U.S. Indexes Advance on Earnings Optimism

Nichole Harper
28 Jan, 2014
New York City

Stocks in New York trading drifted and earnings announcements hovered market sentiment. Federal Reserve commenced its 2-day policy meeting. T. Rowe Price and Ford profit surges.

[R]1:25 PM New York – Stocks in New York trading drifted and earnings announcements hovered market sentiment. Federal Reserve commenced its 2-day policy meeting. T. Rowe Price and Ford profit surges.[/R]

Stocks in New York seesawed and indexes generally drifted higher after the latest private report on housing market was deemed positive.

The controversial S&P / Case-Shiller index of 20 largest U.S. metropolitan areas in November declined 0.1% from October, the first fall since November 2012.

Single family home prices tracked by the index increased 13.7% from a year ago and Western metros continued to lead price surge.

Prices in Las Vegas soared 27.3% from a year ago; Los Angeles 21.6%; San Francisco 23.2%. Prices increased in nine cities from October.

S&P 500 index increased 0.4% or 6.17 to 1,787.73 and the Nasdaq Composite Index declined 0.2% or 6.09 to 4,077.52.

Home builders advanced after the release of the latest home price index data that suggested a continuing trend in the market.

European Markets

Central bank in Turkey sent a strong signal that it plans to tighten monetary policy to halt a month-long slide in the lira after an extraordinary policy meeting.

In London trading, FTSE 100 index rose 0.3% or 21.7 to 6,572.48 and in Frankfurt the DAX index gained 0.6% or 57.7 to 9,407.81.

In Paris, CAC 40 index increased 1% or 40.70 to 4,185.36.

U.S. Stocks in Review

Apple Inc ((AAPL)) dropped 7.4% to $509.73 after the popular gadgets maker reported flat sales of iPhone handsets at 51 million units and estimated current quarter revenues between $42 billion and $44 billion, trailing analysts’ forecast of $46.1 billion.

Cliffs Natural Resources Inc ((CLF)) increased 6% to $20.54 after 5.2% stake owner in the company, Casablanca Capital LP, said the stock could jump as high as $53 if the largest U.S. iron ore producer spins off its foreign assets and convert the remaining U.S. assets to a master limited partnership structure to reduce operating expenses.

Comcast ((CMCSA)) increased 0.9% to $52.96 after the company reported 29% increase in fourth-quarter earnings and added new cable TV subscribers for the first time thirty quarters.

Ford Motor Corp ((F)) declined 0.3% to $15.66 and the global automaker reported 90% surge in fourth-quarter earnings of $3.04 billion or 74 cents a share after sales advanced in North America, Europe and China.

Oshkosh Corp ((OSK)) soared 8.9% to $55.99 after the maker of special trucks after the company said stronger than expected demand are boosting sales and lifted its current year annual earnings to at least $3.40 a share.

Seagate Technology Plc ((STX)) plunged 11.9% to $51.13 after the disk drive maker reported quarterly sales of $3.53 billion and adjusted earnings of $1.32 a share.