April 14, 2014 – April 17, 2014
This was a holiday week, with markets closed on Friday. Nevertheless, the indexes made a nice comeback after last week’s massive drops.
On Monday, retail sales came in higher than expected, showing a 1.1% gain for March, and confirming the weather related troubles are over. This gave investors an excuse to come rushing back in to buy.
However, on Tuesday, we were back to mixed news. The consumer price index for March showed a .2% increase in inflation, accelerating slightly from February and slightly higher than expectations, while the Empire State Manufacturing survey showed considerable slowing for April, down to 1.29, hurt by a decline in new orders.
On Wednesday, housing starts for March came in at 946,000 units, an increase of 2.8% over February, however, lower than expectations. Industrial production for March gave a positive surprise to investors, up .7% and Fed Chair Yellen spoke at the Economic Club of New York stating the current 6.7% unemployment rate is still about 1% too high and that interest rates probably won’t go higher before 2015. This prompted a strong rally.
On Thursday, jobless claims out for the week ending April 12 and were once again lower than expectations, showing 304,000 claims, compared to last week’s 6 year low of 302,000.
Now let’s take a look at some stocks.
Google (NASDAQ: GOOG) announced Monday they have acquired Titan Aerospace, a solar-powered drone production company. Details have not been released yet, but the acquisition by Google was deemed a feasible move as the tech giant continues to ramp up efforts to provide internet access to remote parts of the world. Titan’s solar-powered assets, will aid in these efforts.
Bank of America (NYSE: BAC) released their first quarter financials before the bell on Wednesday and the stock opened at a loss. The company reported a net loss of $276 million or $0.05 per diluted share while revenue was reported at $22.8 billion. The company’s disappointing financials were primarily due to settlement fees for legal charges. Bank of America was billed $3.6 billion from a prior settlement case with the Federal Housing Finance Agency as well as $2.4 billion for other mortgage-related matters.
Yahoo! Inc. (NYSE: YHOO) released their earnings Tuesday for their first quarter of 2014. The company reported that revenue was down 1% year over year, dropping to $1.13 billion, as well as a 17% decrease in net earnings per share to $0.29. However, on Wednesday, Yahoo shares surged when Alibaba Group reported strong quarterly revenue growth. Yahoo owns 24% of Alibaba.
SodaStream (NASDAQ: SODA) received massive attention Wednesday as an Israeli financial newspaper reported that the company is negotiating selling a portion of itself to a potential investor. SodaStream shares climbed as high as $42.25 during Wednesday’s trading after it was revealed that PepsiCo Inc (NYSE: PEP), Dr Pepper Snapple Group (NYSE: DPS) or Starbucks (NASDAQ: SBUX) are the potential investors. All parties involved are refusing to comment.