For Immediate Release
Chicago, IL – March 16, 2015 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Alcoa Inc. (AA-Free Report), RTI International Metals, Inc. (RTI-Free Report), Simon Property Group Inc. (SPG-Free Report), Macerich Co. (MAC-Free Report) and Apple Inc. (AAPL-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Friday’s Analyst Blog:
Dow 30 Stock Roundup
The Dow experienced a volatile week, rising and falling on an equal number of days. The blue-chip index ended in the green on Monday, boosted by mergers and acquisition activity, and gains in industrial and technology stocks.
The Dow slumped on Tuesday as rate hike fears strengthened the U.S. dollar to a multi-year high against major currencies including the euro. The blue-chip index extended these losses into Wednesday as investors remained concerned about the possibility of a mid-year interest rate hike.
The Dow rebounded on Thursday as mixed economic data reduced fears about a sooner-than-expected rate hike. The Dow has gained 0.2% during the first four trading days.
Last Week’s Performance
Last Friday, the Dow declined more than 1.5% as upbeat nonfarm payroll data reignited fears about a sooner-than-expected interest rate hike. The U.S. economy created a total of 295,000 jobs in February, beating the consensus estimate of 235,000. Moreover, the unemployment rate went down to six and a half year low figure of 5.5% in February from 5.7% the month before, which is also down from 6.7% in Feb 2014.
Strong jobs data had a negative impact on investor sentiment as it raised the possibility of a sooner-than-expected rate hike. Analysts speculated that the Fed may opt for an earlier-than-estimated rate hike in this favorable environment. Meanwhile, oil prices dropped again as strong U.S. job data boosted the U.S. dollar.
Benchmarks finished in the red for the second consecutive week. The blue-chip index lost 1.5% over last week. Stocks had started the previous week on a positive mood as the Nasdaq closed above the 5000 mark for the first time since Mar 2000. Encouraging deal news also boosted markets.
Markets were also aided later by the European Central Bank (ECB) after it announced a 1 trillion euro ($1.1 trillion) bond-buying program. Moreover, interest cuts in China also had positive impact on markets.
However, dismal monthly car sales and disappointing economic data including the ISM Manufacturing Index, personal consumption expenditure, construction spending, initial claims and factory orders dented investor sentiment. Separately, Israeli Prime Minister Benjamin Netanyahu’s warning over the attempts of a White House-Iran’s nuclear deal also impacted sentiment.
The Dow This Week
Markets rebounded to the green on Monday, the sixth anniversary of the bull market. Stocks received a boost from mergers and acquisition activity, and gains in industrial and technology stocks. Investors also found a buying opportunity after the sell-off last week.
The day was devoid of any major events, except for the news of a couple of merger and acquisition activity. Alcoa Inc. (AA-Free Report) created a stir in the trading activity after announcing that it is acquiring titanium supplier RTI International Metals, Inc. (RTI-Free Report) in a transaction valued at $1.5 billion.
Separately, in a deal that would combine two of the biggest mall operators in the US, Simon Property Group Inc. (SPG-Free Report) offered to buy competitor The Macerich Co. (MAC-Free Report) for $14.39 billion. The blue-chip index gained 0.8%.
The Dow slumped 1.9% on Tuesday as rate hike fears strengthened the U.S. dollar to a multi-year high against major currencies including the euro. The euro plunged to its lowest level in almost 12 years. Meanwhile, the European Central Bank’s (ECB) quantitative easing program that got underway on Monday also weighed on the euro.
Last week’s strong U.S. job numbers injected fears among investors that the Fed may raise interest rate sooner-than-expected. Additionally, strengthening U.S. dollar also weighed on oil prices. The blue-chip index witnessed its biggest one-day loss in five months in terms of points.
Stocks extended Tuesday’s losses to end in negative territory on Wednesday as investors remained concerned about the possibility of a mid-year interest rate hike. Speculations are steadily rising that the Fed will consider a rate hike in June banking on improving labor market conditions. Analysts are also expecting that the Fed will start the rate hike process by dropping the ‘patient’ phrase after the upcoming Federal Open Market Committee (FOMC) meeting.
Moreover, U.S. dollar continued to gain strength against euro and its other rivals. The euro declined further to trade below $1.06 on Wednesday, reaching its lowest level since 2003. Continuous decline in euro raised the possibility that the two currencies are moving toward parity in the not-too-distant future. The Dow lost nearly 0.2%.
The Dow jumped 1.5% on Thursday as mixed economic data reduced fears about sooner-than-expected rate hike. Retail sales declined 0.6% in February compared to the consensus estimate of 0.3% rise. February’s decline was preceded by 0.8% drop in January and 0.9% decline in December. This is the first time since 2012 that retail sales have declined for three-straight months.
Separately, the U.S. Department of Labor reported that initial claims declined in the week ending Mar 7 after hitting 10-month high last week. Mixed economic data put the brakes on dollar rally yesterday. Meanwhile, financial stocks posted solid gains after Fed’s stress tests. However, decline in energy shares following oil price slump limited some of yesterday’s gains.
Components Moving the Index
Apple Inc. (AAPL-Free Report) will join the exclusive Dow Jones Industrial Average later this month. The addition of Apple will not affect the value of the Dow, which has increased 1.8% this year, and has hit over 90 record closes in the past 2 years. Apple will join the Dow at the end of trading on Mar 18.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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ALCOA INC (AA): Free Stock Analysis Report
RTI INTL METALS (RTI): Free Stock Analysis Report
SIMON PROPERTY (SPG): Free Stock Analysis Report
MACERICH CO (MAC): Free Stock Analysis Report
APPLE INC (AAPL): Free Stock Analysis Report
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