The Markets Now: Stocks Fall as More Bad News Hits Markets
Stocks continued moving lower today after the release of several
economic reports that reported slightly negative numbers. The
(INDEXDJX:.DJI) decreased 0.38% to 14,562.60. The
(INDEXSP:.INX) dropped 0.49% to 1,544.37, and the
(INDEXNASDAQ:.IXIC) fell 0.86% to 3,176.97.
The US Department of Labor reported today that seasonally adjusted initial jobless claims increased by 4,000 to 352,000 for the week ending April 13. The four-week moving average rose by 2,750 to 361,250. Continuing claims for the week ending April 6 decreased 35,000 to 3,068,000, and the four week moving average decreased 2,250 to 3,083,000. Read the full report here .
The Federal Reserve Bank of Philadelphia released its Business Outlook Survey today. The survey's diffusion index of current activity, the survey's broadest measure of manufacturing conditions, fell from 2.0 in March to 1.3 in April. A positive reading indicates general growth. Read the full report here .
The Conference Board reported today that its US Leading Economic Index decreased 0.1% in March. The index's components of consumer sentiment building permits, ISM new orders, workweek in manufacturing, and initial unemployment claims offset the the gains in the other components of the index. For the six month period ending in March, the index increased 1.6% compared to the 0.1% growth for preceding six months. Read the full report here .
Bloomberg reported today that its Bloomberg Consumer Comfort Index increased by 4.8 points to -29.2 for the week ending April 14. This marks the index's highest reading since January 2008. Year-over-year, the index climbed from -32.8. Read the press release here .
The Energy Information Association, or EIA, reported today that the natural gas in storage for the week ending April 12 increased by 30 billion cubic feet to 1,704. Read the report here .
Morgan Stanley ( MS ) dropped 3.82% to $20.65. The bank reported a first-quarter profit today of $984 million, or $0.50 per share, compared to a loss of $94 million, or $0.06 per share, in the prior-year quarter. Excluding an accounting charge, the earned a profit of $0.61 per share, beating the $0.56 average estimate of 20 analysts surveyed by Bloomberg. Revenue increased to $8.2 billion from $6.9 billion in the prior-year quarter.
Its bond-trading and stock-trading revenues decreased by 42% and 19% respectively.
Verizon ( VZ ) rose 3.50% to $51.27. The second largest US phone company reported first-quarter profits that beat analyst estimates. Earnings increased from $1.69 billion, or $0.59 per share, in the prior year quarter to $1.95 billion, or $0.68 per share. Analysts surveyed by Bloomberg on average predicted earnings of $0.65. Revenue increased from $28.24 billion to $29.42 billion.
Apple ( AAPL ) fell 1.92% to $395.08. Some Asian Apple suppliers have hinted that sales of Apple products may be lower than expected.
PepsiCo ( PEP ) increased 3.63% to $81.71. The world's largest snack-food maker reported a first-quarter net income of $1.08 billion, or $0.69 per share, compared to $1.13 billion, or $0.71 per share, in the prior-year quarter. Excluding some items, the company earned a profit of $0.77, beating the average $0.71 estimate of 14 analysts surveyed by Bloomberg. Sales increased 1.2% to $12.6 billion.
EBay ( EBAY ) plunged 5.10% to $53.24. The online auction website and retailer reported a first-quarter net income of $677, or $0.51 per share, compared to $570 million, or $0.44 per share, in the prior-year quarter. Its profit was $0.63 per share, beating analyst estimates of $0.62 per share. The company reported sales of $3.75 billion, missing the average analyst estimate of $3.77 according to Bloomberg.