As indices continue to slope downward, it is clear that the market is worried about the future state of the economy but not panicked. On Tuesday retail sales were strong enough to momentarily distract investors from a possible fiscal cliff, with TJX (TJX) reporting strong earnings and Dick’s Sporting Goods (DKS) posting results that pushed shares up 5.1%. Home Depot’s (HD) raised outlook led the Dow Jones today and showed continuing signs of improvement in the housing industry. Tech stocks such as Microsoft (MSFT) and Facebook (FB) slid. Microsoft shares slumped after executive Sinofsky resigned. The budget deficit reportedly rose to $120 billion for the month of October, a figure higher than originally expected. Also today several European finance ministers met to discuss the banking sector and the financial crisis, but overall delayed any serious decision-making.
Word on the Street
- Greece is granted more time from the Central Bank on their bailout agreement.
- Tech stocks weak on Tuesday due to Microsoft (MSFT) and Cisco Systems (CSCO).
- AK Steel Holding Corp. (AKS) expects fourth-quarter results will not hit Wall Street estimates, shares drop 15%.
- Bank of New York Mellon Corp. to pay $210 million to resolve Madoff settlement.
- Crude oil futures settle lower after fourth-quarter demand forecasts are trimmed.
- Dick’s Sporting Goods Inc. (DKS) reports strong revenue growth with Q3 earnings rising 21%.
- Goldman Sachs (GS) plans to focus on operational efficiency and technology to maintain profit growth.
- What do Home Depot’s (HD) positive earnings mean for the housing market?
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