The stock markets in the United States ended the trading session lower as investors’ optimism regarding the economic growth was minimized by the weak earnings guidance issued by The Procter & Gamble Company (NYSE:PG), the largest manufacturer of consumer products worldwide.
Commenting on the movement of the stock markets today, Phil Orlando, market strategist at Federated Investors Inc told Bloomberg, “We’re taking a breather here. Washington has essentially gotten out of the way. Yellen has told us monetary policy will be a continuation of what we’ve seen, and we have a sense of what’s going to happen with the taper.”
When portfolio managers get started in the business, their investing style often changes over the years. However, when Will Nasgovitz bought his first stock when he was 12, he was already zeroing in on value investing, and he didn't even know it. Nasgovitz has been with mutual fund manager Heartland Advisors for almost 20 years, Read More
Yesterday, Federal Reserve chairperson Janet Yellen emphasized that the economic growth strengthened and there is a wide improvement in the labor market. She also reiterated the plan of the Fed to continue tapering its bond-buying program in measured steps.
Today, James Bullard, president of the Federal Bank of Saint Louis said the economy is expected to grow 3% or higher. He said, “Right now I think we’re on track” to continue tapering asset purchases and “will be able to move out of the program later this year.”
- Dow Jones Industrial Average (DJIA)- 15,963.26 (-0.19%)
- S&P 500- 1,819.26 (-0.03%)
- NASDAQ- 4,201.29 (+0.24%)
- Russell 2000- 1,132.60 (+0.30%)
- EURO STOXX 50 Price EUR- 3,094.06 (+0.56%)
- FTSE 100 Index- 6,675.03 (+0.04%)
- Deutsche Borse AG German Stock Index DAX- 9,540.00 (+0.65%)
Asia Pacific Markets
- Nikkei 225- 14,800.06 (+0.56%)
- Hong Kong Hang Seng Index- 21,285.79 (+1.47%)
- Shanghai Shenzhen CSI 300 Index- 2,291.25 (+0.25%)
Stocks in Focus
The stock price of The Procter & Gamble Company (NYSE:PG) dropped 1.71% to $77.49 per share after the company lowered its earnings and sales forecast for the fiscal 2014 to reflect the impact of higher-than expected foreign currency exchange headwinds of around 9%.
The world’s largest consumer products manufacturer estimated that its core earnings will grow in the range of 3% to 5%, lower than previous earnings growth estimates of 5% to 7%. Procter and Gamble expected its net revenue to increase by 0% to 2% lower than its previous estimate of 1% to 2%.
The shares of Amazon.com, Inc. (NASDAQ:AMZN) declined 3.47% to $349.25 per share after Eric Sheridan, analysts at UBS AG (NYSE:UBS) lowered his rating for the stock from Buy to Neutral and reduced the price target from $450 to $375 per share. According to the analyst, the e-commerce giant might experience difficulty in increasing the fee for Amazon Prime subscription service.
The stock price of Tripadvisor Inc (NASDAQ:TRIP) climbed 7.21% to $90.27 per share after the company posted better-than-expected fourth quarter revenue. The company reported $0.21 earnings per share, in line with the consensus estimates, but its $212.7 million revenue was higher than the $205.6 million projected by analysts.