Dow's Tuesday Streak Ends as US Trade Deficit Climbs (DG, AMZN)
The long-running Tuesday winning streak ended for the major indices as central bank plans continued to concern investors. Suggestions were made that the Fed will need to bring the unemployment rate down closer to 7% before scaling back its economic stimulus after it was reported that jobless claims rose slightly last week. It was also shared that the US trade deficit grew to $40.3 billion in April, but this was less than expected. Dollar General (DG) dropped 9.2% after cutting its earnings outlook for the current year. Energy stocks including Valero (VLO) and Tesoro (TSO) did not fare well on Tuesday.Anheuser-Busch InBev (ABV) completed its purchase of Grupo Modelo worth $20.1 billion after almost a year and a half of negotiations.
Word on the Street
- Jobless claims tick higher for another week and spurs more Fed talk.
- The widening trade deficit in April suggests trade will drag on Q2 growth.
- Dollar General (DG) cuts its forecast for the year and warns of sales growth and margins.
- Bank of America (BAC) and Wells Fargo (WFC) to pay over $5 billion on FINRA ruling.
- EU backs down from its prior threat to impose tariffs on Chinese products.
- Amazon (AMZN) Goes on the Offensive Against Netflix (NFLX).
Published on Jun 4, 2013By InvestorGuide Staff