Sunday, February 1, 2015
YOLO COUNTY NEWS
99 CENTS

Stocks stall on tepid growth

By
From page A7 | April 28, 2013 |

NEW YORK (AP) — The stock market stalled Friday after the U.S. economy didn’t grow as much as hoped and earnings from a handful of big companies failed to rev up investors.

The economy grew at a 2.5 percent annual rate in the first three months of the year, the government said. That was below the 3.1 percent forecast by economists.

The shortfall reinforced the perception that the economy is grinding, rather than charging, ahead. Investors have also been troubled by reports in the last month of weaker hiring, slower manufacturing and a drop in factory orders. Many economists see growth slowing to an annual rate of around 2 percent a year for the rest of the year.

U.S. government bonds, where investors seek safety, rose after the report.

“There are some concerns as we head into the summer,” said JJ Kinahan, chief derivatives strategist for TD Ameritrade. “In the last three weeks, we’ve seen numbers that weren’t exactly what you’d love to see.”

Corporate earnings this week have also contained worrisome signs. Many companies missed revenue forecasts from financial analysts, even as they reported higher quarterly profits. For example, Goodyear Tire slipped 3.3 percent to $12.51 Friday after revenue fell short of analysts’ estimates, hurt by lower global tire sales.

Of the companies that have reported earnings so far, 70 percent have exceeded Wall Street’s expectations, compared with a 10-year average of 62 percent, according to S&P Capital IQ. But 43 percent have missed revenue estimates. Just over half of the companies in the S&P 500 have reported quarterly results.

The S&P 500 index dropped 2.92 points, or 0.2 percent, to close at 1,582.24.

The Dow rose 11.75 points, or 0.1 percent, to 14,712.55. The index got a big lift from Chevron. Profit for the U.S. oil company beat expectations of financial analysts in the first quarter, pushing shares up 1.3 percent to $120.04.

Three stocks fell for every two that rose on the New York Stock Exchange.

Both indexes were up for the week and remain slightly below their all-time highs reached April 11. The Dow index rose 1.1 percent this week while the S&P gained 1.7 percent.

The market has been bolstered by the Federal Reserve’s easy money policy. The disappointing growth figure for the economy will ensure that the Fed sticks with its stimulus policy, providing support for stocks, said Peter Cardillo, chief market economist at Rockwell Global Capital.

“The economic data that we’ve been getting points to no early exit for the Fed’s stimulus,” Cardillo said.

The Nasdaq composite fell 10.72 points to 3,279.26, a decline of 0.3 percent. The index is 2.3 percent higher this week.

The tech-heavy index has lagged the Dow and the S&P 500 this year, but it led the way higher this week, boosted by Microsoft. The software giant, which makes up 5.3 percent of the Nasdaq, recorded its biggest weekly gain since January of last year — up 6.8 percent. It reported earnings April 19 that beat Wall Street expectations. The company also began an aggressive push into the computer tablet market.

Apple, the largest stock in the Nasdaq, also had a good week. The stock rose 6.8 percent to $417.20, its best weekly gain since November, despite posting a decline in quarterly profit Tuesday. Apple accounts for 7.6 percent of the Nasdaq composite.

Among other big names investors focused on:

Amazon.com fell 7 percent to $254.81 after the company warned of a possible loss in the current quarter. The online retailer also reported lower income for the first quarter as it continued to spend heavily on rights to digital content.

Expedia fell 10 percent to $58.56 after the online travel company reported a quarterly loss.

Homebuilder D.R. Horton surged 8.7 percent to $26.66 after its income nearly tripled thanks to a continuing recovery the housing market. The results handily beat the forecasts of financial analysts who follow the company.

J.C. Penney jumped 12 percent to $17 after the billionaire financier George Soros disclosed that he had taken a 7.9 percent stake in the struggling company.

In government bond trading, the yield on the 10-year Treasury note slipped to its lowest rate of the year, 1.67 percent, from 1.71 percent the day before. The yield has fallen from 2.06 percent six weeks ago as traders move money into lower-risk investments.

The dollar weakened against the euro.

The European currency bought $1.3029 at the end of day, compared with $1.3002 the day before. The ISE dollar index, which measures the U.S. currency against a group of other world currencies including the Japanese yen and the euro, dropped 0.3 percent, to 82.48.

————

By Steve Rothwell, AP markets writer

Comments

comments

The Associated Press

.

News

 
The end of an era for The Enterprise, as pressroom closes

By Kimberly Yarris | From Page: A1 | Gallery

Jewish fraternity vandalism classified a hate crime

By Lauren Keene | From Page: A1

 
Well-loved library has services for all ages

By Jeff Hudson | From Page: A1 | Gallery

 
Man arrested after body parts found in suitcase

By The Associated Press | From Page: A2

Islamists post beheading video

By The Associated Press | From Page: A2

 
More than a foot of snow possible for Midwest, Northeast

By The Associated Press | From Page: A2

 
UCD Med Center patient tested negative for Ebola

By Enterprise staff | From Page: A3

Kudos to the Thomsons

By Sue Cockrell | From Page: A3

 
Arboretum ‘I do’

By Special to The Enterprise | From Page: A4

 
The story of Mark and Maria

By Special to The Enterprise | From Page: A5

Summer lovin’

By Special to The Enterprise | From Page: A5

 
Stories come alive at the library

By Enterprise staff | From Page: A8

And bingo was the game-o

By Tate Perez | From Page: A9

 
Lee will speak Wednesday about city issues

By Enterprise staff | From Page: A9

Training starts Tuesday for Jepson Prairie Preserve tour guides

By Enterprise staff | From Page: A9 | Gallery

 
Lecture looks at women in Egypt

By Special to The Enterprise | From Page: A9

Stepping Stones supports grieving youths

By Enterprise staff | From Page: A9Comments are off for this post

 
Vote for your favorites in Readers’ Choice poll

By Enterprise staff | From Page: A9

Japanese students seek Davis host families

By Enterprise staff | From Page: A9

 
Tuleyome Tales: Searching for the elusive McNab cypress

By Special to The Enterprise | From Page: A11 | Gallery

Questions and answers about breast cancer set

By Enterprise staff | From Page: A11

 
Davis Arts Center welcomes students’ work

By Enterprise staff | From Page: A11

.

Forum

 
How much drinking is too much?

By Special to The Enterprise | From Page: A10

Help a veteran feel loved

By Creators Syndicate | From Page: A10

 
Three old ideas going, going, gone

By Marion Franck | From Page: A10

Ensure that you’re protected against measles

By Special to The Enterprise | From Page: A12

 
Act would let patients control their own fates

By Our View | From Page: A12

Tom Meyer cartoon

By Debbie Davis | From Page: A12

 
They’re experienced and honest

By Letters to the Editor | From Page: A12

Toy drive was a big success

By Letters to the Editor | From Page: A12

 
One-way street solves dilemma

By Letters to the Editor | From Page: A12

Council, follow your own policies

By Letters to the Editor | From Page: A12

 
Wi-Fi in our schools could result in health impacts

By Special to The Enterprise | From Page: A13

Life goes on in Rutilio Grande, despite country’s gang violence

By Special to The Enterprise | From Page: A13 | Gallery

 
.

Sports

UCD women survive against winless UCSB

By Enterprise staff | From Page: B1

 
Foursome will represent Davis at national soccer tournament

By Evan Ream | From Page: B1 | Gallery

 
Depth charge: DHS girls defeat Elk Grove

By Spencer Ault | From Page: B1 | Gallery

Blue Devil boys lose on Herd’s buzzer-beating trey

By Enterprise staff | From Page: B1

 
Kings get past Pacers

By The Associated Press | From Page: B2

Sharks blank Blackhawks

By The Associated Press | From Page: B2

 
UCD roundup: Aggies make a racket but fall to Sac State, Pacific

By Enterprise staff | From Page: B2 | Gallery

.

Features

.

Arts

.

Business

And the survey says: Success for Davis Chamber

By Debbie Davis | From Page: A12

 
Putah Creek Winery launches ‘Give Back Tuesday’

By Special to The Enterprise | From Page: A12

Doby Fleeman: Toward a more perfect Davis

By Doby Fleeman | From Page: A12

 
Ullrich Delevati, CPAs, adds senior accountant

By Special to The Enterprise | From Page: A12

Seminar will cover business challenges

By Enterprise staff | From Page: A13

 
Japanese fondue dips into Davis scene

By Wendy Weitzel | From Page: A13 | Gallery

Novozymes, Cargill continue bio-acrylic acid partnership as BASF exits

By Special to The Enterprise | From Page: A13

 
.

Obituaries

.

Comics

Comics: Sunday, February 1, 2015

By Creator | From Page: B8