News Column

Coutts-US Close: Stocks slide after US data misses forecasts

June 13, 2014



ENP Newswire - 13 June 2014

Release date- 12062014 - US Close: Stocks slide after US data misses forecasts.

Iraq unrest pushes up oil prices - US retail sales ease back - US initial jobless claims rise DJIA: -0.65% NASDAQ: -0.79% S&P 500: -0.71% US stocks declined as reports on retail sales and jobless claims missed estimates and as the turmoil in Iraq pushed oil prices higher. Advance retail sales in the US rose 0.3% in May following a revised 0.5% increase in April, below the 0.6% gain expected by analysts.

'The disappointing 0.3% rise in US retail sales values in May (consensus +0.6%) implies that some of the weakness in the first quarter has continued into the second,' said Capital Economics.

'That said, with payrolls now rising by more than 200,000 a month, this is unlikely to last.' Initial jobless claims came in at 317,000 in the week to June 7th, more than the 312,000 the previous week and the 309,000 forecast.

Alpari UK Analyst Craig Erlam said weekly jobless claims have become a 'reliable source of good news for the US recently, having consistently hovered around the 300,000 level'.

'This suggests that aside from seeing fewer job cuts, we're also seeing job creation pick up to the point that people are able to move from one job to another without having to sign on,' Erlam said.

'This is an encouraging sign that the labour market is getting back to good health, although clearly, it's not quite there yet.' The Federal Reserve has been monitoring the labour market closely to gauge the health of the economy in determining whether to continue scaling back bond purchases.

Meanwhile, investors are also watching Iraq as the unrest boosted oil prices up with West Texas Intermediate crude futures rising $2.311 to $106.870 per barrel at 21:44 BST.

President Barack Obama said Iraq is going to need more assistance from the US and the international community as a group of rebels gained control of Mosul, Iraq's second-largest city. The Islamic State in Iraq and Syria, or ISIS, is threatening the takeover of more cities, including the capital, Baghdad. Lululemon, Amazon Lululemon Athletica retreated as the athletics-apparel retailer lowered its full-year forecast. Amazon slumped on reports its music service has run into hurdles landing a deal with Universal Music Group. Keurig Green Mountain gained after saying it is 'committed' to returning more cash to investors. Restoration Hardware Holdings climbed as the home-furnishings chain lifted its forecast for full-year profit. The US 10-year yield fell four basis points to 2.60%. RD


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: ENP Newswire


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters