Stocks traded lower on Friday as earnings and economic data
leaned toward the downside.
The S&P 500
(INDEXSP:.INX) went as low as 1839.89 in early trading and
rebounded to 1846.04 midday before falling back down to finish 0.4%
lower at 1838.69. Ultimately, it was a continuation of the post-New
Year grind following the market's huge 2013 run that took many a
bear by surprise.
) fell 2.6% to $25.85 after reporting earnings on Thursday
afternoon. Intel reported in-line revenues, but its earnings and
forward revenue guidance underwhelmed investors that had driven the
stock up 4% this week before the report, and up 13% from its
December 2013 low.
) sold off 2.3% despite an overall in-line report. The action
looked like a sell-the-news reaction after the stock staged an
impressive rally into year-end.
) also disappointed, lowering fourth-quarter earnings guidance this
morning after being caught off-guard by a back-end loaded holiday
shopping season. The stock fell 0.6%.
Japanese video game giant
(OTCMKTS:NTDOY) also guided down, citing weak sales of its Wii U
console and driving a big dip in its share price.
However, earnings news wasn't all bad. Investment bank
) staged an impressive rally after reporting fourth-quarter results
that were above consensus. Fellow financial
) also beat expectations and shot higher.
And shares of momentum king
(TWTR) rose 2.7% to $62.20 after brokerage firm Stifel initiated
coverage with a Buy rating and $75 target price. Additionally, the
stock was boosted be a news report indicating that Twitter was
developing an e-commerce platform.
There was also a decent amount of economic data today.
December 2013 housing starts were slightly better than expected at
999K, while building permits disappointed at 986K. December
industrial production was in line with expectations with a 0.3%
increase. December capacity utilization was fractionally ahead of
consensus at 79.2%. And finally, the January University of Michigan
Consumer Confidence survey came in at 80.4, which missed the 83.5
that Wall Street had forecast.
The so-so earnings and economic numbers drove the 10-year US
Treasury yield down slightly to 2.83%, nearing the 2.819% low for
the year seen last week.
Tomorrow's Financial Outlook
The market will be closed on Monday in observance of Martin Luther
King, Jr. Day.
On Tuesday, we'll see a large number of earnings reports. Big names
Johnson & Johnson
(VZ) before the open, and
(TXN) after the close.
We'll also have some economic data. At 8:30 a.m. EST, December 2013
retail sales and import/export prices data will be reported. Those
reports will be followed by the November 2013 business inventories
numbers at 10:00 a.m.