business newsThe Markets Now: Weak Demand for Solar Energy Causes MEMC Electronic Materials Stock to Drop
By
Christopher Witrak
Mar 13, 2013 1:30 pm
Plus, Walgreen gains on bank's buy recommendation.
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Stocks pared earlier losses, and the Dow (INDEXDJX:.DJI) increased 0.12% to 14,467.78. The S&P 500 (INDEXSP:.INX) climbed 0.15% to 1,554.86, and the Nasdaq (INDEXNASDAQ:.IXIC) rose 0.13% to 3,246.38. The US Bureau of the Census reported that retail sales in February increased 1.1% on a seasonably-adjusted basis. Gasoline prices and motor sales both led retail sales higher by 5.0% and 1.1% respectively. Without the seasonal adjustment, retails sales declined from $382.4 billion to $381 billion.
The Bureau of the Census also reported that business inventories grew 0.1% in December and 1.4% from the third to fourth quarters of last year. The strong demand for automobiles caused inventories for retail autos and parts to rise 1.9%.
The Mortgage Bankers’ Association reported that last week the composite index, the refinance index, and the purchase index all decreased by 4.7%, 3.0%, and 5.0% week-over-week, respectively. The lower unemployment reading last week caused 30-year fixed mortgage rates to jump 11 basis points to 3.81% last Friday.
Import prices increased 1.1% in February from increases in oil prices. Excluding petroleum products, import prices remained flat last month and climbed by 0.1% in January and December. Export prices climbed 0.8% last month as agricultural product prices grew 2.0%.
The Energy Information Association stated that increases in oil imports and domestic production caused oil inventories to expand by 2.6 billion barrels last week. Refineries ran at 81% of capacity.
MEMC Electronic Materials (NYSE:WFR) plunged 10.59% to $4.86 after announcing it expects first quarter sales to drop relative to the previous quarter. MEMC predicts it will sell 10 to 38 megawatts of solar energy systems in the quarter ending March 31 versus 91 megawatts in the fourth quarter. Its semiconductor business may generate between $228 million and $235 million in revenue compared to $228.5 million in the previous quarter.
Walgreen (NYSE:WAG) rose 4.28% to $42.79. UBS upgraded Walgreen to “Buy” from “Neutral” and lifted its price target from $41 to $48. The bank cited the recent sell-off in shares in addition to better gross margins and more brand recognition through its Alliance Boots transaction.
Best Buy (NYSE:BBY) rose for a second day, increasing 4.07% to $21.12.
Cliffs Natural Resources (NYSE:CLF) continued to fall, declining 3.51% to $23.05. The Cleveland producer of iron ore and metallurgical coal will idle its Wabush Pointe Noire plant in Quebec due to low iron ore prices. Weaker Chinese demand and a glut of the commodity have hurt prices.
United States Steel Corporation (NYSE:X) fell 2.67% to $20.14.
Twitter: @ChrisWitrak
The Bureau of the Census also reported that business inventories grew 0.1% in December and 1.4% from the third to fourth quarters of last year. The strong demand for automobiles caused inventories for retail autos and parts to rise 1.9%.
The Mortgage Bankers’ Association reported that last week the composite index, the refinance index, and the purchase index all decreased by 4.7%, 3.0%, and 5.0% week-over-week, respectively. The lower unemployment reading last week caused 30-year fixed mortgage rates to jump 11 basis points to 3.81% last Friday.
Import prices increased 1.1% in February from increases in oil prices. Excluding petroleum products, import prices remained flat last month and climbed by 0.1% in January and December. Export prices climbed 0.8% last month as agricultural product prices grew 2.0%.
The Energy Information Association stated that increases in oil imports and domestic production caused oil inventories to expand by 2.6 billion barrels last week. Refineries ran at 81% of capacity.
MEMC Electronic Materials (NYSE:WFR) plunged 10.59% to $4.86 after announcing it expects first quarter sales to drop relative to the previous quarter. MEMC predicts it will sell 10 to 38 megawatts of solar energy systems in the quarter ending March 31 versus 91 megawatts in the fourth quarter. Its semiconductor business may generate between $228 million and $235 million in revenue compared to $228.5 million in the previous quarter.
Walgreen (NYSE:WAG) rose 4.28% to $42.79. UBS upgraded Walgreen to “Buy” from “Neutral” and lifted its price target from $41 to $48. The bank cited the recent sell-off in shares in addition to better gross margins and more brand recognition through its Alliance Boots transaction.
Best Buy (NYSE:BBY) rose for a second day, increasing 4.07% to $21.12.
Cliffs Natural Resources (NYSE:CLF) continued to fall, declining 3.51% to $23.05. The Cleveland producer of iron ore and metallurgical coal will idle its Wabush Pointe Noire plant in Quebec due to low iron ore prices. Weaker Chinese demand and a glut of the commodity have hurt prices.
United States Steel Corporation (NYSE:X) fell 2.67% to $20.14.
Twitter: @ChrisWitrak
No positions in stocks mentioned.
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