For the week of Monday, April 7, 2014 through Friday, April 11, 2014:
- Standard & Poor’s 500 Index: -2.60%
- Dow Jones Industrial Average: -2.31%
- NASDAQ Composite: -3.09%
Monday saw the NASDAQ stumble to its third consecutive decline and its biggest three-day fall since November 2011. The day’s 1.2% drop in the NASDAQ may be indicative of the mild expectations for the first-quarter earnings season. Highlighting the fickle market, the NASDAQ led market gains for the first time in four sessions Tuesday. Stocks continued to rise broadly mid-week, helped by the minutes from the Fed’s most recent policy-setting meeting. The minutes alleviated concerns the central bank would raise interest rates sooner than many had expected. Stocks started Thursday flat as investors weighed an upbeat reading from the U.S. labor market against weak export results from China; however, the markets tumbled by Thursday’s close, eliminating Wednesday’s gains. Stocks closed lower Friday, extending the previous session’s steep losses. J.P. Morgan announced earnings that missed analysts’ forecasts, which kept the market subdued. The University of Michigan’s consumer sentiment index jumped to a better-than-expected 82.6 in a preliminary April reading. But producer prices also rose, climbing 0.5% in March, as inflationary pressures mounted on the wholesale front.
Chain Store Sales Snapshot:
- The chain store sales index increased 1.5%.
- Gasoline prices rose for the ninth consecutive week.
- Year-over-year the index improved 1.5%.
MBA Mortgage Applications Survey:
- The Mortgage Applications composite index fell 1.6%.
- Purchase activity increased 2.7%
- Refinance activity declined 4.9%.
- Wholesale inventories increased 0.5%.
- January’s inventory was revised up 0.1% to 0.8%.
- Sales rose 0.7% in February.
- The inventory-to-sales ratio fell from 1.2 to 1.19.
Federal Open Market Committee Minutes:
- The March Federal Open Market Committee minutes revealed policymakers may still be worried about the amount of slack in the economy.
- There was little indication that rates will rise soon after quantitative easing ends.
- There was broad support for moving from a quantitative to a qualitative forward guidance approach.
- Initial claims for unemployment fell 32,000 to 300,000.
- The four-week moving average fell from 321,000 to 316,500.
- Claims for the previous week were revised up from 326,000 to 332,000.
- Continuing claims fell 62,000 to 2.776 million.
- The insured unemployment rate fell from 2.2% to 2.1%.
Constellation Brands Inc. (NYSE: STZ)
- Constellation Brands earned $157.2 million, or $0.79 a share, compared to $81.7 million, or $0.43 a share, a year ago.
- Net sales increased to $1.29 billion from $696 million.
- Analysts expected $0.76 a share on sales of $1.29 billion.
Bed Bath & Beyond Inc. (NASDAQ: BBBY)
- Bed Bath & Beyond earned $333.3 million, or $1.60 a share, compared to $373.9 million, or $1.68 a share, a year ago.
- Total revenue fell to $3.2 billion from $3.4 billion.
- Same store sales rose 1.7%.
- Analysts expected $1.60 a share on revenue of $3.22 billion.
Progressive Corp. (NYSE: PGR)
- Progressive earned $0.41 a share, a penny more than analysts expected.
- Progressive’s net income was $321.3 million or $0.54 a share, compared to $308.6 million or $0.51 a share, year-over-year, including gains on securities.
- Revenue rose 5.3% to $4.59 billion beating estimates of $4.29 billion.
- The two-year Treasury rate fell five basis points to 0.36%.
- The five-year Treasury rate slid eight basis points to 1.62%.
- The 10-year Treasury rate fell five basis points to 2.67%.
- The 30-year Treasury yield dropped three basis points lower to 3.55%.