US FINANCIAL MARKET
- Stocks opened slightly higher on Tuesday after Federal Reserve Chair Janet Yellen reinforced the Fed’s plan to scale back its market-friendly stimulus while noting the health of the labor market needed to improve.
- Alibaba Group is set to launch a U.S. e-commerce website through its subsidiaries Vendio and Auctiva, which are in turn part of the Alibaba.com business group. The 11 Main (11main.com) site is an online shopping business that offers “interesting, quality products” from “hand-picked shop owners” such as fashion, tech and jewelry goods.
- CVS Caremark posted higher quarterly profit as it processed more prescriptions and benefited from the introduction of new generic drugs, helping it offset a drop in store visits by customers. Revenue in the quarter rose 4.6 %to $32.83 billion, beating analyst forecasts of $32.67 billion. CVS earned $1.27 billion from continuing operations in the fourth quarter, up from $1.13 billion a year earlier.
- Sprint reported a smaller fourth-quarter loss than estimated and an unexpected increase in wireless subscribers, sending its shares up 7 %in early trade. The company added 58,000 net subscribers in the quarter compared with the average expectation for a loss of 83,500 subscribers from six analysts. Sprint said its loss narrowed to $1.04 billion from $1.32 billion in the year-ago quarter. Revenue rose to $9.14 billion from $9.01 billion.
- A 787 that rolled out of Boeing’s factory in Everett, Washington, in January was hailed as an important milestone: the first Dreamliner built at a rate of 10 a month, the fastest for a twin-aisle jet.
- But some employees who work on the aircraft are calling into question Boeing’s ability to sustain that pace. They say the two factories that assemble the 787 are struggling to cope with a ramp-up in production that started late last year, and a huge backlog of unfinished work threatens to slow output.
- General Motors and its Chinese joint ventures sold 348,061 vehicles in China in January, a 12 %increase from a year earlier. In 2013, GM sold about 3.16 million vehicles in China, an 11.4 %increase from a year earlier.
- Charter Communications is planning to announce 13 nominees to Time Warner Cable’s board as soon as Tuesday, setting the stage for a proxy fight with the larger cable operator.
- Tesla Motors, the youngest and smallest publicly traded U.S. automaker, wants its Model S to qualify for China’s electric car subsidies that the government said will remain more valuable than initially planned. China confirmed yesterday that electric-vehicle incentives will be higher in 2014 than previously announced as part of efforts to curb the nation’s worsening air pollution.
- Tesla’s Model S will be priced from 734,000 yuan ($121,000) in China when deliveries begin, the company has said. That’s about 50 %higher than the U.S. price to cover shipping costs, taxes and import duties that run as much as 25 percent, Musk said.
US ECONOMY & POLITICS
- Prices for single-family homes rose in 73 %of U.S. cities in the fourth quarter, fewer than in the previous three months. The median transaction price for an existing home climbed from a year earlier in 119 of 164 metropolitan areas measured, the National Association of Realtors said in a report today. In the third quarter, 88 %of markets had increases. The nationwide median price for an existing single-family home rose 10.1 %in the fourth quarter from a year earlier to $196,900.
- The best-performing areas were Atlanta and Sacramento, California, where prices jumped 33 %and 30 percent, respectively. They were followed by Las Vegas and Riverside, California, with more than 26 %gains.
- The areas with the biggest declines included Elmira, New York, where prices fell 12 %from a year earlier. Following was the Champaign-Urbana area of Illinois, with an 11 %drop.
- The House will vote tomorrow on raising the U.S. debt limit without conditions, Speaker John Boehner said today, giving in to Democratic insistence on a so-called clean measure.
- Federal Reserve Chair Janet Yellen acknowledged the labor market recovery was “far from complete.”
- Assessing the U.S. economy’s underlying economic trends has become more difficult because of record low temperatures and heavy snowfall across much of the nation, Federal Reserve Bank of Philadelphia President Charles Plosser said on Tuesday.
- Employers with fewer than 100 workers won’t have to provide health insurance until 2016 under Obamacare, as the administration said it would again delay a key requirement of the health law. Larger firms have to cover at least 70 %of the workforce starting next year.
EUROPE & WORLD
- Consumer sentiment in Canada fell to the lowest since May on speculation the nation’s economic outlook is worsening.
- L’Oreal, the world’s largest cosmetics maker, agreed to buy back 8 %of its stock from Nestle for 6 billion euros ($8.2 billion).
TODAY in HISTORY
- Lateran Treaty was signed, with Italy recognizing the independence and sovereignty of Vatican City (1929)
- Japan became the fourth country to put a satellite into orbit (1970)
- Ayatollah Khomeini’s followers seized control of the Iran government (1979)
- South African resistance leader, Nelson Mandela, was released from prison after more than 27 years (1990)
Sources: Reuters, Yahoo Finance, Google Finance, Bloomberg, CNN Money.
This information has been prepared from sources believed to be reliable, but no representation is being made as to its accuracy or completeness. The information provided should be used only as general information and is not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in the material may not develop as predicted. All indices, such as the S & P 500, are unmanaged and may not be invested into directly.