Equity markets regain their momentum in the latter part of the week, as the S&P 500 and the Dow Industrials notch up all-time highs. The Nasdaq surged higher later in the week, despite many of the momentum stocks facing headwinds. Janet Yellen testimony in front of the Senate banking committee was greeted with positive sentiment which helped equity bourses regain traction.
Although technology shares had a mixed performance during the week, some of the benchmarks were under pressure. Cisco Systems (NASDAQ:CSCO) had a substantial decline on Thursday after the networking company released worse than expected earnings. After the closing bell on Wednesday Cisco reported their fiscal Q1 results. The company reported that revenue rose just 1.8%, compared with its projection of 3% to 5% growth. Cisco followed up by projecting a decline of 8% to 10% in the current period, an unusually downbeat forecast. Cisco tumbled nearly 11% on Thursday.
Energy shares were under pressure during the week as crude oil prices tumbled to $93 per barrel. Prices could face additional headwinds according to a report from OPEC that touched on non-OPEC supply. On Tuesday the Organization of the Petroleum Exporting Countries said that non-OPEC countries would produce more oil than previously expected this year, while the International Energy Agency predicted that the U.S. may become the world's largest oil producer in the next couple of years.
In its monthly report issued Tuesday, OPEC said it now expects producers outside of the organization to boost oil supply this year by an additional 35,000 barrels a day, with output expanding from the U.S. and Canada in the third quarter. OPEC boosted its global demand forecast by 34,000 barrels a day and projected that global demand for OPEC crude will decline by 300,000 barrels a day next year.
The retail sector experience a mix of earnings results during the week with Macy's (NYSE:M) notching up solid gains, while Wal-Mart (NYSE:WMT) reported top and bottom line numbers that were worse than expected. For the three months ended November. 2, 2013 Macy's profit rose to $177 million, or 47 cents a share, from $145 million, or 36 cents a share, a year earlier. Revenue increased 3.3% to $6.28 billion. Analyst's survey had expected earnings of 39 cents and revenue of $6.19 billion.
Stocks were also buoyed by a strong performance in Asian shares. The Nikkei jumped on Friday more than 2% and notched up a 7% rally for the week. The Shanghai surged on Friday, closing up more than 2%.