Markets End Week On Positive Note As Investors Are Encouraged By Central Bank Developments In Europe, China
U.S. stocks ended the week higher as investors were encouraged by announcements in Europe and China.
The European Central Bank outlined plans to expand its asset purchase programs by "altering the size, pace and composition of our purchases" if inflation shows signs that it could stay at low levels for too long of a time period.
"We will continue to meet our responsibility," ECB Chief Mario Draghi said. "We will do what we must to raise inflation and inflation expectations as fast as possible."
China lowered its benchmark interest rate by 40 basis points to 5.6 percent while reducing its one-year deposit rate by 25 basis points to 2.75 percent.
The Dow gained 0.51 percent, closing at 17,810.06.
The S&P 500 gained 0.52 percent, closing at 2,063.50.
The Nasdaq gained 0.24 percent, closing at 4,712.97.
Gold gained 0.81 percent, trading at $1,200.60.
Oil gained 1.13 percent, trading at $76.71 a barrel.
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News Of Note
November Kansas City Fed Manufacturing Survey rose to +7 (versus expectations of +6) from +4 in October.
Brazil may announce a new finance minister on Wednesday, according to government sources.
Equities News Of Note
Foot Locker, Inc. (NYSE: FL) reported its third quarter results Friday morning. The company earned $0.83 per share, beating the consensus estimate of $0.79. Revenue of $1.73 billion beat the consensus estimate of $1.72 billion. Shares hit new 52-week highs of $59.19 before turning negative and closing the day at $54.55, down 4.30 percent.
Ann Inc (NYSE: ANN) reported its third-quarter results. The company earned $0.72 per share, beating the consensus estimate of $0.70. Revenue of $646.80 million missed the consensus estimate of $651.93 million. Shares lost 0.29 percent, closing at $38.23.
Analysts at Nomura initiated coverage of Amazon.com, Inc. (NASDAQ: AMZN) with a Buy rating and $410 price target. Shares gained 0.63 percent, closing at $332.63.
Analysts at Stifel Nicolaus initiated coverage of Caterpillar Inc. (NYSE: CAT) with a Buy rating. Shares gained 4.27 percent, closing at $106.45.
Analysts at Imperial Capital maintained an Outperform rating on Intel Corporation (NASDAQ: INTC) with a price target raised to $40 from a previous $37. Shares hit new 52-week highs of $36.46 before turning negative and closing the day at $35.59, down 1.0 percent.
The Financial Times reported that the European Union prepared a draft motion calling for Google Inc's (NASDAQ: GOOG) breakup. A final draft is expected to come next week with a vote on Thursday. Shares gained 0.50 percent, closing at $537.50.
Dow Chemical Co (NYSE: DOW) reached a deal with activist investor Dan Loeb and his Third Point hedge fund, and will add four new directors to the company's board, including two proposed by Loeb. Shares gained 2.64 percent, closing at $52.84.
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Visa Inc (NYSE: V) disclosed it could pay $10 billion or more if it plans to acquire Visa Europe. Shares hit new 52-week highs of $256.56 before closing the day at $254.22, up 1.01 percent.
Alibaba Group Holding Ltd (NYSE: BABA) officially priced its $8 billion six-part offering, which is expected to close on November 28. Shares gained 0.83 percent, closing at $110.73.
Sothebys (NYSE: BID) announced Thursday evening that its CEO William Ruprecht is stepping down. Shares gained 6.88 percent, closing at $41.93.
Hertz Global Holdings, Inc. (NYSE: HTZ) announced Thursday evening that John Tague has been appointed as its new CEO. Shares gained 4.48 percent, closing at $23.77.
According to the New York Post, Amazon plans to launch an ad-supported video service without the need to be a Prime subscriber.
Sysco Corporation (NYSE: SYY) is looking to divest some of its assets to a Blackstone-owned food company as part of a process to gain regulatory approval for its acquisition of U.S. Foods. Shares of Sysco gained 1.51 percent, closing at $39.70.
Quote Of The Day
"I will make it easier and faster for high-skilled immigrants, graduates and entrepreneurs to stay and contribute to our economy, as so many business leaders have proposed." – President Barack Obama outlining new immigration policies.
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