Stock Market News for February 17, 2015 – Zacks Investment …
Benchmarks closed at record highs on Friday after higher oil prices boosted energy shares. While the S&P 500 closed at an all-time record high, the Dow ended above the 18K mark for the first time this year. The Nasdaq hit a 15-year high, boosted by gains in technology stocks. Friday’s gains helped benchmarks settle in positive territory for the second-straight week.
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) gained 0.3%, to close at 18,019.35. The Standard & Poor 500 (S&P 500) rose 0.4% to 2,096.99. The tech-laden Nasdaq Composite Index closed at 4,893.84; increasing almost 0.8%. The fear-gauge CBOE Volatility Index (VIX) declined 4.2% to settle at 14.69. A total of about 6.5 billion shares were traded on Friday, below this months’ average of 7.3 billion. Advancers outpaced declining stocks on the NYSE. For 60% stocks that advanced, 36% declined.
Benchmarks ended the last trading session of the week on a positive note aided by gains among energy shares. The prices of WTI crude oil and Brent crude oil increased 2.9% and 0.6% to $52.78 per barrel and $57.39 a barrel, respectively.
The Energy Select Sector SPDR (XLE) gained 2.1%, the highest among the S&P 500 sectors. Dow components Exxon Mobil Corporation (XOM – Analyst Report) and Chevron Corporation (CVX – Analyst Report) advanced 1.1% and 1.7%, respectively. Other key stocks from the sector including Schlumberger Limited (SLB – Analyst Report), Kinder Morgan, Inc. (KMI – Analyst Report), ConocoPhillips (COP – Analyst Report) and EOG Resources, Inc. (EOG – Analyst Report) increased 2.8%, 0.5%, 2.7% and 2.2%, respectively.
Gains among technology shares boosted the Nasdaq. The Technology Select Sector SPDR ETF (XLK) gained 0.6%. Tech behemoth, Apple Inc. (AAPL – Analyst Report) advanced 0.5%, extending its weekly gain to 6.9%. Other key stocks from the sector including Microsoft Corporation (MSFT – Analyst Report), AT&T, Inc. (T – Analyst Report), Google Inc. (GOOGL – Analyst Report) and International Business Machines Corporation (IBM – Analyst Report) increased 1.8%, 0.1%, 0.9% and 1.2%, respectively.
Meanwhile, investors took money out of safe-haven utilities stocks, anticipating that the Federal Reserve may hike interest rates later this year. The Utilities Select Sector SPDR (XLU) dropped 1.5% and was the biggest loser among the S&P 500 sectors. Key utilities stocks including Southern Company (SO), DTE Energy Company (DTE), Exelon Corporation (EXC) and PPL Corporation (PPL) decreased 1.5%, 2.9%, 2.7% and 0.5%, respectively. Overall, 7 out of 10 sectors of the S&P 500 ended in the green.
Coming to earnings, Groupon, Inc. (GRPN – Analyst Report) reported fourth-quarter earnings per shares of 6 cents that beat the Zacks Consensus Estimate of 3 cents. Groupon said several companies have showed interest in acquiring its Ticket Monster business. Shares of Groupon surged 6.8%.
Shares of CyberArk Software, Ltd. (CYBR) and The J. M. Smucker Company (SJM) jumped 15% and 1.3%, respectively, after reporting better-than-expected earnings. Shares of CBS Corporation (CBS) also advanced 3.6% a day after the company’s fourth-quarter adjusted earnings per share of 77 cents came in line with the Zacks Consensus Estimate.
On the other hand, shares of Zynga Inc. (ZNGA) plunged 15.8% a day after the company reported fourth-quarter loss of 4 cents per share, in line with the Zacks Consensus Estimate. The game-maker’s revenues of $193 million missed the Zacks Consensus Estimate of $197 million. Shares of Kraft Foods Group, Inc. (KRFT) fell 2.7% despite reporting fourth-quarter 2014 earnings per share of 85 cents that beat the Zacks Consensus Estimate of 73 cents.
Separately, shares of American Express Company (AXP) declined almost 3% after Costco Wholesale Corporation (COST) said it will stop accepting AmEx cards at its U.S. stores. American Express lost the most among the Dow components.
In economic news, consumer confidence dropped to a three-month low in February. The University of Michigan and Thomson Reuters’ preliminary reading of consumer sentiment declined to 93.6 in February, in contrast to the consensus forecast of an increase to 98.3. Separately, according to the Bureau of Labor Statistics, U.S. import prices declined 2.8% in January, less than the consensus estimate of a 3.2% drop. However, this decline in import prices turned out to be the biggest since Dec 2008.
Meanwhile, investors focused on encouraging economic growth numbers from the Eurozone. Eurozone’s Fourth quarter GDP rose 0.3%, better than the estimated 0.2% gain. The fourth-quarter growth was led by Germany. Investors also kept an eye on the negotiations between Greece and its creditors over the country’s bailout package.
For the week, the S&P 500, the Dow and the Nasdaq gained 2%, 1.1% and 3.1%, respectively. Benchmarks settled in the green for the week after a ceasefire agreement between Russia and Ukraine boosted investor confidence. Easing concerns about Greece’s debt negotiations also boosted investor sentiment. Moreover, encouraging quarterly results by Apple, Cisco Systems, Inc. (CSCO), TripAdvisor Inc. (TRIP), Pepsico, Inc. (PEP), The Coca-Cola Company (KO) and Mondelez International, Inc. (MDLZ) helped markets register solid gains. Separately, China’s disappointing trade data had a negative impact on benchmarks last Monday.
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Stock Market News for February 17, 2015 – Zacks Investment …
