Stocks recover from early losses, as weak data blamed on bad weather


Stocks finished broadly higher despite a round of weak U.S. economic reports, as investors continued to chalk up disappointing data to severe winter weather.

Initial reaction to weak retail sales and jobless claims was replaced with focus on company fundamentals, with upbeat earnings reports and deal news providing support.

Time Warner Cable jumped 7% after agreeing to be acquired by Comcast for ~$45.2B in stock; Goodyear rallied 11.5% after reporting a strong Q4.

The Nasdaq rose for the sixth straight session; techs gained strength from names like Apple, Google and Microsoft, while Cisco fell 3% after issuing disappointing guidance.

The S&P 500 is on pace for Q4 earnings to rise 8.4% Y/Y and revenues are on track to gain 0.8%, which would exceed expectations.

The dollar lost ground against the yen and euro; the benchmark 10-year Treasury yield slipped 6 bps to 2.736%.

Comments (1)
  • sl100
    , contributor
    Comments (112) | Send Message
     
    So revenues YOY rise just 0.8% and profits just 8.4(most of this concentrate in just few companies) but the mkt is up on manipulation and money printing by 30% in a year.
    corporate debt increased another 12% YOY from 11T to 12.5Trillion.

     

    Not sure why 401K equity holders are still in stocks when its up nearly 180% in few years and up 32% plus in 1 year. Greed I guess waiting for another 5% gain geat time to dump it on the algos, banks and market makers.

     

    Cash is the safest investment now in leveraged world last moth a Just a 25B selling in stock funds caused the mkt to fall 5%. So wondering what happened if say we just sell 200-300B of stock and the chain reaction form it.
    13 Feb 2014, 06:49 PM Reply Like
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