Us Markets Erase Week's Gains
US stocks have wilted this morning as the S&P erased its weekly gain, new earning results from Amazon.com to Visa disappointed, and while tensions escalated over Ukraine.
Friday, April 25, 2014 - 00:00
Amazon.com dropped 9.1% after predicting an operating loss in the current quarter. Visa sank 3.8% after revenue missed analyst targets. Ford Motor Co. slipped 3.1% after posting earnings that trailed analysts’ estimates. Microsoft Corp. climbed 0.5% as profit exceeded projections. As of 12:30 PM in New York, the S&P 500 has dropped 0.7% to 1,865.09, while the Dow decreased 133.94 points, or 0.8%, to 16,381.27 (Visa is the biggest member of the Dow).
Investors seem to be turning attention to geopolitical developments today after US Secretary of State John Kerry warned Russia President Vladimir Putin that he’s running out of time to ease tension in Ukraine. Kerry said it will be “…an expensive mistake” if Putin does not meet commitments made at a meeting in Geneva a week ago. Russia yesterday began new military exercises on Ukraine’s border. In response to this, the Group of Seven nations are preparing new measures against Russia, German Chancellor Angela Merkel said, after the US accused Russia of trying to impose its will at “…the barrel of a gun and force of a mob.” The Russian central bank unexpectedly increased a key interest rates today, after S&P downgraded the country’s credit rating one notch above junk status. Russia’s benchmark equities index fell for a fifth straight day.
US consumer sentiment rose in April to a nine-month high as views on current and near-term conditions surged, a survey released today showed. The headline number was the highest reading since July 2013. The survey's one-year inflation expectation was unchanged from the March reading at 3.2% and a tick above the 3.1% in the preliminary April reading. The survey's five-to-10-year inflation outlook was also unchanged from last month at 2.9% after edging up to 3.0% in the preliminary report.
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