Stock Market News for February 11, 2015 – Zacks Investment …
Benchmarks rebounded on Tuesday after registering losses in the last two sessions as easing concerns about Greece’s debt negotiations boosted investor confidence. Moreover, encouraging earnings results from Coca-Cola and impressive performance of Apple also helped markets post solid gains. However, slump in oil prices eroded some of the day’s gains. The S&P 500 reached its highest level in 2015 till date.
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The Dow Jones Industrial Average (DJI) gained 0.8%, or 139.55 points, to close at 17,868.76. The Standard & Poor 500 (S&P 500) rose almost 1.1% to close at 2,068.59. The tech-laden Nasdaq Composite Index closed at 4,787.64; increasing 1.3%. The fear-gauge CBOE Volatility Index (VIX) jumped 7.3% to settle at 18.55. A total of about 6.2 billion shares were traded on Monday, below last five sessions’ average of 7.8 billion. Decliners outpaced advancing stocks on the NYSE. For 57% stocks that declined, 40% advanced.
It was reported on Tuesday that the European Commission may consider extending the deadline of Greece’s bailout program by another six months. The current bailout program will expire on Feb 28. Investors believe this development is an important step toward a potential breakthrough for debt negotiations. However, Wolfgang Schaeuble, German Finance Minister, denied the possibility and said: “If they want our help, there needs to be a programme…I am ready to give all the help that is wanted but if they do not want my help then very well.”
Late on Monday, Greek officials said they are planning to put forward fresh debt proposals in the meeting at Brussels on Wednesday. It was indicated that Greece may ask Eurozone’s officials to waive 30% of reforms entailed by the bailout. Greek Finance Minister Yanis Varoufakis said: “We will submit our proposal, and move ahead with deep reforms… To this list, we will add about 70% of the reforms and commitments that are in the current bailout. The remaining 30% will either be suspended or withdrawn.”
Easing worries about Greece’s debt negotiations boosted the Utilities Select Sector SPDR (XLU) on Tuesday. The sector gained 2.1% and was the biggest gainer among the S&P 500 sectors. Key utilities stocks including Southern Company (SO – Analyst Report), DTE Energy Company (DTE – Analyst Report), Exelon Corporation (EXC – Analyst Report) and PPL Corporation (PPL – Analyst Report) rose 1.9%, 2.1%, 1.5% and 1.9%, respectively.
Separately, shares of The Coca-Cola Company (KO – Analyst Report) gained 2.8% after announcing fourth quarter adjusted earnings per share of 44 cents, beating the Zacks Consensus Estimate by a couple of cents. Moreover, quarterly revenues of $10.87 billion also came ahead of the Zacks Consensus Estimate of $10.77 billion. Meanwhile, CVS Health Corporation’s (CVS – Analyst Report) shares rose 2.1% after declaring a year-on-year increase of 12.9% in fourth quarter revenues to $37.05 billion, outpacing the Zacks Consensus Estimate of $36.07 billion. The company also reported a year-over-year rise of 8% in fourth-quarter adjusted earnings per share to $1.21.
Shares of Apple Inc. (AAPL – Analyst Report) increased 1.9% following news that the tech giant has completed sale of its debut Swiss-franc bond issues on Tuesday. The company mopped up around 1.25 billion Swiss francs ($1.35 billion) from the proceeds. One issue which will mature in Nov 2024 carries a yield of 0.28% and has netted 875 million Swiss francs. The other issue, which has a maturity period of 15 years and offers a yield of 0.74%, has garnered 375 million Swiss francs. The company reached market capitalization level of $710.7 billion on Tuesday. Apple is the first company to touch a market value of $700 billion.
However, the U.S. Energy Information Administration (EIA) kept its outlook for U.S. crude production in 2015 almost flat. The EIA forecasted that total oil production will be at 9.3 million barrels per day (bpd) in 2015, compared to its previous estimate of 9.31 million bpd. Moreover, the EIA projected that U.S. crude oil production may reach 1970’s highest annual average level of 9.6 million bpd in 2016.
The EIA’s report had a negative impact on oil prices on Tuesday. Prices of WTI crude oil and Brent crude oil declined 5.7% and 3.4% to $50.02 per barrel and $56.43 a barrel, respectively. The slump in oil prices dragged down the Energy Select Sector SPDR (XLE) a meager 0.05%. The sector was the only loser among the S&P 500 sectors. Key energy stocks including Exxon Mobil Corporation (XOM – Analyst Report), Schlumberger Limited (SLB – Analyst Report), Halliburton Company (HAL – Analyst Report) and Baker Hughes Incorporated (BHI – Analyst Report) declined 0.6%, 0.7%, 2.1% and 1.3%, respectively.
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Stock Market News for February 11, 2015 – Zacks Investment …
