Fed Comments and Missed Earnings End Market Rally (DELL, CSCO)
Stocks turned downward on Thursday on rumors that the Fed may be easing up on their bond purchases as soon as this summer. Even though the Dow hit an intraday high of 15,302.49, all three major indices edged lower by the close of the bell. Housing starts in the US reportedly fell 16.5% in April and jobless claims jumped higher last week. Several big companies tumbled after releasing earnings today, including Wal-Mart (WMT), Dell (DELL) and J.C.Penney (JCP). Cisco Systems (CSCO) on the other hand surged 13% after reporting profit that was better than expected for the quarter. On Thursday the dollar fell against most global currencies including the euro.
Word on the Street
- Dell (DELL) stumbles by 79% and misses estimates for the third quarter.
- Talks of the Fed reducing the rate of bond purchases escalate.
- J.C. Penney (JCP) posts a large drop in Q1 sales but matches forecasts.
- A study says the US lost $192.6 billion last year due to foreclosures.
- Electronic Arts (EA) Soars on Star Wars.
Published on May 16, 2013By InvestorGuide Staff