January 13th, 2014 – January 17th, 2014
The week started off rocky as a result of profit taking and some residual shock as a result of last week’s dismal payroll report. However, by mid-week, things were rolling along again with the S&P 500 hitting a new high. For the remainder of the week, the market was weak as disappointing corporate earnings started coming in.
On Tuesday, the retail sales report for December came in showing a month to month gain of .2%. Analysts think this number is solid, especially considering that cold weather held down auto sales. The producer price index increased .4% month-to-month for December, in line with expectations, and the consumer price index rose .3% month-to-month, also within expectations.
Jobless claims for the week ending January 11 were 326,000, only down 2,000 from the previous week. The Commerce Department reported that U.S. housing starts fell in December by 9.8% to 999,000 units. This was the largest percentage decline since April, however, economists had expected an even bigger drop so these numbers weren’t disappointing, especially when you consider that for all of 2013, housing starts increased 18.3%.
Now let’s take a look at some stocks.
Google (NASDAQ: GOOG) announced that they are acquiring Nest Labs, for $3.2 billion. The company develops smart home appliances like thermostats and smoke detectors that can communicate with smartphones. Nest was founded by two former Apple engineers.
Tesla Motors, Inc. released their 2013 fourth quarter sales of 6,900 vehicles, the highest in company history, and exceeding prior guidance by 20%. Altogether, Tesla vehicles are in 31 countries, with the company’s highest per capita sales taking place in Norway.
Poised to set history, Apple (NASDAQ: AAPL) stock has been on the rise since with Apple and China Mobile (NYSE: CHL) solidifying their engagement of the start of iPhone sales in China . China Mobile, currently the world’s largest cell phone company by users, announced that iPhone pre-orders have reached approximately 1 million units as opening day approaches.
Citigroup (NYSE: C) was down over 4 points during regular trading when the company reported fourth quarter earnings that missed analysts’ projections. Citigroup reported an increase in profit, however, the adjusted earnings per share was $0.85 while analysts
forecast an EPS of $0.95.
Best Buy (NYSE: BBY) slumped as much as 31% at the open of Thursday’s trading day when the company reported a decrease of nearly a percent in US comparable store sales as well as higher costs associated with Best Buy’s price matching services and other promotions.