Wall Street, On the Week: the DJIA shed 0.1%, the S&P 500 gained 0.2%, and …

Wall Street, On the Week: the DJIA shed 0.1%, the SP 500 gained 0.2%, and the NAS finished down 0.2%.

CVX, NEM, SBUX, RH, VZ

US Stocks ended the Superstorm shortened trading week with a selloff Friday, the major indexes erased early gains sparked by a stronger-than-expected payrolls report.

Energy stocks were a drag on the market after Chevron Corp NYSE:CVX, the 2nd-largest US Oil company, posted a profit that missed expectations. The stock fell 2.9% to 108.26 and was a big drag on the DJIA.

The USDs strength also hurt energy and materials shares.

All 10 SP 500 sectors succumbed and finished lower on the day.

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The trading week was shortened by a historic 2-day market closure Monday and Tuesday, caused by Superstorm Sandy’s cruel sweep through the US Northeast.

From New York City’s Staten Island to the popular beach towns of the Jersey Shore, rescuers and officials continued on Friday to face widespread destruction wrought by Sandy, as well as a rising death toll and frustration over delayed relief and fuel shortages.

Government data showed employers added 171,000 people to their payrolls last month, topping expectations. The jobless rate ticked up to 7.9% as more workers restarted job searches, a positive signal for the economy.

The jobs report is the last one before the US presidential election Tuesday, and it could improve President Obama’s odds at the ballot box, though polls continue to indicate a close race between Obama and Republican candidate Mitt Romney.

Chevron also was the 2nd largest weight on the SP 500. The SP energy index, down 1.7%, was one of the worst performers among the 10 major SP 500 sector indexes. Strength in the USD index was cited for a decline in Crude Oil prices, which hurt energy shares as well.

The SP materials index fell 2%, pulled lower by a slide of 8.4% in Newmont Mining Corp NYSE:NEM to $48.74 after its profits missed expectations.

According to Thomson Reuters data through Friday, of the 378 companies in the SP 500 that have reported earnings so far, 61.9% have topped expectations, in line with the 62% quarterly average since Y 1994.

The revenue picture lesser, with only 38.2% of companies having posted revenue above expectations, well below the 62% quarterly average since Y 2002 and the 55% average over the past 4 Quarters.

The Dow Jones industrial average dropped 139.46 points, or 1.05 percent, to 13,093.16. The Standard Poor’s 500 Index lost 13.39 points, or 0.94 percent, to 1,414.20. The Nasdaq Composite Index declined 37.93 points, or 1.26 percent, to close at 2,982.13.

The SP 500 index is down 3.5% from a recent peak on 14 September, and is below its 50-Day MA, amid investor caution ahead of the election and tough government budget negotiations at the end of the year.

Starbucks Corp NASDAQ:SBUX jumped 9.1% to $50.84 after raising its profit forecast for the fiscal year as sales in the United States, its top market, beat expectations, providing the company optimism that has eluded much of the US restaurant industry in recent months.

Restoration Hardware NYSE:RH shares soared 29.6% to 31.10 in their market debut after the upscale furniture retaiter’s initial public offering was priced at the high end of the expected range. The shares hit an intraday high at 33.15, + 38.1% from the IPO priced at 24.

Verizon NYSE:VZ said it expected fourth-quarter results to be hurt significantly due to Superstorm Sandy, but could not estimate the effect at this time. The stock slid 1.4% to 44.52.

Volume was modest, with about 6.35-B shares traded on the New York Stock Exchange, AMEX, and NAS slightly below the daily average of 6.5-B for the year so far.

Declining stocks outnumbered advancing ones on the NYSE by a ratio of 7 to 3, and on the NAS about 3 stocks fell for each 1 that rose.


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Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

 

 

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