U.S. Stocks Waver, Earnings Dominate Sentiment

Nichole Harper
31 Oct, 2013
New York City

U.S. stocks rebounded from the lows in the first hour in trading and the pound jumped 1% against the euro after the inflation rate declined to 0.7% annual rate. U.S. weekly jobless claims declined as government employees return to work.

[R]12:50 PM New York – U.S. stocks rebounded from the lows in the first hour in trading and the pound jumped 1% against the euro after the inflation rate declined to 0.7% annual rate. U.S. weekly jobless claims declined as government employees return to work.[/R]

Stocks on Wall Street traded sideways and rebounded from the loss of 0.5% in in the first hour of trading.

In New York trading, S&P 500 index decreased 0.16 to 1,763.15 and Nasdaq Composite Index added 2.55 to 3,933.17.

Weekly Jobless Claims Fall

Weekly jobless initial claims for state unemployment benefits declined by 10,000 to a seasonally adjusted 340,000, the Labor Department said today. Initial claims for the previous week were left unrevised.

California continues to struggle with new computer system transition and a Labor Department analysts said California reported no new additional claims last week from previous week carryovers.

Federal Employees claims declined 29,713 in the last week to 14,423 after the government shutdown ended on October 17.

European Markets

In London trading, FTSE 100 index slipped 0.7% or 49.63 to 6,728 and in Frankfurt the DAX index slid 0.1% or 6.27 to 9,004.

In Paris, CAC 40 index rose 0.3% or 11.33 to 4,285.

Euro Zone Inflation Rate Falls

The U.K. pound jumped for the second day and increased 1% against the euro after the euro area inflation rate declined to 0.7% in October, the lowest since November 2009. The inflation rate in September was 1.1%.

Expectations rose that the European Central Bank will lower its reference rate by a quarter percentage point to 0.25% on November 7.

Asian Markets Fall

Major market indexes in Asia closed lower.

Nikkei 225 Stock Average declined 1.2% and the yen gained. Hang Seng index in Hong Kong declined 0.4% but the Sensex index in Mumbai gained 0.6%.

Market indexes in Jakarta declined 1.9% and in South Korea added 1%.

U.S. Stocks in Review

Avon Products, Inc. ((AVP)) plunged 19.8% or $4.42 to $17.97 after the beauty products maker stated sales in the third-quarter ending in September rose 3% to $1.52 billion. Comparable sales in the quarter slipped 2%.

Net income in the quarter climbed 16% to $103.8 million or $1.42 a diluted share compared to $89.5 million or $1.21. North American sales plunged 19%.

Adjusted quarterly profit was 14 cents, lower than analysts’ projections of 19 cents a share.

Facebook Inc ((FB)) dropped 2% or 89 cents to $48.16 after the social media network provider said net revenues in the third-quarter ending in September surged 60% to $2.02 billion.

Net in the quarter swung to a loss $59 million or 2 cents a diluted share compared to a profit of $425 million or 17 cents.

Chief Financial Officer David Ebersman said younger teens have cut down the use of the site and the social-networking site will limit ads on the news feed.

Expedia, Inc. ((EXPE)) surged 18.1% or $9.03 to $58.99 after the online travel company stated net revenues in the third-quarter ending in September climbed 17% to $1.40 billion. Net income in the quarter slid 0.3% to $170.9 million or $1.22 a diluted share compared to $171.5 million or $1.21.

Expedia soared after adjusted earnings were $1.43 a share compared to $1.36 estimated by analysts.

The company also completed the repurchase of 8 million shares by the end of third quarter in 2013 for $435 million. In the third quarter company purchased 6 million shares.

MasterCard Incorporated ((MA)) grew 0.3% or $2.20 to $727.88 after the credit card service provider said net revenues in the third-quarter ending in September jumped 16% to $2.2 billion.

Net earnings in the quarter climbed 14% to $879 million or $7.27 a diluted share compared to $772 million or $6.17.

Starbucks Corporation ((SBUX)) slipped 1.8% or $1.41 to $79.37 after the coffee-house chain reported net revenues in the fourth-quarter ending in September jumped 13% to $3.8 billion.

Net income in the quarter surged 34% to $481.1 million or 63 cents a diluted share compared to $359 million or 46 cents.

Starbucks said comparable sales at stores open at least 13 months increased 8% in China and Asia Pacific region in the fiscal fourth quarter.

Time Warner Cable Inc ((TWC)) climbed 5% or $5.35 to $121.85 after the broadband service provider said net revenues in the third-quarter ending in September grew 3% to $5.5 billion.

Net income in the quarter plunged 34% to $532 million or $1.84 a diluted share compared to $808 million or $2.60.

Visa Inc. ((V)) declined 3.9% or $7.93 to $196.01 after the payments technology provider reported net revenues in the fourth-quarter ending in September soared 9% to $2.97 billion.

Net income in the quarter plunged 28.3% to $1.19 billion or $1.85 a diluted share compared to $1.66 billion or $2.47.