The benchmark stock index of US, The Standard and Poor’s 500 Index has experienced decline for the 2nd straight day. Incidentally, investors are currently waiting for the beginning of the corporate earnings session. The S&P actually went down by 0.4% to get to 1455.39. On the other hand, the Dow Jones Industrial Average also suffered decline of 66.43 points. It is now at 13317.86. According to statistics, the total trading volume in the S&P companies was 4.1% more than what it generally stays during the 30-day average.
According to the Chief Equity Strategist of Wells Fargo Advantage Funds, John Manley, investors are currently waiting for the earnings to come out. He added that the valuations are far from being excessive. Despite of this fact, the market had a strong rally and that too very quickly. Now, the market is kind of in an adjusting mode.
Incidentally, the US stocks experienced its biggest gain in the last 13 months as the lawmakers of the country passed a bill thereby averting the tax increases and spending cuts, also known as the US fiscal cliff. However the 4th quarter profits from the different S&P companies increased by around 2.9%, marking the 2nd slowest quarterly growth since 2009.
The owner of KFC fast-food chains and the Taco Bell, Yum! Brands experienced a decline of 4.1% in the share prices. According to the statistics, the same store sales for the company in China got a lower level than the initial forecasts. The largest video game retailer in the world, GameStop Corp., also declined by 5.4% as the sales forecast was less than expectations. The renowned plane maker of the world, Boeing Co. also went down by 3.5%, after being downgraded at the BB&T Capital Markets.
In a quest to revive the retailer, the Chairman of Sears Holding, Edward Lampert will take over as the new CEO of the company. The billionaire hedge fund has retreated by 4.9% today and each share costs $40.80 currently. The auto-parts retailer AutoZone Inc. also got down by 2.1% to finish at $348.58 per share. Morgan Stanley recently cut the company to underweight as they don’t see high potential for its stocks in 2013. The insurance company Genworth Financial also suffered a drop of 3.7% as the Credit Suisse Group downgraded it on the risks from the long term coverage.