For the week of Monday, June 9, 2014 through Friday, June 13, 2014:
- Standard & Poor’s 500 Index: -0.63%
- Dow Jones Industrial Average: -0.84%
- NASDAQ Composite: -0.22%
Stocks crept deeper into record territory on Monday, after a flurry of deal activity. Tyson Foods emerged as the winner in a battle to acquire Hillshire Brands, topping a bid by rival Pilgrim’s Pride by almost a billion dollars. Hillshire rallied on the news while Tyson fell. Idenix Pharmaceuticals more than tripled in value after the developer of hepatitis C treatments agreed to be acquired by Merck for $3.85 billion. Merck also rose on the day. Hittite Microwave surged after the company agreed to be acquired by semiconductor maker Analog Devices in a deal that values Hittite at about $2.45 billion. Family Dollar Stores jumped after billionaire investor Carl Icahn disclosed late Friday a 9.4% stake in the company and announced plans to seek discussions surrounding strategies to enhance shareholder value. Apple shares rose after its seven-for-one stock split officially took effect.
On Tuesday, the Dow Jones Industrial Average eked out a fresh record high in quiet trading as other market benchmarks posted a mixed performance. The Dow ticked up less than 0.1%, extending its streak of record closes to four sessions, the longest such streak of the year. However, politics and economics sent the Dow on its biggest decline in three weeks the following day. As has been the case for several weeks, trading volumes were light, with Wednesday marking the ninth slowest session of the year. The S&P 500 has gone 38 days without a 1% move, tying the record for the longest such streak in the past 15 years. Stocks opened lower Thursday, extending Wednesday’s fall. Friday’s session ended with gains as stocks traded higher despite light volume. The Labor Department said U.S. producer prices showed an unexpected dip in May, down 0.2% from April’s 0.6% uptick. In a preliminary reading for June, the University of Michigan Sentiment Index slipped to 81.2, the lowest level in three months.
Chain Store Sales Snapshot:
- The ICSC Chain Store Sales Index fell 2.8%, offsetting last week’s 2.9% gain.
- Year-on-year the index gained 3%.
- Wholesale inventories increased 1.1% in April.
- Inventory growth was revised down $0.1 billion for March.
- Sales gained 1.3% in April, which was a slight deceleration from March’s upwardly revised 1.6% growth.
MBA Mortgage Applications:
- The mortgage application composite index increased, likely because of the previous holiday-shortened week.
- Purchase activity rose 9.3%.
- Refinancing activity increased 11%.
- Though initial claims have been up and down, the trend remains favorable and consistent with an economy creating more than 200,000 jobs a month.
- New filings for unemployment increased 4,000 to 317,000.
- The four-week moving average was 315,200, compared to last week’s 310,500.
- Continuing claims increased 11,000 to 2.614 million.
- May retail sales increased 0.3%.
- April retail sales were revised higher to 0.5% growth, compared to the original 0.1%.
- Auto sales carried the increase, excluding auto dealers, sales only rose 0.1%.
Burlington Stores, Inc. (NYSE: BURL)
- Burlington earned $0.25 a share, compared to $0.08 a share, a year ago.
- Revenue increased to 5.9% $1.13 billion.
- Analysts expected $0.22 a share, and revenue of $1.13 billion.
RadioShack Corp. (NYSE: RSH)
- RadioShack lost $98.3 million, or $0.97 a share, compared to last year’s loss of $28.0 million, or $0.28 a share.
- Net sales fell to $736.7 million—a 13% drop.
- Analysts expected RadioShack to lose $0.52 a share on sales of $767.5 million.
- The two-year Treasury rate increased four basis points to 0.44%.
- The five-year Treasury rate rose five basis points to 1.70%.
- The 10-year Treasury rate increased five basis points to 2.63%.
- The 30-year Treasury yield rose three basis points to 3.47%.