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Market Update

U.S. Stocks Trend Lower Despite Stronger Earnings

Author: Nichole Harper
Last Update: 11:37 AM ET February 06 2013

11:30 AM New York – U.S. stocks traded sideways after investors digested better than expected earnings from Ralph Lauren, Time Warner and Walt Disney. The euro edged lower ahead of the ECB meeting tomorrow and Spanish bond auction. Oil and copper traded mixed.[/R

Stocks in New York traded lackluster in the absence of any new economic data released today and Disney reported better than expected earnings.

Deal making was in focus again today. For the second time this week multi-billion dollar deal was announced and this time it was a cross border transaction.

Liberty Global agreed to pay $16 billion, much of it funded with the help of debt, for the second largest UK based cable operator Virgin Media.

The deal is predicated on the synergies between the TV contents controlled by the Liberty and the nearly 5 million subscribers for the U.K. based Virgin.

Earnings were in focus as the releases reach peak in the U.S. and Europe.

Ralph Lauren surged 7% after it reported rising sales in the holiday period and Time Warner added 4.5% after it reported higher than expected earnings. Walt Disney also reported earnings that were ahead of expectations.

In Europe, Arcelor Mittal reported widening loss on lower steel sales and the highway contractor Vinci SA estimated flat sales in the current year.

In Tokyo, the Nikkei surged 3.8% after the Bank of Japan Governor Masaaki Shirakawa announced his departure earlier than scheduled April.

Stocks in Review

Aflac (AFL) decreased 4% after the specialty insurer reported revenues that missed expectations and earnings that were ahead of estimates.

Chipotle Mexican Grill (CMG) soared 4% after the restaurant operator said fourth quarter net income increased 7% and the company blamed rising food prices to shrink margins.

Biogen Idec (BIIB) added 3% and the biotech company agreed to acquire multiple sclerosis treatment Tysabri for $3.25 billion from Ireland based Elan in cash and contingent future revenues.

C.H. Robinson (CHRW) plunged 10% after the transportation and logistics company reported earnings that were below analysts’ expectations.

Shutterfly (SFLY) soared 19% after the digital photo service company estimated higher than expected 2013 revenues and earnings and reported better than expected earnings in the fourth quarter.

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