News Column

Coutts-US Close: Stocks fall after factory data, Fed speech

June 4, 2014

ENP Newswire - 04 June 2014

Release date- 03062014 - US Close: Stocks fall after factory data, Fed speech.

US factory orders slow - Fed's George warns on early interest rate rise - Eurozone inflation eases ahead of ECB meeting DJIA: -0.13% Nasdaq: -0.07% S&P 500: -0.04% US stocks declined as a report showed factory orders in the world's biggest economy slowed in May and a Federal Reserve official said the central bank should hold off on raising interest rates. US factory orders rose by 0.7% in April following a 1.5% increase in March, beating analysts' expectations for a 0.5% gain. Another US report revealed US light vehicle sales came in stronger than expected in May, with Autodata reporting an annualised sales of 16.8m.

It exceeded the consensus forecast of 16.1m and the April reading of 16m, marking the strongest monthly sales pace since February 2007.

Federal Reserve Bank of Kansas City President Esther George said the Fed should avoid raising the main interest rate until the balance sheet shrink. 'Allowing the balance sheet to decline due to 'passive runoff', which stops reinvesting the maturing securities, prior to the first rate hike is appropriate,' George said today in a speech in Breckenridge, Colorado.

She said Fed will need to decide in the 'relatively near future' on how to withdraw the monetary stimulus that has boosted the central bank's balance sheet to $4.32tn. In the euro-area, inflation fell to 0.5% last month from 0.7% in April, according to the European Union's statistics office in Luxembourg today.

Economists had predicted a decline to 0.6%. The data adds pressure on the European Central Bank (ECB) to address weak inflation ahead of its Thursday meeting.

The ECB is projected to ease policy to bring prices up to its target of just under 2%.

Meanwhile, in China, the purchasing managers' index (PMI) from HSBC Holdings and Markit Economics climbed to 49.4 in May from 48.1 in April.

However, it missed the 49.7 forecast and was under the 50 level that signals expansion. Krispy Kreme, Quicksilver Krispy Kreme Doughnuts slumped after cutting its earnings forecast due to rising costs and slow first-quarter sales.

Quiksilver declined after the surfwear retailer posted a wider loss than analysts had estimated Applied Minerals gained after Jefferies initiated coverage of the stock with a 'buy' rating.

Hillshire Brands advanced after confirming that Pilgrim's Pride Corp.

has increased its bid for the food producer. The US 10-year yield rose by seven basis points to 2.60%. West Texas Intermediate crude futures increased by $0.369 to $102.850 per barrel on the NYMEX. S&P 500 - Risers Applied Materials Inc.

(AMAT) $21.43 +4.45% Lam Research Corp.

(LRCX) $64.65 +4.21% Dollar General Corp (DG) $56.41 +3.89% Broadcom Corp.

(BRCM) $35.88 +2.99% FirstEnergy Corp.

(FE) $34.51 +2.86% MetLife Inc.

(MET) $53.21 +2.74% Carmax Inc.

(KMX) $45.51 +2.73% National Oilwell Varco Inc.

(NOV) $76.02 +2.47% Pioneer Natural Resources Co.

(PXD) $214.30 +2.40% Prudential Fincl Inc.

(PRU) $86.03 +2.39% S&P 500 - Fallers Wynn Resorts Ltd.

(WYNN) $208.23 -4.49% Cliffs Natural Resources Inc.

(CLF) $14.94 -4.29% E*TRADE Financial Corp.

(ETFC) $19.66 -3.91% Monster Beverage Corp (MNST) $66.74 -3.28% Tyson Foods Inc.

(TSN) $42.08 -3.04% Salesforce.Com Inc.

(CRM) $50.95 -2.73% NetApp Inc.

(NTAP) $36.59 -2.45% Allegheny Technologies Inc.

(ATI) $39.70 -2.43% Staples Inc.

(SPLS) $10.91 -2.33% Harris Corp.

(HRS) $75.56 -2.10% Dow Jones I.A - Risers Intel Corp.

(INTC) $27.66 +1.47% Goldman Sachs Group Inc.

(GS) $161.80 +1.11% Caterpillar Inc.

(CAT) $104.49 +0.70% Unitedhealth Group Inc.

(UNH) $79.88 +0.52% JP Morgan Chase & Co.

(JPM) $55.60 +0.45% Exxon Mobil Corp.

(XOM) $100.39 +0.45% 3M Co.

(MMM) $142.89 +0.40% United Technologies Corp.

(UTX) $117.82 +0.36% Johnson & Johnson (JNJ) $102.46 +0.28% Chevron Corp.

(CVX) $122.55 +0.28% Dow Jones I.A - Fallers Nike Inc.

(NKE) $75.55 -1.53% Verizon Communications Inc.

(VZ) $49.29 -1.52% Microsoft Corp.

(MSFT) $40.29 -1.23% Visa Inc.

(V) $211.32 -1.03% International Business Machines Corp.

(IBM) $184.37 -0.71% AT&T Inc.

(T) $35.20 -0.68% McDonald's Corp.

(MCD) $101.45 -0.57% E.I.

du Pont de Nemours and Co.

(DD) $68.87 -0.56% Procter & Gamble Co.

(PG) $79.93 -0.54% Walt Disney Co.

(DIS) $83.88 -0.46% Nasdaq 100 - Risers Applied Materials Inc.

(AMAT) $21.43 +4.45% Broadcom Corp.

(BRCM) $35.88 +2.99% Liberty Media Corporation - Class A (LMCA) $129.74 +2.05% Intel Corp.

(INTC) $27.66 +1.47% Akamai Technologies Inc.

(AKAM) $55.09 +1.34% Gilead Sciences Inc.

(GILD) $82.55 +1.23% Dollar Tree Inc (DLTR) $53.97 +1.22% Autodesk Inc.

(ADSK) $53.16 +1.22% Fiserv Inc.

(FISV) $60.95 +0.86% Altera Corp.

(ALTR) $33.38 +0.82% Nasdaq 100 - Fallers Wynn Resorts Ltd.

(WYNN) $208.23 -4.49% Monster Beverage Corp (MNST) $66.74 -3.28% NetApp Inc.

(NTAP) $36.59 -2.45% Staples Inc.

(SPLS) $10.91 -2.33% Baidu Inc.

(BIDU) $163.67 -2.14% Google Inc.

(GOOGL) $554.51 -1.74% Equinix Inc.

(EQIX) $196.72 -1.67% CA Inc.

(CA) $28.29 -1.39% Expedia Inc.

(EXPE) $73.21 -1.36% Microsoft Corp.

(MSFT) $40.29 -1.23% RD

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Source: ENP Newswire