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Wall Street Strategies has been providing independent stock market research since 1991 to individual, retail and institutional clients through a balanced approach to investing and trading. Charles Payne, our founder and chief analyst, is routinely sought after for his stock market, political,... More
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  • STOCK SLIDE FURTHER - By WSS Research Desk 0 comments
    Jan 13, 2014 2:32 PM | about stocks: LULU, SODA

    By Carlos Guillen

    Equity markets are continuing to slip during the start of this week's trading activity as investors see the likelihood of further tapering action from the Fed.

    Clearly putting pressure on stocks today were comments from Federal Reserve Bank of Atlanta President Dennis Lockhart who said that if the economy meets his expectations, he would like to see the central bank continue to wind down its bond-buying stimulus effort over the coming months. As it stands the Fed has already reduced its bond-buying activity by $10 billion per month, and investors do not appear to be ready for another round of reductions, particularly after this past Friday's government jobs report, which served to confuse investor as they were left with no definitive direction.

    Today investors also continued to digest Friday's weaker-than-expected jobs report, and also got a glimpse at more rather confusing data that actually showed a rather favorable jobs market. According to the Conference Board, its December employment trends index increased to 115.76, from a revised 115.72 in November, representing a 5.2 percent gain from the year ago period. This was quite surprising given the much worse than expected non-farm employment gains presented last Friday, which showed that only 74,000 jobs were added in December, sharply less than the 203,000 increase economists expected. The Conference Board also conveyed that six of the eight components that make up the index climbed, with the sharpest gains coming from Temporary Employees and from the Consumer Confidence Survey that shows the percentage of consumers who think jobs are hard to find.

    In corporate items, Shares of Lululemon Athletica (NASDAQ:LULU) plunged over 16 percent after the yoga-wear retailer lowered its fiscal fourth-quarter earnings and revenue, citing a meaningful decline in traffic and sales since the beginning of January. Also, shares of SodaStream International (NASDAQ:SODA) are down over 23 percent after the company lowered revenue and net income guidance for its fiscal year.

    In all, stocks are not showing signs of recovering from earlier losses and have continued to slide, with the Dow Jones Industrial Average currently down over 100 points.


    Stocks: LULU, SODA
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