By Anora Mahmudova and Sara Sjolin, MarketWatch
Wal-Mart downgraded by Barclays
NEW YORK (MarketWatch)--U.S. stocks declined on Friday as
investors assessed softer economic data while awaiting the outcome
of a meeting of eurozone finance ministers on Greece.
A gauge of U.S. manufacturing activity ticked up, but the
expansion was at a slower pace than last year.
The S&P 500 (SPX) and Dow industrials (DJI) were on track to
finish the holiday-shortened week lower, after two consecutive
weeks of gains. The Nasdaq Composite (RIXF) still looked at a
modest weekly gain.
The S&P 500 posted losses across the board, with all of its
10 main sectors trading lower. Materials and energy sector stocks
led the losses. The Dow Jones Industrial Average dropped more than
100 points to 17,885.36, with two-thirds of its 30 members trading
in negative territory.
The Nasdaq Composite broke its seven-day winning streak and
inched lower.
The tech-heavy index outperformed other benchmarks so far this
year, gaining nearly 4%, compared with a gain of less than 2% for
the S&P 500.
Key decision on Greece: The debt standoff between Greece and its
eurozone partners has grabbed most investors' attention this week,
but so far hasn't created a major shake-up in the financial
markets. The European indexes eyed advances for the most part. The
lack of market response is partly because the risk of contagion is
much lower
(http://www.marketwatch.com/story/this-is-the-eurozone-risk-investors-are-ignoring-2015-02-19)
than in 2011 and 2012, MarketWatch's William Watts explains.
Eurozone finance ministers are meeting in Brussels to discuss
the latest proposal from Greece on extending its loan agreement.
The request was submitted on Thursday, but rebuffed shortly after
that by Germany
(http://www.marketwatch.com/story/cracks-still-evident-as-germany-rebuffs-greek-extension-plan-2015-02-19),
which said it wasn't a "substantial proposal for a solution".
European markets were mixed ahead of Friday's Eurogroup meeting
(http://www.marketwatch.com/storyno-meta-for-guid), with Greece's
Athex Composite index up 0.8% to 863.68.
Data: U.S. manufacturing activity picked up in February, with
the Markit flash purchasing managers index climbing to 54.3, above
forecasts by economists polled by MarketWatch. The final January
reading came in at 53.9, above the 50 level that separates
expansion from contraction. However, details were much weaker and
indicated the U.S. economy has entered a slower growth phase.
PMI readings out of the eurozone showed business activity in the
currency union grew
(http://www.marketwatch.com/story/european-economy-shows-signs-of-revival-2015-02-20)
at a faster pace in February than expected, to reach a seven-month
high.
Earnings: Farm-equipment manufacturer Deere & Co.(DE) was
down slightly after a lowered outlook offset a profit beat.
Wal-Mart's(WMT) shares fell 0.6% after analysts at Barclays
downgraded the company to equal weight from overweight and cut the
target price to $85 from $90.
Cabot Oil & Gas Corp.(COG) swung to a fourth-quarter loss
amid plunging oil prices and cut its growth outlook. The company
said it slashed its capital budget for 2015 to $900 million from
the roughly $1.5 billion it had expected to spend in October.
Noodles & Co.(NDLS) tanked 25% after the restaurant chain
late Thursday reported fourth-quarter earnings that fell short of
estimates
(http://www.marketwatch.com/story/noodles-stock-plunges-after-results-outlook-disappoint-2015-02-19)
(http://www.marketwatch.com/story/noodles-stock-plunges-after-results-outlook-disappoint-2015-02-19).
Intuit Inc. (INTU) shares jumped after its chief financial
officer said Thursday that the company hasn't found any evidence
that its systems were hacked into in connection with a number of
fraudulent tax-return filings this month.
For more on notable movers, read our Movers & Shakers column
(http://www.marketwatch.com/story/deere-labcorp-cabot-oil-earnings-in-focus-2015-02-20).
Other markets: Oil (CLH5) swung between gains and losses on
Friday, but was still looking at its first weekly loss in a month
(http://www.marketwatch.com/storyno-meta-for-guid).
Gold prices (GCJ5) gave up earlier gains and inched lower, while
the dollar (DXY) traded mixed against other major currencies.
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