U.S. Indexes Struggle on Weak Tech and Healthcare Stocks

Nichole Harper
03 Mar, 2015
New York City

U.S. market indexes traded lower and barely managed to rebound from the mid-day lows as health care and technology stocks turned lower. Crude oil traded above $50 a barrel and gold at $1,200 an ounce. Controversial Prime Minister of Israel struggled to make his case to the U.S. lawmakers.

[R]2:55 PM New York – U.S. market indexes traded lower and struggled to rebound from the mid-day lows as health care and technology stocks turned lower. Crude oil traded above $50 a barrel in New York and gold at $1,200 an ounce. Israeli Prime struggled to make his case to the U.S. lawmakers.[/R]

Stocks in New York traded lower and by mid-day popular indexes fell as much as 1%. Tech heavy Nasdaq index rebounded in the last thirty minutes but struggled to hold on the rebound.

On Wall Street trading, Tollbooth Strategy Index slipped 0.5% or 53.64 to 10,725.94.

S&P 500 index slumped 13.60 or 0.6% to 2,103.88 and the Nasdaq Composite Index dropped 35.33 or 0.7% to 4,972.89.

Crude oil rose 77 cents a barrel to $50.36 and gold fell $3.10 to $1,205 an ounce.

Israel’ Prime Minister Benjamin Netanyahu in a speech to the U.S. lawmakers warned not to strike a deal with Iran in an effort to derail White House’s effort to mend relationship with the most populous nation in the Middle East.

Netanyahu, supported by some of the richest Jewish American citizens, has consistently meddled in the U.S. foreign policy. Israel has never acknowledged but is widely believed to hold one the largest arsenal of nuclear arms after the U.S. and Russia.

Israel also relies on the U.S. aide of at least $3.5 billion a year, one of the largest per capita aide received by any nation from the U.S. for more than fifteen years.

U.S. Movers

Best Buy Co Inc ((BBY)) climbed 2.2% or 86 cents to $39.41 after the consumer electronics chain reported revenues in the fourth-quarter ending in January rose 1.3% to $14.21 billion form a year ago period. Same store sales in the quarter jumped 2%.

Net income in the quarter surged 77.1% to $519 million or $1.46 per diluted share compared to $293 million or 83 cents from the same quarter last year.

The retailer increased quarterly dividend by 21% to 23 cents per share and will be giving out special one-time dividend of 51 cents per share.

The company announced it will buy back shares for up to $1 billion in next three years.

Ford Motor Company ((F)) dropped 2.7% or 44 cents to $16.13 after the automobile company said U.S. sales in February slumped 1.9% to 180,383 vehicles from 183,947 vehicles a year ago period.

The company added car sales in the month declined 8.1% to 56,081 units while truck sales jumped 4% to 69,882 units and utilities sales decreased 2.3% to 54,420 units compared to a year earlier.

Fiat Chrysler Automobiles NV declined 3% or 48 cents to $15.35 after the auto-maker reported U.S. sales soared 6% to 163,586 units and the group’s best February sales since 2007.

Jeep brand sales in the month surged 21% and Chrysler brand sales jumped 13%. Sales of the Ram pickup truck increased 7% and Dodge Challenger sales soared 42%.

General Motors Company ((GM)) fell 6 cents to $37.54 after the automobile company reported sales in the month of February climbed 4.2% to 231,378 units from 222,104 units a year ago month.

GM said sales of trucks, including SUVs, vans and pickups, surged 36% and sales of commercial and fleet vehicles were climbed 12%.

For the year, total sales soared 10.3% and retail sales advanced 7%.

European Markets

In London trading, FTSE 100 index slipped 0.3% or 22.79 to 6,917.85 and in Frankfurt the DAX index slid 0.1% or 14.45 to 11,395.91.

In Paris, CAC 40 index fell 0.3% or 12.61 to 4,904.71.

Barclays Plc declined 2.9% to 255.07 pence after the U.K.-based financial service provider reported revenues in the year ending in December jumped 4.1% to £2.09 billion from £2.18 billion a year ago period.

Net profit in the year plunged 35% from a year ago to £845 million compared to £1.30 billion and diluted earnings per share slumped to 0.7 pence from 3.7 pence.

The bank set aside more funds to cover potential fines for market manipulation of £1.25 billion including additional provision of £750 million recognized in the fourth quarter.

Glencore Plc dropped 2.3% to 293.70 pence after the U.K.-based Switzerland-based natural resource company reported revenues in the year ending in December declined 5% to $221.07 billion from $232.69 billion a year ago period.

Net in the year swung to profit from a year ago to $2.44 billion compared to a loss of $7.94 billion and diluted earnings per share swung to 18 cents from diluted loss per share of 73 cents.

Asian Markets

Stocks in Japan succumbed to sustained selling pressure but traders added exposure to electronics and automakers as the yen inched up to 120 mark against the yen. Takata stepped up air bag production to replace defective bags. Kobe plans to build an automotive body panel plant in the U.S.

Stocks in Tokyo closed down on profit-taking but investors stepped up to buy on the dips especially in the currency sensitive export companies.

Selling in market indexes in expected to continue till the end of next week when the options and index futures are expiring.

The monetary base in February dropped 36.7% to 275.26 trillion yen from 37.4% in January and 55.7% a year ago month, but adjusted monetary base soared 43.2% to 285.69 trillion yen from 277.27 trillion yen in January, the Bank of Japan said today.

The Nikkei 225 Stock Average slid 11.72 to 18,815.16 and the broader Topix index rose 1.86 to 1,526.83.

The yen closed at 119.70 against one dollar.

Stocks in Mumbai traded in tight range and rupee was firm after investors digested more details on infrastructure spending plans in the central government budget.

In addition, motorcycle maker Hero MotoCorp reported February sales declined but sales at TVS Motor rose. M&M said tractor sales plunged 38% in the last month and auto sales declined 10%.

Indian rupee closed at 61.91 against one dollar.

The Sensex Index jumped 134.59 or 0.5% to close at 29,593.73. The CNX Nifty increased 39.50 or 0.4% to 8,996.25.

Hero MotoCorp Limited added 0.5% to ₹2,636.95 after the largest motorcycle maker said February total sales fell 3.85% to 484,769 units compared to 504,181 units in the same period last year.

Mahindra & Mahindra Limited slipped 3.3% to ₹1,235.85 after the automaker said February total tractor sales plunged 34.9% to 11,437 units compared to the same period a year ago.

Domestic sales tumbled 38% to 10,267 units but exports jumped 13% to 1,170 units compared to the same period last year.

The company also added auto sales dropped 9.8% to 38,033 units and domestic sales fell 11.23% to 34,918 units while exports rose 10% to 3,115 units compared to in the same period last year.