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TMCNet:  Coutts-US MIDDAY: STOCKS SLIP IN WAKE OF EMPLOYMENT REPORT

[January 14, 2014]

Coutts-US MIDDAY: STOCKS SLIP IN WAKE OF EMPLOYMENT REPORT

(ENP Newswire Via Acquire Media NewsEdge) ENP Newswire - 14 January 2014 Release date- 13012014 - Wall Street was registering modest losses come midday as investors continued to digest Friday's employment report, with a stronger Yen possibly signalling greater risk aversion on the part of traders in the wake of that report.

That came ahead of a busy week in terms of corporate earnings with some observers warning that improved profit growth is necessary in order for stocks to continue their advance.

One such 'observer' is Goldman Sachs strategist David Kostin, who on Monday reportedly wrote that the current price-to earnings multiple on the S&P 500 'is lofty by almost any measure.' He estimates that the benchmark S&P 500 will close the year at 1,900, for only a 3% gain from current levels.

That was much the conclusion of Moneyweek Editor Merryn Somerset Webb in this weekend's FT Money. On the other hand, Ewen Cameron Watt, the head of the Blackrock research institute, told the FT Money that [US stocks] are perhaps less [overvalued] than it might appear. That is because companies last year issued a lot of investment-grade and high-yield debt which was used to retire equity, thus compensating for the low growth rate in corporate earnings.

A number of US bellweathers will be in focus this week with JPMorgan Chase & Co, Wells Fargo, Bank of America, Goldman Sachs and Citigroup all expected to report their fourth-quarter earnings in the coming days. They are among the 29 constituents on the S&P 500 to release their results this week.

According to a survey of analysts by Bloomberg, earnings for companies on the S&P 500 are expected to have increased by an average 4.9% in the fourth quarter on 1.8% higher sales.

Charles Plosser from the Philadelphia Fed and Richard Fisher from the Dallas Fed will both speak tomorrow. They are both voting members of the Federal Open Market Committee so their comments are likely to carry more weight.

Beam surges on Suntory takeover Beam, the maker of spirits such as Jim Beam and Maker's Mark, advanced after Japanese firm Suntory Holdings said it will buy the company in a $16bn deal. The deal is expected to make Suntory the third-largest manufacturer of distilled drinks in the world. Shares in the US-listed stock jumped by as much as a quarter in morning trade.

Social media group Twitter was also a high riser after Goldman Sachs lifted its price target for the stock from $46 to $65, citing the company's product innovation.

Lululemon Athletica slumped after the sportswear company lowered its profits and sales forecast for the fourth quarter.

Symantec retreated after Morgan Stanley recommended a 'sell' rating for the anti-virus software maker.

MGM Resorts International edged higher as Bank of America upgraded the gaming and hospitality company to 'buy' from 'neutral'.

By sectors the largest falls were being seen in the following industrial groups: Clothing&Accessories (-3.27%), Apparel Retailers (-2.10%) and Recreational products (-1.83%).

Front month West Texas crude futures were lower by 0.77% at $91.97/barrel on the NYMEX after World Powers announced that an interim agreement with Iran will go into effect on January 20th.

Yields on 10-year US Treasuries were down by 3 basis points at 2.83%.

S&P 500 - Risers Beam Inc. Common Stock (BEAM) $83.07 +24.03% Juniper Networks Inc. (JNPR) $25.49 +8.28% Merck & Co. Inc. (MRK) $52.77 +5.79% F5 Networks Inc. (FFIV) $93.02 +5.09% Brown Forman Corp. Class B (BF.B) $78.44 +4.31% Netflix Inc. (NFLX) $344.72 +3.79% Red Hat Inc. (RHT) $58.50 +2.97% Lockheed Martin Corp. (LMT) $153.82 +2.92% Hewlett-Packard Co. (HPQ) $28.46 +2.74% St Jude Medical Inc. (STJ) $67.56 +2.36% S&P 500 - Fallers Intuitive Surgical Inc. (ISRG) $394.60 -6.08% J.C. Penney Co. Inc. (JCP) $6.91 -5.89% Scripps Network Interactive Inc. (SNI) $77.54 -5.45% Kohls Corp. (KSS) $54.25 -4.81% Gap Inc. (GPS) $38.42 -3.56% Symantec Corp. (SYMC) $22.71 -3.24% Celgene Corp. (CELG) $164.96 -2.86% Noble Corporation plc (NE) $35.47 -2.85% Coach Inc. (COH) $54.49 -2.84% VF Corp. (VFC) $60.75 -2.75% Dow Jones I.A - Risers Merck & Co. Inc. (MRK) $52.77 +5.79% Intel Corp. (INTC) $25.78 +0.98% Cisco Systems Inc. (CSCO) $22.41 +0.85% Pfizer Inc. (PFE) $30.92 +0.75% Visa Inc. (V) $222.36 +0.56% Caterpillar Inc. (CAT) $90.57 +0.07% Dow Jones I.A - Fallers Exxon Mobil Corp. (XOM) $99.09 -1.42% Nike Inc. (NKE) $75.84 -1.40% Walt Disney Co. (DIS) $74.35 -1.38% Chevron Corp. (CVX) $119.44 -1.30% Microsoft Corp. (MSFT) $35.62 -1.17% Verizon Communications Inc. (VZ) $47.25 -1.05% McDonald's Corp. (MCD) $94.87 -0.97% International Business Machines Corp. (IBM) $185.46 -0.96% AT&T Inc. (T) $33.35 -0.80% Wal-Mart Stores Inc. (WMT) $77.43 -0.78% Nasdaq 100 - Risers F5 Networks Inc. (FFIV) $93.02 +5.09% Netflix Inc. (NFLX) $344.72 +3.79% Randgold Resources Ltd. Ads (GOLD) $63.19 +2.63% Expeditors International Of Washington Inc. (EXPD) $44.63 +2.34% Seagate Technology Plc (STX) $59.56 +2.00% Apple Inc. (AAPL) $540.63 +1.44% Catamaran Corp (CTRX) $50.70 +1.24% Garmin Ltd. (GRMN) $45.60 +1.22% Liberty Global plc Series A (LBTYA) $90.68 +1.14% Vimpelcom Ltd Ads (VIP) $12.18 +1.08% Nasdaq 100 - Fallers Intuitive Surgical Inc. (ISRG) $394.60 -6.08% Symantec Corp. (SYMC) $22.71 -3.24% Celgene Corp. (CELG) $164.96 -2.86% Staples Inc. (SPLS) $14.61 -2.40% Tractor Supply Company (TSCO) $74.89 -2.21% Biogen Idec Inc. (BIIB) $293.42 -1.97% Twenty-First Century Fox Inc Class A (FOXA) $32.86 -1.79% Akamai Technologies Inc. (AKAM) $47.37 -1.72% Bed Bath & Beyond Inc. (BBBY) $68.75 -1.70% Discovery Communications Inc. Class A (DISCA) $82.60 -1.69% (c) 2014 Electronic News Publishing -

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