For the week of Tuesday, September 2, 2014 through Friday, September 5, 2014:
- Standard & Poor’s 500 Index: 0.24%
- Dow Jones Industrial Average: 0.25%
- NASDAQ Composite: 0.07%
Stocks began the Labor Day holiday-shortened week by pulling back from gains in August that were the largest monthly increases for the Dow and S&P 500 since February. The decline still leaves stocks hovering near record highs. The S&P 500 closed August by making its 32nd record close of the year. Investors say the backdrop for stocks remains positive, as improving economic data and low yields on U.S. Treasurys continue to boost appetite for stocks.
Easing tensions in Ukraine failed to give U.S. stocks a lift Wednesday, as losses in the Technology sector weighed on the broader market. European markets rallied after Russian President Vladimir Putin said that he and Ukrainian President Petro Poroshenko had agreed to the outlines of a cease-fire between Ukrainian forces and pro-Russian rebels fighting in eastern Ukraine. The markets rose Thursday as investors weighed easing measures from the European Central Bank and mixed U.S. labor-market reports. ECB President Mario Draghi said the central bank would buy asset-backed securities and covered bonds. The euro fell to a 14-month low against the dollar. Sputtering economic growth in the eurozone has prompted some U.S. investors to reconsider bets on the European economy. Trading closed in positive territory on Friday, despite the release of less-than-spectacular employment data for August. The U.S. economy added 142,000 jobs last month. Meanwhile, July results were revised slightly higher, to 212,000 from 209,000. Additionally, the unemployment rate dipped to 6.1 percent, as expected.
ISM Manufacturing Index:
- The Institute for Supply Mangement’s Manufacturing index increased to 59 from 57.1.
- This makes the second monthly increase and was more than expected.
- Production and new orders subcomponents both increased.
- The non-seasonally adjusted inventory index increased from 48.5 to 52 in August.
Chain Store Sales Snapshot:
- Chain Store Sales held flat.
- Year-over-Year sales growth rose to 4.8%.
MBA Mortgage Applications Survey:
- The MBA Mortgage Applications Survey increased 0.2%.
- Refinancing activity drove the increase.
- Purchase activity slightly fell.
- Manufactured goods orders increased 10.5% in July.
- Durable goods orders rose 22.6%.
- Capital goods orders rose 52.5%; however, core capital goods orders (nondefense excluding aircraft) fell 0.7%.
- Total shipments increased 1.2%.
- Core capital shipments rose 1.4%.
- Initial claims for unemployment insurance increased 4,000 to 302,000.
- This reading includes the Labor Day holiday, giving the reading an identifiable pattern.
- The four-week moving average increased 3,000 to 302,750.
- Continuing claims fell 64,000 to 2.464 million.
Toll Brothers Inc. (NYSE: TOL)
- Toll Brothers’ reported earnings of $97.7 million, or $0.53 a share, compared to $46.6 million, or $0.26 a share, last year.
- Revenue increased to $1.06 billion.
- Toll Brothers’ sold 1,444 homes in the quarter, compared to 1,059 last year.
Navistar International Corp. (NYSE: NAV)
- Navistar reported a loss of $2 million, or $0.02 a share, compared to last year’s loss of $247 million, or $3.06 a share.
- Revenue was down 0.6% at $2.84 billion.
- Navistar’s expenses fell 8% to $2.83 billion.
PVH Corp. (NYSE: PVH)
- PVH Corp. earned $1.98 billion, or $1.51 a share, compared to $1.96 billion, $1.42 a share last year.
- Calvin Klein revenue rose 1% to $675 million from $671 million last year.
- Tommy Hilfiger revenue jumped 9% to $870 million from $799 million last year.
- The two-year Treasury rate increased one basis point to 0.50%.
- The five-year Treasury rate gained three basis points to 1.66%, holding above its 2014 average.
- The 10-year Treasury rate edged up to five basis points to 2.40%, remaining near a one-year low.
- The 30-year Treasury yield jumped seven basis points to 3.16%, moving off its 2014 low of 3.07% hit last week.