 0.5 percent, to close out 2013 at 4,176.59. The Nasdaq did far better than the Dow and S&P, rising 38.3 percent for the year.

While stocks clawed higher for most of 2013, the rally accelerated into the end of the year. The Federal Reserve's announcement on Dec. 18 that it would start paring back, or "tapering," its economic stimulus pushed stocks further into record territory.

"Since the Fed announced it was tapering its stimulus program two weeks ago, investors that were underinvested in stocks have pulled out of gold and bonds and moved it into stocks," said J.J. Kinahan, chief strategist with TD Ameritrade. "It's been a quiet rally."

All 10 sectors of the S&P 500 ended the year higher, but the year's biggest gainers were companies most exposed to the U.S. economic recovery. Consumer discretionary stocks in the S&P 500 rose 40 percent this year. Close behind were industrial stocks with a gain of 37 percent.

As it has been for the last two weeks of the year, trading volume was very low Tuesday. Roughly 2.3 billion shares were traded on the New York Stock Exchange, about 40 percent below average. Most investors closed their books before the week of Christmas.

2013's rally took many investors by surprise.

Any number of things could have derailed the market's rally: The U.S. government shutdown, the possibility of a default, the threat of military action in Syria, budget cuts and new worries about European government debt. Instead, the market just kept on going.

Skittish investors who jumped out of stocks this year not only lost out, but were punished for it.

Bond investors lost money this year, according to Barclays Capital U.S. Aggregate Bond Index, a broad measure of the debt market. The index fell 3 percent this year, the first decline since 1999.

If bond investors had a disappointing year, gold investors got slammed. Gold lost 28 percent of its value in 2013, its worst year since 1981.

With the U.S. economy improving and stocks performing so well, gold is likely to remain under pressure, Kinahan said.

U.S. financial markets will be closed on Wednesday for New Year's Day.

 

[bigdog]

Source: http://finance.yahoo.com

Investors may already feel a little nostalgic for 2013.

The Standard & Poor's 500 index began the New Year with its worst performance in three weeks as energy and technology companies pulled down the stock market.

Stocks started the year at lofty heights after a combination of rising company earnings and economic stimulus from the Federal Reserve pushed major indexes to record levels in 2013. The S&P 500 surged almost 30 percent, its best year since 1997, and the Dow Jones industrial average climbed 26.5 percent, the most since 1995.

"The market was grossly overbought and needed to pull back," said Peter Cardillo, chief market economist at Rockwell Global Capital. "But fundamentally everything is looking pretty good."

The S&P 500 dropped 16.38 points, or 0.9 percent, to 1,831.98, its worst start to a year's trading since Jan. 2, 2008, when the index slumped 1.4 percent.

The Dow fell 135.31 points, or 0.8 percent, to 16,441.35. The Nasdaq composite slid 33.52 points, or 0.8 percent, to 4,143.07.

Energy stocks fell as the price of oil dropped $2.98, or 3 percent, to $95.44 a barrel. Oil slumped after reports that an end to protests at a major Libyan oil field could return 300,000 barrels of daily production to the global market.

Technology stocks lost ground after analysts published gloomy notes on companies in the sector. Analog Devices lost $1.65, or 3.2 percent, to $49.28 after analysts at Goldman Sachs advised its clients to sell the chipmaker's stock, saying it's overvalued compared to its peers.

The NYSE DOW closed LOWER ▼ -135.31 points or ▼ -0.82% on Thursday, 2 January 2014
Symbol …........Last ......Change.....
Dow_Jones 16441.35 ▼ -135.31 ▼ -0.82%
Nasdaq___ 4143.07 ▼ -33.52 ▼ -0.80%
S&P_500__ 1831.98 ▼ -16.38 ▼ -0.89%
30_Yr_Bond 3.92 ▼ -0.05 ▼ -1.14%

NYSE Volume 3,057,877,000
Nasdaq Volume 1,735,909,620

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6717.91 ▼ -31.18 ▼ -0.46%
DAX_____ 9400.04 ▼ -152.12 ▼ -1.59%
CAC_40__ 4227.28 ▼ -68.67 ▼ -1.60%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5369.8 ▲ 16.7 ▲ 0.31%
Shanghai_Comp 2109.39 ▼ -6.59 ▼ -0.31%
Taiwan_Weight 8612.54 ▲ 1.03 ▲ 0.01%
Nikkei_225____ 16291.31 ▲ 112.37 ▲ 0.69%
Hang_Seng____ 23340.05 ▲ 33.66 ▲ 0.14%
Strait_Times___ 3174.65 ▲ 7.22 ▲ 0.23%
NZX_50_Index__ 4737.01 ▼ -31.97 ▼ -0.67%

http://finance.yahoo.com/news/stock-records-weak-start-2014-211544316.html

After year of stock records, a weak start to 2014

US stocks start 2014 on a sour note after the best year since 1997 for the S&P 500 index

By Steve Rothwell, AP Markets Writer

Investors may already feel a little nostalgic for 2013.

The Standard & Poor's 500 index began the New Year with its worst performance in three weeks as energy and technology companies pulled down the stock market.

Stocks started the year at lofty heights after a combination of rising company earnings and economic stimulus from the Federal Reserve pushed major indexes to record levels in 2013. The S&P 500 surged almost 30 percent, its best year since 1997, and the Dow Jones industrial average climbed 26.5 percent, the most since 1995.

"The market was grossly overbought and needed to pull back," said Peter Cardillo, chief market economist at Rockwell Global Capital. "But fundamentally everything is looking pretty good."

The S&P 500 dropped 16.38 points, or 0.9 percent, to 1,831.98, its worst start to a year's trading since Jan. 2, 2008, when the index slumped 1.4 percent.

The Dow fell 135.31 points, or 0.8 percent, to 16,441.35. The Nasdaq composite slid 33.52 points, or 0.8 percent, to 4,143.07.

Energy stocks fell as the price of oil dropped $2.98, or 3 percent, to $95.44 a barrel. Oil slumped after reports that an end to protests at a major Libyan oil field could return 300,000 barrels of daily production to the global market.

Technology stocks lost ground after analysts published gloomy notes on companies in the sector. Analog Devices lost $1.65, or 3.2 percent, to $49.28 after analysts at Goldman Sachs advised its clients to sell the chipmaker's stock, saying it's overvalued compared to its peers.

Apple fell $7.89, or 1.4 percent, to $553.13, after Wells Fargo cut its outlook on the stock to "market perform" from "outperform," saying profit margins may come under pressure later this year.

Some analysts said investors shouldn't read too much into the lackluster start to the year because trading volumes were below normal as the holiday season wound down with many market participants still away from their desks.

"I don't think we can really start counting till Monday," said Dan Morris, Global Investment Strategist at TIAA-CREF. "A lot of people are still on holiday."

Investors will be hoping that the stock market steadies because its performance in January often gives an indication of how the rest of the year might turn out. The January barometer has proven accurate almost 90 percent of years since 1950, according to the Stock Trader's Almanac.

The yield on the 10-year Treasury note climbed to 2.99 percent from 2.97 percent after some encouraging reports on the economy. The yield on the note, which rises when investors sell bonds, is close to its highest since July 2011.

The number of Americans seeking unemployment benefits last week fell by 2,000, extending a recovery in the job market, and U.S. manufacturing grew at a healthy pace in December as factories stepped up hiring and received more orders.

Among other stocks making big moves, Martha Stewart Living Omnimedia climbed 37 cents, or 8.8 percent, to $4.56 after it announced an end to its bitter standoff with Macy's over a breach-of-contract lawsuit involving J.C. Penney.

Stewart's company and Penney signed a merchandising deal in December 2011. That prompted Macy's to sue both companies for violating its exclusive agreement with Martha Stewart. Terms of the settlement are not being released. Macy's fell 1 cent to $53.39.

 

[bigdog]

Source: http://finance.yahoo.com

After last year's big party in the stock market, 2014 is starting off with a nagging hangover.

The Standard & Poor's 500 index edged a fraction of a point lower on Friday, beginning a year with a two-day losing streak for the first time since 2005.

While few analysts expect 2014 to produce gains comparable to last year's advance of nearly 30 percent, many see a moderate increase as the economy continues to improve and investors move funds out of bonds and into stocks, which are generating much bigger returns for investors.

"The market is trying to find some direction here," said Scott Wren, a senior equity strategist at Wells Fargo Advisors. "We're in for a few days of trying to figure out whether we inch a little higher or see some down days."

The S&P 500 index fell 0.61 points, or 0.03 percent, to 1,831.37 and was 0.5 percent lower for the week.

The Dow Jones industrial average gained 28.64 points, or 0.2 percent, to 16,469.99. The Nasdaq composite fell 11.16 points, or 0.3 percent, to 4,131.91.

General Motors was among the stocks that posted the biggest losses in the S&P 500. The automaker fell $1.38, or 3.4 percent, to $39.57 after reporting a U.S. sale slump of more than 6 percent in December.

Energy companies have also started the year with declines as the price of oil falls.

On Friday, oil extended a weeklong skid by falling $1.48, or 1.6 percent, to $93.96 a barrel. A strengthening U.S. economy drove the dollar higher, which hurts oil, and signs emerged of ample supply worldwide.

Federal Reserve Chairman Ben Bernanke on Friday predicted stronger growth in 2014 and said that factors that have kept the economy from accelerating appear to be abating.

"The combination of financial healing, greater balance in the housing market, less fiscal restraint, and, of course, continued monetary accommodation bodes well for U.S. economic growth in coming quarters," Bernanke said in comments to the annual meeting of the American Economic Association in Philadelphia.

The encouraging economic backdrop is one reason for investors to remain positive about stocks, despite the slow start to the year, said Bill Barker, a senior portfolio analyst at Motley Fool Funds, which manages about $600 million in stock mutual funds.

"As long as there is no inflation and a good economy, with low interest rates ... that's the kind of thing that stocks love," Barker said.

The NYSE DOW closed HIGHER ▲ 28.64 points or ▲ 0.17% on Friday, 3 January 2014
Symbol …........Last ......Change.....
Dow_Jones 16469.99 ▲ 28.64 ▲ 0.17%
Nasdaq___ 4131.91 ▼ -11.16 ▼ -0.27%
S&P_500__ 1831.37 ▼ -0.61 ▼ -0.03%
30_Yr_Bond 3.93 ▲ 0.01 ▲ 0.28%

NYSE Volume 2,763,358,000
Nasdaq Volume 1,660,626,120

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6730.67 ▲ 12.76 ▲ 0.19%
DAX_____ 9435.15 ▲ 35.11 ▲ 0.37%
CAC_40__ 4247.65 ▲ 20.37 ▲ 0.48%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5351.8 ▼ -18 ▼ -0.34%
Shanghai_Comp 2083.14 ▼ -26.25 ▼ -1.24%
Taiwan_Weight 8546.54 ▼ -66 ▼ -0.77%
Nikkei_225____ 16291.31 ▲ 112.37 ▲ 0.69%
Hang_Seng____ 22817.28 ▼ -522.77 ▼ -2.24%
Strait_Times___ 3131.47 ▼ -43.18 ▼ -1.36%
NZX_50_Index__ 4769.04 ▲ 32.03 ▲ 0.68%

http://finance.yahoo.com/news/p-500-starts-2014-2-221908088.html

S&P 500 starts 2014 with a 2-day decline

S&P 500 edges lower, opening year with a two-day losing streak for first time since 2005

By Steve Rothwell, AP Markets Writer

After last year's big party in the stock market, 2014 is starting off with a nagging hangover.

The Standard & Poor's 500 index edged a fraction of a point lower on Friday, beginning a year with a two-day losing streak for the first time since 2005.

While few analysts expect 2014 to produce gains comparable to last year's advance of nearly 30 percent, many see a moderate increase as the economy continues to improve and investors move funds out of bonds and into stocks, which are generating much bigger returns for investors.

"The market is trying to find some direction here," said Scott Wren, a senior equity strategist at Wells Fargo Advisors. "We're in for a few days of trying to figure out whether we inch a little higher or see some down days."

The S&P 500 index fell 0.61 points, or 0.03 percent, to 1,831.37 and was 0.5 percent lower for the week.

The Dow Jones industrial average gained 28.64 points, or 0.2 percent, to 16,469.99. The Nasdaq composite fell 11.16 points, or 0.3 percent, to 4,131.91.

General Motors was among the stocks that posted the biggest losses in the S&P 500. The automaker fell $1.38, or 3.4 percent, to $39.57 after reporting a U.S. sale slump of more than 6 percent in December.

Energy companies have also started the year with declines as the price of oil falls.

On Friday, oil extended a weeklong skid by falling $1.48, or 1.6 percent, to $93.96 a barrel. A strengthening U.S. economy drove the dollar higher, which hurts oil, and signs emerged of ample supply worldwide.

Federal Reserve Chairman Ben Bernanke on Friday predicted stronger growth in 2014 and said that factors that have kept the economy from accelerating appear to be abating.

"The combination of financial healing, greater balance in the housing market, less fiscal restraint, and, of course, continued monetary accommodation bodes well for U.S. economic growth in coming quarters," Bernanke said in comments to the annual meeting of the American Economic Association in Philadelphia.

The encouraging economic backdrop is one reason for investors to remain positive about stocks, despite the slow start to the year, said Bill Barker, a senior portfolio analyst at Motley Fool Funds, which manages about $600 million in stock mutual funds.

"As long as there is no inflation and a good economy, with low interest rates ... that's the kind of thing that stocks love," Barker said.

Among the stock market winners on Friday was Delta Air Lines.

The carrier's stock jumped $1.53, or 5.5 percent, to $29.23 after a measure of its revenue for December rose 10 percent. Delta benefited from strong demand and the late Thanksgiving holiday. Analysts at S&P Capital IQ raised their earnings estimates for the carrier and boosted their recommendation on the stock to "strong buy."

Trading was muted Friday after a winter storm hit the U.S. Northeast. The governors of New York and New Jersey declared states of emergency and urged people to avoid travelling. Trading was quiet this week, before and after the New Year's Day holiday on Wednesday.

In government bond trading, the yield on the 10-year Treasury note was unchanged from Thursday at 2.99 percent.

The yield on the note climbed from 1.76 percent last year to as high as 3 percent as investors sold bonds in an improving economy. Many analysts expect the yield to continue rising this year as the Federal Reserve reduces, or "tapers," its stimulus.

"Depending on how quickly the Fed decides to taper, this could be a very bearish year for bonds," said Anna Rathbun, director of research at CBIZ, an investment and retirement consultant.

0471

 

[bigdog]

Source: http://finance.yahoo.com

The Standard & Poor's 500 index notched its worst start to a year in almost a decade Monday, closing lower for the third straight trading day.

Although the declines for stocks in the New Year have been modest, the direction has been consistently down. The Standard & Poor's 500 index has fallen 1.2 percent from its most recent record close on Dec. 31.

The performance is a contrast to last year, when the S&P 500 surged almost 30 percent, its best annual gain since 1997. The banner year ended with the stock market climbing to record levels amid signs that the economy was strengthening.

"The market is basically looking for additional confirmation of economic strength and maybe marking time as it catches its breath from a pretty strong run at year-end," said Jim Russell, a regional investment director at US Bank.

The Standard & Poor's 500 fell 4.60 points, or 0.3 percent, to 1,826.77. The Dow Jones industrial average dropped 44.89, or 0.3 percent, to 16,425.10. The Nasdaq composite fell 18.23, or 0.4 percent, to 4,113.68.

The weak start to the year is not a good omen for stock investors. The last time the S&P 500 dropped on the opening three trading days of the year in 2005, the index climbed just 3 percent for the whole year.

Despite the slow start, many analysts say it's too early to call a change in the market's upward trend.

Reports on the economy Monday contained some hopeful signs.

U.S. service companies grew at a steady but slightly slower pace in December. Sales dipped and new orders dropped to a four-year low, according to a report from the Institute for Supply Management. The report suggests that growth may remain modest in the coming months.

Factory orders climbed 1.8 percent in November, led by a surge in aircraft demand, the Commerce Department said.

The most closely watched economic report of the week will come on Friday when the Labor Department is scheduled to release its jobs survey for December. That's going to influence the Fed's decisions on how fast to reduce its bond purchases in the coming months.

Company earnings reports also start coming out this week, providing another catalyst that may lift the market. Alcoa, a former Dow stock, will be one of the first major companies to report its fourth quarter earnings after the close of trading on Thursday.

"This downturn is persisting a little bit more than I would expect," said Jack Ablin, chief investment officer at BMO Private Bank. "Between the jobs report Friday and earnings results next week, we will have a much better idea of the drivers of the market."

The NYSE DOW closed LOWER ▼ -44.89 points or ▼ -0.27% on Monday, 6 January 2014
Symbol …........Last ......Change.....
Dow_Jones 16425.1 ▼ -44.89 ▼ -0.27%
Nasdaq___ 4113.68 ▼ -18.23 ▼ -0.44%
S&P_500__ 1826.77 ▼ -4.6 ▼ -0.25%
30_Yr_Bond 3.9 ▼ -0.03 ▼ -0.81%

NYSE Volume 3,231,277,000
Nasdaq Volume 2,263,621,000

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6730.73 ▲ 0.06 ▲ 0.00%
DAX_____ 9428 ▼ -7.15 ▼ -0.08%
CAC_40__ 4227.54 ▼ -20.11 ▼ -0.47%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5327.7 ▼ -24.1 ▼ -0.45%
Shanghai_Comp 2045.71 ▼ -37.43 ▼ -1.80%
Taiwan_Weight 8500.01 ▼ -46.53 ▼ -0.54%
Nikkei_225____ 15908.88 ▼ -382.43 ▼ -2.35%
Hang_Seng____ 22684.15 ▼ -133.13 ▼ -0.58%
Strait_Times___ 3123.82 ▼ -7.65 ▼ -0.24%
NZX_50_Index__ 4765.32 ▼ -3.72 ▼ -0.08%

http://finance.yahoo.com/news/weak-start-2014-continues-stock-174528478.html

A weak start to 2014 continues for stock market

Stocks fall for third straight day; S&P 500 notches worst start to a year in almost a decade

By Steve Rothwell, AP Markets Reporter

The Standard & Poor's 500 index notched its worst start to a year in almost a decade Monday, closing lower for the third straight trading day.

Although the declines for stocks in the New Year have been modest, the direction has been consistently down. The Standard & Poor's 500 index has fallen 1.2 percent from its most recent record close on Dec. 31.

The performance is a contrast to last year, when the S&P 500 surged almost 30 percent, its best annual gain since 1997. The banner year ended with the stock market climbing to record levels amid signs that the economy was strengthening.

"The market is basically looking for additional confirmation of economic strength and maybe marking time as it catches its breath from a pretty strong run at year-end," said Jim Russell, a regional investment director at US Bank.

The Standard & Poor's 500 fell 4.60 points, or 0.3 percent, to 1,826.77. The Dow Jones industrial average dropped 44.89, or 0.3 percent, to 16,425.10. The Nasdaq composite fell 18.23, or 0.4 percent, to 4,113.68.

The weak start to the year is not a good omen for stock investors. The last time the S&P 500 dropped on the opening three trading days of the year in 2005, the index climbed just 3 percent for the whole year.

Despite the slow start, many analysts say it's too early to call a change in the market's upward trend.

Reports on the economy Monday contained some hopeful signs.

U.S. service companies grew at a steady but slightly slower pace in December. Sales dipped and new orders dropped to a four-year low, according to a report from the Institute for Supply Management. The report suggests that growth may remain modest in the coming months.

Factory orders climbed 1.8 percent in November, led by a surge in aircraft demand, the Commerce Department said.

The most closely watched economic report of the week will come on Friday when the Labor Department is scheduled to release its jobs survey for December. That's going to influence the Fed's decisions on how fast to reduce its bond purchases in the coming months.

Company earnings reports also start coming out this week, providing another catalyst that may lift the market. Alcoa, a former Dow stock, will be one of the first major companies to report its fourth quarter earnings after the close of trading on Thursday.

"This downturn is persisting a little bit more than I would expect," said Jack Ablin, chief investment officer at BMO Private Bank. "Between the jobs report Friday and earnings results next week, we will have a much better idea of the drivers of the market."

Among the winners on Monday were men's clothing retailers Men's Wearhouse and Jos. A. Bank. Both stocks rose after Men's Wearhouse announced a $1.61 billion hostile bid early Monday for its smaller rival.

The offer came four months after Jos. A. Bank had made its own takeover bid for Men's Wearhouse. That offer was rejected and Men's Wearhouse bid for Jos. A. Bank instead. After failing to reach a deal, Men's Wearhouse is now going directly to its rival's shareholders.

Jos. A. Bank rose $2.46, or 4.5 percent, to $56.87. Men's Wearhouse climbed $1.09 cents, or 2.2 percent, to $51.68.

Satellite radio company sirius XM was another stock that rose on takeover news.

Sirius climbed 26 cents, or 7.3 percent, to $3.83 after Liberty Media said late Friday that it wants to take full ownership of the satellite radio company in a deal that would value Sirius at nearly $23 billion.

In government bond trading, the yield on the 10-year Treasury note fell to 2.96 percent from 3 percent on Friday.

Among other stocks making big moves:

”” Best Buy, one of best performers in the S&P 500 last year, slipped $1.27, or 3.1 percent, to $39.41 after Hhgregg, a competitor, said it expects to report lower holiday sales.

”” PetSmart fell $2.03, or 2.8 percent, to $69.76 after analysts at Deutsche Bank advised their clients to sell the company's stock, predicting the pet retailer will struggle as it faces increased competition.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks rallied Tuesday, ending a slump that had ushered in the New Year.

The Standard and Poor's 500 index climbed the most in three weeks, led by gains for health care stocks. UnitedHealth Group, the nation's largest health insurer, and Johnson & Johnson both climbed on recommendations for brokerage firms.

After three straight declines, the S&P 500 would have matched its worst opening of a year since 1978 had it closed lower for a fourth day. The stock market's slow start to 2014 contrasts with last year's exceptional performance, when the S&P 500 climbed to record levels after surging almost 30 percent.

"To me the trend still looks up, even though we've been chopping around," said Bill Stone, chief investment strategist at PNC Wealth Management Group. The economy "seems to be in the mode that you would expect corporate earnings to continue to grow."

The S&P 500 rose 11.11 points, or 0.6 percent, to 1,837.88, the biggest gain since Dec. 18. Nine of the 10 sectors that make up the index rose.

The Dow Jones industrial average climbed 105.84 points, or 0.6 percent, to 16,530.94 The Nasdaq composite gained 39.50 points, or 1 percent, to 4,153.18.

UnitedHealth group gained $2.27, or 3.1 percent, to $76.51 after analysts at Deutsche Bank said they expected the nation's largest health insurance company to charge customers more in premiums this year.

Johnson & Johnson climbed $1.96, or 2.1 percent, to $94.29 after analysts at RBC Capital raised their outlook on the stock to "outperform," in part due to optimism on sales of the diabetes drug Invokana.

Investors were also encouraged by the easy passage in a Senate vote late Monday of Janet Yellen's nomination to take the helm at the Federal Reserve. The vote puts an economist in the post who has backed the Fed's recent efforts to stimulate the economy with low interest rates and huge bond purchases.

The confirmation is a reminder that the Fed's policies of stimulating the economy will likely continue, said Kristina Hooper, U.S. Investment Strategist at Allianz Global Investors.

"It's just a nice little halo effect," said Hooper.

Investors will get more insight into the Fed's thinking when minutes from the Federal Open Market Committee are released on Wednesday. The Fed announced after its last meeting that it would begin winding down its monthly $85 billion bond-buying program. That stimulus was a major support for last year's rally in stocks.

The NYSE DOW closed HIGHER ▲ 105.84 points or ▲ 0.64% on Tuesday, 7 January 2014
Symbol …........Last ......Change.....
Dow_Jones 16530.94 ▲ 105.84 ▲ 0.64%
Nasdaq___ 4153.18 ▲ 39.5 ▲ 0.96%
S&P_500__ 1837.88 ▲ 11.11 ▲ 0.61%
30_Yr_Bond 3.88 ▼ -0.02 ▼ -0.44%

NYSE Volume 3,495,253,000
Nasdaq Volume 2,262,883,750

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6755.45 ▲ 24.72 ▲ 0.37%
DAX_____ 9506.2 ▲ 78.2 ▲ 0.83%
CAC_40__ 4262.68 ▲ 35.14 ▲ 0.83%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5318.8 ▼ -8.9 ▼ -0.17%
Shanghai_Comp 2047.32 ▲ 1.61 ▲ 0.08%
Taiwan_Weight 8512.3 ▲ 12.29 ▲ 0.14%
Nikkei_225____ 15814.37 ▼ -94.51 ▼ -0.59%
Hang_Seng____ 22712.78 ▲ 28.63 ▲ 0.13%
Strait_Times___ 3120.88 ▼ -2.94 ▼ -0.09%
NZX_50_Index__ 4759.62 ▼ -5.69 ▼ -0.12%

http://finance.yahoo.com/news/us-stocks-rally-breaking-three-215044105.html

US stocks rally, breaking a three-day slump

Stocks rise after three-day slump that started the new year; Health care stocks lead gains

By Steve Rothwell, AP Markets Writer

Stocks rallied Tuesday, ending a slump that had ushered in the New Year.

The Standard and Poor's 500 index climbed the most in three weeks, led by gains for health care stocks. UnitedHealth Group, the nation's largest health insurer, and Johnson & Johnson both climbed on recommendations for brokerage firms.

After three straight declines, the S&P 500 would have matched its worst opening of a year since 1978 had it closed lower for a fourth day. The stock market's slow start to 2014 contrasts with last year's exceptional performance, when the S&P 500 climbed to record levels after surging almost 30 percent.

"To me the trend still looks up, even though we've been chopping around," said Bill Stone, chief investment strategist at PNC Wealth Management Group. The economy "seems to be in the mode that you would expect corporate earnings to continue to grow."

The S&P 500 rose 11.11 points, or 0.6 percent, to 1,837.88, the biggest gain since Dec. 18. Nine of the 10 sectors that make up the index rose.

The Dow Jones industrial average climbed 105.84 points, or 0.6 percent, to 16,530.94 The Nasdaq composite gained 39.50 points, or 1 percent, to 4,153.18.

UnitedHealth group gained $2.27, or 3.1 percent, to $76.51 after analysts at Deutsche Bank said they expected the nation's largest health insurance company to charge customers more in premiums this year.

Johnson & Johnson climbed $1.96, or 2.1 percent, to $94.29 after analysts at RBC Capital raised their outlook on the stock to "outperform," in part due to optimism on sales of the diabetes drug Invokana.

Investors were also encouraged by the easy passage in a Senate vote late Monday of Janet Yellen's nomination to take the helm at the Federal Reserve. The vote puts an economist in the post who has backed the Fed's recent efforts to stimulate the economy with low interest rates and huge bond purchases.

The confirmation is a reminder that the Fed's policies of stimulating the economy will likely continue, said Kristina Hooper, U.S. Investment Strategist at Allianz Global Investors.

"It's just a nice little halo effect," said Hooper.

Investors will get more insight into the Fed's thinking when minutes from the Federal Open Market Committee are released on Wednesday. The Fed announced after its last meeting that it would begin winding down its monthly $85 billion bond-buying program. That stimulus was a major support for last year's rally in stocks.

Despite Tuesday's gains, stocks have started the year off on uncertain footing. Materials companies have declined 1.6 percent so far this year, led by Cliffs Natural Resources. The mining company, which was the second-biggest loser in the S&P 500 last year, is extending its slump. It's down 7 percent this year.

Manufacturers and vendors of consumer staples, such as grocers, tobacco companies and brewers, have also struggled in the first few days of this year. They're down 1.2 percent.

In government bond trading, the yield on the 10-year Treasury note fell to 2.94 percent from 2.96 percent Monday.

The most important piece of economic news to be released this week will come on Friday when the Labor Department releases its jobs report for December. The report will influence the Fed's decision on how quickly it will reduces its bond purchases in the coming months.

Among the biggest losers on Tuesday was Netflix.

The online video streaming company, the biggest gainer in the S&P 500 last year, fell $20.07, or 7.8 percent, to $339.50, after analysts at Morgan Stanley cut their outlook on the stock to "underweight." The brokerage says the online video service will face increasing competition from services such as Hulu Plus, Amazon Prime and HBO GO.

Mattel also dropped. The toy maker fell 58 cents, or 1.2 percent, to $46.04, after analysts at Goldman Sachs advised their clients to sell the stock. Goldman is predicting that the company's earnings will struggle to match expectations as sales stagnate.

In commodities trading, the price of oil rose 24 cents, or 0.3 percent, to $93.67 a barrel. Gold fell $8.40, or 0.7 percent, to $1,229.60 an ounce.

 

[MARKETWINNER]

It is interesting to see DOW is trading above 16500 again. Still market has a leg.We could expect moderate returns from stocks depend on the strategy we apply to pick stocks. Even in DOW some stocks and sectors could outperform others. Overvalued markets and sectors could have corrections and undervalued markets and sectors could have bull markets in 2014.

My ideas are not a recommendation to either buy or sell any security, commodity or currency. Please do your own research prior to making any investment decisions.

 

[bigdog]

Source: http://finance.yahoo.com

The stock market stumbled Wednesday as investors waited for the government's jobs report later this week and the beginning of quarterly earnings releases from corporate America.

Traders put aside a positive report that showed private employers created more jobs in December than economists had expected. The market had a muted reaction to the minutes from the Federal Reserve's mid-December policy meeting.

Wednesday's declines extend what has been a muddled start to 2014. Both the Dow Jones industrial average and the Standard & Poor's 500 index are down a little less than 1 percent after five days of trading.

The tough start should be taken in context of last year's exceptional performance, when the S&P 500 surged almost 30 percent.

After bidding up companies' stock prices to record levels last year, investors are ready to see if their bets are going to pay off. Big, publicly traded U.S. companies will start reporting their quarterly financial results Thursday.

"The question is whether this strengthening economy is translating into stronger corporate earnings," said Russ Koesterich, global chief investment strategist at the investment firm BlackRock.

Dow member and oil giant Chevron will report after the closing bell Thursday, as well as former Dow member and aluminum company Alcoa. Next week investors will have results from Goldman Sachs, JPMorgan Chase, General Electric and American Express.

"Earnings will determine what's next for the stock market," said Lawrence Creatura, a portfolio manager with Federated Investors.

Another theme on investors' agendas is jobs.

A private survey released Wednesday showed U.S. businesses added the most jobs in a year in December, powered by a big gain in construction work. Payroll processor ADP said companies added 238,000 jobs in December, better than the 200,000 economists predicted.

The ADP data sets the stage for Friday's government jobs report. Investors expect the U.S. economy created 190,000 jobs last month and the unemployment rate remained steady at 7 percent.

The Dow lost 68.20 points, or 0.4 percent, to 16,462.74. The losses erased more than half of the 105-point gain the index had on Tuesday.

The S&P 500 fell 0.39 points, or less than 0.1 percent, to 1,837.49 and the Nasdaq composite rose 12.43 points, or 0.3 percent, to 4,165.61.

S&P Capital IQ's Alec Young said he expects the stock market will "churn" at these levels into next week, once investors have earnings and Friday's jobs report to analyze.

The NYSE DOW closed LOWER ▼ -68.2 points or ▼ -0.41% on Wednesday, 8 January 2014
Symbol …........Last ......Change.....
Dow_Jones 16462.74 ▼ -68.2 ▼ -0.41%
Nasdaq___ 4165.61 ▲ 12.43 ▲ 0.30%
S&P_500__ 1837.49 ▼ -0.39 ▼ -0.02%
30_Yr_Bond 3.9 ▲ 0.02 ▲ 0.57%

NYSE Volume 3,641,150,500
Nasdaq Volume 2,328,008,000

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6721.78 ▼ -33.67 ▼ -0.50%
DAX_____ 9497.84 ▼ -8.36 ▼ -0.09%
CAC_40__ 4260.96 ▼ -1.72 ▼ -0.04%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5318.7 ▼ -0.1 ▲ 0.00%
Shanghai_Comp 2044.34 ▼ -2.98 ▼ -0.15%
Taiwan_Weight 8556.01 ▲ 43.71 ▲ 0.51%
Nikkei_225____ 16121.45 ▲ 307.08 ▲ 1.94%
Hang_Seng____ 22996.59 ▲ 283.81 ▲ 1.25%
Strait_Times___ 3150.65 ▲ 29.77 ▲ 0.95%
NZX_50_Index__ 4779.8 ▲ 20.18 ▲ 0.42%

http://finance.yahoo.com/news/stocks-slip-sluggish-start-2014-213941289.html

Stocks slip as a sluggish start to 2014 drags on

US stocks edge mostly lower as investors look ahead to jobs report, corporate earnings news

By Ken Sweet, AP Markets Writer

The stock market stumbled Wednesday as investors waited for the government's jobs report later this week and the beginning of quarterly earnings releases from corporate America.

Traders put aside a positive report that showed private employers created more jobs in December than economists had expected. The market had a muted reaction to the minutes from the Federal Reserve's mid-December policy meeting.

Wednesday's declines extend what has been a muddled start to 2014. Both the Dow Jones industrial average and the Standard & Poor's 500 index are down a little less than 1 percent after five days of trading.

The tough start should be taken in context of last year's exceptional performance, when the S&P 500 surged almost 30 percent.

After bidding up companies' stock prices to record levels last year, investors are ready to see if their bets are going to pay off. Big, publicly traded U.S. companies will start reporting their quarterly financial results Thursday.

"The question is whether this strengthening economy is translating into stronger corporate earnings," said Russ Koesterich, global chief investment strategist at the investment firm BlackRock.

Dow member and oil giant Chevron will report after the closing bell Thursday, as well as former Dow member and aluminum company Alcoa. Next week investors will have results from Goldman Sachs, JPMorgan Chase, General Electric and American Express.

"Earnings will determine what's next for the stock market," said Lawrence Creatura, a portfolio manager with Federated Investors.

Another theme on investors' agendas is jobs.

A private survey released Wednesday showed U.S. businesses added the most jobs in a year in December, powered by a big gain in construction work. Payroll processor ADP said companies added 238,000 jobs in December, better than the 200,000 economists predicted.

The ADP data sets the stage for Friday's government jobs report. Investors expect the U.S. economy created 190,000 jobs last month and the unemployment rate remained steady at 7 percent.

The Dow lost 68.20 points, or 0.4 percent, to 16,462.74. The losses erased more than half of the 105-point gain the index had on Tuesday.

The S&P 500 fell 0.39 points, or less than 0.1 percent, to 1,837.49 and the Nasdaq composite rose 12.43 points, or 0.3 percent, to 4,165.61.

S&P Capital IQ's Alec Young said he expects the stock market will "churn" at these levels into next week, once investors have earnings and Friday's jobs report to analyze.

In company news:

Ford rose 16 cents, or 1 percent, to $15.54 after CEO Alan Mulally said he would not leave to run Microsoft. Mulally was considered a top candidate for the position, having led the turnaround for Ford turning the financial crisis.

Forest Labs jumped $10.54, or 18 percent, to $69.30 after the company said it would buy Aptalis, which specializes in treatments for gastrointestinal problems and cystic fibrosis, for $2.9 billion in cash.

Macy's jumped in after-hours trading after the company said late Wednesday that it would lay off 2,500 workers as it restructures its business. The stock rose $3.21, or 6 percent, to $55.05.

 

[bigdog]

Source: http://finance.yahoo.com

The stock market wavered for a second day Thursday as investors weighed disappointing news from the retail industry against more positive signals on the U.S. economy.

Investors were looking ahead to Friday's jobs report, as well as the start of corporate earnings season.

Retailers were among the hardest hit stocks on Thursday.

Bed Bath & Beyond plunged $9.93, or 13 percent, to $69.75 and Family Dollar fell $1.37, or 2 percent, to $64.97, making them the biggest decliners in the S&P 500. Both companies cut their earnings forecasts following a disappointing holiday season.

The reports of tepid sales disappointed investors, who have been seeing signs for several weeks that the U.S. economy was improving and that shoppers were returning to the malls.

It appears that the economy, while improving, still has some weak spots.

L Brands, which owns Bath and Body Works and Victoria's Secret, reported that its sales rose less than analysts had expected. The company also cut its full-year outlook, echoing Bed Bath and Beyond and Family Dollar. L Brands fell $2.44, or 4 percent, to $57.75.

"The consumers are supposed to be the fuel of this economy, and it doesn't appear to be happening," said Ian Winer, director of trading for Wedbush Securities. "If they're not spending money at the retailers, what's going on?"

Even the bright spots in the retail industry had caveats. Department store giant Macy's jumped $3.96, or 8 percent, to $55.80 after the company forecast a 2014 profit that was above Wall Street's forecasts. At the same time, Macy's said it would eliminate 2,500 jobs as part of a reorganization that aims to save $100 million a year.

At the close of trading, the Dow Jones industrial average fell 17.98 points, or 0.1 percent, to 16,444.76. The S&P 500 added 0.64 points, or less than 0.1 percent, to 1,838.13 and the Nasdaq composite lost 9.42 points, or 0.2 percent, to 4,156.19.

The disappointing news from retailers was more than enough to offset another positive report on the U.S. economy.

The number of Americans seeking unemployment benefits fell by 15,000 last week to 330,000. The drop was slightly bigger than economists predicted, according to FactSet, a financial data provider. The claims report sets the stage for the government jobs report for December, which will be released Friday morning. Economists expect employers added 196,000 jobs last month.

The NYSE DOW closed LOWER ▼ -17.98 points or ▼ -0.11% on Thursday, 9 January 2014
Symbol …........Last ......Change.....
Dow_Jones 16444.76 ▼ -17.98 ▼ -0.11%
Nasdaq___ 4156.19 ▼ -9.42 ▼ -0.23%
S&P_500__ 1838.13 ▲ 0.64 ▲ 0.03%
30_Yr_Bond 3.87 ▼ -0.03 ▼ -0.77%

NYSE Volume 3,565,407,500
Nasdaq Volume 2,202,563,250

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6691.34 ▼ -30.44 ▼ -0.45%
DAX_____ 9421.61 ▼ -76.23 ▼ -0.80%
CAC_40__ 4225.14 ▼ -35.82 ▼ -0.84%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5327.5 ▲ 8.8 ▲ 0.17%
Shanghai_Comp 2027.62 ▼ -16.72 ▼ -0.82%
Taiwan_Weight 8514.68 ▼ -41.33 ▼ -0.48%
Nikkei_225____ 15880.33 ▼ -241.12 ▼ -1.50%
Hang_Seng____ 22787.33 ▼ -209.26 ▼ -0.91%
Strait_Times___ 3145.41 ▼ -5.24 ▼ -0.17%
NZX_50_Index__ 4814.87 ▲ 35.07 ▲ 0.73%

http://finance.yahoo.com/news/mixed-close-wall-street-p-214758953.html

A mixed close on Wall Street; S&P 500 edges up

Stocks mixed after retailers cut earnings outlooks; S&P 500 ekes out its second gain of 2014

By Ken Sweet, AP Markets Writer

The stock market wavered for a second day Thursday as investors weighed disappointing news from the retail industry against more positive signals on the U.S. economy.

Investors were looking ahead to Friday's jobs report, as well as the start of corporate earnings season.

Retailers were among the hardest hit stocks on Thursday.

Bed Bath & Beyond plunged $9.93, or 13 percent, to $69.75 and Family Dollar fell $1.37, or 2 percent, to $64.97, making them the biggest decliners in the S&P 500. Both companies cut their earnings forecasts following a disappointing holiday season.

The reports of tepid sales disappointed investors, who have been seeing signs for several weeks that the U.S. economy was improving and that shoppers were returning to the malls.

It appears that the economy, while improving, still has some weak spots.

L Brands, which owns Bath and Body Works and Victoria's Secret, reported that its sales rose less than analysts had expected. The company also cut its full-year outlook, echoing Bed Bath and Beyond and Family Dollar. L Brands fell $2.44, or 4 percent, to $57.75.

"The consumers are supposed to be the fuel of this economy, and it doesn't appear to be happening," said Ian Winer, director of trading for Wedbush Securities. "If they're not spending money at the retailers, what's going on?"

Even the bright spots in the retail industry had caveats. Department store giant Macy's jumped $3.96, or 8 percent, to $55.80 after the company forecast a 2014 profit that was above Wall Street's forecasts. At the same time, Macy's said it would eliminate 2,500 jobs as part of a reorganization that aims to save $100 million a year.

At the close of trading, the Dow Jones industrial average fell 17.98 points, or 0.1 percent, to 16,444.76. The S&P 500 added 0.64 points, or less than 0.1 percent, to 1,838.13 and the Nasdaq composite lost 9.42 points, or 0.2 percent, to 4,156.19.

The disappointing news from retailers was more than enough to offset another positive report on the U.S. economy.

The number of Americans seeking unemployment benefits fell by 15,000 last week to 330,000. The drop was slightly bigger than economists predicted, according to FactSet, a financial data provider. The claims report sets the stage for the government jobs report for December, which will be released Friday morning. Economists expect employers added 196,000 jobs last month.

In company news, Ford rose 30 cents, or 2 percent, to $15.84 after announcing an increase in its quarterly dividend to 12.5 cents per share from 10 cents per share. The news came a day after the stock gained 1 percent on word that Ford's widely respected CEO, Alan Mulally, would not leave to run Microsoft.

 

[bigdog]

Source: http://finance.yahoo.com

It was a fluke.

That was the conclusion investors reached about the U.S. government's latest jobs report, which showed a sharp decline in hiring last month. Stock indexes ended mostly higher after wavering for much of the day.

The gains were minuscule, however, and there were a number of signs that investors were being cautious. Prices rose for bonds and gold, traditional "go-to" assets for nervous investors. Utilities and other kinds of low-risk, high-dividend stocks also rose as investors sought safe places to park money.

"We need to see more evidence before concluding that all the other (economic) indicators are wrong and the jobs data is correct," said Kate Warne, a market strategist with Edward Jones.

The Dow Jones Industrial average fell 7.71 points, or less than 0.1 percent, to 16,437.05. If not for a slump in Chevron, which reported a decline in oil and gas production late Thursday, the index would have risen slightly.

The Standard & Poor's 500 index rose 4.24 points, or 0.2 percent, to 1,842.37 and the Nasdaq composite rose 18.47 points, or 0.4 percent, to 4,174.66.

The Labor Department said that only 74,000 jobs were added to payrolls in December, the least in three years and far fewer than economists expected. The unemployment rate fell, but mostly because many people stopped looking for work, the government said.

The December jobs survey stands in contrast to weeks of reports consistent with a steadily strengthening economy. U.S. companies are selling record levels of goods overseas; Americans are buying more big items like cars and appliances and layoffs have dwindled. As recently as Wednesday, the payroll processor ADP said private businesses created 238,000 jobs in December.

If the recent U.S. economic picture were a jigsaw puzzle, the jobs report is the piece that didn't fit.

"The investor base was completely shocked with how especially weak the numbers were," said Tom di Galoma, who heads up bond trading at ED&F Man Capital.

Market strategists blamed the bad jobs data on everything from the unseasonably cold weather in December to the fact that Thanksgiving came later than usual. Few believed the economic recovery is slowing down.

Cautious investors took the data as a reason to retreat into safer investments.

On average, Wall Street is looking for corporate earnings to be around 6 percent higher than they were last year.

The NYSE DOW closed LOWER ▼ -7.71 points or ▼ -0.05% on Friday, 10 January 2014
Symbol …........Last ......Change.....
Dow_Jones 16437.05 ▼ -7.71 ▼ -0.05%
Nasdaq___ 4174.66 ▲ 18.47 ▲ 0.44%
S&P_500__ 1842.37 ▲ 4.24 ▲ 0.23%
30_Yr_Bond 3.8 ▼ -0.08 ▼ -1.99%

NYSE Volume 3,325,712,500
Nasdaq Volume 2,122,605,500

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6739.94 ▲ 48.6 ▲ 0.73%
DAX_____ 9473.24 ▲ 51.63 ▲ 0.55%
CAC_40__ 4250.6 ▲ 25.46 ▲ 0.60%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5316.3 ▼ -11.2 ▼ -0.21%
Shanghai_Comp 2013.3 ▼ -14.32 ▼ -0.71%
Taiwan_Weight 8529.35 ▲ 14.67 ▲ 0.17%
Nikkei_225____ 15912.06 ▲ 31.73 ▲ 0.20%
Hang_Seng____ 22846.25 ▲ 58.92 ▲ 0.26%
Strait_Times___ 3143.87 ▼ -1.54 ▼ -0.05%
NZX_50_Index__ 4864.39 ▲ 49.52 ▲ 1.03%

http://finance.yahoo.com/news/stocks-rise-investors-dismiss-job-215552552.html

Stocks rise as investors dismiss job report

Stocks edge mostly higher as investors dismiss a disappointing jobs report; Alcoa, Target sink

By Ken Sweet, AP Markets Reporter

It was a fluke.

That was the conclusion investors reached about the U.S. government's latest jobs report, which showed a sharp decline in hiring last month. Stock indexes ended mostly higher after wavering for much of the day.

The gains were minuscule, however, and there were a number of signs that investors were being cautious. Prices rose for bonds and gold, traditional "go-to" assets for nervous investors. Utilities and other kinds of low-risk, high-dividend stocks also rose as investors sought safe places to park money.

"We need to see more evidence before concluding that all the other (economic) indicators are wrong and the jobs data is correct," said Kate Warne, a market strategist with Edward Jones.

The Dow Jones Industrial average fell 7.71 points, or less than 0.1 percent, to 16,437.05. If not for a slump in Chevron, which reported a decline in oil and gas production late Thursday, the index would have risen slightly.

The Standard & Poor's 500 index rose 4.24 points, or 0.2 percent, to 1,842.37 and the Nasdaq composite rose 18.47 points, or 0.4 percent, to 4,174.66.

The Labor Department said that only 74,000 jobs were added to payrolls in December, the least in three years and far fewer than economists expected. The unemployment rate fell, but mostly because many people stopped looking for work, the government said.

The December jobs survey stands in contrast to weeks of reports consistent with a steadily strengthening economy. U.S. companies are selling record levels of goods overseas; Americans are buying more big items like cars and appliances and layoffs have dwindled. As recently as Wednesday, the payroll processor ADP said private businesses created 238,000 jobs in December.

If the recent U.S. economic picture were a jigsaw puzzle, the jobs report is the piece that didn't fit.

"The investor base was completely shocked with how especially weak the numbers were," said Tom di Galoma, who heads up bond trading at ED&F Man Capital.

Market strategists blamed the bad jobs data on everything from the unseasonably cold weather in December to the fact that Thanksgiving came later than usual. Few believed the economic recovery is slowing down.

Cautious investors took the data as a reason to retreat into safer investments.

Bond prices rose, sending yields lower. The yield on the 10-year Treasury note fell to 2.87 percent from 2.97 percent the day before.

Utility stocks were among the biggest gainers as investors looked to pull back on risk. The Dow Jones utility average, a basket of 15 utility companies, rose 1.3 percent. Consolidated Edison, Pacific Gas & Electric, and Edison International were all up roughly 1 percent or more.

Even gold prices went up, after having a difficult 2013. Gold rose $17.50, or 1.4 percent, to $1,246.90 an ounce on the New York Mercantile Exchange.

With Wall Street treating the December jobs data as an aberration, the place investors will look next for guidance will be corporate earnings. Investors spent the second half of 2013 bidding up stock price to historic highs in hopes that the U.S. economic recovery would translate into higher profits.

"What really needs to come through this year is earnings growth," said Steve Rees, head U.S. equity strategy for JPMorgan Private Bank.

On average, Wall Street is looking for corporate earnings to be around 6 percent higher than they were last year.

Very few companies have reported their latest quarterly earnings, but so far the results have not been promising.

Alcoa, the giant aluminum company, said Thursday it had a $2.34 billion fourth-quarter loss due to low aluminum prices. The stock slumped the most in the S&P 500 index, losing 58 cents, or 5.4 percent, to $10.11.

Target dropped after cutting its fourth-quarter earnings forecast, saying a recent data security breach caused customers to shop elsewhere during the holidays. Target fell 72 cents, or 1 percent, to $62.62.

The pace of earnings releases will pick up next week. JPMorgan Chase, American Express, General Electric and Goldman Sachs are among the companies that will report results. That will give the market broader array of data to look at before concluding that the U.S. economic recovery may be slowing.

"That's going to give more insight than that one odd jobs number," said Dean Junkans, chief investment officer with Wells Fargo Private Bank.

0987

 

[bigdog]

Source: http://finance.yahoo.com

The stock market had its worst day of the year so far, extending a January slump.

Stocks dropped Monday as falling oil prices pushed down energy stocks. The prospect of the Federal Reserve further cutting back on its economic stimulus also weighed on the market.

Stocks are falling back this year after exceptional gains pushed the market to record levels in 2013. Investors' confidence that the economy was recovering was jolted Friday by a weak employment report that showed far fewer jobs were added in December than economists had forecast.

Unlike last year, investors have so far been reluctant to buy stocks when the market has slumped. Instead they appear to be waiting for more news before committing, said Peter Cardillo, chief market economist at Rockwell Global Capital.

"At these high levels, people aren't going to step in" until they get more evidence of earnings growth or better economic news, Cardillo said. "Until that happens, who's going to step up to the plate?"

The Standard & Poor's 500 index dropped 23.17 points, or 1.3 percent, to 1,819.20, the biggest decline for the index since Nov. 7. After surging almost 30 percent last year, the S&P 500 index is down 1.6 percent in January.

The Dow Jones industrial average fell 179.11 points, or 1.1 percent, to 16,257.94. The Nasdaq composite dropped 61.36 points, or 1.5 percent, to 4,113.30.

All 10 sectors in the S&P 500 fell.

Energy stocks were among the biggest decliners, dropping 1.9 percent after the price of oil slumped close to its lowest in eight months. Exxon Mobil fell $1.97, or 2 percent, to $98.55.

Oil fell 92 cents, or 1 percent, to $91.80 a barrel as Libyan production continued to ramp up and the possibility of increased crude exports from Iran raised the prospects of excess supply on global markets.

Investors are also worried about more cuts to the Federal Reserve's big economic stimulus program.

Dennis Lockhart, the President of the Federal Reserve's Atlanta branch, said Monday that he would support further cuts "over the course of this year" if the economy continued to improve. Policymakers said in December that they intended to reduce their purchases of bonds by $10 billion a month to $75 billion a month. The Fed's stimulus was a key driver of the market's rally last year.

For many investors, the focus this week will be on company earnings.

The NYSE DOW closed LOWER ▼ -179.11 points or ▼ -1.09% on Monday, 13 January 2014
Symbol …........Last ......Change.....
Dow_Jones 16257.94 ▼ -179.11 ▼ -1.09%
Nasdaq___ 4113.3 ▼ -61.36 ▼ -1.47%
S&P_500__ 1819.2 ▼ -23.17 ▼ -1.26%
30_Yr_Bond 3.77 ▼ -0.03 ▼ -0.76%

NYSE Volume 3,569,839,500
Nasdaq Volume 2,293,758,250

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6757.15 ▲ 17.21 ▲ 0.26%
DAX_____ 9510.17 ▲ 36.93 ▲ 0.39%
CAC_40__ 4263.27 ▲ 12.67 ▲ 0.30%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5296.8 ▼ -19.5 ▼ -0.37%
Shanghai_Comp 2009.56 ▼ -3.73 ▼ -0.19%
Taiwan_Weight 8566.2 ▲ 36.85 ▲ 0.43%
Nikkei_225____ 15912.06 ▲ 31.73 ▲ 0.20%
Hang_Seng____ 22888.76 ▲ 42.51 ▲ 0.19%
Strait_Times___ 3135.49 ▼ -8.38 ▼ -0.27%
NZX_50_Index__ 4899.4 ▲ 35.01 ▲ 0.72%

http://finance.yahoo.com/news/stocks-slump-most-two-months-213827710.html

Stocks slump the most in two months on Wall Street

Stocks fall most in two months as a weak start to 2014 drags on; Energy sector slides

By Steve Rothwell, AP Markets Writer

The stock market had its worst day of the year so far, extending a January slump.

Stocks dropped Monday as falling oil prices pushed down energy stocks. The prospect of the Federal Reserve further cutting back on its economic stimulus also weighed on the market.

Stocks are falling back this year after exceptional gains pushed the market to record levels in 2013. Investors' confidence that the economy was recovering was jolted Friday by a weak employment report that showed far fewer jobs were added in December than economists had forecast.

Unlike last year, investors have so far been reluctant to buy stocks when the market has slumped. Instead they appear to be waiting for more news before committing, said Peter Cardillo, chief market economist at Rockwell Global Capital.

"At these high levels, people aren't going to step in" until they get more evidence of earnings growth or better economic news, Cardillo said. "Until that happens, who's going to step up to the plate?"

The Standard & Poor's 500 index dropped 23.17 points, or 1.3 percent, to 1,819.20, the biggest decline for the index since Nov. 7. After surging almost 30 percent last year, the S&P 500 index is down 1.6 percent in January.

The Dow Jones industrial average fell 179.11 points, or 1.1 percent, to 16,257.94. The Nasdaq composite dropped 61.36 points, or 1.5 percent, to 4,113.30.

All 10 sectors in the S&P 500 fell.

Energy stocks were among the biggest decliners, dropping 1.9 percent after the price of oil slumped close to its lowest in eight months. Exxon Mobil fell $1.97, or 2 percent, to $98.55.

Oil fell 92 cents, or 1 percent, to $91.80 a barrel as Libyan production continued to ramp up and the possibility of increased crude exports from Iran raised the prospects of excess supply on global markets.

Investors are also worried about more cuts to the Federal Reserve's big economic stimulus program.

Dennis Lockhart, the President of the Federal Reserve's Atlanta branch, said Monday that he would support further cuts "over the course of this year" if the economy continued to improve. Policymakers said in December that they intended to reduce their purchases of bonds by $10 billion a month to $75 billion a month. The Fed's stimulus was a key driver of the market's rally last year.

For many investors, the focus this week will be on company earnings.

JPMorgan Chase, Wells Fargo and Bank of America are among the big banks that are scheduled report fourth-quarter earnings this week. Best Buy and General Electric are among the non-financial companies that will report earnings.

"The market will take its direction from how well, or how poorly, corporate earnings season is unfolding," said Phil Orlando, chief equity market strategist at Federated Investors. "I think we're setting up for a positive surprise."

Analysts expect fourth-quarter earnings to rise by 5.3 percent for S&P 500 companies, according to S&P Capital IQ. That would be a slight drop from the 5.7 percent rate in the previous quarter.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.83 percent from 2.85 percent on Friday.

Among other stocks making big moves:

”” Lululemon Athletica fell $9.90, or 16.6 percent, to $49.70 after the high-end yoga apparel maker said sales have dropped off in January and its fourth-quarter results will be lower than expected.

”” Scripps Networks slumped $5.70, or 7 percent, to $76.31 after the Wall Street Journal reported that talks about a merger between the cable network operator, which owns HGTV, and Discovery Communications had ended.

”” Beam, the maker of Jim Beam, Maker's Mark and other liquors, jumped $16.45, or 24.6 percent, to $83.42 after the company announced that it had agreed to be acquired by Japan's Suntory for $14 billion.

 

[bigdog]

Source: http://finance.yahoo.com

The good followed the bad for the stock market on Tuesday.

One day after logging its worst performance of the year, the stock market bounced back with its best day of 2014. The Standard & Poor's 500 index climbed more than 1 percent, erasing most of its loss from a day earlier.

Technology stocks led the gains as Wall Street analysts raised their assessments of Intel and electronics company Jabil Circuit.

A report on retail sales also boosted investor confidence. Excluding spending on autos, gas and building supplies, sales increased 0.7 percent in December, the Commerce Department reported Tuesday. That was better than the increase of 0.4 percent forecast by economists.

While the rise in December sales was modest, it helped ease investors' concerns about the health of the economy after a surprisingly weak jobs report was published on Friday.

"This is a preview of what 2014 will be like...it's going to be more volatile than it was last year," said Andres Garcia-Amaya, a global market strategist at JPMorgan Funds. "The market's bouncing back and saying the world's not ending, things are pointing in the right direction."

The S&P 500 index gained 19.68 points, or 1.1 percent, to 1,838.88, its biggest gain since Dec. 18.

The Dow Jones industrial average rose 115.92 points, or 0.7 percent, to close at 16,373.86, just below of its high of the day. The Nasdaq composite rose 69.71 points, or 1.7 percent, to 4,183.02.

Technology companies rose 1.9 percent, the most of the 10 sectors that make up the S&P 500.

Intel climbed $1.01, or 4 percent, to $26.51 after analysts at JPMorgan raised their rating on the chipmaker's stock and predicted that demand for PCs will stabilize this year and that the company's CEO will focus on improving margins and returns.

Jabil Circuit jumped $1.30, or 7.8 percent, to $17.89 after Goldman Sachs recommended buying the stock of the electronics company, forecasting that its earnings next year could be better than most analysts are expecting.

Stocks have had a sluggish start to the year after an exceptional 2013. The S&P 500 is down 0.5 percent in January after climbing nearly 30 percent last year.

Despite the slow start, many investors remain optimistic that stocks will end this year higher as well, and that the current slump will wind up being a pause rather than a collapse.

"Valuations have been certainly been pushed higher, so (stocks) are no longer cheap," said Eric Wiegand, senior portfolio manager at U.S. Bank Wealth Management. "But we would contend that they are still fair."

The NYSE DOW closed HIGHER ▲ 115.92 points or ▲ 0.71% on Tuesday, 14 January 2014
Symbol …........Last ......Change.....
Dow_Jones 16373.86 ▲ 115.92 ▲ 0.71%
Nasdaq___ 4183.02 ▲ 69.71 ▲ 1.69%
S&P_500__ 1838.88 ▲ 19.68 ▲ 1.08%
30_Yr_Bond 3.8 ▲ 0.03 ▲ 0.88%

NYSE Volume 3,330,621,750
Nasdaq Volume 2,008,633,000

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6766.86 ▲ 9.71 ▲ 0.14%
DAX_____ 9540.51 ▲ 30.34 ▲ 0.32%
CAC_40__ 4274.2 ▲ 10.93 ▲ 0.26%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5219.8 ▼ -77 ▼ -1.45%
Shanghai_Comp 2026.84 ▲ 17.28 ▲ 0.86%
Taiwan_Weight 8548.14 ▼ -18.06 ▼ -0.21%
Nikkei_225____ 15422.4 ▼ -489.66 ▼ -3.08%
Hang_Seng____ 22791.28 ▼ -97.48 ▼ -0.43%
Strait_Times___ 3123.75 ▼ -11.74 ▼ -0.37%
NZX_50_Index__ 4865.16 ▼ -34.24 ▼ -0.70%

http://finance.yahoo.com/news/us-stocks-bounce-back-day-212858659.html

US stocks bounce back a day after big loss

Stocks bounce back to log biggest advance of the year; Technology stocks lead the gains

By Steve Rothwell, AP Markets Writer

The good followed the bad for the stock market on Tuesday.

One day after logging its worst performance of the year, the stock market bounced back with its best day of 2014. The Standard & Poor's 500 index climbed more than 1 percent, erasing most of its loss from a day earlier.

Technology stocks led the gains as Wall Street analysts raised their assessments of Intel and electronics company Jabil Circuit.

A report on retail sales also boosted investor confidence. Excluding spending on autos, gas and building supplies, sales increased 0.7 percent in December, the Commerce Department reported Tuesday. That was better than the increase of 0.4 percent forecast by economists.

While the rise in December sales was modest, it helped ease investors' concerns about the health of the economy after a surprisingly weak jobs report was published on Friday.

"This is a preview of what 2014 will be like...it's going to be more volatile than it was last year," said Andres Garcia-Amaya, a global market strategist at JPMorgan Funds. "The market's bouncing back and saying the world's not ending, things are pointing in the right direction."

The S&P 500 index gained 19.68 points, or 1.1 percent, to 1,838.88, its biggest gain since Dec. 18.

The Dow Jones industrial average rose 115.92 points, or 0.7 percent, to close at 16,373.86, just below of its high of the day. The Nasdaq composite rose 69.71 points, or 1.7 percent, to 4,183.02.

Technology companies rose 1.9 percent, the most of the 10 sectors that make up the S&P 500.

Intel climbed $1.01, or 4 percent, to $26.51 after analysts at JPMorgan raised their rating on the chipmaker's stock and predicted that demand for PCs will stabilize this year and that the company's CEO will focus on improving margins and returns.

Jabil Circuit jumped $1.30, or 7.8 percent, to $17.89 after Goldman Sachs recommended buying the stock of the electronics company, forecasting that its earnings next year could be better than most analysts are expecting.

Stocks have had a sluggish start to the year after an exceptional 2013. The S&P 500 is down 0.5 percent in January after climbing nearly 30 percent last year.

Despite the slow start, many investors remain optimistic that stocks will end this year higher as well, and that the current slump will wind up being a pause rather than a collapse.

"Valuations have been certainly been pushed higher, so (stocks) are no longer cheap," said Eric Wiegand, senior portfolio manager at U.S. Bank Wealth Management. "But we would contend that they are still fair."

Investors were also watching results from two big banks. JPMorgan Chase, the nation's biggest bank by assets, rose 4 cents, or 0.1 percent, to $57.74 after reporting gains in most of its divisions except for investment banking.

Wells Fargo rose 3 cents, or 0.1 percent, to $45.59 after the nation's biggest mortgage lender reported a sharp drop in its mortgage business even as its bottom-line income rose 11 percent.

The outlook for bank earnings should improve as the economy strengthens said, Jerry Braakman, chief investment officer at First American Trust. Banks should also get a lift as long-term interest rates rise, helping them to lift the margins on their lending, he said.

The yield on the 10-year note climbed to 2.87 percent from 2.83 percent on Monday as investors sold bonds.

In commodities trading, the price of oil climbed 79 cents, or 0.9 percent, to $92.59. Gold fell $5.70, or 0.5 percent, to $1,245.40 an ounce.

Among other stocks making big moves:

”” Time Warner Cable rose $3.60, or 2.7 percent, to $136 after Charter Communications intensified its pursuit of the company. Charter said Monday it would bring an offer directly to shareholders if needed after getting rebuffed by Time Warner Cable's management.

”” Intuitive Surgical jumped $26.81, or 6.8 percent, to $419.88 after the company said it will report revenue in the fourth quarter that is higher than Wall Street analysts are forecasting, as procedures performed with its robotic da Vinci system increased.

”” GameStop plunged $9.01, or 20 percent, to $36.31 after the world's largest video game retailer gave a profit forecast that fell below Wall Street's expectations for its crucial holiday quarter, despite higher-than-expected sales.

 

[bigdog]

Source: http://finance.yahoo.com

It was a stock market squeaker.

After piercing its all-time high in early trading, then yo-yoing below and above that level several times during the day, the Standard and Poor's 500 index on Wednesday managed to eke out a record at the close, besting the old one by just two-hundredths of a point.

Financial and technology companies had some of the biggest gains. Bank stocks rose after Bank of America reported that its profit surged to $3.44 billion in the fourth quarter. Apple was up nearly 2 percent.

Investors have been worried stocks would stall in the new year after a surge of nearly 30 percent in the S&P 500 last year. The first few trading days in 2014 seemed to confirm their fears. As of the close of trading Monday, the S&P 500 was down 1.6 percent.

But a combination of positive economic reports and strong earnings on Wednesday sent all three major indexes higher.

The S&P 500 gained 9.50 points, or 0.52 percent, to 1,848.38. The last closing high was 1,848.36 on Dec. 31, 2013. With Wednesday's rise, the index is now basically flat for the year. In 2013 the S&P 500 closed at record highs 45 times.

The Dow Jones industrial average closed up 108.08 points, or 0.7 percent, to 16,481.94. It is 94.72 points from its closing high, just one good up day away. The Nasdaq composite rose 31.87 points, or 0.76 percent, to 4,214.88. The tech-heavy index is still 16 percent below its high during the dot-com bubble more than a decade ago.

Bank of America climbed 2.3 percent after it reported a jump in earnings. The loans on its balance sheet continue to improve, and the bank's provision for credit losses fell to $336 million, from $2.2 billion in the same period a year earlier. Even its mortgage division, which took huge losses after the housing bubble popped, improved.

Apple rose 2 percent, and Microsoft by 2.7 percent. On Friday, Apple plans to start selling its iPhone in China through China Mobile, the world's largest cellphone carrier.

Seven of the 10 industries in the S&P 500 closed higher, led by telecommunications, information technology and financial services. The three were each up more than 1 percent.

Whether stocks can climb more in the coming days depends partly on corporate earnings reports now coming out for the fourth quarter of last year. Companies reporting on Thursday include Goldman Sachs, Citigroup, American Express and Intel.

After years of squeezing more and more profit out of every dollar of revenue, companies will have to lift that top line to hit their earnings targets for this year, said Joseph S. Tanious, global market strategist at JPMorgan. But he's optimistic. "You will see strong revenue growth," he said.

Tanious said a 4 percent to 6 percent increase in S&P 500 earnings per share this year shouldn't be "too difficult."

Financial analysts expect S&P 500 earnings per share to increase 5.6 percent for the fourth quarter, and 9.8 percent for all four quarters of the new year, according to S&P Capital IQ. Revenue growth for both periods is expected to be half the earnings growth.

Stocks were also pushed higher Wednesday by some encouraging economic reports.

The NYSE DOW closed HIGHER ▲ 108.08 points or ▲ 0.66% on Wednesday, 15 January 2014
Symbol …........Last ......Change.....
Dow_Jones 16481.94 ▲ 108.08 ▲ 0.66%
Nasdaq___ 4214.88 ▲ 31.87 ▲ 0.76%
S&P_500__ 1848.38 ▲ 9.5 ▲ 0.52%
30_Yr_Bond 3.81 ▲ 0.01 ▲ 0.16%

NYSE Volume 3,749,217,750
Nasdaq Volume 2,076,609,380

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6819.86 ▲ 53 ▲ 0.78%
DAX_____ 9733.81 ▲ 193.3 ▲ 2.03%
CAC_40__ 4332.07 ▲ 57.87 ▲ 1.35%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5255.5 ▲ 35.7 ▲ 0.68%
Shanghai_Comp 2023.35 ▼ -3.49 ▼ -0.17%
Taiwan_Weight 8602.55 ▲ 54.41 ▲ 0.64%
Nikkei_225____ 15808.73 ▲ 386.33 ▲ 2.50%
Hang_Seng____ 22902 ▲ 110.72 ▲ 0.49%
Strait_Times___ 3143.25 ▲ 19.5 ▲ 0.62%
NZX_50_Index__ 4913.03 ▲ 47.88 ▲ 0.98%

http://finance.yahoo.com/news/p-500-finishes-above-time-215203499.html

S&P 500 finishes above all-time closing high

S&P 500 finishes above all-time closing high; Bank of America climbs after profit jumps

By Bernard Condon, AP Business Writer

It was a stock market squeaker.

After piercing its all-time high in early trading, then yo-yoing below and above that level several times during the day, the Standard and Poor's 500 index on Wednesday managed to eke out a record at the close, besting the old one by just two-hundredths of a point.

Financial and technology companies had some of the biggest gains. Bank stocks rose after Bank of America reported that its profit surged to $3.44 billion in the fourth quarter. Apple was up nearly 2 percent.

Investors have been worried stocks would stall in the new year after a surge of nearly 30 percent in the S&P 500 last year. The first few trading days in 2014 seemed to confirm their fears. As of the close of trading Monday, the S&P 500 was down 1.6 percent.

But a combination of positive economic reports and strong earnings on Wednesday sent all three major indexes higher.

The S&P 500 gained 9.50 points, or 0.52 percent, to 1,848.38. The last closing high was 1,848.36 on Dec. 31, 2013. With Wednesday's rise, the index is now basically flat for the year. In 2013 the S&P 500 closed at record highs 45 times.

The Dow Jones industrial average closed up 108.08 points, or 0.7 percent, to 16,481.94. It is 94.72 points from its closing high, just one good up day away. The Nasdaq composite rose 31.87 points, or 0.76 percent, to 4,214.88. The tech-heavy index is still 16 percent below its high during the dot-com bubble more than a decade ago.

Bank of America climbed 2.3 percent after it reported a jump in earnings. The loans on its balance sheet continue to improve, and the bank's provision for credit losses fell to $336 million, from $2.2 billion in the same period a year earlier. Even its mortgage division, which took huge losses after the housing bubble popped, improved.

Apple rose 2 percent, and Microsoft by 2.7 percent. On Friday, Apple plans to start selling its iPhone in China through China Mobile, the world's largest cellphone carrier.

Seven of the 10 industries in the S&P 500 closed higher, led by telecommunications, information technology and financial services. The three were each up more than 1 percent.

Whether stocks can climb more in the coming days depends partly on corporate earnings reports now coming out for the fourth quarter of last year. Companies reporting on Thursday include Goldman Sachs, Citigroup, American Express and Intel.

After years of squeezing more and more profit out of every dollar of revenue, companies will have to lift that top line to hit their earnings targets for this year, said Joseph S. Tanious, global market strategist at JPMorgan. But he's optimistic. "You will see strong revenue growth," he said.

Tanious said a 4 percent to 6 percent increase in S&P 500 earnings per share this year shouldn't be "too difficult."

Financial analysts expect S&P 500 earnings per share to increase 5.6 percent for the fourth quarter, and 9.8 percent for all four quarters of the new year, according to S&P Capital IQ. Revenue growth for both periods is expected to be half the earnings growth.

Stocks were also pushed higher Wednesday by some encouraging economic reports.

A Federal Reserve survey of business confidence in the New York region rose. The Fed's "Beige Book" survey showed economic growth remained healthy in most regions, helping bolster the belief that the U.S. economy will grow faster in the coming months. The report followed one on Tuesday showing strong retail sales during the holiday season.

Two so-called safe-have assets fell on the positive economic news. Bond prices fell, pushing the yield on the 10-year Treasury note up to 2.89 percent from 2.87 percent on Tuesday. Gold fell $7.10, or 0.6 percent, to $1,238.30 an ounce

In other news, U.S. wholesale prices increased in December, as gasoline prices rose along with other energy costs. Overall inflation remained mild. The Labor Department said the producer price index, which measures costs before they reach the consumer, rose 0.4 percent last month.

Other stocks that had big moves:

”” Netflix, the movie-streaming service, fell more than 2 percent to $330.38 out of concern that the company may someday have to pay broadband providers. A court ruling this week gives broadband access providers such as Comcast, Time Warner Cable and Verizon more flexibility to charge heavy bandwidth users higher prices. Investors also worried that Netflix might pass along any new costs to subscribers in the form of higher fees.

”” Fastenal, an industrial supply company, dropped the most in the S&P 500, down 4.5 percent, after reporting that it missed fourth-quarter earnings by a penny. The stock slumped $2.15 to $46.06.

”” Shares of 3-D printer company ExOne fell $5.41, or 9 percent, to $56.85 after cutting its revenue forecast for the year. The North Huntington, Pa., company cited deferred orders from international customers.

 

[bigdog]

Source: http://finance.yahoo.com

A batch of negative company news gave investors something to fret over Thursday.

A day after eking out its first record high of 2014, the stock lost ground Thursday as electronics retailer Best Buy, Goldman Sachs and Citigroup, and railroad CSX had disappointing earnings news.

Consumer discretionary companies and banks fell the most.

The Standard & Poor's 500 index slipped 2.49 points, or 0.1 percent, to 1,845.89 ”” retreating from the all-time high it hit the day before.

Best Buy fell the most in the S&P 500 index after the company reported a decline in sales during the crucial holiday season. Its shares plunged $10.74, or 29 percent, to $26.83.

Investors had high hopes that Best Buy, which has faced intense competition from companies like Amazon.com, would put itself back on track. The stock soared 236 percent last year. However, the company said Thursday that the aggressive price-matching policy it offered during the holidays backfired and sales fell 0.8 percent compared to a year ago.

Best Buy is not the only retailer to disappoint investors the last week.

Bed Bath & Beyond, Family Dollar and Target all cut their full-year outlooks last week after a weak holiday season. The only bright spot in the retail industry was Macy's, and even it announced layoffs of 2,500 employees as part of a restructuring.

The Dow Jones industrial average fell 64.93 points, or 0.4 percent, to 16,417.01. The Nasdaq composite had a modest gain of 3.8 points, or 0.1 percent, to 4,218.69.

Goldman Sachs was the biggest drag on the Dow, falling $3.58, or 2 percent, to $175.17.

The bank reported a drop in fourth-quarter profit due to problems in its mortgages and bond trading division. However, Goldman's earnings did beat analysts' expectations.

The bond and mortgage businesses were also weak at Citigroup, whose results fell short of expectations. The stock dropped $2.39, or 4 percent, to $52.60.

The stock market is "fragile" right now, said Scott Clemons, chief investment strategist at Brown Brothers Harriman.

"If something were to go wrong, like if this earnings season continues to disappoint, I think any negative market reaction would be magnified," Clemons said. "The market is not as resilient as it was last year."

The NYSE DOW closed LOWER ▼ -64.93 points or ▼ -0.39% on Thursday, 16 January 2014
Symbol …........Last ......Change.....
Dow_Jones 16417.01 ▼ -64.93 ▼ -0.39%
Nasdaq___ 4218.69 ▲ 3.81 ▲ 0.09%
S&P_500__ 1845.89 ▼ -2.49 ▼ -0.13%
30_Yr_Bond 3.77 ▼ -0.03 ▼ -0.87%

NYSE Volume 3,464,602,000
Nasdaq Volume 1,981,240,880

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6815.42 ▼ -4.44 ▼ -0.07%
DAX_____ 9717.71 ▼ -16.1 ▼ -0.17%
CAC_40__ 4319.27 ▼ -12.8 ▼ -0.30%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5319.4 ▲ 63.9 ▲ 1.22%
Shanghai_Comp 2023.7 ▲ 0.35 ▲ 0.02%
Taiwan_Weight 8612.11 ▲ 9.56 ▲ 0.11%
Nikkei_225____ 15747.2 ▼ -61.53 ▼ -0.39%
Hang_Seng____ 22986.41 ▲ 84.41 ▲ 0.37%
Strait_Times___ 3140.44 ▼ -2.81 ▼ -0.09%
NZX_50_Index__ 4921.29 ▲ 8.26 ▲ 0.17%

http://finance.yahoo.com/news/weak-earnings-drag-us-stocks-154347623.html

Weak earnings drag US stocks mostly lower

Weak earnings drag stocks lower; Best Buy plunges on holiday sales decline

By Ken Sweet, AP Markets Writer

A batch of negative company news gave investors something to fret over Thursday.

A day after eking out its first record high of 2014, the stock lost ground Thursday as electronics retailer Best Buy, Goldman Sachs and Citigroup, and railroad CSX had disappointing earnings news.

Consumer discretionary companies and banks fell the most.

The Standard & Poor's 500 index slipped 2.49 points, or 0.1 percent, to 1,845.89 ”” retreating from the all-time high it hit the day before.

Best Buy fell the most in the S&P 500 index after the company reported a decline in sales during the crucial holiday season. Its shares plunged $10.74, or 29 percent, to $26.83.

Investors had high hopes that Best Buy, which has faced intense competition from companies like Amazon.com, would put itself back on track. The stock soared 236 percent last year. However, the company said Thursday that the aggressive price-matching policy it offered during the holidays backfired and sales fell 0.8 percent compared to a year ago.

Best Buy is not the only retailer to disappoint investors the last week.

Bed Bath & Beyond, Family Dollar and Target all cut their full-year outlooks last week after a weak holiday season. The only bright spot in the retail industry was Macy's, and even it announced layoffs of 2,500 employees as part of a restructuring.

The Dow Jones industrial average fell 64.93 points, or 0.4 percent, to 16,417.01. The Nasdaq composite had a modest gain of 3.8 points, or 0.1 percent, to 4,218.69.

Goldman Sachs was the biggest drag on the Dow, falling $3.58, or 2 percent, to $175.17.

The bank reported a drop in fourth-quarter profit due to problems in its mortgages and bond trading division. However, Goldman's earnings did beat analysts' expectations.

The bond and mortgage businesses were also weak at Citigroup, whose results fell short of expectations. The stock dropped $2.39, or 4 percent, to $52.60.

The stock market is "fragile" right now, said Scott Clemons, chief investment strategist at Brown Brothers Harriman.

"If something were to go wrong, like if this earnings season continues to disappoint, I think any negative market reaction would be magnified," Clemons said. "The market is not as resilient as it was last year."

The company disappointments were not limited to the retailers and banks.

The railroad company CSX warned investors that it might be difficult to reach its own profit targets over the next two years because of ongoing weak demand for coal. The news pushed CSX down $1.99, or 7 percent, to $27.24. Other railroad stocks including Union Pacific and Norfolk Southern were lower.

It's still very early in earnings season. Roughly 70 members of the S&P 500 index report next week, including Microsoft, IBM, Delta Air Lines and McDonald's.

Quincy Krosby, a market strategist with Prudential Financial, said the market desperately needs companies to deliver on expectations this quarter and should find more direction next week once more companies report.

"We need the economic data and corporate earnings to be strong enough to support these valuations," Krosby said.

Investors retreated into the traditional "safe havens:" government bonds, high dividend stocks and gold. The yield on the U.S. 10-year Treasury note fell to 2.84 percent from a yield of 2.89 percent the day before. Bond yields fall as prices rise.

Gold rose $1.90, or 0.2 percent, to $1,240.20 an ounce.

In other company news:

””CEC Entertainment, the parent company of the Chuck E. Cheese pizza parlor chain, rose $6.32, or 13 percent, to $54.75. CEC agreed to be bought by the private equity firm Apollo Global Management for $950 million.

”” Nu Skin plunged $30.43, or 26 percent, to $84.80. Chinese officials accused Nu Skin of operating a pyramid scheme. Nu Skin, based in Provo, Utah, sells skin care and nutritional products through a direct-selling model.

 

[bigdog]

Source: http://finance.yahoo.com

The stock market is closed on Monday for the Martin Luther King Jr. Day holiday.

Investors weren't impressed with the earnings news from big U.S. companies Friday.

Intel slumped after giving a weak revenue forecast and General Electric dropped after its profit margins fell short. Capital One also fell after the bank's earnings missed expectations.

The Standard & Poor's 500 index slipped 7.19 points, or 0.4 percent, to 1,838.70. The Dow Jones industrial average rose 41.55 points, or 0.3 percent, to 16,458.56. The Nasdaq composite fell 21.11 points, or 0.5 percent, to 4,197.58.

The S&P 500 index retreated from a record high close on Wednesday. It ended the week 0.5 percent lower and continued its lackluster start to January.

Still, many investors aren't ready to give up on the stock market's latest rally, which capped an exceptionally strong 2013 with a gain of almost 10 percent in the final three months of the year.

"Markets don't go straight up to the moon," said Doug Cote, chief market strategist at ING Investment Management. "This flat-lining is the market regrouping ... it's a healthy pause."

GE slumped 62 cents, or 2.3 percent, to $26.58 after profit margins in the company's industrial unit fell short of its own targets.

Intel dropped 69 cents, or 2.6 percent, to $25.85 after its first-quarter revenue forecast disappointed Wall Street. Intel said revenue would reach $12.8 billion, "plus or minus" $500 million, less than analysts expected.

The earnings news on Friday wasn't all bad.

American Express rose $3.19, or 3.6 percent, to $90.97 after the company said late Thursday that its net income more than doubled in the fourth quarter. Amex cardholders boosted their spending and borrowing during the holiday season. The news also lifted Visa. The payment company's stock climbed $10.41, or 4.7 percent, to $232.18.

The two companies are members of the Dow and together boosted the blue-chip index by 87 points. Without them, the Dow would have ended the day down.

Morgan Stanley also rose after reporting earnings that beat forecasts. The bank's stock climbed $1.40, or 4.4 percent, to $33.40. Investors were impressed by improving profitability at the bank's wealth management unit, and its pledge to return more capital to shareholders in the form of dividends and stock buybacks, said Shannon Stemm, an analyst at brokerage firm Edward Jones.

About 10 percent of the companies in the S&P 500 have reported fourth-quarter results so far. Despite the disappointing earnings on Friday, profits are still forecast to climb 5.3 percent for the period to a record of $27.76 a share, according to S&P Capital IQ.

The NYSE DOW closed HIGHER ▲ 41.55 points or ▲ 0.25% on Friday, 17 January 2014
Symbol …........Last ......Change.....
Dow_Jones 16458.56 ▲ 41.55 ▲ 0.25%
Nasdaq___ 4197.58 ▼ -21.11 ▼ -0.50%
S&P_500__ 1838.7 ▼ -7.19 ▼ -0.39%
30_Yr_Bond 3.76 ▼ -0.02 ▼ -0.42%

NYSE Volume 3,654,022,000
Nasdaq Volume 2,196,453,000

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6829.3 ▲ 13.88 ▲ 0.20%
DAX_____ 9742.96 ▲ 25.25 ▲ 0.26%
CAC_40__ 4327.5 ▲ 8.23 ▲ 0.19%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5316.4 ▼ -3 ▼ -0.06%
Shanghai_Comp 2004.95 ▼ -18.75 ▼ -0.93%
Taiwan_Weight 8596 ▼ -16.11 ▼ -0.19%
Nikkei_225____ 15734.46 ▼ -12.74 ▼ -0.08%
Hang_Seng____ 23133.35 ▲ 146.94 ▲ 0.64%
Strait_Times___ 3147.33 ▲ 6.89 ▲ 0.22%
NZX_50_Index__ 4893.95 ▼ -27.34 ▼ -0.56%

http://finance.yahoo.com/news/us-stocks-mostly-lower-earnings-200633489.html

US stocks are mostly lower as earnings fall short

Stocks edge mostly lower as earnings disappoint investors; GE and Intel fall after earnings

By Steve Rothwell, AP Markets Writer

Investors weren't impressed with the earnings news from big U.S. companies Friday.

Intel slumped after giving a weak revenue forecast and General Electric dropped after its profit margins fell short. Capital One also fell after the bank's earnings missed expectations.

The Standard & Poor's 500 index slipped 7.19 points, or 0.4 percent, to 1,838.70. The Dow Jones industrial average rose 41.55 points, or 0.3 percent, to 16,458.56. The Nasdaq composite fell 21.11 points, or 0.5 percent, to 4,197.58.

The S&P 500 index retreated from a record high close on Wednesday. It ended the week 0.5 percent lower and continued its lackluster start to January.

Still, many investors aren't ready to give up on the stock market's latest rally, which capped an exceptionally strong 2013 with a gain of almost 10 percent in the final three months of the year.

"Markets don't go straight up to the moon," said Doug Cote, chief market strategist at ING Investment Management. "This flat-lining is the market regrouping ... it's a healthy pause."

GE slumped 62 cents, or 2.3 percent, to $26.58 after profit margins in the company's industrial unit fell short of its own targets.

Intel dropped 69 cents, or 2.6 percent, to $25.85 after its first-quarter revenue forecast disappointed Wall Street. Intel said revenue would reach $12.8 billion, "plus or minus" $500 million, less than analysts expected.

The earnings news on Friday wasn't all bad.

American Express rose $3.19, or 3.6 percent, to $90.97 after the company said late Thursday that its net income more than doubled in the fourth quarter. Amex cardholders boosted their spending and borrowing during the holiday season. The news also lifted Visa. The payment company's stock climbed $10.41, or 4.7 percent, to $232.18.

The two companies are members of the Dow and together boosted the blue-chip index by 87 points. Without them, the Dow would have ended the day down.

Morgan Stanley also rose after reporting earnings that beat forecasts. The bank's stock climbed $1.40, or 4.4 percent, to $33.40. Investors were impressed by improving profitability at the bank's wealth management unit, and its pledge to return more capital to shareholders in the form of dividends and stock buybacks, said Shannon Stemm, an analyst at brokerage firm Edward Jones.

About 10 percent of the companies in the S&P 500 have reported fourth-quarter results so far. Despite the disappointing earnings on Friday, profits are still forecast to climb 5.3 percent for the period to a record of $27.76 a share, according to S&P Capital IQ.

Thirteen more companies, including Johnson & Johnson, Delta Air Lines and International Business Machines, will report earnings on Tuesday.

The stock market is closed on Monday for the Martin Luther King Jr. Day holiday.

In government bond trading, the yield on the 10-year note fell to 2.82 percent from 2.84 percent late Thursday. In commodities trading, the price of oil rose 41 cents to $94.37 a barrel. Gold climbed $11.70, or 0.9 percent, to $1,251 an ounce.

Among other stocks making big moves;

— Elizabeth Arden plunged $6.54, or 19 percent, to $27.96 in heavy trading. The company gave a dismal forecast for its fiscal second quarter and full year late Thursday, citing weak holiday sales.

— United Parcel Service fell 58 cents, or 0.6 percent, to $99.91 after the package delivery company said its earnings would be lower than it previously forecast. The company said an "unprecedented" amount of online shopping, including a surge of last-minute orders, forced it to use more temporary employees than planned.

— Capital One fell $4.05, or 5.3 percent, to $72.39. The lender said late Thursday that loans fell in its U.S. credit card and home loan divisions.

1534

 

[bigdog]

Source: http://finance.yahoo.com

Joe - I can no longer add attachments - was able to last week!!

The Standard & Poor's 500 index logged a small gain Tuesday on a mixed day for the stock market.

Health-care giant Johnson & Johnson slipped after it warned that pressure to keep prices low would likely mean slightly lower profits than forecast. Delta Air Lines gained after reporting a better-than-expected profit in the fourth quarter as fares and traffic rose.

Company earnings were the main focus for investors Tuesday as there were no major economic releases. So far, the stock market has failed to get a big lift from earnings reports and investors appear to be assessing the results more critically than they did a year ago.

"Earnings are coming in and, candidly, we're getting a mixture picture for the fourth quarter so far," said Jim Russell, an investment director at U.S. Bank.

The Standard & Poor's 500 rose 5.10 points, or 0.3 percent, to 1,843.80. The Dow Jones industrial average fell 44.12 points, or 0.3 percent, to 16,414.44. The Nasdaq composite edged up 28.18 points, or 0.7 percent, to 4,225.76.

J&J, one of the 30 members of the Dow, slipped $1.03, or 1.1 percent, to $94.03, helping pull the index lower. Another Dow component, Verizon Communications, fell after reporting its own earnings.

Among the day's winners were Dow Chemical and Alcoa.

Dow Chemical rose $2.86, or 6.6 percent, to $45.93 after hedge fund Third Point LLC said Tuesday that it has acquired a significant stake in the company and wants it to spin off its petrochemicals division.

Alcoa surged 77 cents, or 6.8 percent, to $12.13 after analysts at JPMorgan raised their price target for the stock, predicting Alcoa will benefit from tightening aluminum markets.

After surging almost 30 percent last year, stocks are starting the year in a more subdued fashion. The S&P 500 is down 0.3 percent for the year.

The NYSE DOW closed LOWER ▼ -44.12 points or ▼ -0.27% on Tuesday, 21 January 2014
Symbol …........Last ......Change.....
Dow_Jones 16414.44 ▼ -44.12 ▼ -0.27%
Nasdaq___ 4225.76 ▲ 28.18 ▲ 0.67%
S&P_500__ 1843.8 ▲ 5.1 ▲ 0.28%
30_Yr_Bond 3.74 ▼ -0.02 ▼ -0.48%

NYSE Volume 3,767,895,000
Nasdaq Volume 2,021,258,500

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6834.26 ▼ -2.47 ▼ -0.04%
DAX_____ 9730.12 ▲ 14.22 ▲ 0.15%
CAC_40__ 4323.87 ▲ 1.01 ▲ 0.02%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5342 ▲ 34.4 ▲ 0.65%
Shanghai_Comp 2008.31 ▲ 17.06 ▲ 0.86%
Taiwan_Weight 8599.9 ▼ -21.66 ▼ -0.25%
Nikkei_225____ 15795.96 ▲ 154.28 ▲ 0.99%
Hang_Seng____ 23033.12 ▲ 104.17 ▲ 0.45%
Strait_Times___ 3133.76 ▲ 4.97 ▲ 0.16%

http://finance.yahoo.com/news/mixed-earnings-hold-back-us-220435064.html

Mixed earnings hold back US stocks

Mixed earnings reports hold back the stock market on Tuesday; Johnson & Johnson slumps

By Steve Rothwell and Bernard Condon, AP Markets Writers
The Standard & Poor's 500 index logged a small gain Tuesday on a mixed day for the stock market.

Health-care giant Johnson & Johnson slipped after it warned that pressure to keep prices low would likely mean slightly lower profits than forecast. Delta Air Lines gained after reporting a better-than-expected profit in the fourth quarter as fares and traffic rose.

Company earnings were the main focus for investors Tuesday as there were no major economic releases. So far, the stock market has failed to get a big lift from earnings reports and investors appear to be assessing the results more critically than they did a year ago.

"Earnings are coming in and, candidly, we're getting a mixture picture for the fourth quarter so far," said Jim Russell, an investment director at U.S. Bank.

The Standard & Poor's 500 rose 5.10 points, or 0.3 percent, to 1,843.80. The Dow Jones industrial average fell 44.12 points, or 0.3 percent, to 16,414.44. The Nasdaq composite edged up 28.18 points, or 0.7 percent, to 4,225.76.

J&J, one of the 30 members of the Dow, slipped $1.03, or 1.1 percent, to $94.03, helping pull the index lower. Another Dow component, Verizon Communications, fell after reporting its own earnings.

Among the day's winners were Dow Chemical and Alcoa.

Dow Chemical rose $2.86, or 6.6 percent, to $45.93 after hedge fund Third Point LLC said Tuesday that it has acquired a significant stake in the company and wants it to spin off its petrochemicals division.

Alcoa surged 77 cents, or 6.8 percent, to $12.13 after analysts at JPMorgan raised their price target for the stock, predicting Alcoa will benefit from tightening aluminum markets.

After surging almost 30 percent last year, stocks are starting the year in a more subdued fashion. The S&P 500 is down 0.3 percent for the year.

In bond trading, the yield on the 10-year Treasury note rose to 2.83 percent from 2.82 percent on Friday. U.S. markets were closed Monday for the Martin Luther King Jr. Day holiday.

Among other stocks making big moves:

”” Delta increased $1.01, or 3 percent, to $32.08 after reporting a better-than-expected profit in the fourth quarter as fares and traffic rose. The airline's president said demand was strong, and forecast that profit margins would increase in the current quarter.

”” Expedia dropped $3.02, or 4.2 percent, to $67.67 after a blog Search Engine Land reported Expedia online visibility fell dramatically, and cited actions taken by Google to punish companies that it believes are trying to game its search algorithms. Officials from Expedia did not immediately respond to requests for comment from The Associated Press.

 

[bigdog]

Source: http://finance.yahoo.com

The Standard & Poor's 500 index eked out its second small gain of the week Wednesday as investors pored over the latest earnings reports.

Norfolk Southern climbed after the railroad company said its fourth-quarter profit rose 24 percent, better than Wall Street analysts had forecast. TE Connectivity, an electronics company, was the biggest gainer in the S&P 500 after its earnings beat analysts' expectations and the company posted a strong earnings outlook for the second quarter.

But there were also some high-profile disappointments.

IBM fell after the computing company reported lower-than-expected revenue in the period. AMD slumped after the chipmakers' first-quarter revenue outlook rattled investors.

Companies are still increasing their earnings and are forecast to log record quarterly profits for the period, but much of the improvement in recent years has come from cutting costs. As the economy strengthens, investors are increasingly looking for evidence that companies can increase revenue.

"There's not a lot of cost left for companies to squeeze out," said Andy Zimmerman, chief investment strategist at DT Investment Partners, an investment advisor.

The S&P 500 index rose 1.06 point, or 0.1 percent, to 1,844.86. The index traded within a range of just six points on Wednesday. After a small gain on Tuesday, the index is six points, or 0.3 percent, higher for the week.

The Dow Jones industrial average fell 41.10 points, or 0.3 percent, to 16,373.34. Most of the Dow's losses came from IBM's slump. The computer service company's stock fell $6.18, or 3.3 percent, to $182.25.

In other trading, the Nasdaq composite climbed 17.24 points, or 0.4 percent, to 4,243.

Among the day's winners, TE Connectivity jumped $3.70 or 6.6 percent, to $60 after its earnings report. Norfolk Southern climbed $4.23, or 4.8 percent, to $92.94 after the rail company said its fourth-quarter profit rose 24 percent.

Despite the lackluster start to the year, most investors see no cause to call an end to the stock market's rally just yet. The S&P 500 is down 0.2 percent in 2014 after a gain of almost 30 percent last year.

"You had a massive run last year," said Russ Koesterich, chief investment strategist at BlackRock. "And it's not unreasonable that the market digests those gains."

So far, the stock market has failed to get a lift from the company earnings reports that have come out.

Companies are forecast to increase their fourth-quarter earnings by 5.4 percent over the same period a year earlier to a record $27.77 a share, according to S&P Capital IQ data. That would be a slight decline from the third quarter growth rate of 5.6 percent and lower than last year's pace of 7.7 percent.

Much like last year, small companies are again outperforming their larger counterparts. While the S&P 500 has moved sideways since the start of year, the Russell 2000, an index that tracks smaller companies, is up 1.5 percent. The Nasdaq composite is up 1.6 percent.

In government bond trading, the yield on the 10-year Treasury note climbed to 2.86 percent from 2.83 percent late Tuesday.

The NYSE DOW closed LOWER ▼ -41.1 points or ▼ -0.25% on Wednesday, 22 January 2014
Symbol …........Last ......Change.....
Dow_Jones 16373.34 ▼ -41.1 ▼ -0.25%
Nasdaq___ 4243 ▲ 17.24 ▲ 0.41%
S&P_500__ 1844.86 ▲ 1.06 ▲ 0.06%
30_Yr_Bond 3.76 ▲ 0.02 ▲ 0.53%

NYSE Volume 3,357,948,750
Nasdaq Volume 2,000,833,620

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6826.33 ▼ -7.93 ▼ -0.12%
DAX_____ 9720.11 ▼ -10.01 ▼ -0.10%
CAC_40__ 4324.98 ▲ 1.11 ▲ 0.03%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5331.3 ▼ -10.7 ▼ -0.20%
Shanghai_Comp 2051.75 ▲ 43.44 ▲ 2.16%
Taiwan_Weight 8625.3 ▲ 25.4 ▲ 0.30%
Nikkei_225____ 15820.96 ▲ 25 ▲ 0.16%
Hang_Seng____ 23082.25 ▲ 49.13 ▲ 0.21%
Strait_Times___ 3133.74 ▼ -0.02 ▲ 0.00%
NZX_50_Index__ 4950.34 ▲ 28.67 ▲ 0.58%

http://finance.yahoo.com/news/p-500-ekes-another-small-215222082.html

S&P 500 ekes out another small gain; IBM slumps

S&P 500 ekes out a small gain as investors assess company earnings; IBM slumps on weak revenue

By Steve Rothwell, AP Markets Writer

The Standard & Poor's 500 index eked out its second small gain of the week Wednesday as investors pored over the latest earnings reports.

Norfolk Southern climbed after the railroad company said its fourth-quarter profit rose 24 percent, better than Wall Street analysts had forecast. TE Connectivity, an electronics company, was the biggest gainer in the S&P 500 after its earnings beat analysts' expectations and the company posted a strong earnings outlook for the second quarter.

But there were also some high-profile disappointments.

IBM fell after the computing company reported lower-than-expected revenue in the period. AMD slumped after the chipmakers' first-quarter revenue outlook rattled investors.

Companies are still increasing their earnings and are forecast to log record quarterly profits for the period, but much of the improvement in recent years has come from cutting costs. As the economy strengthens, investors are increasingly looking for evidence that companies can increase revenue.

"There's not a lot of cost left for companies to squeeze out," said Andy Zimmerman, chief investment strategist at DT Investment Partners, an investment advisor.

The S&P 500 index rose 1.06 point, or 0.1 percent, to 1,844.86. The index traded within a range of just six points on Wednesday. After a small gain on Tuesday, the index is six points, or 0.3 percent, higher for the week.

The Dow Jones industrial average fell 41.10 points, or 0.3 percent, to 16,373.34. Most of the Dow's losses came from IBM's slump. The computer service company's stock fell $6.18, or 3.3 percent, to $182.25.

In other trading, the Nasdaq composite climbed 17.24 points, or 0.4 percent, to 4,243.

Among the day's winners, TE Connectivity jumped $3.70 or 6.6 percent, to $60 after its earnings report. Norfolk Southern climbed $4.23, or 4.8 percent, to $92.94 after the rail company said its fourth-quarter profit rose 24 percent.

Despite the lackluster start to the year, most investors see no cause to call an end to the stock market's rally just yet. The S&P 500 is down 0.2 percent in 2014 after a gain of almost 30 percent last year.

"You had a massive run last year," said Russ Koesterich, chief investment strategist at BlackRock. "And it's not unreasonable that the market digests those gains."

So far, the stock market has failed to get a lift from the company earnings reports that have come out.

Companies are forecast to increase their fourth-quarter earnings by 5.4 percent over the same period a year earlier to a record $27.77 a share, according to S&P Capital IQ data. That would be a slight decline from the third quarter growth rate of 5.6 percent and lower than last year's pace of 7.7 percent.

Much like last year, small companies are again outperforming their larger counterparts. While the S&P 500 has moved sideways since the start of year, the Russell 2000, an index that tracks smaller companies, is up 1.5 percent. The Nasdaq composite is up 1.6 percent.

In government bond trading, the yield on the 10-year Treasury note climbed to 2.86 percent from 2.83 percent late Tuesday.

Among other stock making big moves:

”” Apple climbed $2.44, or 0.4 percent, to $551.51. Billionaire investor Carl Icahn said on his Twitter account that he had increased his investment to more than $3 billion. Icahn wants Apple to "markedly" increase its share buybacks and said the technology company is doing investors a disservice by not doing so.

”” Netflix surged $55, or 16 percent, to $388 in after-hours trading after the video streaming company posted earnings that beat analysts' expectations and added another 2.3 million U.S. subscribers.

”” Coach fell $3.17, or 6 percent, to $49.38 after the luxury goods maker reported a lower quarterly profit, citing weakness in women's bags and accessories in North America. Coach is facing tough competition from rivals like Michael Kors.

”” Advanced Micro Devices plunged 50 cents, or 12 percent, to $3.67 after the company said late Tuesday that it expected its first-quarter revenue to fall 13 percent to 19 percent from the fourth quarter. That would translate into first-quarter revenue ranging from $1.29 billion to $1.38 billion, mostly below Wall Street's predictions.

 

[bigdog]

Source: http://finance.yahoo.com

U.S. stocks fell broadly Thursday after a report from China added to growing signs that the world's second-largest economy is slowing. The selling spared few companies, even those reporting solid earnings.

"It's pretty ugly," said Randy Frederick, a managing director of active trading and derivatives at Charles Schwab. "When you've got a market that's near record highs ... people are looking for any excuse to take profits."

In the Standard and Poor's 500 index, nine of 10 companies dropped.

Stocks fell from the start of trading after an HSBC survey of Chinese manufacturing fell to the lowest point since July and suggested that the country's factory sector was shrinking. Earlier this week, China reported its slowest annual economic growth since 1999.

The Dow was down as much as 232 points before trimming its loss late in the day. It closed down 175.99 points, or 1.1 percent, at 16,197.35. The S&P 500 lost 16.40 points, or 0.9 percent, to 1,828.46.

Fearful investors poured money into U.S. government debt securities, pushing the yield on the 10-year Treasury note down to 2.78 percent from 2.86 percent late Wednesday. That was the lowest since Nov. 29. Yields fall on bonds when their prices rise.

The price of gold, another safe-play asset, rose $23.70, or 1.9 percent, to $1,262.30 an ounce.

Worries about China also hammered emerging market currencies. The Argentine peso fell hard, and has now lost 16 percent of its value in two days, the fastest drop since the country's economic collapse in 2002. The Turkish lira fell 1.3 percent and reached a record low against the dollar.

Several U.S. companies fell after reporting their latest quarterly results, including KeyCorp, Johnson Controls and Jacobs Engineering. All three either met or exceeded analyst expectations for earnings, but were each down at least 3 percent as investors sold the broad market.

So far this reporting season, about a fifth of the companies in the S&P 500 have reported fourth-quarter earnings, with about 65 percent of them beating analyst estimates ”” a solid performance, said Christine Short, associate director at S&P Capital IQ. She said that is about the historical average.

But investors seem more focused on the global economy, and on projections from companies for the coming year.

"The guidance has been very guarded and analysts are not lifting their numbers for 2014," said David Bianco, head U.S. stock strategist at Deutsche Bank.

The NYSE DOW closed LOWER ▼ -175.99 points or ▼ -1.07% on Thursday, 23 January 2014
Symbol …........Last ......Change.....
Dow_Jones 16197.35 ▼ -175.99 ▼ -1.07%
Nasdaq___ 4218.87 ▼ -24.13 ▼ -0.57%
S&P_500__ 1828.46 ▼ -16.4 ▼ -0.89%
30_Yr_Bond 3.68 ▼ -0.08 ▼ -2.08%

NYSE Volume 3,971,833,500
Nasdaq Volume 2,155,302,500

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6773.28 ▼ -53.05 ▼ -0.78%
DAX_____ 9631.04 ▼ -89.07 ▼ -0.92%
CAC_40__ 4280.96 ▼ -44.02 ▼ -1.02%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5275.5 ▼ -55.8 ▼ -1.05%
Shanghai_Comp 2042.18 ▼ -9.57 ▼ -0.47%
Taiwan_Weight 8595.1 ▼ -30.2 ▼ -0.35%
Nikkei_225____ 15695.89 ▼ -125.07 ▼ -0.79%
Hang_Seng____ 22733.9 ▼ -348.35 ▼ -1.51%
Strait_Times___ 3100.24 ▼ -33.5 ▼ -1.07%
NZX_50_Index__ 4911.08 ▼ -39.26 ▼ -0.79%

http://finance.yahoo.com/news/us-stocks-fall-worries-over-215303072.html

US stocks fall on worries over Chinese economy

US stocks fall as investors worry about a China slowdown and US earnings; Bonds, gold rise

By Bernard Condon, AP Business Writer

U.S. stocks fell broadly Thursday after a report from China added to growing signs that the world's second-largest economy is slowing. The selling spared few companies, even those reporting solid earnings.

"It's pretty ugly," said Randy Frederick, a managing director of active trading and derivatives at Charles Schwab. "When you've got a market that's near record highs ... people are looking for any excuse to take profits."

In the Standard and Poor's 500 index, nine of 10 companies dropped.

Stocks fell from the start of trading after an HSBC survey of Chinese manufacturing fell to the lowest point since July and suggested that the country's factory sector was shrinking. Earlier this week, China reported its slowest annual economic growth since 1999.

The Dow was down as much as 232 points before trimming its loss late in the day. It closed down 175.99 points, or 1.1 percent, at 16,197.35. The S&P 500 lost 16.40 points, or 0.9 percent, to 1,828.46.

Fearful investors poured money into U.S. government debt securities, pushing the yield on the 10-year Treasury note down to 2.78 percent from 2.86 percent late Wednesday. That was the lowest since Nov. 29. Yields fall on bonds when their prices rise.

The price of gold, another safe-play asset, rose $23.70, or 1.9 percent, to $1,262.30 an ounce.

Worries about China also hammered emerging market currencies. The Argentine peso fell hard, and has now lost 16 percent of its value in two days, the fastest drop since the country's economic collapse in 2002. The Turkish lira fell 1.3 percent and reached a record low against the dollar.

Several U.S. companies fell after reporting their latest quarterly results, including KeyCorp, Johnson Controls and Jacobs Engineering. All three either met or exceeded analyst expectations for earnings, but were each down at least 3 percent as investors sold the broad market.

So far this reporting season, about a fifth of the companies in the S&P 500 have reported fourth-quarter earnings, with about 65 percent of them beating analyst estimates ”” a solid performance, said Christine Short, associate director at S&P Capital IQ. She said that is about the historical average.

But investors seem more focused on the global economy, and on projections from companies for the coming year.

"The guidance has been very guarded and analysts are not lifting their numbers for 2014," said David Bianco, head U.S. stock strategist at Deutsche Bank.

United Continental fell 75 cents, or 1.5 percent, to $48.43 after its prediction for revenue growth this quarter disappointed investors.

The pullback comes after a stellar run for stocks last year. The Dow rose nearly 27 percent and the S&P, nearly 30 percent.

"The market at these levels is a bit skittish," said James Dunigan, chief investment strategist at PNC Wealth Management. He added that "any kink in the growth story ... is going to give investors pause."

Some companies bucked the selling tide. Netflix surged $54.99, or 17 percent, to $388.72, the biggest gain in the S&P 500. After trading ended Wednesday, the streaming video company reported fourth-quarter earnings had climbed six-fold and that it had added 2.3 million subscribers during the period.

Technology stocks fell less than the rest of the market. The Nasdaq composite declined 24.13 points, or 0.6 percent, to 4,218.87.

Among other stocks making big moves:

”” American Eagle Outfitters dropped $1.12, or 8 percent, to $13.19 after announcing the unexpected departure of its CEO, Robert Hanson. The teen retailer had reported disappointing sales over the holiday season.

”” Nokia plunged 67 cents, or 9 percent, to $7.03 after posting a fourth-quarter loss on falling handset sales. The mobile phone business is part of the device and services unit that the Finnish company has agreed to sell to Microsoft.

”” Union Pacific rose $5.62, or 3 percent, to $174.12 after reporting a 13 percent jump in fourth-quarter earnings, beating analyst forecasts.

 

[bigdog]

Source: http://finance.yahoo.com

Fear is back in the market.

Investors are worried about slower economic growth in China, a gloomier outlook for U.S. corporate profits and an end to easy money policies in the United States and Europe. They're also fretting over country-specific troubles around the world — from economic mismanagement in Argentina to political instability in Turkey.

Those fears converged to start a two-day rout in global markets this week, capped by a 318-point drop in the Dow Jones industrial average Friday. It was the blue-chip index's worst day since last June. The Dow plunged almost 500 points over the two-day stretch.

The Standard & Poor's 500 index fell 38 points, or 2.1 percent, to 1,790 Friday. The Nasdaq composite fell 90 points, or 2.2 percent, to 4,128.

Despite the sell-off, U.S. stocks remain near all-time highs after surging 30 percent last year. The S&P 500 is 3 percent below its record high of 1,848 on Jan. 15.

U.S. stocks have not endured a correction — a drop of 10 percent or more over time — since October 2011.

The turbulence coincides with a global economic shift: China and other emerging market economies appear to be running into trouble just as the developed economies of the United States and Europe finally show signs of renewed strength nearly five years after the end of the Great Recession.

The trouble began Thursday after a January survey showed a drop in Chinese manufacturing activity. Days earlier, China reported that its economic growth last year matched 2012 for the slowest pace since 1999.

"It is interesting how even a mild tremor in China's growth causes such anxiety around the world," said Eswar Prasad, professor of trade policy at Cornell University.

In Asia Friday, Japan's Nikkei 225 slipped 1.9 percent to close at 15,391.56; Hong Kong's Hang Seng shed 1.2 percent to 22,450.06; and Seoul's Kospi dropped 0.4 percent to 1,940.56.

Slower growth in China is bad news for countries that supply oil, iron ore and other raw materials to the world's second-biggest economy. Some of those countries, such as Indonesia and South Africa, were already struggling with an outflow of capital as rising U.S. interest rates drew investors to the United States.

The NYSE DOW closed LOWER ▼ -318.24 points or ▼ -1.96% on Friday, 24 January 2014
Symbol …........Last ......Change.....
Dow_Jones 15879.11 ▼ -318.24 ▼ -1.96%
Nasdaq___ 4128.17 ▼ -90.7 ▼ -2.15%
S&P_500__ 1790.29 ▼ -38.17 ▼ -2.09%
30_Yr_Bond 3.65 ▼ -0.03 ▼ -0.82%

NYSE Volume 4,608,392,000
Nasdaq Volume 2,443,345,000

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6663.74 ▼ -109.54 ▼ -1.62%
DAX_____ 9392.02 ▼ -239.02 ▼ -2.48%
CAC_40__ 4161.47 ▼ -119.49 ▼ -2.79%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5254.3 ▼ -21.2 ▼ -0.40%
Shanghai_Comp 2054.39 ▲ 12.21 ▲ 0.60%
Taiwan_Weight 8598.31 ▲ 3.21 ▲ 0.04%
Nikkei_225____ 15391.56 ▼ -304.33 ▼ -1.94%
Hang_Seng____ 22450.06 ▼ -283.84 ▼ -1.25%
Strait_Times___ 3075.99 ▼ -24.25 ▼ -0.78%
NZX_50_Index__ 4873.7 ▼ -37.38 ▼ -0.76%

http://finance.yahoo.com/news/fear-slowing-growth-pushes-down-182025606.html

Fear of slowing growth pushes down global markets

US stocks slump again, extending a global downturn as investors flee emerging markets

By Paul Wiseman and Joshua Freed, AP Business Writers

Fear is back in the market.

Investors are worried about slower economic growth in China, a gloomier outlook for U.S. corporate profits and an end to easy money policies in the United States and Europe. They're also fretting over country-specific troubles around the world — from economic mismanagement in Argentina to political instability in Turkey.

Those fears converged to start a two-day rout in global markets this week, capped by a 318-point drop in the Dow Jones industrial average Friday. It was the blue-chip index's worst day since last June. The Dow plunged almost 500 points over the two-day stretch.

The Standard & Poor's 500 index fell 38 points, or 2.1 percent, to 1,790 Friday. The Nasdaq composite fell 90 points, or 2.2 percent, to 4,128.

Despite the sell-off, U.S. stocks remain near all-time highs after surging 30 percent last year. The S&P 500 is 3 percent below its record high of 1,848 on Jan. 15.

U.S. stocks have not endured a correction — a drop of 10 percent or more over time — since October 2011.

The turbulence coincides with a global economic shift: China and other emerging market economies appear to be running into trouble just as the developed economies of the United States and Europe finally show signs of renewed strength nearly five years after the end of the Great Recession.

The trouble began Thursday after a January survey showed a drop in Chinese manufacturing activity. Days earlier, China reported that its economic growth last year matched 2012 for the slowest pace since 1999.

"It is interesting how even a mild tremor in China's growth causes such anxiety around the world," said Eswar Prasad, professor of trade policy at Cornell University.

In Asia Friday, Japan's Nikkei 225 slipped 1.9 percent to close at 15,391.56; Hong Kong's Hang Seng shed 1.2 percent to 22,450.06; and Seoul's Kospi dropped 0.4 percent to 1,940.56.

Slower growth in China is bad news for countries that supply oil, iron ore and other raw materials to the world's second-biggest economy. Some of those countries, such as Indonesia and South Africa, were already struggling with an outflow of capital as rising U.S. interest rates drew investors to the United States.

Here's a look at the forces buffeting global financial markets:

THE END OF EASY MONEY

Since the global financial crisis hit in 2008, the Federal Reserve has flooded markets with cash to push interest rates lower and encourage U.S. businesses and consumers to borrow and spend. But last month, as signs of growing economic strength emerged in the U.S., the Fed cut back — reducing its monthly bond purchases to $75 billion from $85 billion. It also said that it expected to reduce the bond-buying further "in measured steps" at upcoming meetings.

The Fed meets again next Tuesday and Wednesday. Many economists expect the central bank to cut the purchases again — perhaps to $65 billion a month.

The scaling back of the Fed's easy money policies has hit some emerging markets hard. When the Fed was pushing U.S. rates lower, emerging markets had seen an inflow of capital from investors seeking higher returns than they could get in the United States. Now investment is flowing back to America, hammering currencies in emerging markets.

The South African rand, Russian ruble, Turkish lira, and especially the Argentinian peso — which fell 13 percent Thursday — have been "trounced," said Jane Foley, a currency strategist at Rabobank. "Talk that the U.S. Federal Reserve will announce another reduction in its monthly bond purchases next week ... (is also) contributing to a loss of confidence in some emerging markets," she said.

POLITICAL TURMOIL

In some countries, concerns over the local political or financial situation have worsened the market volatility dramatically. That was most obvious in Argentina, where the peso this week suffered its sharpest fall since the country's 2002 economic collapse. The government, running short of reserves it could use to buy the currency and keep it from falling, has let the peso drop instead. The country's economic fundamentals are grim: Inflation is believed to be running at about 25 percent to 30 percent.

The peso fell 16 percent in two days, easily the worst performer among emerging markets.

Turkey's national currency, the lira, hit multiple record lows in recent weeks as investors worried about the fallout of a corruption scandal that threatens to destabilize the government. Having a stable government for the past 10 years has been one of the key ingredients in the country's economic revival.

The lira hit an all-time low of 2.33 against the dollar on Friday — from around 2 per dollar in December — despite a $3 billion-intervention by the central bank in foreign exchange markets.

Beyond political problems, the countries that have seen their currencies fall most are those that rely heavily on exports of raw materials used in manufacturing. The Russian ruble was trading at 34.58 per dollar, from below 34 on Thursday. The South African rand weakened to 11.13 per dollar, from 10.98 the day before.

CHINA AND GLOBAL GROWTH

Since the recession, the global economy has relied heavily on China and other emerging markets as the developed economies of the United States, Europe and Japan struggled.

But China's economy is decelerating. It grew 7.7 percent in October-December 2013 from a year earlier, down from the previous quarter's 7.8 percent growth. Factory output, exports and investment all weakened. On Thursday, the preliminary version of HSBC's purchasing managers' index of Chinese manufacturing fell to 49.6, the lowest reading since July's 47.7. Anything below 50 signals a contraction.

China's growth is still far stronger than the United States, Japan or Europe, but is down from the double-digit rates of the previous decade.

Many economists are troubled less by the slower growth numbers than by China's over-reliance on trade and investment instead of spending by its consumers.

"China, and the world at large, would benefit from its shift to a lower but more sustainable pattern of growth that is not so heavily dependent on investment-led growth fueled by bank credit," Cornell's Prasad said.

China's growth is slowing just as the world's rich economies begin to gain momentum.

The 17 countries that use the euro currency appear to be recovering from a debt crisis that tipped them into a double-dip recession in late 2011.

In the United States, households have reduced crippling debt levels and are in better shape to start spending again. The International Monetary Fund expects the U.S. economy to grow 2.8 percent this year, up from 1.9 percent in 2013, and for the eurozone economy to grow 1 percent in 2014 after contracting 0.4 percent in 2013 and 0.7 percent in 2012.

CORPORATE PROFITS

In the U.S., the outlook for corporate profits has already been weakening, and the turmoil in emerging-market currencies could make matters worse.

About two-thirds of the 123 S&P 500 companies that have reported fourth-quarter earnings so far have beaten analysts' estimates, according to S&P Capital IQ, in line with the historical average. But the forecasts for income growth have been falling and could decline further.

As recently as this summer, analysts predicted earnings growth of more than 11 percent for the fourth quarter, but now they expect just half that — 5.9 percent.

Some companies are becoming more pessimistic, too. For the January-March quarter, seven out of every 10 that have talked about their prospects have cut projections, more than average, according to FactSet. The stocks have tanked as a result. Since United Continental lowered revenue estimates on Thursday, for instance, its stock has fallen 6 percent.

U.S.-based multinational companies posted some of the biggest declines on Friday as investors worried about their overseas sales. Oracle and 3M have warned that their results could take a hit because of the strengthening dollar. Shares of the companies fell 3 percent.

Companies that rely on overseas sales will bring home fewer dollars if the dollar continues to appreciate against foreign currencies, especially in emerging markets that have been hammered this week. In Argentina, for example, the same amount of pesos buys fewer dollars today than it did last week.

On Tuesday, Europe-based consumer goods giant Unilever said fourth-quarter sales slowed because of weakness in emerging markets. The decline was mostly because of unfavorable currency moves.

"So when emerging markets sniffle, large cap companies can catch a cold," said Lawrence Creatura, a portfolio manager with Federated Investors.

1992

 

[bigdog]

Source: http://finance.yahoo.com

Shaky economies and plunging currencies in the developing world are fueling a global sell-off in stocks.

Fearful investors on Monday pushed prices lower across Asia and Europe, though many of the drops weren't as steep as last week. In the U.S. and in other rich countries, where economies are healthier, investors also retreated, but the selling was not as fierce.

The Dow Jones industrial average slipped 41.23 points, or 0.26 percent, to 15,837.88. The Standard & Poor's 500 index fell 8.73 points, or 0.5 percent, to 1,781.56. The tech-heavy Nasdaq was down the most, falling 44.56 points, or 1.1 percent, to 4,083.61.

The selling started in Asia, with major indexes in both Hong Kong and Tokyo down more than 2 percent, then spread to Europe and the U.S., as stocks slipped across the board, though much less than feared given the big declines on Friday.

Jack Ablin, chief investment officer at BMO Private Bank, said he was encouraged that the U.S. losses were modest.

"We have an accelerating economy, low inflation and accommodative monetary policy," he said. "The world isn't falling apart."

The market turbulence was set off last week by a report from China on a downturn in its manufacturing, more evidence that the world's second-largest economy is slowing. That's a big problem for Brazil, South Africa and other developing countries that have come to depend on exports to that country.

Adding to the troubles: The decision by the U.S. Federal Reserve last month to scale back its stimulus for the U.S. economy, which has helped keep interest rates low. Money that had flooded emerging markets looking for higher returns outside the U.S. has begun to come back now that rates may rise, battering those markets.

Despite the widespread stock selling Monday, experts say the troubles in China and elsewhere in the developing world are unlikely to derail a global economic recovery that appears to be gaining momentum. Growth in the world's wealthy economies is expected to pick up the slack.

"This year, growth will be driven by the dull and old economies ”” the U.S., the U.K., Germany and even Japan," said Nariman Behravesh, chief economist at IHS Global Insight.

The NYSE DOW closed LOWER ▼ -41.23 points or ▼ -0.26% on Monday, 27 January 2014
Symbol …........Last ......Change.....
Dow_Jones 15837.88 ▼ -41.23 ▼ -0.26%
Nasdaq___ 4083.61 ▼ -44.56 ▼ -1.08%
S&P_500__ 1781.56 ▼ -8.73 ▼ -0.49%
30_Yr_Bond 3.68 ▲ 0.03 ▲ 0.79%

NYSE Volume 4,018,635,750
Nasdaq Volume 2,341,066,250

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6550.66 ▼ -222.62 ▼ -3.29%
DAX_____ 9349.22 ▼ -42.8 ▼ -0.46%
CAC_40__ 4144.56 ▼ -16.91 ▼ -0.41%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5254.3 ▼ -21.2 ▼ -0.40% Closed Monday for Australia day
Shanghai_Comp 2033.3 ▼ -21.09 ▼ -1.03%
Taiwan_Weight 8462.57 ▼ -135.74 ▼ -1.58%
Nikkei_225____ 15005.73 ▼ -385.83 ▼ -2.51%
Hang_Seng____ 21976.1 ▼ -473.96 ▼ -2.11%
Strait_Times___ 3042.43 ▼ -33.56 ▼ -1.09%
NZX_50_Index__ 4853.8 ▼ -19.9 ▼ -0.41%

http://finance.yahoo.com/news/global-stock-declines-continue-215250554.html

Global stock declines continue

Stocks fall across the globe on fears over shaky emerging-market economies and currencies

By Bernard Condon and Paul Wiseman, AP Business Writers

Shaky economies and plunging currencies in the developing world are fueling a global sell-off in stocks.

Fearful investors on Monday pushed prices lower across Asia and Europe, though many of the drops weren't as steep as last week. In the U.S. and in other rich countries, where economies are healthier, investors also retreated, but the selling was not as fierce.

The Dow Jones industrial average slipped 41.23 points, or 0.26 percent, to 15,837.88. The Standard & Poor's 500 index fell 8.73 points, or 0.5 percent, to 1,781.56. The tech-heavy Nasdaq was down the most, falling 44.56 points, or 1.1 percent, to 4,083.61.

The selling started in Asia, with major indexes in both Hong Kong and Tokyo down more than 2 percent, then spread to Europe and the U.S., as stocks slipped across the board, though much less than feared given the big declines on Friday.

Jack Ablin, chief investment officer at BMO Private Bank, said he was encouraged that the U.S. losses were modest.

"We have an accelerating economy, low inflation and accommodative monetary policy," he said. "The world isn't falling apart."

The market turbulence was set off last week by a report from China on a downturn in its manufacturing, more evidence that the world's second-largest economy is slowing. That's a big problem for Brazil, South Africa and other developing countries that have come to depend on exports to that country.

Adding to the troubles: The decision by the U.S. Federal Reserve last month to scale back its stimulus for the U.S. economy, which has helped keep interest rates low. Money that had flooded emerging markets looking for higher returns outside the U.S. has begun to come back now that rates may rise, battering those markets.

Despite the widespread stock selling Monday, experts say the troubles in China and elsewhere in the developing world are unlikely to derail a global economic recovery that appears to be gaining momentum. Growth in the world's wealthy economies is expected to pick up the slack.

"This year, growth will be driven by the dull and old economies ”” the U.S., the U.K., Germany and even Japan," said Nariman Behravesh, chief economist at IHS Global Insight.

The International Monetary Fund expects the global economy to grow 3.7 percent this year, up from 3 percent in 2013, carried along by faster growth in the United States and the 17 countries that use the euro. The IMF expects the China's growth to decelerate from 7.7 percent last year to 7.5 percent in 2014.

"A lot of growth is shifting back to the developed world," said Jennifer Lee, senior economist at BMO Capital Markets.

Compared with a couple of years ago, the U.S. economy is in a better position to withstand a Chinese slowdown. American consumers have paid down debts and can spend more freely. The housing market is recovering from the depths of the Great Recession.

Helping investor spirits in the U.S. are decent corporate earnings. Caterpillar was the biggest gainer in the Dow on Monday, rising $5.12, or 6 percent, to $91.29, after the earth-moving equipment maker reported fourth-quarter net income that easily beat analysts' estimates.

After gains of nearly 30 percent in the S&P 500 last year, though, investors in U.S. stocks have been nervous, selling on any whiff of bad news.

"When they see a little negative news, they wonder, 'Is this going to continue or should I run for the doors?'" said Sean Lynch, global investment strategist at Wells Fargo Private Bank.

Losses in the U.S. eased Monday after a recovery in the battered currency of Turkey, one of the flash points of emerging market troubles. The Turkish lira initially sank to a low of 2.39 per dollar, then recovered to 2.29 per dollar after the country's central bank said it would hold an emergency policy meeting, raising hopes it will shore up the currency.

Other emerging market currencies continued to weaken against the dollar, including the South African rand and the Russian ruble, each down another 0.3 percent against the dollar.

On Monday, Germany's DAX fell 0.5 percent and France's CAC-40 declined 0.4 percent. Spain's benchmark index fell 1 percent.