Stocks slumped, as investors took a breather using as an “excuse” weak euro-zone economic data, escalating worries over the banking crisis in Cyprus and disappointment with Oracle’s quarterly earnings. Meanwhile, existing home sales in February edged up 0.8% to an annual rate of 4.98 million, a 3-year high but slightly lower than expectations. Jobless claims totaled 336,000, up 2,000 from the prior week, but less than the 345,000 forecast. The Philly Fed's index rose to 2 in March from -12.5 the prior month, above a reading of -3 expected for March. The Conference Board's leading economic index grew 0.5% in February, with 8 out of 10 indicators climbing, marking the third straight month of gains. HSBC China PMI came in at 51.7 in March, improving from a final reading of 50.4 for February, showing expanded manufacturing activity. On the downside, Markit PMI for Germany’s manufacturing sector unexpectedly contracted in March and dropped to a three-month low at 48.9, sending the sector back into contraction territory. Oracle slid 9.7%, dragging the tech sector down, a day after the co. disappointed with both its results and forecast. Cisco gave up 3.8% after FBR Capital downgraded the stock to underperform, warning that the networking-gear maker “will become increasingly more challenged to offset weaker-than-expected routing and switching demand as it works to transition to a more software- and service centric business model.” Hewlett-Packard failed to hold early gains after an announcement that it has raised its quarterly dividend by 10% and lost 2.6% a day after the board survived a “Vote No” campaign against some directors. On the upside, Yahoo climbed 3.5% on an upgrade from Oppenheimer. In the evening trade Nike soared 7.8% following quarterly figures that outstripped Wall Street’s projections.
Friday, March 22, 2013
Slumped on Cyprus worries and Orcale results
Stocks slumped, as investors took a breather using as an “excuse” weak euro-zone economic data, escalating worries over the banking crisis in Cyprus and disappointment with Oracle’s quarterly earnings. Meanwhile, existing home sales in February edged up 0.8% to an annual rate of 4.98 million, a 3-year high but slightly lower than expectations. Jobless claims totaled 336,000, up 2,000 from the prior week, but less than the 345,000 forecast. The Philly Fed's index rose to 2 in March from -12.5 the prior month, above a reading of -3 expected for March. The Conference Board's leading economic index grew 0.5% in February, with 8 out of 10 indicators climbing, marking the third straight month of gains. HSBC China PMI came in at 51.7 in March, improving from a final reading of 50.4 for February, showing expanded manufacturing activity. On the downside, Markit PMI for Germany’s manufacturing sector unexpectedly contracted in March and dropped to a three-month low at 48.9, sending the sector back into contraction territory. Oracle slid 9.7%, dragging the tech sector down, a day after the co. disappointed with both its results and forecast. Cisco gave up 3.8% after FBR Capital downgraded the stock to underperform, warning that the networking-gear maker “will become increasingly more challenged to offset weaker-than-expected routing and switching demand as it works to transition to a more software- and service centric business model.” Hewlett-Packard failed to hold early gains after an announcement that it has raised its quarterly dividend by 10% and lost 2.6% a day after the board survived a “Vote No” campaign against some directors. On the upside, Yahoo climbed 3.5% on an upgrade from Oppenheimer. In the evening trade Nike soared 7.8% following quarterly figures that outstripped Wall Street’s projections.
Thursday, March 21, 2013
Jumped after the Fed's statement
Stocks climbed after the Federal Reserve said it would continue to support the U.S. economy. The Federal Reserve maintained its policies on bond purchases and record-low interest rates, projecting “a return to moderate economic growth following a pause late last year.” Europe also remains a factor for markets, with an updated proposal to soften a controversial tax on bank deposits in Cyprus outright rejected by the island nation’s parliament on Tuesday. FedEx slumped 6.9% after the co. reduced its 2013 earnings forecast as more customers resorted to less costly options. Adobe Systems gained 4.2% following sales and profit that topped expectations. BlackBerry rose 6.5% after Morgan Stanley raised its rating to overweight from under weight, and more-than-doubled price target to $22 a share from $10. Apple gave up 0.5% as Canaccord Genuity cut its price target on Apple to $600 a share from $650, but left buy rating intact. Yahoo and Zynga also slipped on the recent downgrades. After the closing bell Oracle tumbled 7.2% in heavy volume, with the co.’s fiscal third-quarter sales coming below expectations and mixed next quarter guidance.
Wednesday, March 20, 2013
Sell-off on Cyprus worries and profit-taking
Stocks finished mixed as investors considered developments in Cyprus that placed a financial bailout at risk. Profit-taking was also likely at play for much of the session. Housing starts rose 0.8% in February, to 917,000 homes on an annualized basis, slightly better than expected. Tech stocks closed mostly in the red. Juniper slid 5.3% after Goldman Sachs downgraded the co. to sell, citing “competitive and disruptive pressures.” Electronic Arts shed 8.3% after CEO John Riccitiello has resigned. Dell rose 0.99% after an analyst said the company could get a higher bid from Blackstone “that is superior” to the current $13.65 a share offer from Silver Lake Partners and Chief Executive Michael Dell. EBay edged up 1.97% after JMP Securities named the company as its “top pick” among 10 Internet firms that it started coverage on Tuesday morning. The broker also set buy ratings for Google and AOL but tagged Amazon.com and Facebook with neutral views. In the evening trade Adobe Systems soared 6.3% on heavy volume as the co. posted better-than-expected first-quarter results.
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