On Wednesday, the markets shed their winning gains to close almost flat as cautious investors booked profits after downbeat comments from Federal Reserve chief Ben Bernanke. Although the Dow gained slightly recording new highs, other benchmarks including S&P 500 and the tech-laden Nasdaq fell slightly.
The Dow Jones Industrial Average ended the day up 6.74 points at 12,239.8. The Dow closed higher for the eighth consecutive session. The S&P 500 lost 0.28% to close at 1,320.88. The tech-laden Nasdaq fell 7.98 points to end the day at 2,789.07. On the New York Stock Exchange, volumes were on the lighter side with only 959 million shares being traded. Market breadth was negative as falling shares slightly outpaced rising ones by a two to one ratio.
Coming to international news, there were no major international releases that could sway the markets on either side. NYSE Euronext (NYSE:NYX) rocketed up 14% after the exchange operator reported it was in advanced talks with Deutsche Boerse of the Germany to create one of the world’s biggest exchange groups. On to other news, London Stock Exchange and Toronto based TMX group agreed to merge to create a trans-Atlantic group, bolstering trading technology partnerships.
In economic news, addressing the House Budget committee, Federal Reserve Chairman Ben Bernanke said that although the economy is strengthening it may take several years for the unemployment rate to return to normalcy. He also said he believes the labor market will remain weak but inflation will continue to be under control. The Labor Department had reported last week that unemployment dropped to 9% in January.
On to news of earnings and estimates, share prices of Coca Cola Co (NYSE:KO) increased to close at $63.15, after its income increased more than three times on a quarterly basis helped by strong sales and acquisition of a bottling plant in North America. Cisco Systems (NASDAQ:CSCO) announced its second quarter results, which surpassed expectations, but revealed margins had fallen significantly. Share prices of the company slid 1.3% to $21.76. Share prices of Whole Foods Market Inc (NASDAQ:WFMI) gained 1.59% to close at $53.75 after the company reported its first quarter earnings results. The company also raised its same store sales growth and its outlook for the year ahead. Defense contractor Northrop Grumman Corp’s (NYSE:NOC) share prices increased 1.1% to $71.87 after it reported improved earnings results in all of its business lines. Take-Two Interactive Software (NASDAQ:TTWO) reported its quarterly earnings which beat the Street’s expectations. The videogame maker’s share prices increased 1.51% to close at $14.76.
On a sectoral basis, energy and material stock prices pulled down the indexes. Shares of Chevron (NYSE:CVX) were the biggest laggard of the Dow. The stock ended at $96.24 falling 1.53%. Shares of several energy companies including the likes of Exxon Mobil Corporation (NYSE:XOM), BP plc (NYSE:BP) and ConocoPhillips (NYSE:COP) fell by 0.52%, 1.16% and 1.86% to close at $82.55, $45.83 and $70.66 respectively. Alcoa’s (NYSE:AA) share price slid 1.38% to close at $17.16 making it the second biggest laggard of the Dow.
ALCOA INC (AA): Free Stock Analysis Report
BP PLC (BP): Free Stock Analysis Report
CONOCOPHILLIPS (COP): Free Stock Analysis Report
CISCO SYSTEMS (CSCO): Free Stock Analysis Report
CHEVRON CORP (CVX): Free Stock Analysis Report
COCA COLA CO (KO): Free Stock Analysis Report
NORTHROP GRUMMN (NOC): Free Stock Analysis Report
NYSE EURONEXT (NYX): Free Stock Analysis Report
TAKE-TWO INTER (TTWO): Free Stock Analysis Report
WHOLE FOODS MKT (WFMI): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
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