Stock Market News for January 25, 2013 - Market News
January 25 2013 - 4:36AM
Zacks
The Dow Jones and S&P 500
finished in the green following strong domestic and international
economic data coupled with better-than-expected earnings from
Netflix. But dismal quarterly results from technology bellwether
Apple dragged the Nasdaq into negative territory. Meanwhile, the
number of Americans filing for unemployment benefits dropped to
their lowest level in the last five years during the previous week.
The biggest gainer for the S&P 500 was consumer discretionary
stocks while the only loser was the technology sector.
The Dow Jones Industrial Average (DJI) gained 0.3% to close the day
at 13,825.33. The Standard & Poor 500 (S&P 500) increased
0.01 point to finish yesterday’s trading session at 1,494.82. The
tech-laden Nasdaq Composite Index dropped 0.7% to end at
3130.38.The fear-gauge CBOE Volatility Index (VIX) rose 1.9% to
settle at 12.69. Consolidated volumes on the New York Stock
Exchange, American Stock Exchange and Nasdaq were roughly 6.8
billion shares, higher than 2012’s daily average of 6.45 billion
shares. Advancing stocks outnumbered decliners on the NYSE; as for
54% stocks that rose, 43% moved lower.
Shares of online video service provider Netflix, Inc. (NASDAQ:NFLX)
rocketed 42% after revenue and earnings beat the Street’s forecast.
During the reported quarter, the company added 2.05 million
customers taking its domestic customer base to 27.2 million. The
company added 4 million customers to its customer base worldwide.
Shares of the company witnessed its biggest leap since it got
listed on the stock market.
Technology bellwether Apple Inc. (NASDAQ:AAPL) failed to impress
the Street, reporting below-than-expected revenues. Shares of the
company plunged 12.4% following poor quarterly results. The company
sold 22.9 million iPads, up 48% year over year and 47.8 million
iPhones, well below the Street’s forecast. The primary concern for
the company is its increasing production costs and performance
pressure. Since September 2012, shares of the company have lost 36%
while in January 2013 the company has lost 15% till date.
Meanwhile, the U.S. Department of Labor reported that the number of
Americans filing for unemployment benefits declined to its lowest
level in five years. According to the report, seasonally adjusted
initial claims decreased 5,000 to 330,000 from prior week’s
unrevised figure of 335,000. This was below the consensus estimate
of 335,000. The continuous decrease in initial claims numbers
indicates the job market is gradually improving.
External factors from major economies boosted investor sentiment.
Economic data from China suggested that its manufacturing sector
had taken its biggest leap in two years. According to HSBC,
purchasing manager’s index increased to 51.9 in January from 51.5
in December indicating growth in the monthly index. This index has
recorded its highest level in the past two years. According to
chief China economist for HSBC, Qu Hongbin: “The upbeat
manufacturing PMI reading heralds a good start to China’s economic
growth into the New Year”
Meanwhile, German PMI data showed signs of recovery in the economy.
The largest economy among the European states grew at its fastest
pace this year. The PMI index of Germany rose to 53.6 from 50.3 in
December 2012.
The gainers among consumer discretionary stocks were The Home
Depot, Inc. (NYSE:HD), Amazon.com, Inc. (NASDAQ:AMZN), DIRECTV
(NASDAQ:DTV), Starbucks Corporation (NASDAQ:SBUX) and Whirlpool
Corporation (NYSE:WHR) with gains of 1.3%, 2.1%, 0.7%, 0.2% and
2.2% respectively.
The losers among the technology sector include International
Business Machines Corp. (NYSE:IBM), Dell Inc. (NASDAQ:DELL), SAP AG
(NYSE:SAP), and Intel Corporation (NASDAQ:INTC) with 0.2%, 0.6%,
0.2% and 0.8%.
APPLE INC (AAPL): Free Stock Analysis Report
AMAZON.COM INC (AMZN): Free Stock Analysis Report
DELL INC (DELL): Free Stock Analysis Report
DIRECTV (DTV): Free Stock Analysis Report
HOME DEPOT (HD): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
INTEL CORP (INTC): Free Stock Analysis Report
NETFLIX INC (NFLX): Free Stock Analysis Report
SAP AG ADR (SAP): Free Stock Analysis Report
STARBUCKS CORP (SBUX): Free Stock Analysis Report
WHIRLPOOL CORP (WHR): Free Stock Analysis Report
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