Stocks ended mixed, but the The Dow Jones industrial average still managed to finish at a record high, continuing longest winning streak since February 2011. But with all three major U.S. indexes up between 7% and 10% so far this year, correction at this stage should be considered healthy. House Republicans on Tuesday introduced a plan to cut the deficit to $528 billion in fiscal 2014 and then to $69 billion by 2016, kicking off a debate that is expected to bring a 10-year budget proposal from Senate Democrats on Wednesday. Retailers Costco and Cabela rose after better-than-expected earnings and strong earnings guidance. Tech sector ended mixed with notable losses coming from Apple and Red Hat. Apple fell 2.2% after Jefferies analyst trimmed his price target on Apple’s stock to $420 a share from $500, cutting iPhone salesestimates for the current quarter. Red Hat slid 4.8% after Citigroup cut its rating on Red Hat to neutral from buy on the grounds that the company is lacking a major source of new revenue growth. Zynga slid 5.1% after Macquarie Capital said in a research note that the idea that Yahoo might buy the social-media gaming company is “unfounded.”
Wednesday, March 13, 2013
Mixed finish
Stocks ended mixed, but the The Dow Jones industrial average still managed to finish at a record high, continuing longest winning streak since February 2011. But with all three major U.S. indexes up between 7% and 10% so far this year, correction at this stage should be considered healthy. House Republicans on Tuesday introduced a plan to cut the deficit to $528 billion in fiscal 2014 and then to $69 billion by 2016, kicking off a debate that is expected to bring a 10-year budget proposal from Senate Democrats on Wednesday. Retailers Costco and Cabela rose after better-than-expected earnings and strong earnings guidance. Tech sector ended mixed with notable losses coming from Apple and Red Hat. Apple fell 2.2% after Jefferies analyst trimmed his price target on Apple’s stock to $420 a share from $500, cutting iPhone salesestimates for the current quarter. Red Hat slid 4.8% after Citigroup cut its rating on Red Hat to neutral from buy on the grounds that the company is lacking a major source of new revenue growth. Zynga slid 5.1% after Macquarie Capital said in a research note that the idea that Yahoo might buy the social-media gaming company is “unfounded.”
