U.S. Indexes Trend Lower; Goldman Sachs, Coca-Cola Earnings in Focus

Nichole Harper
16 Jul, 2013
New York City

U.S. indexes traded lower after consumer price index increased 0.5% in June and industrial production rose 0.3%. Earnings at Goldman Sachs were ahead of expectations but Coca-Cola earnings and revenues lagged expectations.

[R]12:45 AM New York – U.S. indexes traded lower after consumer price index increased 0.5% in June and industrial production rose 0.3%. Earnings at Goldman Sachs were ahead of expectations but Coca-Cola earnings and revenues lagged expectations.[/R]

Investors on Wall Street focused on earnings after Coca-Cola, Goldman Sachs, Cintas and Charles Schwab reported earnings.

Labor Department reported consumer price index increased 0.5% in June after rising 0.1% in May. The increase in cost of living was driven by higher gasoline prices at retail pump stations.

Separately, industrial production increased 0.3% in June according to data released by the government. Output at mines, factories and utilities gained the most since February.

Goldman Sachs reported second quarter earnings doubled to $1.93 billion from $962 million or $3.70 a share from $1.78 a share.

Coca-Cola fell more than 2% after the beverage maker said second quarter revenues and earnings were lower than estimated and the company blamed weaker than expected results in Europe and challenging weather conditions.

European Markets

European markets dropped from their six-week high after German investor confidence unexpectedly dropped in July.

The DAX index in Frankfurt declined 0.4%, FTSE 100 index in London dropped 0.5% and CAC 40 index in Paris declined 0.7%.

Mining and resource stocks were in focus after Rio Tinto said second quarter iron ore production increased 7% to 51.8 million tons.

Auribus AG, the second-largest refiner of copper increased 5% after positive comments from Societe Generale SA.

Swedbank AB decreased 4% after second-quarter net income declined to 1.59 billion kronor.

Michelin & Cie., the French tire maker gained 2.5% after the company said demand at the manufacturer level in Europe increased 2% and in Europe gained 3%.

Asian Markets

Asian markets closed mixed and market indexes in Japan gained after the yen dropped to 100.07 against a dollar.

Tokyo Stock Exchange and Osaka Securities Exchange completed the merger and listing on the merged exchange increased to 3,423.

In Mumbai, the Sensex gained after Reserve Bank of India curbed lending to banks, lifted the requirements for rupee trading and also raised marginal standing facility rate to 10.25%, an indirect increase in rate.