Markets
For the week of Monday, March 10, 2014 through Friday, March 14, 2014:
- Standard & Poor’s 500 Index: -1.91%
- Dow Jones Industrial Average: -2.29%
- NASDAQ Composite: -2.07%
The stock markets edged lower on Monday because of economic data from Asia and lingering concerns about the conflict in Ukraine. Stocks continued to fall Tuesday, as investors tried to get a clearer picture of our country’s economic strength. The slower pace of growth in China added to the concerns. By mid-week, the S&P 500 closed marginally higher. On Thursday, stocks began the day with gains following better-than-expected readings on retail sales and jobless claims. Unfortunately, the gains did not last through the trading day. Major stock indices closed lower Friday, as investors focused on the weekend vote in Crimea that will determine whether the region secedes from Ukraine. Economic data showed a 0.1% drop in producer prices in February and a 1.7-point drop in the University of Michigan’s March consumer sentiment index to 79.9.
Economic Data
Chain Stores Sales Snapshot:
- The ICSC chain store sales index rose 1.3% for the week.
- Year-over-year the index rose 2.1%.
- Cold weather was a factor in the report.
- Apparel and grocery stores were weaker.
- Electronic retailers and drug stores improved.
Wholesale Trade:
- Wholesale inventories increased 0.6% in January, beating the 0.4% expectation.
- Sales fell 1.9% in January.
- December’s inventory growth was revised up to 0.4%; however, the month’s sales were revised from a 0.5% to 0.1% increase
MBA Mortgage Applications Survey:
- Mortgage applications fell 2.1%
- The purchase index fell 0.5%
- The refinance index fell 3.1%.
Jobless Claims:
- Initial claims for unemployment insurance fell 9,000 to 315,000.
- The four-week moving average slid 6,250 to 330,500.
- Continuing claims fell 48,000 to 2.86 million.
Retail Sales:
- Sales increased 0.3% for February, beating expectations.
- Year-over-year sales rose 1.5%.
- January and December sales were revised to show larger declines than previously reported.
Earnings
American Eagle Outfitters, Inc. (NYSE: AEO)
- American Eagle Outfitters reported profits of $10.5 million, or $0.05 a share, compared to $94.8 million, or $0.47, a year ago.
- Sales fell to $1.04 billion from $1.12 billion.
- Excluding non-recurring items, adjusted profit was $0.27 a share, narrowly beating analysts’ expectations of $0.26 a share.
Dick’s Sporting Goods Inc. (NYSE: DKS)
- The sporting goods store’s profit rose 6.9%, and its sales jumped, despite one less week in the period.
- Dick’s earned $138.6 million, or $1.11 a share, compared to $129.7 million, or $1.03 a share, one year ago.
- Revenue was $1.95 billion, beating analysts’ estimates of $1.94 billion.
- Same-store sales increased 7.3% well above the expected 3% to 4% increase.
Williams-Sonoma Inc. (NYSE: WSM)
- Williams-Sonoma reported earnings of $133.8 million, or $1.38 a share, versus $133.7 million, or $1.34 a share, last year.
- Analysts expected $1.35 a share.
- Revenue increased to $1.47 billion from $1.41 billion.
- Williams-Sonoma raised its dividend 6%.
Krispy Kreme Doughnuts, Inc. (NYSE: KKD)
- Krispy Kreme earned $14.8 million, or $0.21 a share, compared to $4.78 million, or $0.07 a share a year ago.
- Revenue slid to $112.8 million from $118.1 million, although the quarter had one less week.
- Excluding tax credits Krispy Kreme earned $0.12 a share.
- Analysts expected $0.13 a share and sales of $118.8 million.
- Same-store sales rose 1.6%.
Dollar General Corporation (NYSE: DG)
- Dollar General earned $322.17 million, or $1.01 a share, compared to $317.4 million, or $0.97 a share, a year ago.
- Revenue increased 6.8% to $4.49 billion, which was short of analysts’ expectations of $4.62 billion.
- Same store sales rose 1.3%, also shy of analysts’ expectation of a 4.5% increase.
Interest Rates
- The two-year Treasury rate stayed at 0.37%
- The five-year Treasury rate slid five basis points to 1.59%.
- The 10-year Treasury rate fell six basis points to 2.73%.
- The 30-year Treasury yield fell five basis points to 3.67%.
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.
