Stock Market News for January 5, 2012 - Market News
January 05 2012 - 4:05AM
Zacks
Major indices of the American stock
markets closed flat on Wednesday after experiencing a strong rally
on the first trading day of the Year. Euro zone worries were not
strong enough for markets to move southwards. Retail stocks surged
after Christmas sales figures increased 5.3% on a year over year
basis.
The Dow Jones Industrial average
(DJIA) gained a meager 0.17% or 21.04 points to close at 12,418.42.
The tech laden Nasdaq Composite Index fell 0.01% to end the day at
2,648.36. The Standard & Poor 500 moved up 0.02% or 0.24 points
to finish at 1,277.30, with health care and telecom sector stocks
faring the worst and consumer-discretionary items emerging as
gainers. The CBOE Volatility Index, widely considered to be the
fear gauge of the market, closed near 22. Decliners outshined
advancing stocks on the NYSE and for every 1,465 shares that rose,
1,541 shares fell. On the NYSE, Nasdaq and Amex, about 6.23 billion
shares changed hands compared with last year’s average of 7.84
billion shares.
Markets in Europe fell after
borrowing costs of Italy increased once again, raising concerns
about Europe’s effort to aid debt-hobbled governments in the
region. Italy’s biggest bank UniCredit’s share prices plummeted
nearly 10% after it offered to sell 7.5 billion euros ($9.8
billion) at a 43% discount to improve its balance sheet. The euro
settled below the $1.30 mark to close at $1.2945. Meanwhile,
European banks are finding it extremely difficult to raise capital
and refinance debt of eurozone countries because of higher expenses
due to tighter credit markets. At the ECB, commercial bank’s
overnight deposit had hit a new high of 453 billion euros ($591
billion), highlighting the current issues that banks have about
lending to one another.
On the economic front, the U.S.
Census Bureau reported that factory orders for November rose 1.8%
after two consecutive monthly decreases. New orders for
manufacturing goods now stand at $459.2 billion. In a separate
report, domestic vehicle sales for the month of December ended on a
strong note. Shares of motor company Ford (NYSE:F) gained 1.5%
after the company’s sales rose by 10% during December. Major
economic releases that are lined up for the week include Automatic
Data Processing which is set to release its employment report on
Thursday, just ahead of weekly jobless claims. Other major economic
news slated for today includes the ISM Services Index while nonfarm
payrolls are scheduled for Friday.
Coming to sectoral stocks, retails
stocks were the leaders in Wednesday’s trade, gaining 0.8% as a
group. Major gainers of the day include Ralph Lauren (NYSE:RL)
which surged 4.2% to close at $142.88. Shares of Bed Bath &
Beyond Inc. (NASDAQ:BBBY), Ross Stores Inc. (NASDAQ:ROST), VF
Corporation (NYSE:VFC), Urban Outfitters, Inc. (NASDAQ:URBN) and
Gap (NYSE:GPS) all rose by 1.8%, 0.7%, 4.4%, 2.4% and 1.8% to close
at $59.44, $47.62, $135.38, $28.41 and $18.88 respectively.
Coming to some individual stocks,
shares of Netflix (NASDAQ:NFLX) gained 11.4% after the online movie
rental company said that in its fourth quarter, subscribers had
streamed 2 billion hours of video from its site. Shares of data
storage company NetApp Inc (NASDAQ:NTAP) fell 3.1% after analysts
at Credit Suisse (NYSE:CS) downgraded the company stating that
NetApp’s market share growth would slow down in 2012. An analyst
from Goldman Sachs (NYSE:GS) added shares of fast food restaurant
Chipotle Mexican Grill, Inc (NYSE:CMG) to its conviction buy list.
Shares of the company gained 2.2% to close at $348.75. Car vendor
AutoNation, Inc. (NYSE:AN) fell 6.8% to close at $33.26 after
Edward Lampert’s ESL fund reduced its stake in the company from
56.4% to 52.5%.
AUTONATION INC (AN): Free Stock Analysis Report
BED BATH&BEYOND (BBBY): Free Stock Analysis Report
CHIPOTLE MEXICN (CMG): Free Stock Analysis Report
CREDIT SUISSE (CS): Free Stock Analysis Report
FORD MOTOR CO (F): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
NETFLIX INC (NFLX): Free Stock Analysis Report
NETAPP INC (NTAP): Free Stock Analysis Report
RALPH LAUREN CP (RL): Free Stock Analysis Report
ROSS STORES (ROST): Free Stock Analysis Report
URBAN OUTFITTER (URBN): Free Stock Analysis Report
V F CORP (VFC): Free Stock Analysis Report
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