S&P 500 2,441.20 17.28
Gold$1,224.80 $5.30
Nasdaq 6,253.81 61.92
Crude Oil $60,490.00      $-1570.00
Market Update

Dollar Jumps to 12-Year High, U.S. Indexes Erase Gains


Author: Nichole Harper
ticker.com
Last Update: 2:06 PM ET March 10 2015

2:05 PM New York U.S. market indexes declined for the second day in a row and dollar jumped to a 12-year high against the euro. Investors fear that the Federal Reserve is closer to lifting rates from record low near zero after five years as the economic data show improving conditions.

Stocks on Wall Street extended losses and wiped out gains of the year in many indexes.

The dollar jumped to a 12-year high against the euro and investors sold stocks on the worries that the Federal Reserve is closer to lifting rates.

The euro declined to $1.0735 against a dollar and the currency is nearing parity with the U.S. dollar.

January wholesale sales declined 3.1% to $433.7 billion from the revised December sales and dropped 1% from a year ago month, the Department of Commerce said today.

On Wall Street trading, Tollbooth Strategy Index declined 1.2% or 128.86 to 10,548.68.

S&P 500 index slumped 29.26 or 1.4% to 2,050.26 and the Nasdaq Composite Index dropped 75.46 or 1.5% to 4,866.68.

Crude oil eased 92 cents a barrel to $49.08 and gold declined $4.60 to $1,161.90 an ounce.

U.S. Movers

Barnes & Noble, Inc (BKS) plunged 5.3% or $1.32 to $23.54 after the bookseller said net sales in the fourth-quarter ending in January fell 1.5% to $1.96 billion form a year ago period. Comparable store sales in the quarter increased 1.7%.

Net income in the quarter soared 14.2% to $72.2 million or 93 cents per diluted share compared to $63.2 million or 86 cents from the same quarter last year.

The retailer forecasted retail comparable bookstore sales for the year to decline in the low-single digits and EBITDA to report losses in the NOOK segment.

Urban Outfitters, Inc (URBN) surged 9.1% or $3.58 to $43.09 after the specialty retailer reported net sales in the fourth-quarter ending in January soared 12% to $1.01 million form a year ago period.

Comparable retail segment net sales, including direct-to-consumer channel jumped 6% and comparable retail segment net sales surged 18% at Free People, 6% at the Anthropologie Group and 4% at Urban Outfitters.

Net income in the quarter plunged 9.5% to $80.3 million or 60 cents per diluted share compared to $88.7 million or 59 cents from the same quarter last year.

European Markets

In London trading, FTSE 100 index declined 1.5% or 101.08 to 6,775.39 and in Frankfurt the DAX index dropped 1.2% or 139.04 to 11,443.07.

In Paris, CAC 40 index slumped 1.2% or 59.79 to 4,877.41.

Audi AG climbed 4.6% to 739.65 after the Germany-based luxury vehicles maker reported revenues in the year ending in December jumped 7.8% to 53.79 billion from 49.88 billion a year ago period.

Net profit in the year soared 10.4% from a year ago to 4.37 billion compared to 3.96 billion and diluted earnings per share advanced to 101.55 from 92.13.

In the current year, the company plans to add worldwide more than 6,000 new employees and intends to deliver more premium cars in 2015.

Hannover Rueck SE jumped 4.5% to 91.03 after the Germany-based re-insurance company said total revenues in the year ending in December increased 1.9% to 13.90 billion from 13.64 billion a year ago period.

Net profit in the year climbed 10.1% from a year ago to 985.6 million compared to 895.5 million and diluted earnings per share jumped to 8.17 from 7.43.

For the fiscal 2015, the group forecasted net income of about 875 million and proposed to pay dividend of 3 per share plus 1.25 special dividend for 2014.

Prudential Plc dropped 2.6% to 1,620.55 pence after the U.K.-based financial services provider reported total revenues in the year ending in December surged 14.8% to 60.13 million from 52.37 million a year ago period.

Net profit in the year surged 64.4% form a year ago to 2.22 billion compared to 1.35 billion and diluted earnings per share climbed to 86.8 pence from 52.7 pence in the same period a year ago.

Asian Markets

Economy in Japan grew at a slower pace than initially estimated in the last quarter of 2014. For the entire year, after the revision, the economy contracted for the first time in three years.

Market sentiment in Tokyo and in Asia was weaker after the U.S. dollar extended gains across all major currencies.

The yen weakened to a low not last seen since July 20, 2007 on the resurgent dollar and weaker than expected economic expansion in the final quarter of 2014.

Japan revised lower its estimate of gross domestic product in December quarter to annual rate of 1.5% from the previous estimate of 2.2% increase.

On a quarterly basis, growth was revised downward to 0.4% from the previous estimate of 0.6%.

With the revision, the annual GDP in 2014 turned to a small contraction of 0.03% from the previous estimate of a slight expansion of 0.04%.

The Nikkei 225 Stock Average slipped 125.44 or 0.7% to 18,665.11 and the broader Topix index fell 7.01 to 1,524.75.

  1  2
Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc