U.S. Stocks Keep Downward Bias After Peaks Last Week

Nichole Harper
27 Jun, 2014
New York City

Stocks on Wall Street searched for direction and indexes traded lackluster lacking catalysts. Market indexes in Europe closed higher as Italy struggled with rising debt yield levels. GoPro trades higher on the second trading day. Oil retains an upward bias.

[R]11:50 AM New York – Stocks on Wall Street searched for direction and indexes traded lackluster lacking catalysts. Market indexes in Europe closed higher as Italy struggled with rising debt yield levels. GoPro trades higher on the second trading day. Oil retains an upward bias.[/R]

Stocks on Wall Street looked for direction after the S&P 500 index hit a new high last week.

Investors stayed cautious ahead of second quarter earnings as the quarter winds down in few days and latest batch of mixed economic data kept investors on the sidelines.

Despite the current market lackluster performance, the S&P 500 index is still up 5.8% in the year so far after surging more than 32% last year. However, indexes are struggling with no new catalysts to drive stocks higher.

S&P 500 index declined 0.15 to 1,957.07 and the Nasdaq Composite Index gained 5.35 to 4,384.40.

U.S. Stocks in Review

Dollar General Corp ((DG)) dropped 6.3% or $3.91 to $57.77 after the company said chief executive will retire next May after seven years at helm.

Keurig Green Mountain Inc ((GMCR)) soared 3% to $123.97, the largest gainer in the S&P 500 index, after independent research firm Argus Research lifted its view on the stock to “buy” from “hold.”

Manitowoc Co Inc ((MTW)) soared 9% to $32.31 after activist investor Relational Investors LLC disclosed 8.52% stake in the company and said it plans to split it into two companies.

Nike Inc ((NKE)) increased 2% to $78.35 after the largest athletic footwear maker reported better than expected fourth-quarter earnings.

European Markets

In London trading, FTSE 100 index gained 0.3% or 18.54 to 6,753.66 and in Frankfurt the DAX index rose 0.1% or 9.94 to 9,814.84.

In Paris, CAC 40 index slid 0.2% or 7.26 to 4,432.37.

Intel Capital sold its 9% stake in Imagination Technologies. Obtala Resources profit surged to £40.4 million. Rolls-Royce may supply new engines to Airbus Group. Stanley Gibbons profit plunged 49% while revenue soared 45%.

European Central Bank will hold its monthly meeting on Thursday.

Asian Markets

Market indexes in Tokyo plunged 1.4% and extended weeklong decline to 1.7% after the latest measure of inflation showed the sharpest jump in 32 years.

The Ministry of Internal Affairs and Communications said Japan''s core consumer price index in May jumped 3.4% from a year earlier, the fastest increase in 32 years after utility price hike and an increase in sales tax.

The overall inflation was 3.7% and prices excluding perishables and energy gained 2.2%. Electric utilities charges soared 11.4% and retail price of petrol at pump stations increased 9.6%. Fresh food prices soared 14.3%.

Separately, the same ministry said average household spending in May declined 8% to 271,411 yen.

The Ministry of Economy, Trade and Industry reported retail sales in May slipped 0.4% to 11.434 trillion yen. On a seasonally adjusted monthly retail sales climbed 4.6%.

The Nikkei 225 Stock Average dropped 213.49 or 1.4% to 15,095 and the broader Topix index slumped 10.28 or 0.8% to 1,253.15. For the week, Nikkei 225 dropped 1.7%.

The yen rose to close at 101.37 against one U.S. dollar.

The Sensex Index gained 37.25 to close at 25,099.92 The CNX Nifty rose 15.60 to 7,508.80. For the week, Sensex inched lower to 0.02%.

GVK Power is exploring options to reduce debt by selling equity stakes in businesses. Sumitomo Mitsui Trust may acquire 10% stake in RCapital valued at $400 million. Transformers & Rectifiers secured an order for Rs 161 crore from GETCO.

The Reserve Bank of Australia is scheduled to meet on Tuesday and keep the rates on hold and China is scheduled to report official index of manufacturing activities on Tuesday.