Stock Market News for November 13, 2014 - Market News - Bank of America (NYSE:BAC)

Benchmarks finished Wednesday's choppy trading session little changed as investors weighed a series of new developments. Global regulators fines on major banks, drop in oil prices, and the U.S and China's effort to curb carbon emissions had a negative impact on financial, energy and utility sectors, respectively. On the other hand, upbeat earnings from retailers helped the consumer discretionary sector gain the most among the S&P 500 sectors. Meanwhile, concerns over Eurozone's economy coupled with growing tensions in Ukraine turned investors cautious. While the S&P 500 and the Dow snapped a five-session winning streak to end in the red, the Nasdaq ended in the positive territory.

For a look at the issues currently facing the markets, make sure to read today's Ahead of Wall Street article

The Dow Jones Industrial Average (DJI) declined a meager 0.02% to close at 17,612.20. The Standard & Poor 500 (S&P 500) decreased 0.1% to close at 2,038.25. The tech-laden Nasdaq Composite Index closed at 4,675.14; gaining 0.3%. The fear-gauge CBOE Volatility Index (VIX) went up 0.8% to settle at 13.02. Total volume on the New York Stock Exchange was 3.2 billion. Advancers outpaced declining stocks on the NYSE. For 52% stocks that advanced, 44% declined.

Financial shares took a beating on Wednesday after U.S., British and Swiss regulators fined banks such as HSBC Holdings plc (HSBC), The Royal Bank of Scotland Group plc (RBS), UBS AG (UBS), Citigroup Inc. (C), JPMorgan Chase & Co. (JPM) and Bank of America Corporation (BAC) for manipulating the foreign-exchange market in order to improve their profits. The banks collectively agreed to pay a fine of $4.3 billion that was levied on them by global regulators. Shares of HSBC Holdings, Royal Bank of Scotland, Citigroup, J.P. Morgan and Bank of America dropped 0.7%, 1.8%, 0.7%, 1.3% and 0.2%, respectively. However, shares of UBS went up 0.3%.

Energy shares were also hit hard due to slump in oil prices. The West Texas Intermediate (WTI) crude oil price slipped almost 1% to $77.18 per barrel. Additionally, price of Brent crude oil dropped 1.6% to $80.38 per barrel. The Energy Select Sector SPDR (XLE) declined 0.9%. The sector was the second biggest loser among the S&P 500 sectors. Shares of key energy stocks including Halliburton Company (HAL), Chesapeake Energy Corporation (CHK), Baker Hughes Incorporated (BHI) and Schlumberger Limited (SLB) dropped 0.9%, 0.1%, 0.9% and 0.9%, respectively.

Utility shares too fell after the U.S. and China agreed to curb carbon emissions to fight climate change. This agreement was intended to encourage countries across the world to reduce greenhouse gas emissions. The Utilities Select Sector SPDR ETF (XLU) was the biggest loser among the S&P 500 sectors. The sector declined 1.8%. Utility companies Exelon Corporation (EXC) and Public Service Enterprise Group Inc. (PEG) led the declines as they plunged 3.5% and 3%, respectively. Other key utilities stocks from the sector such as NextEra Energy, Inc. (NEE), Duke Energy Corporation (DUK), DTE Energy Company (DTE) and Southern Company (SO) decreased 1.6%, 2.5%, 2.3% and 1%, respectively.

However, retailers gained on Wednesday. Shares of Macy's, Inc. (M) surged 5.1% after the company posted third-quarter fiscal 2014 earnings of 61 cents a share that surpassed the Zacks Consensus Estimate of 49 cents. However, sales fell short of management's expectations. Macy's also lowered its full-year earnings projection to a band of $4.25 to $4.35 per share from $4.40 to $4.50.

Fossil Group, Inc. (FOSL) reported better-than-expected third quarter 2014 results. In the third quarter of 2014, Fossil's earnings of $1.96 cents per share beat the Zacks Consensus Estimate of $1.82. Earnings also increased a significant 24.1% from the prior-year earnings of $1.58 per share. Shares of the watchmaker soared 8.4%.

Shares of other retailers including J. C. Penney Company, Inc. (JCP) and Urban Outfitters Inc. (URBN) also climbed 7.9% and 3.9%, respectively. Consumer discretionary sector was the biggest gainer for the day among the S&P industry groups. The Consumer Discretionary Select Sector SPDRA (XLY) went up 0.5%.

Wednesday's economic data had little impact on the markets. The U.S. Department of Commerce announced that US wholesale inventories rose 0.3% in September after increasing 0.7% in August. This rise in wholesale inventories in September was more than the consensus estimate of a rise of 0.2%.

Meanwhile, investors remained concerned over Eurozone's weak economy. European Central Bank President Mario Draghi's possible expansion of monetary stimulus has met resistance from German Chancellor Angela Merkel. Inventors also remained anxious on the latest developments in Ukraine. There has been news that Russian troops have entered Ukraine.

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