Market Wrap-up for Feb. 13 - The Week in Review

We started off the week with a few notable earnings and disappointing monthly sales from McDonald’s (MCD ).

• Hasbro (HAS ) – Reported higher results and beat estimates. Boosted its dividend 7%.
• Loews Corporation (L ) – Posted lower earnings and revenue, which missed estimates.

The markets dipped due to continued fear regarding Greece’s debt negotiations. However, losses were partially offset by rising oil prices. Crude oil rose 2.2% to $52.86 per barrel and Brent oil rose 0.9% to $58.34 per barrel.

After hours, apparel retailer The Gap (GPS ) reported higher results and an improved outlook.

The Dow dropped 0.5%, the S&P fell 0.4% and the Nasdaq dipped 0.4%.

Before Tuesday’s opening bell, there were a bunch of big-name earnings.

• Reynolds American (RAI) – Net income fell, while revenue increased. Results matched analysts’ estimates.
• CVS Health (CVS ) – Reported higher results that beat estimates.
• Coca-Cola (KO ) – Posted lower results but beat estimates.
• Molson Coors (TAP ) – Revenue and earnings declined and missed estimates.

In other news, tech giant Apple (AAPL ) reached the $700 billion market cap for the first time. Following its impressive trading day, Apple announced its plan to join First Solar (FSLR) in a major energy project.

The Dow rose 0.8%, the S&P jumped 1.1% and the Nasdaq increased 1.3%.

We began Wednesday morning with several notable earnings.

• Time Warner (TWX) – Reported lower earnings and revenue. Beat estimates.
• PepsiCo (PEP ) – Posted lower results, but beat estimates.
• Lorillard (LO) – Reported higher revenue and profits. Met analysts’ estimates.

Despite encouraging earnings reports, fears regarding the Greece negotiations continued on Wednesday. Another decline in oil prices also brought down shares of energy stocks.

After hours, Cisco Systems (CSCO ) posted impressive results for the quarter. We also saw better than expected results from Whole Foods Market (WFM).

The Dow dipped 0.04%, the S&P remained flat and the Nasdaq increased 0.3%.

We began Thursday with some notable earnings and economic reports. The U.S. Department of Commerce reported a 0.8% decline in retail sales, despite lower gas prices. Jobless claims for the week increased by 25,000 from the prior week.

As far as earnings, we saw some disappointing results from many big-name dividend stocks.

• Apache (APA ) – Reported higher earnings, but lower revenue. Beat EPS estimates, but missed on revenue estimates.
• Advance Auto Parts (AAP ) – Reported higher results, but missed estimates.
• Coca-Cola Enterprises (CCE) – Posted lower results and missed expectations.

Despite disappointments in some earnings reports and economic data, the markets ended in positive territory following an agreement between Russia and Ukraine, and a rally in oil prices. In M&A news, Expedia (EXPE) announced that it has agreed to acquire Orbitz in a $1.6 billion deal.

After hours, Kraft Foods (KRFT) reported better than expected fourth quarter results.

The Dow rose 0.6%, the S&P increased 1% and the Nasdaq increased 1.2%.

On Friday morning, there were a couple of earnings reports for dividend investors to take note of.

• JM Smucker (SJM ) – Posted lower results, but beat estimates.
• V.F. Corp (VFC ) – Revenue increased, but profits fell. Matched estimates.

Earnings season will be winding down next week, but we will see a few big reports including Wal-Mart (WMT ), Duke Energy (DUK ) and Waste Management (WM ). The spotlight will be on the FOMC Minutes, which will be released on Wednesday afternoon. Remember, the markets will be closed on Monday for Presidents Day.

Have a great weekend!

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