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Market Update

Euro Zone Outlook Lowered, U.S. Investors Worry Stretched Valuations

Author: Nichole Harper
Last Update: 11:28 AM ET November 05 2013

11:25 AM New York U.S. indexes struggled as investors questioned stretched valuations and digested latest string of earnings. U.S. government is set to release economic growth estimate on Thursday. U.S. dollar advanced in six of the last seven sessions after euro zone growth outlook was lowered.

U.S. stocks traded lower as investors focused on the market surge in the year and stretched valuation.

Market indexes in the U.S. have advanced more than 19% in the year so far and valuation are bubbling up to above five-year average.

S&P 500 index decreased 0.2% to 15,606.44 and Nasdaq Composite Index declined 2.23 to 3,934.36.

Euro Zone Growth Estimate Lowered

The dollar advanced against the euro in six of the last seven sessions after the European Commission lowered its growth outlook in the euro zone.

The EC cut its 2014 economic growth estimate in the euro zone to 1.1% from 1.2% and lifted unemployment rate to 12.2% from 12.1% in the year.

The commission left its estimate of 0.4% in 2013 in the euro zone unchanged and forecasted unemployment rate at 12.2%.

The euro edged lower after the report and market indexes across the euro zone declined.

U.S. Stocks in Review

AOL Inc (AOL) increased 6% after the online media company and news aggregator reported third-quarter sales and adjusted income ahead of expectations.

CVS Caremark (CVS) increased 2% after the drug store chain reported revenues and earnings ahead of expectations and lifted its full-year outlook.

Delphi Automotive (DLPH) declined 4% after the auto-parts maker narrowed its earnings outlook between $4.25 and $4.35 a share.

LeapFrog (LF) dropped 9% after the maker of children focused toys estimated annual earnings between 36 cents and 46 cents, lower than its previous estimate of 57 cents a share.

Michael Kors Holdings Ltd (KORS) increased 6% after the luxury consumer goods maker estimated full-year earnings between $2.77 and $2.81 a share.

Tesla Motors (TSLA) edged higher and extended 2-day gain to 10% after dropping 17% in October ahead of its earnings release after the market close.

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