News Column

Coutts-WALL STREET MANAGES TO TURN AROUND DESPITE DATA

February 14, 2014



ENP Newswire - 14 February 2014

Release date- 13022014 - US markets managed to turn around on Thursday despite data showing a surprise pull-back in retail sales and a slightly greater than expected increase in jobless claims.

Meanwhile, a disappointing update from tech group Cisco Systems was also weighing on sentiment after the networking equipment maker provided gloomy guidance for the current quarter.

In other news, government offices in Washington remained closed with Federal Reserve Chair Janet Yellen being forced to postpone her testimony before the Senate Banking Committee due to the icy weather that downed power lines across the east coast.

Data misses forecasts

US retail sales declined by 0.4% in January, compared with a downwardly revised 0.2% increase the month before, due to weakness in the auto, department stores and eating out categories. The consensus of analysts had expected no change.

Analyst Peter Newland at Barclays Research said that the above could be partly explained by the bad weather during the month, but other movements - such as a drop in internet sales and a strong gain in building materials - 'are more difficult to square with that as a catch-all explanation'.

Meanwhile, US initial jobless claims increased by 8,000 from 331,000 to 339,000 in the week ending February 8th, slightly ahead of the fall to 330,000 expected by the market.

Cisco Systems slides

Cisco Systems declined after the company forecast a drop of 6- 8% in revenue in the third quarter. This comes after an 8% decline in revenue to $11.2bn for the three months to January, while earnings fell by over a half after a charge related to faulty memory chips sold in previous years.

Comcast has agreed to buy Time Warner Cable for $45.2bn in an all-stock deal that combines the two US cable operators. Time Warner's shares jumped after the announcement while Comcast fell, along with Charter Communications which had wanted to buy the firm.

Whole Foods Market dipped after the US organic and natural food retailer slashed its 2014 sales forecast for the second time in three months.

PepsiCo advanced after reporting a 5% increase in quarterly profit, driven by strong sales of Frito Lay chips in the Americas and cost cuts.

Slight gain in crude futures

Front month West Texas crude futures edged higher by 0.20% to the $100.57/barrel mark on NYMEX.

Yields on 10-year US Treasuries were lower by two basis points to the 2.74% mark.

S&P 500 - Risers

Goodyear Tire & Rubber Co. (GT) $26.62 +10.14%

Time Warner Cable Inc. (TWC) $144.59 +6.86%

Sears Holdings Corp. (SHLD) $43.11 +6.73%

Facebook Inc. (FB) $67.02 +3.99%

CBS Corp. (CBS) $64.19 +3.78%

Applied Materials Inc. (AMAT) $18.49 +3.21%

Newmont Mining Corp. (NEM) $23.19 +3.02%

Sandisk Corp. (SNDK) $74.25 +3.00%

Tenet Healthcare Corp. (THC) $47.00 +2.89%

Adt Corp (ADT) $31.32 +2.52%

S&P 500 - Fallers

Whole Foods Market Inc. (WFM) $51.30 -7.50%

Discovery Communications Inc. Class A (DISCA) $79.12 -4.51%

Cisco Systems Inc. (CSCO) $21.95 -3.93%

Comcast Corp. (CMCSA) $53.08 -3.91%

Cablevision Systems Corp. (CVC) $16.29 -3.50%

NetApp Inc. (NTAP) $41.15 -3.37%

PepsiCo Inc (PEP) $79.15 -2.87%

GameStop Corp. (GME) $35.53 -2.68%

Apache Corp. (APA) $79.55 -2.13%

Avon Products Inc. (AVP) $14.75 -2.06%

Dow Jones I.A - Risers

Unitedhealth Group Inc. (UNH) $70.86 +0.88%

International Business Machines Corp. (IBM)$181.71 +0.82%

AT&T Inc. (T) $33.19 +0.77%

Nike Inc. (NKE) $74.65 +0.73%

Microsoft Corp. (MSFT) $37.73 +0.69%

Home Depot Inc. (HD) $77.75 +0.61%

Travelers Company Inc. (TRV) $82.73 +0.57%

McDonald's Corp. (MCD) $95.41 +0.55%

Boeing Co. (BA) $128.83 +0.55%

Chevron Corp. (CVX) $112.64 +0.54%

Dow Jones I.A - Fallers

Cisco Systems Inc. (CSCO) $21.95 -3.93%

American Express Co. (AXP) $88.32 -0.78%

General Electric Co. (GE) $25.22 -0.67%

Verizon Communications Inc. (VZ) $47.07 -0.63%

3M Co. (MMM) $129.88 -0.43%

Johnson & Johnson (JNJ) $92.19 -0.25%

United Technologies Corp. (UTX) $112.59 -0.17%

Caterpillar Inc. (CAT) $96.01 -0.17%

Walt Disney Co. (DIS) $77.81 -0.13%

Merck & Co. Inc. (MRK) $54.95 -0.09%

Nasdaq 100 - Risers

Facebook Inc. (FB) $67.02 +3.99%

Verisk Analytics Inc. (VRSK) $65.51 +3.52%

Applied Materials Inc. (AMAT) $18.49 +3.21%

Tesla Motors Inc (TSLA) $201.40 +3.11%

Sandisk Corp. (SNDK) $74.25 +3.00%

Celgene Corp. (CELG) $164.46 +2.44%

Nvidia Corp. (NVDA) $17.21 +2.26%

Expedia Inc. (EXPE) $77.55 +2.23%

Netflix Inc. (NFLX) $438.23 +2.17%

Mondelez International Inc. (MDLZ) $33.92 +2.14%

Nasdaq 100 - Fallers

Whole Foods Market Inc. (WFM) $51.30 -7.50%

Charter Communications Inc. (CHTR) $129.42 -5.92%

Discovery Communications Inc. Class A (DISCA) $79.12 -4.51%

Cisco Systems Inc. (CSCO) $21.95 -3.93%

Comcast Corp. (CMCSA) $53.08 -3.91%

NetApp Inc. (NTAP) $41.15 -3.37%

Sirius XM Holdings Inc (SIRI) $3.49 -2.02%

Monster Beverage Corp (MNST) $70.66 -1.59%

Liberty Media Corporation - Class A (LMCA) $131.41 -1.20%

F5 Networks Inc. (FFIV) $110.54 -0.90%


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Source: ENP Newswire


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