Stocks Opened Mixed Awaiting Yellen Speech

U.S. stocks opened mixed on Wednesday as investors digested earnings reports from Goldman Sachs Group and Citigroup Inc. and were awaiting for a speech by Federal Reserve Chairwoman Janet Yellen in the afternoon. The Dow Jones Industrial Average lately slipped 34.61 points or 0.17%, to 19,792.16. The S&P 500 were off 0.66 points, or 0.03%, to 2,268.55. The Nasdaq Composite added 11.51 points, or 0.21%, to 5,550.24.

Goldman Sachs Group Inc. easily beat analyst expectations, turning in a fourth quarter that was among the strongest on Wall Street. The firm reported a profit of $2.35 billion, or $5.08 a share. That compares with $1.27 a share a year earlier.

Citigroup Inc. said Wednesday it had net income of $3.57 billion, or $1.14 a share, in the fourth quarter, up from $3.34 billion, or $1.02 a share, in the year-earlier period. Revenue fell to $17.0 billion from $18.5 billion a year ago.

Inflation rose in 2016 at the fastest pace in five years, as rising rents and medical care and higher gas prices put a squeeze on consumers. The consumer price index jumped 0.3% in December, the government said Wednesday.

U.S. industrial production rebounded in December due to the biggest jump in utilities since 1989 as temperatures cooled across the country. The Federal Reserve said on Wednesday industrial output rose 0.8 percent last month after a downwardly revised 0.7 percent decline in November.
Crude prices fell Wednesday, weighed down by a strong dollar and concerns that rising U.S. shale production may offset a move by major producers to cut global supply. Brent crude fell 76 cents, or 1.4%, to $54.71 a barrel. West Texas Intermediate futures were down 82 cents, or 1.6%, at $51.66 a barrel.

Target Corp. posted softer-than-expected comparable sales during the holiday season and cut its guidance for the fourth quarter and year. Total sales declined 4.9%. Target now anticipates fourth-quarter comparable sales to decline between 1% and 1.5%, compared with prior guidance of between down 1% and up 1%.For 2016, Target now expects to report adjusted earnings of $5 to $5.10 a share, compared with prior guidance of $5.10 to $5.30 a share.

About the Author

has written 14644 stories on this site.

Copyright © 2012 Nine Stocks