Markets
For the week of Monday, March 3, 2014 through Friday, March 7, 2014:
- Standard & Poor’s 500 Index: 1.00%
- Dow Jones Industrial Average: 0.80 %
- NASDAQ Composite: 0.65%
The week began with the markets rattled because of the crisis in Ukraine. The unrest triggered a global stock selloff and drove oil, gold and wheat prices higher. The three major U.S. stock indices posted their biggest one-day declines in a month. Remarks by Vladimir Putin appeared to calm tensions in Ukraine and fueled a global stock rally on Tuesday, propelling the S&P 500 to a record close. With Tuesday’s jump, the S&P closed at a record high in three out of the past four sessions. The Dow rallied 1.4%, notching the biggest one-day percentage gain since December. The NASDAQ rose 1.7%, its biggest one-day percentage gain since January.
Mid-week brought disappointing reports on private-sector job growth and service-sector activity, weighing on stocks. However, losses were limited, as many investors continued to shift the blame to the severe winter weather. On Thursday, stocks held gains after data showed weekly jobless claims fell slightly more than expected. Friday’s jobs report came in better than expected, which reinforced investors’ bullish sentiment.
Economic Data
Personal Income:
- Personal income grew 0.3% in January.
- Wage income growth was 0.2%.
- Real spending increased 0.3%, led by services.
- The saving rate remained 4.3%.
ISM Manufacturing Index:
- The ISM manufacturing index rose from 51.3 to 53.2.
- New orders increased 3.3 points to 54.5.
- The production index slid from 54.8 to 48.2.
Chain Store Sales Snapshot:
- The ICSC chain store sales index increased 0.3%.
- Year-over-year the increase was 1.5%.
- Online sales saw an increase.
MBA Mortgage Applications Survey:
- The MBA Mortgage applications survey rose 9.4%.
- The Purchase index increased 9.4%.
- Refinance activity rose 9.6%.
- Mortgage interest rates decreased.
ISM Services Index:
- The ISM nonmanufacturing survey fell to 51.6.
- The decline was worse than expected.
- The employment index fell to 47.5.
Factory Orders:
- Orders for manufactured goods fell 0.7% in January.
- The previously released figures for growth in durable goods orders were unrevised from the advance estimate of a 1% decline.
- Shipments of durable goods were revised up, only falling 0.3% rather than 0.4%.
- Inventories rose 0.2%.
- Revisions to core capital goods data show a 1.5% gain in comparison to the previously reported 1.7%.
- Core capital goods shipments were revised down to a decline of 1%.
Jobless Claims:
- Initial claims for unemployment insurance declined 26,000 to 323,000.
- The previous weeks claims were revised higher by 1,000 to 349,000.
- The four-week moving average fell 2,000 to 336,500.
- Continuing claims fell 8,000 to 2.91 million.
Earnings:
PetSmart, Inc. (NASDAQ: PETM)
- PetSmart’s earned $131.5 million, or $1.28 a share, compared to $134 million, or $1.24 a share, last year.
- Sales fell 4% to $1.8 billion.
- Analysts expected $1.21 a share on revenue of $1.82 billion.
Costco Wholesale Corporation (NASDAQ: COST)
- Costco’s reported earnings of $463 million, or $1.05 a share, compared to $547 million, or $1.24 a share, a year ago.
- Sales increased 6% to $25.76 billion, missing analysts’ expectations of $1.17 a share on revenue of $26.65 billion.
- Costco had to offer deep discounts and increase promotions because of bad weather and fewer shopping days between Thanksgiving and Christmas.
The Kroger Co. (NYSE: KR)
- Kroger earned $422 million, or $0.81 a share, compared to $462 million, or $0.88 a share last year.
- Revenue fell to $23.22 billion, beating analyst’s expectations of $23.15 billion.
- Same store sales increased 4.3%, excluding fuel.
Interest Rates
- The two-year Treasury rate rose two basis points to 0.34%.
- The five-year Treasury rate rose seven basis points to 1.57%
- The 10-year Treasury rate increased nine basis points to 2.74%.
- The 30-year Treasury yield rose nine basis points to 3.68%.
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.
