December 14, 2017
Friday, January 23, 2015

Wall Street falls on miners, UPS; indexes up for week

US stocks fell modestly today, pressured by underwhelming corporate news including guidance from economic activity bellwether UPS and as materials stocks fell after bearish notes.

Major indexes, however, rose for the first week in four, boosted in part by the European Central Bank's decision on Thursday to further stimulate euro zone growth.

Materials shares weighed on the S&P 500, falling 1.6 percent after Goldman Sachs cut its price target on various miners including a 42 percent downward revision to Freeport McMoRan stock to $18. Goldman separately slashed forecasts on commodity prices including aluminum, copper and nickel.

UPS was among the largest drags on the S&P 500 after a gloomy outlook, alongside Exxon Mobil On Friday Credit Suisse cut Exxon to "underperform."

Declines were capped by bullish investor sentiment after yesterday's move from the European Central Bank, which detailed a bigger-than-expected bond-buying program to lift the region's sagging economy and fight deflation.

The Dow Jones industrial average fell 141.38 points, or 0.79 percent, to 17,672.6, the S&P 500 lost 11.33 points, or 0.55 percent, to 2,051.82 and the Nasdaq Composite added 7.48 points, or 0.16 percent, to 4,757.88.

For the week, the Dow rose 0.9 percent, the S&P gained 1.6 percent and the Nasdaq added 2.7 percent.

UPS gave a fourth-quarter earnings outlook that was below expectations, citing a disappointing performance in US domestic ground shipments. Shares slumped 9.9 percent to $102.93.

With 18 percent of S&P 500 companies having reported, 72.2 percent have topped earnings expectations, while 54.4 percent have beaten revenue forecasts, according to Thomson Reuters data. That compares with the long-term average of 63 percent for earnings and 61 percent for revenue.

Starbucks rose 6.6 percent to $88.22 a day after the coffee chain reported same-store sales growth that was better than expected in its Americas region.

GoPro shares jumped 8.5 percent to $52.48 after a partnership with the US National Hockey League paved the way for players to wear GoPro cameras during league games.

Declining issues outnumbered advancing ones on the NYSE by 1,678 to 1,368, for a 1.23-to-1 ratio on the downside; on the Nasdaq, 1,514 issues fell and 1,207 advanced for a 1.25-to-1 ratio favoring decliners.

The benchmark S&P 500 index was posting 73 new 52-week highs and 6 new lows; the Nasdaq Composite was recording 91 new highs and 56 new lows.

About 6.4 billion shares changed hands on U.S. exchanges, compared to the daily average so far this month of 7.3 billion according to BATS Global Markets data.

Greek shares led euro zone stock markets higher, boosted before Sunday's pivotal elections by the European Central Bank's decision to buy government bonds.

European shares were set for their biggest weekly gain in over three years, as investors cheered the ECB's quantitative easing programme to battle deflation.

The bond-buying scheme helped Greece's ATG share index rise 5.2 percent, with Attica Bank, National Bank of Greece and Piraeus Bank up between 11.6 percent and 8.8 percent.

Traders also saw a greater chance that anti-bailout party Syriza, currently leading in the polls, would reach a compromise with Greece's official lenders if they came into power.

Greece will be eligible for the ECB bond-buying programme but subject to stricter conditions because of its European Union/International Monetary Fund bailout programme.

The FTSEurofirst 300 index of top European shares was up 1.6 percent at 1,476.29 points, posting a new seven-year high. The index is up 4.8 percent this week, set for its strongest week since December 2011.

Cyclical stocks such as carmakers, seen as the big winners from the euro's drop after the ECB's announcement, featured among the biggest gainers, with BMW up 4.2 percent to hit a record high and PSA Peugeot Citroen up 2.6 percent.

Japan's Nikkei share average rose to a near one-month high as investors' risk appetite was buoyed after the European Central Bank unveiled a bond-buying scheme to help revive the region's economy and stave off deflation.

The Nikkei ended 1.1 percent higher at 17,511.75 points, the highest closing level since Dec. 29. For the week, the Nikkei rose 3.8 percent. The broader Topix gained 1.0 percent to 1,403.22 and the JPX-Nikkei Index 400 added 0.9 percent to 12,749.04.

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