Major Indices Flat on Poor Retail Sales (BAC, GT)
Major indices closed unchanged today as perceived stability in Europe was offset by poor retail performance. US retail sales increased by 0.4 percent in January, but this was well short of economists' projection of 0.9 percent. In most positive news, Standard & Poor have revised the state of California's outlook to positive from stable. Bank of America (BAC) was downgraded by Citi (C) to neutral, explaining that the bank's strong performance has been due to market conditions rather than fundamentals.Goodyear (GT) meanwhile reported an $18 million profit in Q4, contrasted against a $177 million net loss the year before.
Word on the Street
- Retail sales rose in January, but at less than half the expected rate.
- Greek bailout negotiations continue in Europe.
- United Continental is going to be engaging in profit sharing after a strong quarter.
- There has been strong pushback against the Volcker Rule.
- Standard & Poor's Ratings Services upgraded California's credit worthiness.
- Though Bank of America (BAC) no longer faces a capitalization crises, analysts still revised their outlook downwards.
- Goodyear (GT) saw a strong Q4.
Published on Feb 14, 2012By InvestorGuide Staff