Financial Stocks Flop on Weak Earnings From Citi, Goldman Sachs
Today's financial recap and tomorrow's financial outlook.
US equities digested their gains from the past two days. The benchmark S&P 500 (INDEXSP:.INX) closed down 0.13% for the session following gains of 1.6% over the prior two. The Dow Jones Industrial Average (INDEXDJX:.DJI) fared worse, losing 0.39%. Utility-sector stocks were the top performers thanks to a sizable rally in US Treasuries. Financials were the worst off following less-than-stellar earnings from Citigroup (NYSE:C) and a sell-the-news reaction to Goldman Sach's (NYSE:GS) earnings.
Initial jobless claims fell to 326,000 from 328,000 in the week prior. More importantly, continuing claims rose to 3.03 million from 2.865 million in the week prior. The January NAHB survey of builders and real estate agents fell to an index reading of 56 from 57 in the month prior. The index has remained relatively steady for the past seven months.
Nu Skin Enterprises (NYSE:NUS) fell by 26.76% after it announced that Chinese regulators were investigating the company for pyramid-scheme suspicions. The company announced that it would likely have a negative effect on its revenues, that it had started a full business review. Herbalife (NYSE:HLF) and USANA Health Sciences (NYSE:USNA) both fell by more than 10% due to the investigation.
Natural gas inventories fell by 287 billion cubic feet, the most on record. However, it was less than what the market had been expecting. Most traders and analysts had expected a draw of 295 to 305 bcf. Natural gas futures had initially been up by 3.4% before paring gains to 1.38% by the close of floor trading.
Intel (NASDAQ:INTC) reported revenues that were in line with expectations, but earnings were slightly below consensus and the stock fell by nearly 3%. The stock had traded up into the report, so investors got ahead of themselves with their expectations.
Tomorrow's Financial Outlook
The Commerce Department will release December 2013 housing starts and building permits data in the morning before the market opens. Economists estimate that starts will fall to an annualized rate of 992,000 from 1.091 million in the month prior. Permits are estimated to rise to an annualized rate of 1.014 million from 1.007 million in November 2013. December 2013 industrial production is estimated to rise 0.3% month-over-month after climbing 1.1% in the month prior. Additionally, capacity utilization is expected to rise to 79.1%, the highest since 2004.
The only two global economic data reports scheduled for tomorrow are UK retail sales and eurozone construction output.
Notable earnings reports in the US tomorrow include General Electric (NYSE:GE), SunTrust Banks (NYSE:STI), Bank of New York Mellon (NYSE:BK), Morgan Stanley (NYSE:MS), and Schlumberger (NYSE:SLB).
Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.