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U.S. Stocks Fall Amid Europe Concern as Oracle Tumbles

*from www.bloomberg.com, Mar. 21, 2013 (To view original article click here.)

Take Away #1: U.S. stocks fell as concern about Europe’s debt crisis overshadowed better-than-estimated American Economic Data.

Key Facts and Figures:

  • The S&P 500 fell 0.4% to 1,552.49 at 12:32 p.m. in New York.
  • The Dow Jones Industrial Average lost 49.31 points, or 0.3% to 14,462.42.
  • Trading in the S&P 500 stocks was 7.2% lower than the 30-day average during this time of day.
  • The S&P 500 climbed yesterday to within seven points of its record reached in 2007 while the Dow hit an intraday all-time high.

Take Away #2: Equities slid today as a purchasing manager’s index (PMI) for Germany’s manufacturing industry unexpectedly fell.

Key Facts and Figures:

  • A measure of the euro-area services and manufacturing output contracted more than forecast.
  • Europe is in desperate need for growth, but today’s bad PMI numbers are signaling a worsening of growth prospects.

Take Away #3: In addition to poor PMI numbers, the Cyprus situation and increasing political risk could renew euro stress.

Key Facts and Figures:

  • The European Central bank said it may cut Cypriot banks off form emergency funds after March 25 as Cyprus’ president Nicos Anastasiades, scrambled to forge agreement on a plan to stave off financial collapse.

Take Away #4: In the U.S. home sales rose in February but applications for jobless benefits increased last week.

Key Facts and Figures:

  • Sales of previously owned homes in the U.S. rose in February to its highest level in more than three years.
  • Purchases increased 0.8% to a 4.98 million annualized rate, the most since Nov. 2009.
  • Applications for jobless benefits increased by 2,000 to 336,000 in the week ended March 16.
  • The Conference Board’s gauge of the outlook for the next three to six months climbed 0.5% for the second straight month.

Take Away #5: Seven out of the 10 S&P 500 groups fell and the Chicago Board options Exchange Volatility Index climbed.

Key Facts and Figures:

  • Seven out of the 10 S&P 500 groups fell as technology and raw-materials companies dropped the most, sinking at least 0.8%.
  • The VIX climbed 3.5% to 13.11.
  • The VIX is down 27% this year and reached its lowest level since 2007 last week.
  • Oracle tumbled 8.3% to $32.81, reporting sales and profit that missed analysts’ estimates.
  • Cisco declined 3.6% to $20.89 while Juniper Networks lost 2.6% to $18.81.
  • Guess slid 5.3% to $25.52 and forecast annual revenue of $2.6 billion to $2.64 billion, less than analysts’ estimates of $2.74 billion.
  • Yahoo rose 3.2% to $22.80, with shares being upgraded to outperform at Oppenheimer.

Take Away #6: The Housing rebounding and the S&P 500 has rallied to near record levels.

Key Facts and Figures:

  • KB Home, the best performing U.S. homebuilder stock this year, rallied 2% to $22, its highest level since Sept. 2008.
  • The S&P 500 (SPX) is approaching a record almost 5 ½ years after peaking and two years after most stocks in the gauge fully recovered from the worst bear market since the 1830s.
  • The index has climbed 130% since March 2009, adding $10 trillion to the value of American equity as it erased losses from the credit crisis.
  • The majority of companies surpassed their previous highs by April 2011.
  • The S&P 500 Equal Weighted Index increased 192% from the bottom.

Take Away #7: Unlike past bull markets, where a single industry dominated, all groups have improved in this rally as the U.S. economy recovers.

Key Facts and Figures:

  • The breadth of the rebound can be seen in the S&P 500’s weightings, where none of the 10 industry measures represent more than 18% of the index.
  • In 200, technology companies made up 35% of the gauge, and in 2006, financial stocks accounted for 22%.

*To view original article from www.bloomberg.com click here.

Filed in: Latest, Markets

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