News Column

Coutts- 2014 US close: Indices take breath after highs

May 15, 2014

ENP Newswire - 15 May 2014

Release date- 14052014 - 2014 US close: Indices take breath after highs.

Indices retreat from highs - Producer prices spike - Fossil, Sears, Deere disappoint - Cisco jumps after-hours Dow Jones: -0.61% Nasdaq: -0.72% S&P 500: -0.47% US stock markets retreated from Tuesday's record highs on Wednesday, with weak domestic earnings reports and the threat of unstinting unrest in Eastern Europe taking the wind out of any further potential push higher.

Having closed at an all-time high of 16,715.44 on Tuesday, the Dow Jones Industrial Average took a breather from its five-day climb to finish down 101.47 points, or 0.61%, at 16,613.97. The S&P 500 fell 0.47% from a record of 1,897.45.

The Nasdaq, meanwhile, slipped 0.72% to 4,100.63. Meanwhile, markets continue to watch developments in Ukraine amid concerns over unrest after Russian Foreign Minister Sergei Lavrov said the country was as 'close to civil war as you can get'. His comments were made as Ukraine's government sat down to talks aimed at giving more power to its regions, although pro-Russia rebel states in the country's east were not at the table, having declared independence from Kiev earlier in the week. Giving investors something further to evaluate, US wholesale prices in April recorded their largest rise in over a year, swelled by surging food prices. The Labor Department said producer price index jumped a seasonally adjusted 0.6%, compared to expectations for a 0.2% increase, and the biggest gain since September 2012.

Consumer inflation data is to be released on Thursday. Another report showed mortgage applications climbed 3.6% in the week ended May 9th, following a 5.3% gain the prior week. Data from China also caused concern.

Markit's PMI survey data signal a further slowdown in the manufacturing sector while the services economy stagnates. US small cap stocks also continued their recent decline, with the Russell 2000 falling further after dropped the most in a week on Tuesday and down 8.3% from a March high, 1.5% down on Wednesday.

Fossil, Sears, Vimpelcom decline Fossil Group Inc.

was the biggest faller after the watchmaker's big hand pointed at disappointing guidance for the second quarter.

Profits fell in the first quarter, not as bad as expected but not enough to swing investor sentiment.

Shares in the accessories group were down 10.27% to an exact 'Benjamin', or $100.00 apiece. On the Nasdaq, Russian mobile group Vimpelcom was also on the slide due to lower guidance, saying it expected sales and core profit to fall this year in the face of price competition in Italy and troubles in Ukraine. GroupOn sank further as its Chief Executive Eric Lefkofsky sold almost his entire remaining shares, bailing out with the sale of 0.45m shares on the open market at an average price of $6.19, for a total value of $2.8m.

The shares were down 4.3% to $6.05 on Wednesday. Sears Holdings Corp., which is controlled by hedge fund billionaire Eddie Lampert, slipped 5.85% lower to $40.70 after it said it was considering the sale of its 51% stake in Sears Canada and hence put the beleaguered Canadian department store operator's entire business up for sale. Going the other way, rival Macy's advanced after the department store chain lifted its dividend after achieving an increase in first-quarter profits.

Storage giant Iron Mountain Inc.

climbed 7.16% to $29.72, a four-month high, after broker Piper Jaffray reiterated its 'overweight' rating on the stock this morning, with a $37 price target. S&P 500 - Risers Iron Mountain Inc.

(IRM) $29.72 +7.16% Western Digital Corp.

(WDC) $85.33 +3.31% Avon Products Inc.

(AVP) $13.89 +2.58% ONEOK Inc.

(OKE) $63.09 +1.96% CenturyLink Inc.

(CTL) $37.65 +1.84% Williams Companies Inc.

(WMB) $45.28 +1.73% Intuitive Surgical Inc.

(ISRG) $371.67 +1.70% Progressive Corp.

(PGR) $25.43 +1.62% Windstream Holdings Inc (WIN) $9.35 +1.58% Ball Corp (BLL) $59.70 +1.57% S&P 500 - Fallers Fossil Group Inc (FOSL) $100.00 -10.27% Sears Holdings Corp.

(SHLD) $40.70 -5.85% Whirlpool Corp.

(WHR) $144.50 -4.65% D.


Horton Inc.

(DHI) $22.11 -4.16% GameStop Corp.

(GME) $36.47 -3.65% E*TRADE Financial Corp.

(ETFC) $20.73 -3.40% Kohls Corp.

(KSS) $54.03 -3.33% Keycorp (KEY) $13.36 -3.26% Mohawk Inds Inc.

(MHK) $135.04 -3.18% Lennar Corp.

Class A (LEN) $38.58 -3.02% Dow Jones I.A - Risers Merck & Co.


(MRK) $56.35 +1.08% AT&T Inc.

(T) $36.39 +0.52% Chevron Corp.

(CVX) $126.42 +0.45% Verizon Communications Inc.

(VZ) $47.99 +0.30% E.I.

du Pont de Nemours and Co.

(DD) $67.71 +0.03% Dow Jones I.A - Fallers International Business Machines Corp.

(IBM) $188.69 -1.82% Walt Disney Co.

(DIS) $80.92 -1.41% Nike Inc.

(NKE) $73.56 -1.38% Home Depot Inc.

(HD) $76.29 -1.27% United Technologies Corp.

(UTX) $117.32 -1.20% Unitedhealth Group Inc.

(UNH) $77.18 -1.10% Visa Inc.

(V) $210.07 -0.94% American Express Co.

(AXP) $88.46 -0.71% General Electric Co.

(GE) $26.75 -0.63% 3M Co.

(MMM) $141.58 -0.60% Nasdaq 100 - Risers Western Digital Corp.

(WDC) $85.33 +3.31% Intuitive Surgical Inc.

(ISRG) $371.67 +1.70% Sba Communications Corp.

(SBAC) $100.84 +1.69% Vertex Pharmaceuticals Inc.

(VRTX) $67.69 +1.47% Akamai Technologies Inc.

(AKAM) $54.06 +1.43% Regeneron Pharmaceuticals Inc.

(REGN) $287.37 +1.38% Netflix Inc.

(NFLX) $351.88 +1.37% Celgene Corp.

(CELG) $151.75 +1.25% Amgen Inc.

(AMGN) $112.07 +1.14% Seagate Technology Plc (STX) $51.25 +0.97% Nasdaq 100 - Fallers Vimpelcom Ltd Ads (VIP) $7.80 -5.57% Illumina Inc.

(ILMN) $144.73 -2.85% Micron Technology Inc.

(MU) $26.86 -2.79% Keurig Green Mountain Inc (GMCR) $116.00 -2.58% Liberty Media Corporation - Class A (LMCA) $125.81 -2.33% Wynn Resorts Ltd.

(WYNN) $201.25 -2.31% Amazon.Com Inc.

(AMZN) $297.62 -2.30% TripAdvisor Inc.

(TRIP) $84.19 -2.21% PACCAR Inc.

(PCAR) $62.10 -2.04% Nxp Semiconductors Nv (NXPI) $59.55 -1.91%

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Source: ENP Newswire