Markets
For the week of Monday, September 22, 2014 through Friday, September 26, 2014:
- Standard & Poor’s 500 Index: -1.34%
- Dow Jones Industrial Average: -0.96%
- NASDAQ Composite: -1.46%
The Dow Jones Industrial Average snapped a five-day winning streak on Monday. Uncertainty about China injected a note of caution into global financial markets, as the world’s second-largest economy grapples with growth concerns. China’s financial minister said major changes to the country’s economic stimulus efforts aren’t likely. The Dow’s tumble continued on Tuesday after a weak report on Europe’s economy fueled more jitters about global growth.
Stocks ended higher on Wednesday, with the S&P 500 and NASDAQ snapping a streak of three losing sessions. Stocks plunged lower Thursday after mixed readings on the U.S. economy. Labor Department data showed a jump in initial jobless claims. New claims climbed by 12,000 to 293,000 last week. The markets traded to the green side on Friday. A third estimate showed real GDP expanded by 4.6% in the second quarter, well up from the first quarter’s revised 2.1% decrease and beyond the prior second quarter estimate of 4.2%. In a final September reading, the University of Michigan’s consumer sentiment index added 2.1 points to a 14-month high of 84.6.
Economic Data
Chain Store Sales Snapshot:
- The Chain Store Sales Index increased 0.1% last week.
- Year-ago sales growth rose from 3% to 4.1%.
MBA Mortgage Applications:
- The MBA Mortgage application composite index fell 4.1% last week.
- Refinance applications fell 7%.
- Purchase activity fell 0.3%.
Jobless Claims:
- Initial claims for unemployment benefits increased from 281,000 to 293,000.
- Continuing claims rose 7,000 to 2.439 million.
- The four-week moving average fell 22,250 to 2.46 million.
Durable Goods Orders:
- New orders for durable manufactured goods fell 18.2% in August.
- Transportation goods fell 42%.
- Excluding transportation, durable goods orders increased 0.7%.
- Core capital goods rose 0.6%.
- Total shipments fell 1.5%.
Earnings
CarMax Inc. (NYSE: KMX)
- CarMax earned $154.5 million, or $0.70 a share, compared to $140.3 million, or $0.62 a share, last year.
- Sales increased 11% to $3.6 billion.
- Used car sales increased 6.3%.
- Wholesale vehicle sales also rose 7.4%.
- Analysts expected $0.67 a share on revenue of $3.57 billion.
Carnival Corporation (NYSE: CCL)
- Carnival earned $1.25 billion, or $1.60 a share, compared to $934 million, or $1.20 a share, a year ago.
- Excluding items, Carnival earned $1.58 a share compared to $1.38 a share last year.
- Revenue rose to $4.9 billion.
- Analysts expected $1.44 a share on revenue of $4.93 billion.
Bed Bath & Beyond (NASDAQ: BBBY)
- Bed Bath and Beyond earned $224 million, or $1.17 a share, compared to $249.3 million, or $1.16 a share, last year.
- Net sales rose 4.3% to $2.945 billion.
- Same store sales rose 3.4%.
Interest Rates
- The two-year Treasury rate increased one basis point to 0.58%.
- The five-year Treasury rate fell two basis points to 1.80%.
- The 10-year Treasury rate slid three basis points to 2.55%.
- The 30-year Treasury yield decreased three basis points to 3.26%.
Disclosures
This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
