Markets
For the week of Monday, August 11, 2014 through Friday, August 15, 2014:
- Standard & Poor’s 500 Index: 1.28%
- Dow Jones Industrial Average: 0.78%
- NASDAQ Composite: 2.17%
Stocks ended slightly higher on Monday, with investors reacting to improving economic data and shrugging off tensions overseas. The rise extends last week’s advance, as tensions in Ukraine subside and an insurgency in Iraq was dealt setbacks over the weekend. The following day, the market edged lower as investors paused. Energy stocks were the worst performers as Brent crude slumped 1.6% to a nine-month low. Wednesday was a strong day for stocks even though retail sales fell short of expectations. The Dow Jones Industrial Average re-entered positive territory for 2014. Despite a rise in initial claims for unemployment insurance and negative report on Germany’s second quarter GDP, stocks closed higher on Thursday. Markets were mixed on Friday, as news broke of a confrontation between Ukrainian military forces and a Russian armored convoy that had crossed the border.
Economic Data
Chain Store Sales Snapshot:
- The ICSC Chain Store Sales Index slid 1.4%.
- Year-over-year growth fell from 4.5% to 3.2%.
MBA Mortgage Applications Survey:
- The MBA Mortgage Application index fell 2.7%.
- Purchase activity fell 1%.
- Refinance applications slid 4%.
Retail Sales:
- Retail sales saw little change from June to July.
- July sales were up 3.7% year-over-year.
- Miscellaneous retailers posted the strongest growth in July, followed by drug and apparel stores.
- For the month, sales fell at auto dealers, department stores, furniture stores, electronics and appliance stores and non-store retailers.
Jobless Claims:
- Initial claims rose 21,000 to 311,000.
- This is only the second increase inthe past six weeks, but reverses last week’s 13,000 decline.
- The four-week moving average increased from 293,750 to 295,750.
- Continuing claims rose 25,000 to 2.544 million.
Earnings:
The Priceline Group Inc. (NASDAQ: PCLN)
- Priceline’s earnings jumped 32%, topping its own expectations, driven by improved bookings.
- Priceline earned $576.5 million, or $10.89 a share, compared to $437.3 million, or $8.39 a share, a year ago.
- Excluding special items, Priceline earned $12.51 a share on revenue of $2.12 billion.
- Priceline earned $576.5 million, or $10.89 a share, compared to $437.3 million, or $8.39 a share, a year ago.
Sysco Corporation (NYSE: SYY)
- Sysco earned $254.2 million, or $0.43 a share, compared to $283 million, or $0.47 a share, last year.
- Excluding merger-related expenses, Sysco earned $0.50 a share on revenue of $12.29 billion.
- Analysts expected $0.50 a share on revenue of $12.14 billion.
- Food-cost inflation was 4.1%.
- Case volume rose 2.2%.
Cisco Systems, Inc. (NASDAQ: CSCO)
- Cisco showed more signs of digging out of a recent slump, but growth eluded the company in the quarter.
- Cisco’s earnings were roughly flat on revenues that slid 3%.
- Cisco earned $2.25 billion, or $0.43 a share, compared to $2.27 billion, or $0.42 a share, a year ago.
- Revenue decreased from $12.4 billion to $12.36 billion.
- Cisco earned $0.55 a share after adjustments.
- Analysts expected the Technology giant to earn $0.53 a share and have revenue of $12.14 billion.
- Cisco’s earnings were roughly flat on revenues that slid 3%.
Wal-Mart Stores Inc. (NYSE: WMT)
- Wal-Mart earned $4.09 billion, or $1.26 a share, compared to $4.07 billion, or $1.24 a share, last year.
- After adjustments, Wal-Mart earned $1.21 a share, matching analysts’ expectations.
- Revenue increased 3% to $119.34 billion, beating analyst estimates of $119.06 billion.
Interest Rates
- The two-year Treasury rate slipped four basis points to 0.41%.
- The five-year Treasury rate fell six basis points to 1.57%.
- The 10-year Treasury rate fell one basis point to 2.41%.
- The 30-year Treasury yield held at 3.23%.
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.
