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Wall St. Steady, Thanks to Economic Data

June 13, 2013 by Leave a Comment

Stocks on Wall Street opened slightly lower on Thursday before recovering, as new data on jobless claims and retail sales helped steady a sell-off in global markets that began overnight in Japan.

In early trading the Standard Poor’s 500-share index was up 0.2 percent, the Dow Jones industrial average also rose 0.2 percent, and the Nasdaq composite increased 0.07 percent.

Investors are trying to gauge when central banks around the world — and particularly the Federal Reserve — will pull back on their accommodative monetary policy. In Japan, the Nikkei tumbled 6.4 percent, and European markets followed it downward.

But United States economic data provided support and helped stocks trim declines. Retail sales rose more than expected in May, while a drop in jobless claims last week pointed to a labor market that was healing.

Merger and acquisition activity buoyed investor optimism as Gannett jumped after saying it would buy the Belo Corporation for $1.5 billion. Shares in both companies were up 27 percent in early trading.

Comments last month from the Fed chairman, Ben S. Bernanke, have stoked worries that the central bank could slow its $85-billion-a-month bond purchase program sooner than expected. Investors will be looking to the Fed’s policy-setting committee meeting next week for clarity on how soon the Fed will end its stimulus measures.

Nervousness over the withdrawal of economic support was exacerbated earlier this week when the Bank of Japan held its monetary policy steady; investors have been unwinding some of the trades built around central bank support. The benchmark S.P. 500 has advanced 13 percent this year.

“The easy money helped us on the way up. The concern is mounting it’s going to end,” said Andre Bakhos, director of market analytics at Lek Securities in New York.

“The action has been choppy and erratic,” said Mr. Bakhos. “It’s a case of investors looking to limit exposure ahead of next week’s Fed meeting.”

Still, the World Bank cut its outlook for global growth amid a deeper-than-expected recession in Europe and slowdown in some emerging markets. The bank forecast the world’s gross domestic product would grow 2.2 percent this year, down from its previous forecast of 2.4 percent growth and slightly below last year’s growth of 2.3 percent.

Safeway shares surged 16 percent after Empire said it would buy Safeway’s assets in Canada for $5.7 billion.

Clearwire’s board urged shareholders to accept a tender offer from Dish Network over an earlier deal with Clearwire’s majority owner, Sprint Nextel, to buy out the minority shareholders of the wireless service provider.

Apple is reportedly exploring selling iPhones with bigger screens, as well as less-expensive models in a range of colors, over the next year.

Article source: http://www.nytimes.com/2013/06/14/business/daily-stock-market-activity.html?partner=rss&emc=rss

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Wall Street Tumbles on Central Bank Fears

June 11, 2013 by Leave a Comment

Stocks were lower on Tuesday after the Bank of Japan failed to take stimulus measures, a move that increased investors’ worries about the eventual decline in central bank support that has bolstered an equities rally.

The Standard Poor’s 500-stock index fell 0.8 percent in afternoon trading, the Dow Jones industrial average lost 0.7 percent and the Nasdaq composite was 0.9 percent lower.

The Bank of Japan kept monetary policy steady at the end of its two-day meeting, holding off on taking fresh steps to calm bond market volatility. Unhappy traders sent the Nikkei down 1.5 percent.

The lack of additional action rattled investors, underscoring worries about what would happen when the stimulus programs eventually go away. At the same time, nervousness remains over when the Federal Reserve may slow its measures, which have been a significant driver of this year’s stock market rally.

“This market has been fed by extremely supportive government policies around the world,” said Richard Meckler, president of the investment firm LibertyView Capital Management in Jersey City. “You’re getting to that period where investors have to recognize that these policies are beginning to wrap up.”

In Europe, the broad FTSE Eurofirst 300 index of top shares, which has shed 5 percent in the previous 12 trading sessions, ended Tuesday’s session 1.2 percent lower.

The news also sent United States Treasury yields higher, with the 30-year yield rising to a fresh 14-month high, according to Reuters data. The long bond last traded down 20/32 in price, with a yield of 3.407 percent.

Shares of Lululemon Athletica slumped more than 16.7 percent after the company’s chief executive said she would step down.

SoftBank said it would raise its offer for Sprint Nextel to $21.6 billion from $20.1 billion. Sprint was up 2.5 percent.

The S.P. 500 is up more than 15 percent since the start of the year, but markets have been bumpier since comments from the Fed chairman, Ben S. Bernanke, last month sparked uncertainty over the central bank’s timeline for slowing its $85 billion a month bond purchase program.

While the Bank of Japan left the door open to taking fresh steps to calm markets if borrowing costs spiked again, it did not appear to assuage investors. “The B.O.J. took some big steps and had some big changes but now that they’ve done that, the market is looking for even more,” Mr. Meckler said.

Seasonality was also playing a part in Tuesday’s weakness as equities tend to have less direction in the summer months, he said.

Shares in the Dole Food Company rose 21.7 percent after Dole received an unsolicited buyout offer from its chief executive.

The Catamaran Corporation climbed 10.3 percent after it signed a 10-year agreement with the Cigna Corporation.

Boeing raised its 20-year forecast for demand, saying airlines will need 35,280 new airplanes worth $4.8 trillion as the world’s fleet doubles. Boeing shares gained 0.3 percent.

Investors will also be watching a hearing by a German court on the legality of the European Central Bank’s bond-buying program.

In currencies, the dollar sank nearly 2 percent, to 96.83 yen, against the a resurgent Japanese currency by midmorning. The sell-off across the peripheral markets supported the euro, which was unchanged against the dollar at $1.3277 as investors retreated into cash.

In the debt market, investors pulled out of the riskiest assets, sending Greek 10-year bond yields up 75 basis points, to 10.22 percent. Portuguese equivalent bonds rose 34 basis points, to 6.59 percent.

The Greek government has failed to find buyers for its state-owned natural gas company, threatening the privatization goal set under the country’s bailout.

Article source: http://www.nytimes.com/2013/06/12/business/daily-stock-market-activity.html?partner=rss&emc=rss

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Stocks Fall Sharply

June 5, 2013 by Leave a Comment

Wall Street fell sharply Wednesday, with industrial and financial sectors leading the market down more than 1 percent.

The three major benchmarks — the Standard Poor’s 500-stock index, the Dow Jones industrial average and the Nasdaq composite — were all down about 1.1 percent in afternoon trading. The Dow was just above the 15,000-point level.

A private sector jobs report released earlier showed companies picked up the pace of hiring in May, though job growth remained sluggish. The report came ahead of the crucial nonfarm payrolls report on Friday.

“The market is overlooking this disappointing number, and putting greater emphasis on the nonfarm payrolls for better clues on what the Fed is going to do,” said Andrew Wilkinson, chief economic strategist at Miller Tabak Company.

A separate report showed a gauge of United States labor-related costs fell in the first quarter by the largest amount in four years, although the reading appeared distorted by a shift in employee compensation during the prior period to avoid a tax hike.

Trading has been volatile over the last few weeks amid a slew of economic reports and comments from Fed officials that have hinted on when the Fed may start reducing its stimulus efforts, which have powered this year’s stock market rally.

The market is expected to continue to be volatile this week, with intraday swings of more than 1 percent in either direction during a single trading session.

The American International Group said on Tuesday that a proposed $8.5 billion settlement between Bank of America and investors of Countrywide Financial mortgage-backed securities was not big enough. A.I.G. shares gained 1.2 percent.

The Treasury Department said it would begin another round of sales of the General Motors stock it acquired during the government’s bailout of the auto sector. The stock was down 2.1 percent.

European shares fell on concerns that the United States might begin to taper economic stimulus measures, with the FTSE 100 index ending 2.1 percent lower.

Comments late on Tuesday from two senior Federal Reserve officials highlighted divisions over the future of the central bank’s stimulus program.

Richard Fisher, president of the Federal Reserve Bank of Dallas, and Esther George, president of the Federal Reserve Bank of Kansas City — both long-term critics of the bond-buying program — reiterated their concerns over the risks of waiting too long to cut it back.

“The markets are hanging on every word of the central bankers in Europe and the U.S.,” said Richard Griffiths, a Berkeley Futures associate director.

Japan’s Nikkei share average sagged to a two-month low on Wednesday, as Prime Minister Shinzo Abe pledged to bolster incomes and attract foreign businesses, but did not mention a proposal to encourage Japan’s public funds to seek higher returns by investing more in riskier assets like equities.

“Investor expectations were for more specific growth policies and the disappointment has only exacerbated a trend for a correction in Japan’s stock market,” said Lee Hardman, currency analyst for Bank of Tokyo-Mitsubishi UFJ.

Since the Nikkei index rose to a five-and-a-half-year high on May 23, up more than 50 percent this year, doubts about the effectiveness of Mr. Abe’s economic reforms and the Bank of Japan’s stimulus efforts have led to a steady erosion of the gains.

Article source: http://www.nytimes.com/2013/06/06/business/daily-stock-market-activity.html?partner=rss&emc=rss

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Economic Reports Push Markets Higher

May 17, 2013 by Leave a Comment

Encouraging news about the American economy helped push stock prices higher on Wall Street Friday.

In afternoon trading the Standard Poor’s 500-stock index rose 0.5 percent. The Dow Jones industrial index gained 0.4 percent and the Nasdaq composite rose 0.5 percent.

A gauge of future economic activity rose more than analysts had expected, as did a measure of consumer confidence, adding to evidence that the economy is maintaining a steady recovery.

Stocks have surged to record levels this year on optimism about the economy and record corporate earnings. The market is also being supported by ongoing stimulus from the Federal Reserve, which is keeping long-term borrowing costs at historically low levels.

“This slow but relatively steady growth, that keeps inflation in check and keeps interest rates low, is actually a pretty healthy environment for the stock market,” said Liz Ann Sonders, chief investment strategist at Charles Schwab Company. “Right now we are very optimistic.”

Gold fell for a seventh straight day, dropping $26, or 1.9 percent, to $1,361.10 an ounce. The precious metal is down almost 20 percent this year and has fallen out of favor as an alternative investment as the stock market has surged this year.

The demand for gold is also being undermined by a surge in the United States dollar. The dollar advanced against both the euro and the yen Friday.

General Motors rose 3.4 percent, to $33.48. The automaker’s stock is trading above the $33 price of its November 2010 initial public offering for the first time in two years.

Northrop Grumman gained 3.5 percent after the defense contractor said its board approved the repurchase of another $4 billion in stock, and that it plans to buy back a quarter of its outstanding shares by the end of 2015.

After some lackluster reports on the economy Thursday, including slowing manufacturing and an increase in applications for unemployment benefits, Friday’s reports were a tonic for investors.

The Conference Board said its index of leading economic indicators rose 0.6 percent last month after a revised decline of 0.2 percent in March. The index is intended to predict how the economy will be doing in three to six months.

The University of Michigan’s survey of consumer confidence climbed to 83.7. Economists had predicted that the gauge would climb to 76.8.

As well as giving stocks a lift, the reports also pushed government bond yields higher. The yield on the 10-year Treasury rose to 1.91 percent from 1.88 percent Thursday as investors favored riskier assets.

The price of benchmark crude oil rose 93 cents, or 1 percent, to $96.09 a barrel.

In Europe Britain’s FTSE ended the session 0.5 percent higher, Germany’s DAX climbed 0.3 percent and France’s CAC-40 was up 0.6 percent.

Earlier in Asia, Japan’s Nikkei 225 index rose 0.7 percent at the close, reversing a lower open. Australia’s SP/ASX 200 added 0.3 percent, pushed up by gains in BHP Billiton, the world’s largest mining company. The stock rose 1.9 percent on bargain-hunting.

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Article source: http://www.nytimes.com/2013/05/18/business/daily-stock-market-activity.html?partner=rss&emc=rss

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Mixed Batch of Data Leaves Markets Subdued

May 16, 2013 by Leave a Comment

Financial markets were subdued Thursday despite encouraging growth figures out of Japan, as investors digested a mixed batch of United States economic data a day after Wall Street indexes hit record highs.

In afternoon trading, the Standard Poor’s 500-stock index was 0.1 percent lower while the Dow Jones industrial average was unchanged. The Nasdaq composite was 0.2 percent higher.

One of the reasons stocks have been buoyant for most of this year has been optimism over the American economy. But a 32,000 rise in weekly jobless claims to 360,000 and a fairly downbeat manufacturing survey from the Federal Reserve Bank of Philadelphia raised questions about the underlying health of the world’s largest economy.

However, the impact on the markets was muted given that a 0.4 percent fall in monthly Consumer Price Index, which took the annual rate down to a two-and-a-half-year low of 1.1 percent, suggested that the Federal Reserve won’t be in a rush to end its super-easy monetary policy soon. The Fed’s monetary injections over the past few years have lain behind the recovery in stock markets since 2009.

“Optimism abounds, and with inflation concerns starting to ignite concern for more rather than less bond buying ahead, it does not seem rational to sell stocks on the view that the economy may be slowing,” said Andrew Wilkinson, chief economic strategist at Miller Tabak Company.

In Europe, Germany’s DAX ended the day 0.1 percent higher while the CAC-40 in France fell 0.1 percent. The FTSE 100 of leading British shares closed 0.1 percent lower.

Japan was in focus earlier after figures fueled hopes of an economic turnaround in the country. A day after the latest set of data showed that the euro zone — the 17 European Union countries that use the euro — was in its longest recession since the currency was launched in 1999, Japanese data impressed on the upside.

Stronger consumer spending and public works investment coupled with aggressive monetary easing gave some oomph to the recovery. Japan’s economy grew by a stronger-than-expected 3.5 percent in annual terms and by 0.9 percent on a quarterly basis, according to figures reported by the Cabinet Office on Thursday.

The forecast-busting data provides the first tangible evidence that the economic policy of the new government of Prime Minister Shinzo Abe is working.

Mr. Abe promised aggressive steps to restart the country’s postwar boom, which effectively ground to a halt in the early 1990s. As part of that effort, the Bank of Japan plans to double the amount of cash circulating in the Japanese economy and held as bank reserves.

One of the offshoots of the policies has been a dramatic fall in the value of the yen, and that’s bolstered the export prospects of the country’s businesses, lifting the Nikkei 40 percent this year.

The Nikkei didn’t extend those gains Thursday, losing 0.4 percent to close at 15,037.24 as investors used the release as an opportunity to book some gains.

“If you’re looking for a clear example of the markets currently moving in a way that is unrelated to the quality of the data, then look no further than the movement in the Nikkei,” said Craig Erlam, market analyst at Alpari.

Despite the modest retreat in Tokyo, most other Asian markets advanced. Hong Kong’s Hang Seng rose 0.2 percent while South Korea’s Kospi added 0.8 percent. China’s main index in Shanghai ended 1.2 percent higher.

Currencies were fairly flat-footed, with the euro up 0.3 percent at $1.2912 and the dollar 0.1 percent lower at 102.07 yen.

Oil prices eked out some gains, with the benchmark New York rate up 48 cents to $94.78 per barrel.

Article source: http://www.nytimes.com/2013/05/17/business/daily-stock-market-activity.html?partner=rss&emc=rss

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Markets, Mixed, Look for a Direction

April 22, 2013 by Leave a Comment

Stocks were mixed on Monday as an assortment of corporate earnings pointed to an uncertain growth outlook, which could lead to more volatile trading ahead.

In afternoon trading the Standard Poor’s 500-stock index gained 0.2 percent, and the Dow Jones industrial average lost 0.2 percent, while the Nasdaq composite rose 0.5 percent.

While a majority of S.P. 500 companies that have reported earnings so far have topped analysts’ expectations, as is typical, a number of high-profile disappointments have raised questions about whether the market’s steep run so far this year may be out of gas.

General Electric and McDonald’s both fell for a fourth straight day, extending declines from Friday, when both companies reported lackluster results. G.E. is down more than 8 percent over the last four sessions and on Monday, it fell 2.1 percent, while McDonald’s lost 1.2 percent.

“Weak corporate outlooks have added to the growth fears that are making investors more risk averse,” said Eric Green, senior portfolio manager at Penn Capital Management in Philadelphia. “Ultimately, we think cyclical names will lead the market higher, but in the short term, the decline could continue.”

Last week was marked by heightened volatility, with the Chicago Board Options Exchange’s Volatility Index — the VIX, also known as the fear index — jumping 24 percent, the biggest weekly gain this year. The VIX was up 1.9 percent at 15.26 at midday on Monday, off its intraday high of 16.00.

The swings were largely driven by weak corporate earnings and signs of slowing growth from China, which contributed to a precipitous drop in commodity prices. The week’s decline fueled talk that the market’s long-awaited pullback had arrived, though the S.P. remains up 9 percent on the year.

The Nasdaq held in modestly positive territory on strength in Microsoft, which jumped 3.5 percent after CNBC reported that ValueAct Capital had taken a $2 billion stake in the company.

Netflix was the S.P.’s top percentage gainer, up 4.9 percent. The online movie rental company is set to report its results after the market closes.

The National Association of Realtors said existing home sales slipped 0.6 percent last month to a seasonally adjusted annual rate of 4.92 million units. Economists polled by Reuters had expected home resales to rise to an annual rate of 5.01 million units.

Caterpillar cut its outlook for 2013 early Monday, and but shares rose 2.7 percent by early afternoon. Halliburton, which reported a $1 billion charge related to talks to settle claims involving the 2010 Gulf of Mexico oil spill, rose 4.7 percent.

Italy’s blue-chip shares led European stocks higher, heartened by signs of progress in breaking a long political stalemate after a week of broad market losses.

The Japanese yen weakened toward 100 to the dollar on Monday and shares rose after the Group of 20 meeting of nations accepted Japan’s bold stimulus policies, helping to counter the gloom over the global growth outlook.

In its communiqué after a two-day meeting, the G-20 avoided any direct criticism of Japan’s policies and appeared to accept the need to reflate the world’s third largest economy as part of efforts to invigorate a shaky global economic recovery.

The Nikkei index in Tokyo ended the day 1.9 percent higher. Elsewhere in Asia, markets were mixed, with the Hang Seng in Hong Kong 0.1 percent higher, while the Shanghai composite 0.1 fell percent.

European stock markets were on course for a second straight daily gain, helped up by a jump in Italy’s blue-chip index after the country’s long-running political crisis moved a step closer to resolution.

Milan’s FTSE MIB index gained as much as 2 percent on hopes the re-election of Italy’s 87-year-old president, Giorgio Napolitano, would see a new government emerge within days, ending two months of political stalemate.

The broad FTSEurofirst 300 index ended the trading day up 0.2 percent, while Paris’s CAC 40 closed unchanged and Frankfurt’s DAX gained 0.2 percent.

Oil also rebounded, extending its gains into a third day as low prices brought buyers back into the market. Benchmark light, sweet crude gained 0.3 percent, to $88.30 a barrel.

Article source: http://www.nytimes.com/2013/04/23/business/daily-stock-market-activity.html?partner=rss&emc=rss

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Wall Street Closes Higher

March 23, 2013 by Leave a Comment

Strong company earnings lifted stocks on Wall Street on Friday, and investors saw a chance to add to their holdings after declines earlier in the week.

Nike reported a surge in quarterly profit, sending its stock price up 11 percent. Tiffany topped earnings predictions, helped by demand from customers in Asia.

Investors were also drawn by a pause in the market’s big run-up. The Standard Poor’s 500-stock index logged its second weekly decline of the year, despite Friday’s gains.

The damper stemmed partly from the struggles of Cyprus to devise a plan to avoid financial collapse. Stocks were also weighed down by weak sales from Oracle.

FedEx ended the week 10 percent lower after it reported a decline in quarterly profit and cut its annual earnings forecast on Wednesday. The company can be a gauge of the economy because many shoppers and businesses use its shipping services.

A resilient global economy has encouraged investors to pick up stocks on any dips, said Ron Florance, managing director of investment strategy at Wells Fargo’s Private Bank.

“We still have an astonishing amount of money sitting on the sidelines,” Mr. Florance said.

The Dow Jones industrial average rose 90.54 points, or 0.6 percent, to 14,512.03. The Standard Poor’s 500-stock index rose 11.09 points, or 0.7 percent, to 1,556.89. The Nasdaq composite gained 22.40 points, or 0.7 percent, to 3,245.

Nike shares hit a nominal high, rising $5.93, to $59.53, after the company reported a 55 percent increase in quarterly net income. Tiffany rose $1.32, or 1.9 percent, to $69.23 after posting strong fourth-quarter earnings.

The Dow shed a fraction of a percentage point this week. The S. P. 500 was 7 points, or 0.3 percent, lower than it was at the start of trading on Monday.

The S. P. index last logged a weekly decline Feb. 22, falling 0.3 percent after the release of minutes from the Federal Reserve’s January policy meeting. The minutes revealed disagreement over how long to keep buying bonds in an effort to support the economy.

Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, said the market run-up may slow as the Fed faces increasing pressure to end its stimulus program.

Interest rates were steady. The Treasury’s benchmark 10-year note fell 4/32, to 100 21/32, and the yield rose to 1.92 percent from 1.91 percent late Thursday.

Among other stocks making big moves on Friday were the chip maker Micron Technology, which rose 97 cents, or 10.7 percent, to $10.04 despite reporting a loss in its fiscal second-quarter on Thursday. The company said that revenue grew 3 percent, to $2.08 billion, better than analysts had expected.

Anacor Pharmaceuticals rose $1.24, or 25.6 percent, to $6.08 on Friday after reporting strong data from a midstage study of a potential chronic rash treatment.

Marin Software rose $2.26, or 16.1 percent, to $16.26 in its market debut. The company raised $105 million in its initial public offering of stock.

AK Steel Holding fell 16 cents, or 4.6 percent, to $3.31, after projecting a larger-than-expected first-quarter loss because a previously expected seasonal increase in the demand for steel did not materialize.

Article source: http://www.nytimes.com/2013/03/23/business/daily-stock-market-activity.html?partner=rss&emc=rss

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Stocks Barrel Ahead on Wall Street

February 27, 2013 by Leave a Comment

Wall Street stocks moved sharply higher on Wednesday, erasing much of the week’s losses, as the Federal Reserve chairman remained steadfast in his support of the Fed’s stimulus policy and data pointed to economic improvement.

By the close of trading, the Standard Poor’s 500-stock index was up 1.3 percent, the Dow Jones industrial average rose 1.3 percent, or about 175 points, and the Nasdaq composite jumped 1 percent.

In his second day before a congressional committee, Ben S. Bernanke repeated testimony in which he defended the Fed’s policy of buying bonds to keep interest rates low in order to promote growth and bring down the unemployment rate.

The remarks helped the market rebound from its worst decline since November and put the S.P. 500 back above 1,500, a closely watched level.

The comments also seemed to remove a headwind from markets that last week contributed the first weekly loss for stock indexes after seven weeks of gain on concerns the quantitative easing program could end earlier than had been anticipated.

Adding to the positive tone was United States economic data that showed a gauge of planned business spending in January recorded its largest increase in just over a year, while contracts to buy new homes neared a three-year high last month.

The S.P. 500 had climbed 6 percent for the year and came within reach of all-time highs before pulling back on concerns about Fed policy, as well as this week’s inconclusive elections in Italy, which rekindled fears of a new euro zone debt crisis.

The S.P. 500 was still down 0.2 percent for the week so far, after a plunge on Monday that was the index’s biggest daily drop since November.

“While the rally remains intact and there are reasons to be long-term bullish here, there are also reasons to not be surprised if we get a correction,” said Tom Mangan, a money manager at James Investment Research in Xenia, Ohio.

In earnings news, Priceline.com gained 3.4 percent after reporting adjusted earnings that beat expectations. TJX jumped 1.7 percent to after the retail chain operator posted higher fourth-quarter results. The SP retail index climbed 1.6 percent.

Target appeared poised for a solid showing in the first quarter and forecast a higher profit for the full year after a weak performance in the key holiday season. The stock dipped 1.1 percent.

In Europe, shares rose almost 2 percent, steadying after the previous session’s sharp losses, though jitters over the euro zone kept a lid on gains.

Italy’s 10-year debt costs rose more than half a percentage point at the first longer-term auction since an inconclusive parliamentary election, although they remained below the psychologically important level of 5 percent.

Article source: http://www.nytimes.com/2013/02/28/business/daily-stock-market-activity.html?partner=rss&emc=rss

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Fed Minutes Send Shares Sharply Lower

February 20, 2013 by Leave a Comment

The Standard Poor’s 500-stock index posted its worst daily percentage decline since mid-November on Wednesday after minutes from a Federal Reserve meeting indicated widening divisions among Fed officials about the value of its efforts to reduce unemployment.

The S.P. 500 fell 1.2 percent, and the Dow Jones industrial average fell 0.8 percent, or about 108 points. The Nasdaq composite lost 1.5 percent.

“What Wall Street wants to hear is an absolute sign that the Fed will continue with Q.E. for the indefinite future,” said Todd Schoenberger, managing partner at Landcolt Capital in New York, referring to quantitative easing. “When it says we may end it faster, that just raises the uncertainty and the market hates that.”

Energy companies’ shares were among the weakest. Devon Energy, an American oil and gas producer, reported a fourth-quarter loss as it wrote down the value of its assets by $896 million because of weak gas prices. Its shares were down 6.6 percent.

Toll Brothers, the luxury homebuilder, lost 9.1 percent after it reported first-quarter results well below analysts’ estimates.

SodaStream dropped 6.4 percent after the seller of home carbonated drink maker machines posted fourth-quarter earnings and provided a 2013 outlook.

According to Thomson Reuters data through Tuesday morning, of the 391 companies in the S.P. 500 that have reported results, 70.1 percent have exceeded analysts’ expectations, compared with a 62 percent average since 1994 and 65 percent over the last four quarters.

Fourth-quarter earnings for S.P. 500 companies are estimated to have risen 5.6 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.

Data released on Wednesday suggested that the economy continued to show modest improvement. Groundbreaking to build new homes in the United States fell 8.5 percent in January, but new permits for construction rose to a four-and-a-half-year high. In addition producer prices rose in January for the first time in four months.

Equities have been strong recently, but they have traded within a narrow range for the last few weeks, suggesting valuations may be stretched at current levels.

“The market seems very tired and listless, and investors are prone to take profits now as they wait for the music to stop,” said Matt McCormick, money manager at Bahl Gaynor in Cincinnati.

Article source: http://www.nytimes.com/2013/02/21/business/daily-stock-market-activity.html?partner=rss&emc=rss

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Shares Rise as Companies Report Earnings

January 9, 2013 by Leave a Comment

Stocks rose on Wall Street on Wednesday after corporate earnings reports got off to a good start.

The Dow Jones industrial average climbed 61.66 points to 13,390.51. The Standard Poor’s 500-stock index gained 3.87 points to 1,461.02, and the Nasdaq composite rose 14 to 3,105.81.

Stocks are facing their first big challenge of the year as companies start to report earnings for the fourth quarter of 2012. Throughout last year, analysts cut their outlook for earnings growth in the period and now expect them to rise by 3.21 percent, according to data from SP Capital IQ.

“Maybe earnings expectations were a little too low,” Ryan Detrick, a strategist at Schaeffer’s Investment Research, said. “You don’t need to have great earnings, you just need to beat those expectations” for stocks to rally, he said.

Early indications were decent. The aluminum maker Alcoa reported late Tuesday that it swung to a profit for the fourth quarter, with earnings that met Wall Street’s expectations. The company brought in more revenue than analysts had expected, and the company predicted rising demand for aluminum this year as the aerospace industry gains strength. Alcoa is usually the first Dow component to report earnings every quarter.

Despite the better revenue number, Alcoa’s stock performance Wednesday was lackluster. It traded higher for part of the day, then ended down 2 cents at $9.08 a share.

Other companies fared better after reporting earnings. Helen of Troy, which sells personal care products under brands like Dr. Scholl’s and Vidal Sassoon, rose 2.7 percent, up 90 cents to $34.43 after reporting a 15 percent increase in quarterly net income.

Boeing was the biggest gainer of the 30 stocks in the Dow. It jumped 3.5 percent, up $2.63 to $76.76, after two days of sharp declines set off by new problems for its 787 Dreamliner. Boeing said it had “extreme confidence” in the plane even as federal investigators tried to determine the cause of a fire on Monday aboard an empty Japan Airlines plane in Boston and a fuel leak in another Japan Airlines 787 on Tuesday.

The wireless network operator Clearwire rose 7.2 percent, or 21 cents, to $3.13, after Dish network made an unsolicited offer to buy the company, which has already agreed to sell itself to Sprint. Dish rose 88 cents to $36.85, and Sprint fell 9 cents to $5.88.

The online education company Apollo Group fell 7.8 percent after reporting a sharp decline in fall term student sign-ups at the University of Phoenix, which it operates. The stock fell $1.62, to $19.32 a share.

Interest rates were steady. The Treasury’s benchmark 10-year note rose 1/32, to 97 29/32, and the yield was unchanged at 1.86 percent.

Article source: http://www.nytimes.com/2013/01/10/business/daily-stock-market-activity.html?partner=rss&emc=rss

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