Loading...
Loading...
Benchmarks finished almost unchanged on Tuesday as investors received mixed economic data while a slump in oil prices dragged energy shares down. While revised third-quarter GDP came in better-than-expected, data on consumer confidence and home prices were discouraging. The S&P 500 and the Dow snapped a three-session winning streak and ended in the red, but the Nasdaq settled in the green.
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 17,814.94. The Standard & Poor 500 (S&P 500) decreased 0.1% to close at 2,067.03. The tech-laden Nasdaq Composite Index closed at 4,758.25; gaining 0.1%. The fear-gauge CBOE Volatility Index (VIX) went down 2.9% to settle at 12.25. Total volume on the New York Stock Exchange was 3.3 billion. Advancers outpaced declining stocks on the NYSE. For 50% stocks that advanced, 46% declined.
The Nasdaq has now gained for three straight sessions. The day's trading volume was light as the markets will remain close on Thursday for the Thanksgiving holiday. Also, Friday will be a half-day trading session.
Benchmarks traded in a narrow range, swinging between small gains and losses as investors digested mixed economic data. The U.S. economy expanded in the third quarter with GDP growth coming in stronger than expected. According to the “second” estimate by the Bureau of Economic Analysis, the third quarter output of goods and services produced by labor and property located in the United States increased at an annual rate of 3.9%, more than the consensus estimate of an increase by 3.3%.
Third quarter GDP gained momentum fuelled by improved consumer spending. Real personal consumption expenditure accelerated by 2.2% following a 2.5% increase in the second quarter.
In addition to this, economic growth was boosted by a pickup in both non-residential and residential building, increased business spending on equipment, higher government spending and bigger buildup in inventories. This rise in third quarter GDP followed second quarters' increase of 4.6%. Positive third-quarter GDP had lifted markets in the initial hours.
However, a decline in consumer confidence to a five-month low and dismal U.S. home price data limited the market's positive movement. The Conference Board reported the Consumer Confidence Index has dropped from 94.1 in October to 88.7 in November. The drop was in contrast to the consensus estimate predicting it would improve to 96.3. The Expectations Index fell from 93.8 to 87. Consumers' expectations on business conditions, labor market and earnings for the next six months plunged from 19.4%, 16% and 16.7% to 17.6%, 15% and 16.3%, respectively.
Separately, the US home prices growth slowed down, according to the S&P/Case-Shiller's Composite Index. The 20-City composite index, the leading measure of U.S. home prices, rose 4.9% year on year in September. However, the rate of growth was down from August's year-on-year rise of 5.6%. Similarly, the 10-City composite index increased 4.8% year on year in September, less than the year-on-year rise of 5.5% in the prior month.
Meanwhile, oil prices took a beating on Tuesday. The West Texas Intermediate (WTI) crude oil price dropped 2.3% to $74.09 per barrel. Additionally, price of Brent crude oil slipped 1.7% to settle at $78.33 per barrel.
Oil prices fell ahead of Organization of Petroleum Exporting Countries' (OPEC) meeting on Thursday. Investors are expecting OPEC members to reduce oil supply for the first time since 2008. Energy shares were hit hard due to slump in oil prices. The Energy Select Sector SPDR (XLE) declined 1.6%. The sector was the biggest loser among the S&P 500 sectors. Shares of key energy stocks including Exxon Mobil Corporation (XOM), Chevron Corporation (CVX), Schlumberger Limited (SLB), ConocoPhillips (COP) and EOG Resources, Inc. (EOG) decreased 0.9%, 1.2%, 3.3%, 2.2% and 2.8%, respectively.
On the other hand, the Consumer Discretionary Select Sector SPDR (XLY) increased 0.3%, the highest among the S&P 500 sectors. Key stocks from the sector such as The Walt Disney Company (DIS), Comcast Corporation (CMCSA), Time Warner Inc. (TWX), Twenty-First Century Fox, Inc. (FOXA) and The Priceline Group Inc. (PCLN) gained 1.2%, 2.9%, 1.2%, 2.3% and 1.6%, respectively. Overall, 6 out of 10 sectors of the S&P 500 settled in the green zone.
Coming to earnings front, Tiffany & Co. (TIF) came out with third-quarter fiscal 2014 results, wherein earnings of 76 cents a share missed the Zacks Consensus Estimate by a penny. The company's net sales of $959.6 million also fell short of the Zacks Consensus Estimate of $970 million. However, shares of Tiffany gained 2.5%.
Shares of Hormel Foods Corporation (HRL) plunged 5.2% after the meat and food products company posted fourth quarter 2014 earnings per share of 63 cents, less than the Zacks Consensus Estimate of 64 cents. However, Hormel Foods generated net revenue of $2,543.8 million, up 9.5% year over year.
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 17,814.94. The Standard & Poor 500 (S&P 500) decreased 0.1% to close at 2,067.03. The tech-laden Nasdaq Composite Index closed at 4,758.25; gaining 0.1%. The fear-gauge CBOE Volatility Index (VIX) went down 2.9% to settle at 12.25. Total volume on the New York Stock Exchange was 3.3 billion. Advancers outpaced declining stocks on the NYSE. For 50% stocks that advanced, 46% declined.
The Nasdaq has now gained for three straight sessions. The day's trading volume was light as the markets will remain close on Thursday for the Thanksgiving holiday. Also, Friday will be a half-day trading session.
Benchmarks traded in a narrow range, swinging between small gains and losses as investors digested mixed economic data. The U.S. economy expanded in the third quarter with GDP growth coming in stronger than expected. According to the “second” estimate by the Bureau of Economic Analysis, the third quarter output of goods and services produced by labor and property located in the United States increased at an annual rate of 3.9%, more than the consensus estimate of an increase by 3.3%.
Third quarter GDP gained momentum fuelled by improved consumer spending. Real personal consumption expenditure accelerated by 2.2% following a 2.5% increase in the second quarter.
In addition to this, economic growth was boosted by a pickup in both non-residential and residential building, increased business spending on equipment, higher government spending and bigger buildup in inventories. This rise in third quarter GDP followed second quarters' increase of 4.6%. Positive third-quarter GDP had lifted markets in the initial hours.
However, a decline in consumer confidence to a five-month low and dismal U.S. home price data limited the market's positive movement. The Conference Board reported the Consumer Confidence Index has dropped from 94.1 in October to 88.7 in November. The drop was in contrast to the consensus estimate predicting it would improve to 96.3. The Expectations Index fell from 93.8 to 87. Consumers' expectations on business conditions, labor market and earnings for the next six months plunged from 19.4%, 16% and 16.7% to 17.6%, 15% and 16.3%, respectively.
Separately, the US home prices growth slowed down, according to the S&P/Case-Shiller's Composite Index. The 20-City composite index, the leading measure of U.S. home prices, rose 4.9% year on year in September. However, the rate of growth was down from August's year-on-year rise of 5.6%. Similarly, the 10-City composite index increased 4.8% year on year in September, less than the year-on-year rise of 5.5% in the prior month.
Meanwhile, oil prices took a beating on Tuesday. The West Texas Intermediate (WTI) crude oil price dropped 2.3% to $74.09 per barrel. Additionally, price of Brent crude oil slipped 1.7% to settle at $78.33 per barrel.
Oil prices fell ahead of Organization of Petroleum Exporting Countries' (OPEC) meeting on Thursday. Investors are expecting OPEC members to reduce oil supply for the first time since 2008. Energy shares were hit hard due to slump in oil prices. The Energy Select Sector SPDR (XLE) declined 1.6%. The sector was the biggest loser among the S&P 500 sectors. Shares of key energy stocks including Exxon Mobil Corporation (XOM), Chevron Corporation (CVX), Schlumberger Limited (SLB), ConocoPhillips (COP) and EOG Resources, Inc. (EOG) decreased 0.9%, 1.2%, 3.3%, 2.2% and 2.8%, respectively.
On the other hand, the Consumer Discretionary Select Sector SPDR (XLY) increased 0.3%, the highest among the S&P 500 sectors. Key stocks from the sector such as The Walt Disney Company (DIS), Comcast Corporation (CMCSA), Time Warner Inc. (TWX), Twenty-First Century Fox, Inc. (FOXA) and The Priceline Group Inc. (PCLN) gained 1.2%, 2.9%, 1.2%, 2.3% and 1.6%, respectively. Overall, 6 out of 10 sectors of the S&P 500 settled in the green zone.
Coming to earnings front, Tiffany & Co. (TIF) came out with third-quarter fiscal 2014 results, wherein earnings of 76 cents a share missed the Zacks Consensus Estimate by a penny. The company's net sales of $959.6 million also fell short of the Zacks Consensus Estimate of $970 million. However, shares of Tiffany gained 2.5%.
Shares of Hormel Foods Corporation (HRL) plunged 5.2% after the meat and food products company posted fourth quarter 2014 earnings per share of 63 cents, less than the Zacks Consensus Estimate of 64 cents. However, Hormel Foods generated net revenue of $2,543.8 million, up 9.5% year over year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free reportEXXON MOBIL CRP (XOM): Free Stock Analysis Report
CHEVRON CORP (CVX): Free Stock Analysis Report
Loading...
Loading...
CONOCOPHILLIPS (COP): Free Stock Analysis Report
EOG RES INC (EOG): Free Stock Analysis Report
DISNEY WALT (DIS): Free Stock Analysis Report
COMCAST CORP A (CMCSA): Free Stock Analysis Report
TIME WARNER INC (TWX): Free Stock Analysis Report
TWENTY-FST CF-A (FOXA): Free Stock Analysis Report
PRICELINE.COM (PCLN): Free Stock Analysis Report
TIFFANY & CO (TIF): Free Stock Analysis Report
HORMEL FOODS CP (HRL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Loading...
Loading...
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in