There has been a lot of news released today for investors to digest. Early indications point to a lower open.
On the earnings front, Cisco beat estimates but provided lower guidance. MasterCard and Visa saw profits decline but topped estimates, while State Street announced a dividend cut.
The retail sector announced their January sales numbers. Wal-Mart, the world's largest retailer, reported a better-than-expected 2.1% increase in same-store sales last month, helped by strength in both grocery and health products. Target fell 3.3%in January, although the results were much better than analysts had expected. Meanwhile, Costco said its monthly sales fell 2%.
Employment news remains poor, as initial claims for the week ended January 31st increased 35,000 to 626,000. That was above the consensus estimate of 580,000 and it was also the highest level of initial claims since 1982. The 4-week moving average for claims rose to 582,250 from 543,250. Separately, nonfarm business productivity rose a larger than expected annualized rate of 3.2% in the fourth quarter.
In other news, the Bank of England cut its key lending rate 50 basis points, as expected, to 1.00%. The ECB held rates steady at 2.00%, which was also expected.
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