By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
Salesforce.com jumps on earnings beat; energy stocks sell
off
NEW YORK (MarketWatch) -- U.S. stocks retreated from record
levels as investors shifted their attention to a batch of
weaker-than-expected economic reports on Thursday.
Consumer prices tumbled in January and inflation turned negative
compared with 12 months ago. Falling inflation, largely due to a
sharp drop in oil prices, increased real wages, however persistent
disinflation could complicate the Federal Reserve's desire to begin
normalizing interest rates sometime this year.
Weekly jobless claims jumped by more than expected, above
300,000 level. Meanwhile durable-goods orders were higher than
expected.
The S&P 500 (SPX) edged lower with nearly all of its 10 main
sectors in negative territory. Energy stocks were selling off in
the wake of a drop in oil prices and weighed on the index. The Dow
Jones Industrial Average (DJI) retreated from the record level it
reached on Wednesday. More than half of its 30 components were
trading lower, with Chevron Corp and Exxon Mobil leading the
losses.
The Nasdaq Composite (RIXF) failed to hold on to earlier modest
gains and moved lower.
Recent record levels on the main indexes prompted some analysts
to ring alarm bells, calling the topping of the market.
Albert Edwards, chief global strategist at Société Générale, and
a notoriously bearish strategist, pointed to a deteriorating
economic picture and a growing disconnect between the stock market
and economic reports, in a note to investors.
"With equity markets galore hitting record highs clearly I must
be missing something big! We are at that stage in the cycle where I
begin to doubt my own sanity. I've been here before though and know
full well how this story ends and it doesn't involve me being
detained in a mental health establishment (usually)," Edwards
wrote.
Read: Stock gains are making us dangerously complacent
(http://www.marketwatch.com/story/stock-market-gains-are-making-us-dangerously-complacent-2015-02-25)
Read: Opinion: Company executives are betting on this bull
market
(http://www.marketwatch.com/story/company-executives-are-betting-on-this-bull-market-2015-02-25)
(http://www.marketwatch.com/story/company-executives-are-betting-on-this-bull-market-2015-02-25)Stocks
in focus: Salesforce.com Inc. (CRM) rose 11%. Late Wednesday, the
software maker posted strong growth in deferred sales, which
measures its future sales from a subscription-based business
model.
Sears Holdings Corp. (SHLD) shares fell sharply after the
retailer posted continuing quarterly sales losses
(http://www.marketwatch.com/story/sears-targets-reit-formation-in-may-or-june-2015-02-26-6485296)
and offered more details on a plan to convert assets into a
real-estate investment trust.
Kohl's (KSS) shares were little changed after the retailer beat
profit and sales estimates and raised its dividend. SeaWorld
Entertainment Inc
(http://www.marketwatch.com/story/what-to-expect-from-seaworlds-earnings-2015-02-25).(SEAS)
fell more than 3%after its loss per share was worse than
expected.
Herbalife Ltd.(HLF), J.C. Penney Co. Inc.(JCP), Gap Inc.(GPS)
and Ross Stores Inc.(ROST) will report after the close.
Read: Herbalife, J.C. Penney, Kohl's earnings in focus
(http://www.marketwatch.com/story/herbalife-jc-penney-kohls-earnings-in-focus-2015-02-26)
(http://www.marketwatch.com/story/herbalife-jc-penney-kohls-earnings-in-focus-2015-02-26)Other
markets:European stocks
(http://www.marketwatch.com/story/european-stocks-rise-as-german-unemployment-falls-2015-02-26)
got a small lift from news of a fall in German unemployment, while
Japanese stocks
(http://www.marketwatch.com/story/japan-stocks-touch-15-year-high-again-2015-02-26)
once again touched a 15-year high. Gold
(http://www.marketwatch.com/story/gold-puts-janet-yellen-in-rearview-mirror-moves-higher-2015-02-26)(GCJ5)
was looking at a second day of gains, up another $8 to $1,209.60 an
ounce. Oil
(http://www.marketwatch.com/story/oil-gives-back-some-gains-as-investors-weigh-up-supply-2015-02-26)
futures (CLJ5) fell.
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