This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Market Hustle: Stocks Close Lower Amid Lackluster Earnings

NEW YORK ( TheStreet) -- Major US markets closed lower Thursday amid a spate of lackluster corporate earnings. Investors were scrutinizing fourth-quarter results from Citigroup (C) and Goldman Sachs (GS), and Best Buy's (BBY) holiday same-store sales. Jobless claims and consumer price index reports did little to change expectations of a continuation of the Federal Reserve's plan to taper stimulus at a $10 billion monthly pace and a prolonged period of a Fed funds rate at record lows.

  • The S&P 500 finished off 0.13% to 1,845.90 while the Dow Jones Industrial Average was 0.39% lower at 16,417.01. The Nasdaq was 0.09% higher at 4,218.69. 
  • Outgoing Federal Reserve Chairman Ben Bernanke spoke about challenges facing central banks in Washington, noting he was not ready to conclude that "very low interest rates are going to be a permanent condition". Bernanke said the Fed was extremely sensitive to financial stability risks. San Francisco Federal Reserve Bank President John Williams suggested the Fed might have to raise its inflation target above 2% to give it more room to stabilize the economy and inflation. 
  • Initial jobless claims fell 2,000 to a lower-than-expected 326,000 for the week ended Jan. 11. The December consumer price index increased in line with forecasts by 1.5% year over year, with the core up 1.7%. Inflation numbers have been coming in below the Federal Reserve's long-term, 2% inflation target, encouraging views that the Federal funds rate could remain at near zero through 2015.
  • The Philadelphia Fed's Business Outlook Survey for January hit 9.7, well above consensus for a reading of 8.7. The National Association of Home Builders' housing market index for January saw homebuilders lose a little confidence in the housing market - with the reading dipping to 56, down from December's reading of 57.
  • Best Buy (BBY) closed down 28.61% to $26.82 after reporting a U.S. holiday period same-store sales decline of 0.9% vs. expectations for an increase. Citigroup (C) finished down 4.35% to $52.60 after missing fourth-quarter estimates by a wide margin. Goldman Sachs (GS) was off 2.00% to $175.12 after a mediocre fourth-quarter earnings beat. Intel (INTC) was down 0.49% to $26.56. The chipmaker is forecast to post fourth-quarter earnings of 52 cents a share on revenue of $13.72 billion after the closing bell.
  • S&P Capital IQ's chief equity strategist Sam Stovall said he thinks the S&P 500 will continue to power to new all-time highs, supported by economic reports. "Stocks remain attractive relative to bonds, in our view," he said. The basis-point spread between the trailing S&P 500 EPS yield and the 10-year Treasury remains more than one standard deviation above its mean during the past quarter century, according to Stovall. The S&P 500 has traditionally recorded above-average, year-ahead price increases whenever its dividend yield was less than one percentage point below the yield on the 10-year note, according to the S&P strategist.

-- Written by Jane Searle in New York.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $114.66 -3.20%
FB $94.35 0.22%
GOOG $630.34 -0.14%
TSLA $264.48 1.70%
YHOO $37.00 0.84%

Markets

Chart of I:DJI
DOW 17,572.14 -26.06 -0.15%
S&P 500 2,098.91 +0.87 0.04%
NASDAQ 5,114.7060 -0.6760 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs