CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

US markets open higher as mixed economic data and earnings results temper sentiment

Article By: ,  Financial Analyst
February 12, 2015 5:26 PM

Market and sector news

US indices opened marginally higher on positive sentiment regarding a Ukraine ceasefire and optimism regarding talks with Greece.

Oil prices also rebounded towards US$56 (£36.45) a barrel, after a two-day decline, as a weakened dollar helped offset supply glut concerns. Reuters reported that volatility in the oil market has jumped to the highest level since the financial crisis, with prices swinging in a wide range this month, following the near 60 per cent crash between June and January.

Economic news

Data released by the US Commerce Department on Thursday, showed consumer spending was up just 0.1 per cent in January, below analyst expectations for a
0.4 per cent gain. Despite petrol prices declining 39.5 per cent since June, consumer spending has been soft in the past two months with households using the
extra income to pay down debt and boost savings, reported Reuters.

The US Labor Department released a mixed weekly report on unemployment with an additional 25,000 Americans filing new unemployment claims last week, higher than market consensus. However, the underlying trend remained consistent with a strengthening labour market.

Eurozone finance ministers failed to reach a deal with Greece on Wednesday, with talks set to resume Monday with little time to waste as Greece's current bailout
programme ends on February 28th.

Company news

Magazine publisher Time reported a bearish sales outlook for 2015, on weaker circulation and forecast three to six percent drop in revenue this year, worse
than the consensus forecast of a two per cent decline.

Cisco reported better than expected results with earning per share at 53 cents for the last quarter, beating estimates by two cents. Revenue also rose above
forecasts, and the company raised its dividend to 21 cents per share, up two cents.

TripAdvisor reported stronger revenue above forecasts thanks to higher advertising and subscription sales. However, quarterly profits were two cents
lower than market consensus at 35 cents per share.

The market reacted positively to news that online travel agency Expedia would buy rival Orbitz Worldwide for $1.38 billion. Orbitz's shares climbed 22.5
percent in premarket trading, while Expedia's shares rose nearly ten per cent to US$85.99. This follows a series of acquisitions by Expedia including Travelocity
in January and the Wotif Group in November 2014.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024