For the week of Monday, February 3, 2014 through Friday, February 10, 2014:
- Standard & Poor’s 500 Index: 0.90%
- Dow Jones Industrial Average: 0.69%
- NASDAQ Composite: 0.62%
The week started off with the sharpest one-day decline in the Dow since June 2013, after fears on the U.S. economy were reignited after a round of weak manufacturing reports. Stocks rose Tuesday, but traders remained cautious as global-growth concerns lingered. U.S. stock benchmarks edged lower Wednesday, as traders paused after a volatile start to the week. Global stock benchmarks have declined in recent weeks amid concerns about economic growth, coupled with worries over turmoil in emerging-market currencies and stocks. By Thursday, stocks held gains after a report showed jobless claims fell more than expected.
Stocks closed higher on Friday, building on gains won in the previous session despite a weaker-than-expected U.S. nonfarm payrolls report, which indicated payrolls rose by 113,000 in January, well below the 170,000 economists had predicted. The U.S. jobless rate fell to 6.6% from 6.7%. The Fed’s Janet Yellen is scheduled to testify before Congress next week about the central bank’s monetary policy.
ISM Manufacturing Index
- The ISM manufacturing index fell to 51.3 in December from 56.5 in November.
- Most details declined including:
- New orders falling significantly;
- Inventories remained below 50, the expansionary threshold;
- Employment and production both fell, and
- New export orders slipped.
- Prices paid increased.
Chain Store Sales:
- Chain store sales rose 0.3% from last week.
- On a year ago basis, sales rose 0.1%.
- Manufactured goods fell 1.5% in December, offsetting November’s 1.5% gain.
- December’s original durable goods orders were revised to a 4.2% decline versus the previously released 4.3% decline.
- Durable goods shipments were revised to a 1.7% decline versus a 1.9% decline.
- Unfilled orders rose 0.4%.
- Inventories rose 0.5%.
MBA Mortgage Applications Survey:
- Mortgage applications rose.
- The composite index rose 0.4%.
- Refinance activity rose 2.9%.
- Purchase applications fell 3.8%.
- Morgage interest rates moved lower for the fourth straight week.
ISM Services Index:
- The ISM nonmanufacturing index rose to 54 in January.
- The business activity index increased two points.
- New orders and the employment indices both rose by less than one point.
- Initial claims for unemployment insurance fell 20,000 to 331,000.
- The four week moving average rose 250 to 334,000.
- Continuing claims rose 15,000 to 2.96 million.
Yum! Brands, Inc. (NYSE: YUM)
- Yum earned $321 million, or $0.70 a share, compared to $337 million, or $0.72 a share, a year ago.
- Same store sales in China fell 4%.
- China’s results saw a decline of 4% at Kentucky Fried Chicken and 5% growth at Pizza Hut.
AGCO Corporation (NYSE: AGCO)
- AGCO earned $1.40 a share, compared to $1.04 a share last year for the quarter.
- Quarterly net sales were $2.9 billion, compared to $2.7 billion last year.
- For 2013
- Net sales were $10.8 billion.
- Net income was $6.01 a share, compared to $5.30 for 2012.
Aflac Inc. (NYSE: AFL)
- Aflac reported profits of $675 million, or $1.45 a share, compared to $581 million, or $1.24 a share, last year.
- Revenue dropped 9% to $5.8 billion compared to $5.91 billion expected by analysts.
Coca-Cola Enterprises Inc. (NYSE: CCE)
- CCE earned $135 million, or $0.51 a share, up from $100 million, or $0.34 a share, last year.
- Excluding restructuring charges, Coke Enterprises earned $0.54.
- Sales rose 6.1% to $2.03 billion.
- Analysts expected $0.52 a share on revenue of $2.04 billion.
- The two-year Treasury rate fell one basis point to 0.32%.
- The five-year Treasury rate increased one basis point to 1.50%.
- The 10-year Treasury rate rose three basis points to 2.67%.
- The 30-year Treasury yield increased five basis points to 3.65%.