STOCKS GO NOWHERE: Here’s What You Need To Know

MYLES UDLAND

SEP. 12, 2014

REUTERS/Eduardo Munoz

The Tribute in Light is illuminated on the skyline of lower Manhattan during events marking the 13th anniversary of the 9/11 attacks on the World Trade Center in New York, September 10, 2014.

Stocks went nowhere in a bit of a see-saw session that saw the markets fall at the open before recovering most of these losses through the day.

First, the scoreboard:

• Dow:17,046.46, -23.2, (-0.1%)
• S&P 500:1,996.67, +1, (+0.05%)
• Nasdaq:4,589.79, +3.2, (0.07%)

And now, the top stories on Thursday:

1. The weekly report on initial jobless claims was a bit disappointing, as claims jumped to 315,000, up from last week’s revised total of 304,000 and more than the 300,000 that was expected by economists. Ian Shepherdson said the miss is “nothing to worry about,” as the Labor Day holiday makes the seasonal adjustment tricky. 

2. The U.S. Treasury Department reported a budget deficit of $128.7 billion in August, down from $147.9 billion a year ago, and narrower than the $130 billion expected by economists. Following the report, Jesse Hurwitz at Barclays said, “Increases in receipts this fiscal year have been driven by greater tax receipts as well as a 32% increase in receipts from the Federal Reserve. We look for the budget deficit to continue to narrow through the end of 2014 and into 2015.”

3. The Census Bureau released its latest Quarterly Services Survey, which showed that spending in the healthcare sector rose 3% annualized from the first quarter. Through the first half of this year, healthcare and social assistance spending has increased 3.3% over last year. Following this report, economists at Goldman Sachs raised their Q2 GDP estimates to 4.7%, up from the BEA’s latest estimate that showed GDP grew 4.2% during Q2. Goldman’s report said the QSS survey, “showed a strong bounce-back in healthcare spending in Q2, following weakness in Q1.” Joe LaVorgna at Deutsche Bankraised his Q2 GDP estimate to 4.5% following the report. 

4. RadioShack reported quarterly earnings on Thursday, and the story wasn’t so much the company’s $137 million loss, but the company’s need for more cash. In its filing with the SEC, RadioShack said that, “Given our negative cash flows from operations and in order to meet our expected cash needs for the next twelve months and over the longer term, we will be required to obtain additional liquidity sources, consolidate our store base and possibly restructure our debt and other obligations.”

5. Lululemon shares were up more than 13% on Thursday after reporting earnings and revenue that beat expectations on Thursday. The yoga apparel maker also gave a full-year earnings and revenue outlook that was in-line with expectations after the company in June cut its full-year sales outlook. 

6. Apple is planning to ship 80 million iPhone 6 and iPhone 6 Plus phones by the end of this year, according to reports. Last year, the company shipped 60 million iPhones over the same period. 

7. Social media company CYNK Technology, which earlier this summer made headlines after its market cap rose to $6 billion despite having no revenue, no assets, and just one employee, was back in the news Thursday after a report from Bloomberg’s Zeke Faux. Faux’s report said the company could be tied to a $500 million money-laundering scheme recently tied to the same office building in Belize where the company listed its headquarters. 

STOCKS GO NOWHERE: Here’s What You Need To Know

MYLES UDLAND

 SEP. 9, 2014

REUTERS/Stringer

People release paper lanterns ahead of the Mid-Autumn Festival in Yichun, Jiangxi province, September 7, 2014. People celebrate the Chinese Mid-Autumn Festival, also known as Moon Festival, on the 15th day of the eighth month in the Chinese lunar calendar, which falls on September 8 this year.

Stocks were little changed on Monday in a session that saw little in the way of economic data, with the just the U.S. consumer credit report in the afternoon showing that credit balances expanded by more than economists expected.

First, the scoreboard:

• Dow: 17,121.66, -15.7, (-0.1%)
• S&P 500:2,002.47, -5.2, (-0.3%)
• Nasdaq: 4,592.56, +9.7, (0.2%)

And now, the top stories on Monday:

1. The latest report on consumer credit showed credit balances grew by $26 billion in July, more than the $17.35 billion was expected by economists. Following the report, Jesse Hurwitz at Barclays said, “The nonrevolving component, which we view as largely driven by increases in student loan debt in recent years, posted the largest monthly increase since July 2011.  While both revolving and nonrevolving credit growth have accelerated in recent months, we continue to look for nonrevolving credit to contribute the majority of overall gains.”

2. Shares of Hertz finished Monday’s session little changed after the company announced that its CEO, Mark Frissora, would resign for personal reasons. Frissora’s resignation comes after a tough year for the rental car company, which announced on August 20 that it would review its financial results from 2011 through 2014, in addition to withdrawing its fiscal 2014 guidance and saying that its results would be “well below” previous expectations.

3. Analysts at Goldman Sachs wrote in a note to clients that in the wake of recent high-profile data breaches, internet security companies including FireEye, LifeLock, and Palo Alto Networks could be set to benefit from an increased focus on security by companies. Goldman’s Matthew Niknam and Jamison Manwaring wrote that, “while difficult to quantify the direct impact of each event and how that may drive incremental revenue for security companies, we nonetheless expect the prevalence/prominence of breaches to benefit our stocks and support valuation, especially as this remains a top board-level issue.”

4. Apple is expected to announce a new iPhone at an event on Tuesday, and ahead of this announcement, BI’s Jay Yarow noted that historically, shares of Apple decline on the day of iPhone announcements then typically rise until the phone goes on sale, and then decline on the day sales begin. 

5. Deutsche Bank’s David Bianco, who has been one of the biggest bears on Wall Street this year, flipped to being bullish, and raised his year-end S&P 500 target to 2,050 from a previous expectation of 1,850. 

6. A blog post from the Federal Reserve Bank of San Francisco on Monday noted the divergence between current FOMC expectations for the future path of interest rates and what the market expects. The Fed’s Jen Christensen and James Kwan noted that, “the public might not give enough weight to how dependent the central bank’s guidance is on both current and incoming data. Thus, the public could underestimate the conditionality and uncertainty of interest rate projections.”

7. Alibaba kicked off its IPO roadshow on Monday, and released a series of videos outlining its pitch to investors. BI’s Elena Holodny broke down the video into a slide deck that gives a broad overview of what Alibaba does, and gives you a sense of the company’s massive scale. 

MARKETS GO NOWHERE, FACEBOOK SURGES: Here’s What You Need To Know

MYLES UDLAND

 JUL. 25, 2014, 4:00 AM

REUTERS/Thomas Peter

Soldiers of the 209th corp of the Afghan army (ANA) roll up the red carpet after a visit by German Defence Minister Ursula von der Leyen (not pictured) at Camp Shaheen outside Mazar-i-Sharif.

Stocks finished lower, but little changed, after economic data early in the session was mixed and a flood of corporate earnings again poured in. By virtue of a higher close, the S&P 500 made yet another all-time high.

First, the scoreboard:

• Dow: 17,089.81, +3.2, (+0.02%)
• S&P 500:1,988.87, +1.9, (+0.09)
• Nasdaq: 4,474.12, +2.4, (0.06%)

And now, the scoreboard:

1) This morning, weekly initial jobless claims data came in way better than expected, as 284,000 individuals filed for unemployment, down from 302,000 last week and lower than the 307,000 that was expected by economists. This reading was the lowest number for the index since February 2006. Following the report, Neil Dutta at Renaissance Macro said that the underlying trend in weekly claims remains healthy, but noted that this data, “likely informs more about production than employment.”

2) Markit’s preliminary U.S. PMI reading came in at 56.3,worse than last month’s 57.3 and below the 57.4 that was expected by economists. The report also indicated that job creation was the weakest since September 2013, but Markit’s Chris Williamson said recent data remains strong. “U.S. manufacturers are enjoying a summer of scorching growth,” Williamson said. “Output grew in July at a rate only just below the four-year peak seen in June as inflows of new orders surged higher again. The data suggest the sector is growing at an annualized rate of roughly 8% as we moved into the second half of the year. The growth rebound that the survey has signaled for the second quarter therefore looks to have been sustained into the third quarter.”

3) Housing data also disappointed, as new home sales fell 8.1% in June to an annualized rate of 406,000, worse than the 5.8% decline expected by economists. Following the report, Michael Gapen at Barclays said, “The June decline plus revision to May have erased the rebound in Q2 new homes sales that we had expected… Altogether, this is a much softer report than expected and suggests housing demand has stabilized in recent quarter, as opposed to improving.”

4) It was a tough day for traders betting against Zillow or SodaStream, as shares of both companies soared following possible deal reports from Bloomberg. Zillow shares gained more than 15% after Bloomberg said the company is seeking to acquire online real estate rival Trulia. Following the report, Trulia shares gained nearly 32%. SodaStream shares also surged, gaining about 10% after Bloomberg reported the company is in talks with a private investment company to go private. 

5) The International Monetary Fund, or IMF, cut its global GDP forecast to 3.4% from 3.6%, with the organization saying that, “Global growth could be weaker for longer, given the lack of robust momentum in advanced economies.” Among the biggest cuts was the IMF’s slashing of 2014 U.S. GDP growth, to 1.7% from 2.8%. 

6) After last night reporting better than expected profit and revenue,Facebook shares made a new all-time high, closing above $75.

7) Among notable companies reporting earnings before the market open were Caterpillar, which reported better than expected results but saw shares fall more than 3%, and General Motors, which took a $900 million charge on potential future recalls and saw shares fall nearly 5%. 

8) Notable earnings reports expected after the market close include Amazon, Visa, and Starbucks.