October 21, 2013 to October 25, 2013
Welcome to Financial Buzz Market Weekly, at the New York Stock Exchange, bringing you a review of this week's stock market.
This week continued the upward trend in the major indexes, with the S&P 500 up 20% on the year, the Dow Industrials flirting with record highs, and the NASDAQ reaching 13 year highs.
Analysts are expressing concerns that the market is overbought and the rapid gains are a sign of momentum rather than fundamentals, therefore increasing the likelihood of a large correction. However, investors are reluctant to stop pouring money into stocks, especially since it looks like the Federal Reserve bond purchasing program is likely to continue well into next year.
In other news, reports delayed by the government shutdown are now starting to get released. , the September employment report showed the economy added 148,000 jobs, much worse than anticipated. However, unemployment dropped slightly to 7.2%. The HSBC flash Purchasing Managers’ Index for China hit a seven-month high of 50.9 in October, indicating continued expansion in manufacturing activity, while the PMI for Europe decreased to 51.5.
JAKKS Pacific, Inc. (NASDAQ: JAKK) gained for 2 straight days following the release of their earnings report . Released numbers were able to beat analysts’ projections. With the upcoming holiday shopping season, toy manufacturers should experience gains before the end of 2013.
The Boeing Company (NYSE: BA) reported strong third quarter earning numbers this week. Boeing reported that their earnings per share rose 16 percent to $1.80 and revenues increased 11 percent to $22.1 billion. The strong numbers reflect Boeing’s higher commercial sales for the quarter.
Hasbro Inc. (NASDAQ: HAS) shares this week saw gains with the release of their earnings report which represented Hasbro’s recent cost savings initiatives. Coupled with the upcoming holiday shopping season in the 4th quarter, Hasbro is expecting more gains.
Caterpillar Inc. (NYSE: CAT) experienced an extremely difficult year. Sales were nearly $11 billion lower than the previous year. Caterpillar commented that the weak numbers were due to depressed industries, in particular mining, and they don’t expect an upturn in 2014.
RadioShack Corp. (NYSE: RSH) reported their third quarter earnings result this week and missed analysts’ projections. Net sales were down to $805 million compared to $898 million in the previous year. Net loss and operating loss both increased substantially compared to Q3 of fiscal 2012 while gross profit slumped as well.