The stock markets in the United States fluctuated and eventually ended the trading session lower as inventors evaluated the economic indicators such as the employment data from the ADP Research and the non-manufacturing data from the Institute of Supply Management (ISM).
The Dow Jones Industrial Average (DJIA) slightly gained by 0.02%, but the S&P 500 and the Nasdaq were down -0.16% and -0.44%, respectively.
ADW Capital’s 2020 letter: Long CDON, the future Amazon of the Nordics
ADW Capital Partners was up 119.2% for 2020, compared to a 13.77% gain for the S&P 500, an 11.17% increase for the Russell 2000, and an 8.62% return for the Russell 2000 Value Index. The fund reports an annualized return of 24.63% since its inception in 2005. Q4 2020 hedge fund letters, conferences and more Read More
According to the report from the ADP Research, the U.S. economy added 175,000 jobs in January. The report showed that small businesses created 75,000 additional jobs while medium businesses and large businesses added 66,000 and 34,000 jobs respectively. The United Stated Department of Labor is scheduled to release its jobs report on Friday, February 7.
On the other hand, The Institute for Supply Management non-manufacturing increased from 53 percentage point to 54 percentage point in January. The consensus estimate of economists was 53.7 percentage points.
Thomas Simons, a government-debt economist at Jefferies LLC was encouraged by the data from the ISM. According to him, “The data is pretty encouraging; that’s obviously a good thing for the economy as a whole.” He added that investors are looking forward on the jobs report from the Labor Deport “for direction.”
On the other hand, commenting on the current movements of the stock markets, billionaire investor Leon Cooperman, hedge fund manager of Omega Advisors, told Bloomberg, “I say it’s a correction that’s creating some values, which is what we should all be happy about. You don’t want to buy stocks at a high, you want to buy stocks when they go down.”
- Dow Jones Industrial Average (DJIA)- 15,447.84 (+0.02%)
- S&P 500- 1,752.47 (-0.16%)
- NASDAQ- 4,013.63 (-0.44%)
- Russell 2000- 1,094.41 (-0.76%)
- EURO STOXX 50 Price EUR- 2,962.51 (0.00%)
- FTSE 100 Index- 6,457.89 (+0.13%)
- Deutsche Borse AG German Stock Index DAX- 9,116.32 (-0.13%)
Asia Pacific Markets
- Nikkei 225- 14,180.38 (+1.23%)
- Hong Kong Hang Seng Index- 21,269.38 (-0.60%)
- Shanghai Shenzhen CSI 300 Index- 2,202.45 (-1.14%)
Stocks in Focus
The stock price of 3D Systems Corporation (NYSE:DDD) dropped more than 15% to $63.17 per share. In fact, the stock fell to as low as 54.63 per share today after the company cut its earnings estimate for 2013, which ignites concerns of a bubble in the 3D printing industry. The company reduced its earnings guidance in the range of $0.83 to $0.87 per share from $0.93 to $1.03 per share due to higher expenses related to research, manufacturing, and marketing. The company also issued lower-than-expected earnings guidance for 2014 in the range of $0.73 to $0.85 per share compared with the $1.27 earnings per share estimate of Wall Street analysts.
The shares of Myriad Genetics, Inc. (NASDAQ:MYGN) surged more than 16% to as much as $32.60 per share after the company reported second quarter financial results that beat the consensus estimates of Wall Street analysts, and raised its guidance for fiscal 2014. The molecular diagnostic company posted $0.66 earnings per share on $204.1 million revenue compared with the $0.46 earnings per share on $176.02 million consensus estimate. Myriad Genetics raised its 2014 outlook in the range of $2.09 to $2.14 earning per share and between $740 million to $750 million revenue.
On the other hand, the stock price of Cognizant Technology Solutions Corp (NASDAQ:CTSH) fell by more than 4% to $93 per share despite reporting strong quarterly financial results. The company delivered $324.3 million net income or $1.06 earnings per share compared with its $278.8 million net income or $0.92 earnings in the year-ago quarter. Its revenue rose 21% to $2.36 billion.
According to Rahul Bhangare, analyst at William Blair & Co., investors are probably a “bit disappointed and scared” because the company’s growth was slowing. The company projected that its revenue growth will be at least 16.5%, the lowest growth rate since 2009. Last year, its growth rate was 20.4%. Cognizant Technology also approved a 2-for-1 stock split.