U.S. Indexes Turn Lower, IMF Lifts Global Growth Outlook

Nichole Harper
21 Jan, 2014
New York City

U.S. stocks extended losses for the third day in a row and the dollar was in focus after the yen and euro edged lower. The IMF lifted its economic outlook for 2014 as advanced economies face fewer obstacles and interest rates are expected to stay near record low.

[R]12:50 PM New York – U.S. stocks extended losses for the third day in a row and the dollar was in focus after the yen and euro edged lower. The IMF lifted its economic outlook for 2014 as advanced economies face fewer obstacles and interest rates are expected to stay near record low.[/R]

Stocks in New York extended losses for the third day and the International Monetary Fund lifted its global economic growth outlook.

Industrialized Nations to Lead World Economic Growth

The IMF lifted its global outlook on the expectations that advanced economies will drive economic growth in 2014.

In its World Economic Outlook report, the IMF lifted its global economic growth estimate at 3.7%, 0.1 percentage point higher that its October estimate. Washington, D.C. based multilateral agency estimated 2015 growth at 3.9%.

The IMF estimated U.S. 2014 economic growth at 2.8% from its October outlook at 2.6%.

China’s economic growth at 7.5% in the current year and 7.3% in the next. Japan is estimated to grow at 1.7% compared to 1.2% estimate in October.

In emerging markets, Russia’s growth outlook was trimmed to 1% from 2% and Brazil is expected to grow 2.3% compared to previous estimate of 2.5% increase.

The IMF estimated India’s economic growth of 4.6% in the current fiscal year ending in March and the growth is expected to increase to 5.4% in the next fiscal year.

S&P 500 index decreased 3.62 or 0.2% to 1,835.08 and the Nasdaq Composite Index gained 4.53 or 0.1% to 4,202.12.


European Markets

In London trading, FTSE 100 index fell 2.5 to 6,834.73 and in Frankfurt the DAX index edged up 0.1% or 14.2 to 9,730.23.

In Paris, CAC 40 index gained 1.0 to 4,324.07.

U.S. Stocks in Review

Baker Hughes Inc ((BHI)) gained 2.4% or $1.71 to $55.85 after the oilfield services supplier said revenues in the fourth-quarter ending in December climbed 10% to $5.86 billion.

Net income in the quarter soared 16% to $248 million or 56 cents a diluted share compared to $214 million or 49 cents.

Delta Air Lines, Inc. ((DAL)) jumped 3.7% or $1.15 to $32.22 after the air transportation company reported revenue in the fourth-quarter ending in December jumped 6% to $9.08 billion.

Net income in the quarter surged to $8.5 billion or $9.89 a diluted share compared to $7 million or 1 cent.

The airlines company said the results include $8 billion non-cash gain associated with the reversal of the company''s tax valuation allowance.

Halliburton Company ((HAL)) dropped 2.4% or $1.01 to $49.65 after the oilfield services provider stated total revenues in the fourth-quarter ending in December increased 1.3% to $7.6 billion.

Net income in the quarter climbed 19% to $793 million or 93 cents a diluted share compared to $669 million or 72 cents.

Johnson & Johnson ((JNJ)) declined 1.8% or $1.71 to $93.30 after the health care company reported sales in the fourth-quarter ending in December jumped 4.5% to $18.4 billion.

Net income in the quarter surged 35% to $3.5 billion or $1.23 a diluted share compared to $2.6 billion or 91 cents.

Travelers Companies Inc ((TRV)) slipped 1.5% or $1.27 to $85.15 after the insurance company said total revenue jumped 4% to $6.74 billion.

Net income in the quarter surged to $988 million or $2.70 a diluted share compared to $304 million or 78 cents.

Verizon Communications Inc. ((VZ)) slipped 1.3% or 63 cents to $47.84 after the communications information provider said total revenues in the fourth-quarter ending in December jumped 3.4% to $30.01 billion.

Net in the quarter swung to a profit $7.92 billion or $1.76 a diluted share compared to a loss of $1.93 billion or $1.48.