Markets
For the week of Monday, July 14, 2014 through Friday, July 18, 2014:
- Standard & Poor’s 500 Index: 0.56 %
- Dow Jones Industrial Average: 0.97%
- NASDAQ Composite: 0.38%
Many investors remaind optimistic on Monday about the outlook for stocks, after a better-than-expected report from Citigroup (NYSE: C), improving U.S. economic data and an accommodative Fed policy. With Monday’s rally, stocks largely recovered the previous week’s losses. The positive streak extended to Tuesday, even though Small Caps fell after Fed Chairwoman Janet Yellen expressed concern about valuations in some corners of the market.
Stocks initially rose as investors interpreted Yellen’s remarks as suggesting the Fed is in no rush to raise interest rates. Midweek, the Dow Jones Industrial Average achieved another record close, reinforced by upbeat corporate news and confidence the Fed will keep interest rates low. A second day of testimony from Yellen fortified the idea the central bank will keep interest rates low for an extended period. Stocks started a little lower Thursday, just a day after the Dow notched its 15th record of 2014, and fell further after the Malaysian plane crash. Indices closed with gains on Friday, with names such as Apple and Amazon stepping up. Trading recovered somewhat from the downswing on Thursday. On another note, consumer confidence is on the wane this month. In a preliminary reading, the University of Michigan’s Consumer Sentiment Index fell to 81.3 from June’s level of 82.5.
Economic Data
Chain Store Sales Snapshot:
- The Chain Store Sales Index rose 0.1%.
- Sales increased 4.5% year-over-year.
- Retail sales increased 0.2% in June.
- Auto sales were down despite the gain in unit sales.
- Non-auto sales, were up 0.4%.
- April and May sales were revised higher.
- The mortgage applications survey fell 3.6% for the week ending July 11.
- The purchase index declined 7.6%.
- The refinance index fell 0.1%.
Producer Price Index:
- Producer prices increased 0.4% in June, offsetting May’s 0.2% decline.
- Non-fuel categories were quiet, while the prices of energy goods contributed to the rise.
- Industrial production increased 0.2% in June.
- Manufacturing production rose 0.1%.
- Auto production decreased 0.3%.
- Mining output increased for the eight consecutive month, rising 0.8% in June.
- Utility production dropped 0.3%.
Citigroup Inc. (NYSE: C)
- Citigroup earned $181 million, or $0.03 a share, compared to $4.18 billion, or $1.34 a share, a year ago.
- Excluding a legal charge, Citigroup earned $1.24 a share, beating estimates of $1.05 a share.
- Revenue fell to $19.34 billion, but beat analysts’ expectation of $18.93 billion.
JPMorgan Chase & Co. (NYSE: JPM)
- JPMorgan’s earnings fell to $5.99 billion, or $1.46 a share, compared to $6.5 billion, or $1.60 a share, a year ago.
- Revenue declined to $24.45 billion.
- Analysts expected $1.29 a share.
eBay Inc. (NASDAQ: EBAY)
- EBay earned $676 million, or $0.53 a share, compared to $640 million, or $0.49 a share, last year.
- After adjustments, eBay earned $0.69 a share, narrowly beating analysts’ estimate of $0.68.
- Ebay reported revenue of $4.37 billion, just short of analyst estimates of $4.38 billion.
The Sherwin-Williams Company (NYSE: SHW)
- Sherwin-Williams earned $291.4 million, or $2.94 a share, compared to $257.3 million, or $2.46 a share, a year ago.
- Sales increased 12% to $3.04 billion.
Interest Rates
- The two-year Treasury rate rose three basis points to 0.48%.
- The five-year Treasury rate increased four basis points to 1.68%.
- The 10-year Treasury rate was flat at 2.52%.
- The 30-year Treasury yield fell two basis points to 3.32%.
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.
