Yellen Comments Contribute to Positive Sentiment on Wall Street

Nichole Harper
11 Feb, 2014
New York City

Indexes on Wall Street advanced and Fed Chairman Yellen

[R]12:45 PM New York – Indexes on Wall Street advanced and Fed Chairman Yellen’s comments offered reassurance about the Fed policy continuation. Speaker John Boehner plans to consider a debt ceiling bill with no strings attached tomorrow. Earnings also contributed to the positive trading sentiment.[/R]

Stocks on Wall Street advanced and market indexes are set to gain 1% and newly appointed Fed Chairman Janet Yellen reassured lawmakers and markets the central bank will continue the policy of scaling back stimulus.

Yellen also said, in remarks to House Financial Services Committee, economic growth has picked up but “the recovery in the labor market is far from complete.”

S&P 500 index increased 0.8% or 14.44 to 1,814.32 and the Nasdaq Composite Index added 0.7% or 30.90 to 4,179.10.

European Markets

In London trading, FTSE 100 index gained 1.2% or 81.1 to 6,673 and in Frankfurt the DAX index jumped 2% or 188.9 to 9,479.05.

In Paris, CAC 40 index increased 0.3% or 11.52 to 4,248.65.

U.S. Stocks in Review

ConAgra Foods Inc. ((CAG)) dropped 7% to $28.87 after the food processor lowered its quarterly and yearly outlook on weaker than expected volumes in consumer goods and slow growth in restoring operating profit in private label segment.

CVS Caremark Corporation ((CVS)) gained 2.3% or $1.51 to $68.46 after the health care provider reported net revenue in the fourth-quarter ending in December climbed 4.6% to $32.8 billion.

Net income in the quarter surged 12.5% to $1.26 billion or $1.05 a diluted share compared to $1.12 billion or 90 cents.

Retail pharmacy segment same store sales jumped 4% and pharmacy services soared 5.2% and retail pharmacy climbed 5.6%.

The company forecasted diluted earnings per share for the year in the range of $4.09 to $4.23.

General Motors Co. ((GM)) increased 1.3% to $35.35 and the largest U.S. auto maker said sales in China increased 12% to a record 348,061 units in January.

IntercontinentalExchange Group, Inc. ((ICE)) rose 81 cents to $212.92 after the trading services provider and the operator of exchanges said total revenue in the fourth-quarter ending in December soared $733 million.

Net in the quarter swung to a loss $176 million or $1.83 a diluted share compared to a profit of $130 million or $1.76.

Ingersoll-Rand Plc ((IR)) rose 4 cents to $59.12 after the machinery and equipment provider reported revenue in the fourth-quarter ending in December jumped 6% to $3.1 billion.

Net earnings in the quarter tumbled 79.8% to $47.6 million or 16 cents a diluted share compared to $235.6 million or 78 cents.

First-quarter 2014, revenues are expected to grow between 2% and 3% compared with 2013.

The company expects revenues for the year to increase in the range of 3% to 4% and estimated adjusted earnings per share from continuing operations between of $3.05 and $3.20.

InvenSense Inc ((INVN)) soared 9.3% to $21.41 after the maker of motion detecting devices agreed to resolve two pending lawsuits with STMicroelectronics and signed a patent cross-license agreement.

Sprint Corporation ((S)) increased 2.2% to $7.86 after the third largest wireless carrier in the U.S. reported December quarter sales of $9.14 billion, ahead of estimates of at least $8.90 billion.

Urban Outfitters Inc ((URBN)) dropped 2% to $35.96 and casual apparel retailer reported preliminary sales for the fourth quarter at $906 million, lower than expected sales of at least $920 million. The retailer is scheduled to release earnings on March 10.