January 6, 2014 – January 10, 2014
Welcome to Financial Buzz Market Weekly, here at the New York Stock Exchange, bringing you a review of this week’s stock market.
The markets this week didn’t do much, in fact at the close of the first five trading days of the New Year last Wednesday, the S&P 500 was slightly below its close on December 31. An old market lore says as January goes so goes the year and to a certain degree this also extends to the first five trading days.
Let’s get right to this week’s big surprise. On Friday, the much anticipated non-farm payroll report coming in at only 74,000 for December, down from 241,000 in November and way below analysts’ expectations. Analysts are not quite certain what prompted the big drop, especially since most other economic indicators are doing quite well.
Unemployment fell to 6.7%. On Monday, the Institute for Supply Management non-manufacturing index came in at 53 for December, down from 53.9 from the prior month and lower than analysts’ expectations. Factory orders, however, rose 1.8%, higher than expected. On Tuesday, the U.S. trade deficit narrowed to $34.3 billion, as exports rose and imports of oil declined. Wednesday’s ADP employment report was very strong, coming at 238,000 workers added to payrolls in December, up from November’s 229,000. For the week ending January 4, jobless claims fell to 330,000, down 15,000 from the previous week.
Now let’s take a look at some stocks.
Macy’s (NYSE: M) traded at a 52-week high of $56.12 when the company announced that their comparable store sales increased by 4.3% during 2013’s holiday shopping season. They also announced they will be restructuring the company in order to save approximately $100 million annually by cutting 2,500 jobs and closing five underperforming stores.
T-Mobile U.S. (NYSE: TMUS) released preliminary results for their fourth quarter of 2013. The report showed that the company added an additional 1.6 million customers bringing their total number to 46.7 million. T-Mobile is expected to release the full report this February.
Ford Motor Co. (NYSE: F) announced on Wednesday that their CEO, Alan Mulally, would not be leaving for Microsoft (NASDAQ: MSFT), alleviating some pressure on its stock. The next day, Ford then announced a 25% increase in its quarterly dividends. Shares shot up with both announcements.
The Men’s Wearhouse, Inc. (NYSE: MW) announced earlier this week that the company has commenced a cash tender offer to acquire all outstanding shares of Jos. A. Bank Clothiers (NASDAQ: JOSB) for $57.50 per share, with an expiration date set on March 28, 2014. Both stocks spiked on Monday with the news, but have slowly tapered back over the course of the week.
Micron Technology Inc. (NASDAQ: MU) traded to a new 52-week high of $24.50 yesterday when Micron’s earnings report blew pass analysts’ forecasts; Expected EPS were $0.43 while actual EPS rose to a staggering $0.77.