STOCKS weekly review: 10.06 -- 14.06.2013 (USA)

U.S. stocks fell for the week, sending benchmark indexes lower for the third time in four weeks, as investors speculated whether the Federal Reserve will signal a reduction of stimulus efforts after its next meeting.

The S&P 500 lost 1% to 1,626.73 for the week. The benchmark equity gauge declined for four out of the five days, trimming its gains for the year to 14%. The Dow Jones Industrial Average decreased 177.94 points, or 1.2%, to 15,070.18.

The Fed will hold its two-day policy meeting June 18 and 19, with Chairman Ben S. Bernanke scheduled to speak after the central bank’s decision. Investors are watching for signs on whether the Federal Open Market Committee will trim its pace of $85 billion in monthly asset purchases and maintain record-low interest rates.

Equities fell during the week as the International Monetary Fund cut its outlook for U.S. growth in 2014 to 2.7% from 3%. Stocks also slid as Bank of Japan Governor Haruhiko Kuroda said he sees no need to expand monetary stimulus immediately.

U.S. economic data showed initial jobless claims declined in the previous week and sales at retailers rose in May. Consumer confidence in June eased from a six-year high and U.S. industrial production was unchanged in May, reports showed.

The KBW Bank Index (BKX) tumbled 2.3% for the week, as 22 of its 24 lenders declined. Citigroup Inc., the third-largest U.S. bank by assets, sank 4.6% to $49.22.

American Express slipped 6.5%, its biggest decline in more than a year, to $72.97. Barclays lowered its rating on the biggest credit-card issuer by purchases to equal-weight from overweight, saying the stock’s valuation could fall on “soft” revenue trends that could crimp earnings growth.

DuPont Co. fell 5%. The country’s largest chemicals producer said its per-share operating profit will drop about 10% in the first half from a year earlier as wetter, cooler weather hurts its agriculture and nutrition and health units.

Energy stocks tumbled 1.7% and technology companies erased 1.5% as a group. Microsoft Corp., the world’s largest software maker, lost 3.6%.

Lululemon (LULU) plunged 19% after saying Day will step down once a replacement is found. Sales have tripled in the past three years and the shares had risen more than fivefold since June 27, 2008, the day before she became CEO of the Canadian yogawear retailer. Day’s reputation took a hit earlier this year when the Vancouver-based company was forced to recall pants that became transparent when wearers bent over.

Gannett surged 20%. The McLean, Virginia-based company agreed to buy Belo for about $1.5 billion. The acquisition will make Gannett the fourth-largest owner of network affiliates, almost doubling the number of TV stations to 43 from 23 and reducing its dependence on its shrinking newspaper business. Belo jumped 21%.

Safeway Inc. rose 7.3% after agreeing to sell its Canadian stores to Empire Co.’s Sobeys Inc. unit for about C$5.8 billion ($5.7 billion). The second-largest U.S. grocery-store chain will use proceeds from the sale to pay down $2 billion in debt and buy back stock.

Groupon Inc. (GRPN) rose 10%. Deutsche Bank AG upgraded the stock to buy from hold, citing optimism that increasing use of the company’s mobile application can boost sales.

Link>>