US Stocks Week Ended April 11, 2014

Bob Carey
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US Stocks Week Ended April 11, 2014

Posted Under: Weekly Market Commentary

After setting a record high last week, the S&P 500 Index closed down nearly 2.6% this week, which was the largest weekly loss since 2012. The decline was fueled by valuation concerns in some high growth equities, particularly in the technology and health care sectors. Between Thursday and Friday, the NASDAQ Composite Index fell over 4.4%, the biggest two day drop since 2011. For the week, Intuitive Surgical Inc. had a -13% return, SanDisk Corp. -9% return, Gilead Sciences Inc. -8.6% return, Yahoo! Inc. -4% return and Amazon.com Inc. had a -3.5% return. Tuesday evening marked the unofficial start to earnings season when Alcoa Inc. reported strong earnings and revenue that helped markets rally Wednesday. Aiding in Wednesday's rally was the release of the Federal Reserve meeting minutes, which helped to ease concerns about the timing of future interest rate increases. The relief was short lived as markets sank Thursday and Friday. JP Morgan fell 6.7% between the two days, when the bank announced financials that missed earnings and revenue expectations. Jamie Dimon, CEO of JP Morgan, credited the banks iffy first quarter performance to industry-wide headwinds in the security markets and mortgage portions of the bank. Wells Fargo & Co. rallied 0.8% on Friday as the mega bank announced they exceeded analyst estimates for earnings and revenue. John Stumpf, the CEO of Wells Fargo, credited their success to their diversified business model, along with strong loan and deposit growth. Bed Bath & Beyond slid over 6% Thursday, as the home good retailer announced revenue and earnings that were below analyst estimates. Family Dollar Stores Inc. fell over 3% on Thursday as the discount retailer announced poor earnings and revenue numbers. Next week should offer a better understanding of how strong first quarter 2014 earnings were as Citigroup Inc., Johnson & Johnson, Coca-Cola Co., Intel Corp., Yahoo! Inc., Bank of America Corp., American Express Co., and many others are all expected to announce results.

Posted on Monday, April 14, 2014 @ 8:41 AM • Post Link	Share:
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These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.

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