Markets Start Strong, then Fade
Originally published: 04.01.14 by Margot Crabtree
Wall Street strode ahead to start our session with positive economic indicators, but as our trading session ended March 14, 2014, geopolitical tensions teamed with weakness in the Chinese economy to unsettle investors. The Conference Board said that its index of leading economic indicators moved upward at a modest pace in January, pointing to an expanding economy in the first half of 2014. Consumer confidence and manufacturing dropped sharply in February, but the Commerce Department reported that new home purchases grew by 9.6 percent in January, the strongest pace since July 2008.
To begin March, jobs news fooled those who thought that bad weather in January would keep employment numbers low. The Labor Department reported that employers added 175,000 jobs in February, up from 129,000 created the month before. Economists polled by FactSet expected 145,000 jobs. Both December and January jobs numbers were revised upward by 25,000 combined. The unemployment rate was steady at 6.6 percent. Saber-rattling ended the session despite more positive news in the fourth quarter gross domestic product (GDP) numbers and tame inflation rates.
A services industry report showed that fourth quarter GDP might be moved upward. JPMorgan and the firm Macroeconomic Advisers said that their quarterly survey indicates a much stronger rate of consumer spending — at a rate of 3.4 percent — than the government’s pace of 2.6 percent. Political unrest in Crimea pressured markets at the session’s end. “It
The HVACR Business Stock Index slid 31.18 points, or 2.41 percent, to close at 1260.69. Declining issues outpaced advancing issues by a 20-to-11 count.
Dover continued its tumble from last month, and lost 6.26 points, or 7.27 percent. Dover completed the spin-off of specialty components unit Knowles Corp. Under the terms of the split, Dover shareholders received one share of Knowles Corp. stock for every two shares of Dover stock they held. The change was concluded February 28, 2014. Dover closed at 79.80, and was the top dollar loser.
Omega Flex rose 2.60 points, or 12.84 percent, following release of its fourth quarter results. Omega Flex reported net income of $3.2 million, or $0.32 per share, compared to net income of $774,000, or $0.08 per share, last year. Sales rose to $21.9 million, from last year’s $18.4 million. Omega Flex ended at 22.85, and was the top percentage gainer.
Shares of Hudson fell after swinging to a loss for the period ended December 31, 2013. For the fourth quarter, HDSN reported a net loss of $1.5 million, or $0.06 per share, versus net income of $3 million, or $0.12 per share, in the year-ago period. Revenues dropped slightly, to $4.8 million from $4.9 million last year. Zacks Equity Research cut its rating on Hudson to “underperform” from “neutral,” with a $3 price target. Hudson slipped 0.55 points, or 16.82 percent, and was the top percentage loser. Hudson closed at 2.72.
Margot Crabtree is president of Trade Trends, Inc., a financial data services provider. She has been offering market analysis with customized stock indices and financial commentaries since 1999. For additional information, visit www.tradetrendsonline.com.
Articles by Margot Crabtree
Specter of Higher Interest Rates Sends Markets South
The HVACR Business Stock Index inched down just 2.66 points, or 0.20 percent. Declining issues topped advancing issues by a 19-to-14 count.
Oct. 2014 — Markets Robust But Fade at End Due to Interest Rate Worries
The HVACR Business Stock Index rose 6.16 points, or 0.49 percent, and closed at 1272.51. Advancing issues handily beat declining issues at a 20-to-11 count.
Sep. 2014 — Techs End Strong, Other Markets Falter
The HVACR Business Stock Index slid 53.88 points, or 4.08 percent, and closed at 1266.34. Declining issues flattened advancing issues by a 26-to-5 count.
Aug. 2014 — Global Issues Roll Wall Street
The HVACR Business Stock Index slipped into the red, off 5.62 points, or 0.42 percent, and closed at 1320.23. Declining issues topped advancing is- sues at a 19-to-12 count.
Markets End in Positive Terrain as Mergers Overpower Iraq Fears
The HVACR Business Stock Index rose 41.06 points, or 3.20 percent, and closed at 1325.85. Advancing issues overpowered declining issues at a 28-to- 3 count.