Markets
For the week of Monday, February 3, 2014 through Friday, February 10, 2014:
- Standard & Poor’s 500 Index: 0.90%
- Dow Jones Industrial Average: 0.69%
- NASDAQ Composite: 0.62%
The week started off with the sharpest one-day decline in the Dow since June 2013, after fears on the U.S. economy were reignited after a round of weak manufacturing reports. Stocks rose Tuesday, but traders remained cautious as global-growth concerns lingered. U.S. stock benchmarks edged lower Wednesday, as traders paused after a volatile start to the week. Global stock benchmarks have declined in recent weeks amid concerns about economic growth, coupled with worries over turmoil in emerging-market currencies and stocks. By Thursday, stocks held gains after a report showed jobless claims fell more than expected.
Stocks closed higher on Friday, building on gains won in the previous session despite a weaker-than-expected U.S. nonfarm payrolls report, which indicated payrolls rose by 113,000 in January, well below the 170,000 economists had predicted. The U.S. jobless rate fell to 6.6% from 6.7%. The Fed’s Janet Yellen is scheduled to testify before Congress next week about the central bank’s monetary policy.
Economic Data
ISM Manufacturing Index
- The ISM manufacturing index fell to 51.3 in December from 56.5 in November.
- Most details declined including:
- New orders falling significantly;
- Inventories remained below 50, the expansionary threshold;
- Employment and production both fell, and
- New export orders slipped.
- Prices paid increased.
Chain Store Sales:
- Chain store sales rose 0.3% from last week.
- On a year ago basis, sales rose 0.1%.
Factory Orders:
- Manufactured goods fell 1.5% in December, offsetting November’s 1.5% gain.
- December’s original durable goods orders were revised to a 4.2% decline versus the previously released 4.3% decline.
- Durable goods shipments were revised to a 1.7% decline versus a 1.9% decline.
- Unfilled orders rose 0.4%.
- Inventories rose 0.5%.
MBA Mortgage Applications Survey:
- Mortgage applications rose.
- The composite index rose 0.4%.
- Refinance activity rose 2.9%.
- Purchase applications fell 3.8%.
- Morgage interest rates moved lower for the fourth straight week.
ISM Services Index:
- The ISM nonmanufacturing index rose to 54 in January.
- The business activity index increased two points.
- New orders and the employment indices both rose by less than one point.
Jobless Claims:
- Initial claims for unemployment insurance fell 20,000 to 331,000.
- The four week moving average rose 250 to 334,000.
- Continuing claims rose 15,000 to 2.96 million.
Earnings:
Yum! Brands, Inc. (NYSE: YUM)
- Yum earned $321 million, or $0.70 a share, compared to $337 million, or $0.72 a share, a year ago.
- Same store sales in China fell 4%.
- China’s results saw a decline of 4% at Kentucky Fried Chicken and 5% growth at Pizza Hut.
AGCO Corporation (NYSE: AGCO)
- AGCO earned $1.40 a share, compared to $1.04 a share last year for the quarter.
- Quarterly net sales were $2.9 billion, compared to $2.7 billion last year.
- For 2013
- Net sales were $10.8 billion.
- Net income was $6.01 a share, compared to $5.30 for 2012.
Aflac Inc. (NYSE: AFL)
- Aflac reported profits of $675 million, or $1.45 a share, compared to $581 million, or $1.24 a share, last year.
- Revenue dropped 9% to $5.8 billion compared to $5.91 billion expected by analysts.
Coca-Cola Enterprises Inc. (NYSE: CCE)
- CCE earned $135 million, or $0.51 a share, up from $100 million, or $0.34 a share, last year.
- Excluding restructuring charges, Coke Enterprises earned $0.54.
- Sales rose 6.1% to $2.03 billion.
- Analysts expected $0.52 a share on revenue of $2.04 billion.
Interest Rates
- The two-year Treasury rate fell one basis point to 0.32%.
- The five-year Treasury rate increased one basis point to 1.50%.
- The 10-year Treasury rate rose three basis points to 2.67%.
- The 30-year Treasury yield increased five basis points to 3.65%.
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.
