US Stocks Week Ended May 11, 2012
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The Dow Jones Industrial Average fell for the second straight week as bearish news in Europe concerning Greece's bailout package continued to trouble investors overseas. Back home, JPMorgan CEO Jamie Dimon held a conference call to inform investors that the bank's investment division had lost at least $2 billion dollars on some "poorly managed" derivative trades. This news sparked a broad sell-off in other large banks' stocks that seemed to be a bit of an overreaction. Investors choose to ignore the fact that the University of Michigan consumer sentiment index came in much stronger-than-expected, rising to its highest level since January 2008 in May. Despite the problems in Europe and at JPMorgan, the positive first-quarter earnings results trend continued. Chip maker Nvidia reported earnings that came in ahead of analyst estimates and raised their full year guidance which caused the stock to jump on Friday. Specialty beverage maker Monster Beverage reported impressive earnings that easily surpassed analysts' estimates causing the stock to jump over 9% on the news. Cisco warned that its biggest customers are "cautious" concerning their technology spending which led the company to forecast a disappointing upcoming quarter. Department store Kohl's beat analysts' estimates for the first quarter, however the company lowered their full year forecast which caused the stock to drop over 4%. Priceline.com reported mixed results, beating on EPS but missing on revenue estimates, which caused a 5% drop in the shares. Looking ahead to the coming week, investors will be watching for signs of inflation when the April U.S. consumer prices are released on Tuesday. TJX Company, Home Depot, JC Penney, Target, Deere & Co, Wal-Mart and salesforece.com are among the many companies due to report earnings this week.
Posted on Monday, May 14, 2012 @ 8:19 AM

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.