August 14, 2013: U.S. equity markets opened lower this morning even after the eurozone reported positive GDP growth in the second quarter, bringing an official end to the continent’s recession. Germany’s GDP rose 0.7%
The U.S. dollar index is trading lower today, now down 0.09% at 81.6910. The GSCI commodity index is up 0.4% at 641.23. WTI crude oil closed up fractionally today, at $106.85 a barrel after the EIA’s weekly inventory report. Brent crude trades up 0.3% at $110.15 a barrel. Natural gas is up 1.7% today at about $3.34 per million BTUs. Gold for December delivery settled up 1% today at $1,333.40 an ounce.
The unofficial closing bells put the DJIA down nearly 117 points to 15,337.35 (-0.74%), the NASDAQ fell about 15 points (-0.41%) to 3,669.27, and the S&P 500 fell -0.52% or about 9 points to 1,685.37.
- Delta Air Lines Inc. (NYSE: DAL) cut to ‘neutral’ at J.P. Morgan;
- Hovnanian Enterprises Inc. (NYSE: HOV) raised to ‘buy’ with a price target of $81 at Goldman Sachs;
- Transocean Ltd. (NYSE: RIG) cut to ‘neutral’ at ISI Group;
- GlaxoSmithKline PLC (NYSE: GSK) raised to ‘neutral’ at J.P. Morgan; and
- Parexel International Corp. (NASDAQ: PRXL) cut to ‘underperform’ at Sterne Agee.
Earnings reports since markets closed last night resulted in some prices move today:
- The ExOne Co. (NASDAQ: XONE) is down 10.5% at $67.76 after weak earnings;
- JDS Uniphase Corp. (NASDAQ: JDSU) is down 3.6% at $14.28;
- Real Goods Solar Inc. (NASDAQ: RSOL) is down 9.6% at $2.16 on a weak outlook;
- SeaWorld Entertainment Inc. (NASDAQ: SEAS) is down 3.6% at $35.02;
- Deere & Co. (NYSE: DE) is down 1.8% at $82.40 on another weak outlook;
- JinkoSolar Holding Co. Ltd. (NASDAQ: JKS) is up 4.1% at $14.12 after a strong earnings release; and
- Macy’s Inc. (NYSE: M) is down 4.8% at $46.21 after missing estimates and lowering its outlook.
Before markets open tomorrow morning we are scheduled to hear earnings results from Agilent Technologies Inc. (NYSE: A), Cisco Systems Inc. (NASDAQ: CSCO), NetApp Inc. (NASDAQ: NTAP), Renren Inc. (NASDAQ: RENN), Silver Wheaton Corp. (NYSE: SLW), Kohl’s Corp. (NYSE: KSS), Nordstrom Inc. (NYSE: JWN), Pan American Silver Corp. (NASDAQ: PAAS), ReneSola Ltd. (NYSE: SOL), and Wal-Mart Stores Inc. (NYSE: WMT)
Some standouts among heavily traded stocks today include:
Brocade Communications Systems Inc. (NASDAQ: BRCD) is up 15.1% at $7.95 after posting a new 52-week high of $8.04 earlier today. The networking company posted big earnings last night.
Silver Spring Networks Inc. (NYSE: SSNI) is down 28.6% at $22.61. The smart grid platform company lost a bid for a $2 billion smart grid project in the U.K.
Stay tuned for Thursday. St. Louis Fed President James Bullard is giving a speech. We have noted the following events on the schedule (all times Eastern):
- 8:30 a.m. – Consumer price index
- 8:30 a.m. – New claims for unemployment benefits
- 8:30 a.m. – Empire State manufacturing survey
- 9:00 a.m. – Treasury International Capital (TIPS)
- 9:15 a.m. – Industrial production
- 10:00 a.m. – Housing market index
- 10:00 a.m. – Philadelphia Fed survey
- 10:30 a.m. – EIA weekly natural gas storage report
- 4:30 p.m. – Fed balance sheet and money supply