U.S. Stocks Drift Lower After Advance, Rate Decision in Europe in Focus

Nichole Harper
06 Nov, 2013
New York City

Stocks on Wall Street traded lower and investors focused on earnings in the U.S. and Europe. European Central Bank is expected to leave its reference rate unchanged and announce details for the bank stress test.

[R]12:35 PM New York – Stocks on Wall Street traded lower and investors focused on earnings in the U.S. and Europe. European Central Bank is expected to leave its reference rate unchanged and announce details for the bank stress test.[/R]

Stocks in New York trended lower as investors focused on earnings and awaited U.S. economic growth data tomorrow.

S&P 500 index increased 5.35 to 1,768.32 and Nasdaq Composite Index declined 4.08 to 3,935.78.

Market indexes in Europe advanced as the European Central Bank policy makers meet and decide the future course of bank stress test, rate regime and steps to revive employment across the euro zone.

In London trading, FTSE 100 index rose 0.04% or 2.71 to 6,750 and in Frankfurt the DAX index gained 0.4% or 35.91 to 9,045.

In Paris, CAC 40 index jumped 0.9% or 36.70 to 4,290.

U.S. Stocks in Review

Abercrombie & Fitch Co. ((ANF)) dropped 10% to $34.69 after sales at teen retailer were lower than analyst expectations.

Microsoft Corp ((MSFT)) increased 3% to $37.34 on a speculation that the new chief executive will exit several loss making consumer businesses including Bing search and Xbox game console devices.

In a research note published by Rick Sherlund, a Nomura analysts and a long time Microsoft follower, also increased his target price to $45 from $40.

Ralph Lauren ((RL)) gained 3% to $177.14 after the company lifted its quarterly dividend to 45 cents from 40 cents a share and raised its full year revenue growth increase to 5% from earlier projection of at least 4%.

Tesla ((TSLA)) dropped 16% to $150.01 after the company said it delivered 5,500 of its Model S vehicles and revenues in the third-quarter ending in September surged 7% to $431.3 million. Net loss in the quarter narrowed to $38.5 million or 32 cents a diluted share compared to $110.8 million or $1.05.

Twitter Inc, the popular short-message Internet service operator is expected to set its public offering price later this evening and raise at least $1.75 billion. The public offering has been oversubscribed at least four times according to two different sources.

Twitter is expected to sell at least 70 million shares and underwriters lifted offering price to between $20 and $25 a share from the previous range of $17 to $20 a share.