For the week of Monday, March 24, 2014 through Friday, March 28, 2014:
- Standard & Poor’s 500 Index: -0.44%
- Dow Jones Industrial Average: 0.12%
- NASDAQ Composite: -2.81%
The week began with stocks falling after disappointing news out of China and Europe chipped away at the optimism that resulted in last week’s gains. Weaker-than-expected readings on manufacturing activity in China and Europe weighed on the markets. However, the next day, stocks broke a two-day slide. Unfortunately, the markets ended broadly lower Wednesday, as declines in technology and biotechnology stocks sent the tech-heavy NASDAQ to its lowest close in more than a month. Stocks dropped early Thursday, with the technology and health-care sectors leading the market lower. Stocks closed higher Friday, trimming losses suffered earlier in the week. The U.S. personal income data revealed firm 0.3% income and spending gains in February. The University of Michigan Consumer Sentiment Survey fell to 80.0 in the final March reading, vs. February’s 81.6. The Federal Reserve said it will need to keep rates at rock bottom until late 2015.
Chain Store Sales Snapshot:
- The ICSC chain store sales index fell 1.5%.
- The decline erased most of March’s gains.
Case-Shiller Home Price Index:
- Existing-home price appreciation decelerated year-over-year.
- The 10-city composite is up 13.5% year-over-year.
- The 20-city composite is up 13.2% year-over-year.
- Non-seasonally adjusted:
- The 10-city composite index was flat, and
- The 20-city composite index fell 0.1%.
MBA Mortgage Applications Survey:
- Mortgage applications slid last week, with the composite index falling 3.5%.
- Refinancing fell 7.7%.
- Purchases rose 2.8%.
Durable Goods Orders:
- New orders rose 2.2% in February following a 1.3% decline in January.
- Excluding transportation, new orders rose 0.2%.
- Total shipments rose 0.9%
- Inventories rose 0.8%.
- Core capital orders fell 1.3%.
- Initial claims for unemployment insurance declined 10,000 to 311,000.
- The four-week moving average fell 9,500 to 317,750.
- Continuing claims fell 53,000 to 2.82 million.
Gross Domestic Product:
- Real GDP grew 2.6% in the fourth quarter.
- The second estimate was 2.4%, but the third and final estimate missed the advance estimate of 3.2%.
- Third quarter real GDP was 4.1%.
Carnival Corporation (NYSE: CCL)
- Carnival Corp. lost $15 million, or $0.02 a share, compared to a profit of $37 million, or $0.05 a share, a year ago.
- Adjusted earnings were $0.00 a share.
- Revenue was in line with last year at $3.59 billion.
- Analysts expected a loss of $0.08 a share and $3.55 billion in revenue.
McCormick & Company, Incorporated (NYSE: MKC)
- McCormick’s earnings increased 8.6%.
- McCormick reported earnings of $82.5 million, or $0.62 a share, compared to $76 million, or $0.57 a share, year-over-year.
- Sales rose 6.3% to $993.4 million
- Analysts expected $973 million.
Paychex, Inc. (NASDAQ: PAYX)
- Paychex’s earnings rose 11%.
- Paychex earned $160.1 million, or $0.44 a share, compared to $144.5 million, or $0.40 a share, last year.
- Revenue increased to $636.5 million compared to $593.3 million last year.
- Analysts expected $0.42 a share and revenue of $628.8 million.
GameStop Corp. (NYSE: GME)
- GameStop reported a 3.4% increase in revenue.
- GameStop earned $220.5 million, or $1.89 a share, compared to $261.1 million, or $2.15 a share, a year ago.
- Revenue increased from $3.56 billion to $3.68 billion.
- The two-year Treasury rate increased three basis points to 0.46%.
- The five-year Treasury rate rose two basis points to 1.73%.
- The 10-year Treasury rate fell four basis points to 2.70%.
- The 30-year Treasury yield fell seven basis points to 3.54%.