U.S. Stocks Retreat Amid Europe Worries
Wednesday, January 04, 2022 1:08 PM

U.S. stocks retreated after yesterday’s sharp gains as factory orders rose less than expected and worries about the euro zone crisis reappeared.

S&P 500 Index lost 0.09 percent, to trade at 1,275.90. The Dow Jones Industrial Average edged 0.01 percent lower to trade at 12,395.79. The Nasdaq Composite Index fell 0.11 percent.

On the economic front, U.S. factory orders increased for the first time in three months, but below economists’ expectations. The Census Bureau reported that new orders for manufactured goods rose 1.8 percent in November to $459.2 billion after a revised 0.2 percent drop in October, while expectations were for a 1.9 percent rise.

Meanwhile, automakers posted strong vehicle sales growth for December. GM’s vehicle sales rose 4.5 percent to 234,351 in December. Ford’s vehicles sales jumped 10 percent to 210,140. Chrysler’s sales surged 37 percent to 138,019 cars and light trucks.

On the corporate front, Yahoo! Inc. (NASDAQ: YHOO) fell 1.90 percent to $15.95. The Internet giant named PayPal's President Scott Thompson as its new chief executive. The new CEO will assume his role on January 9. The company's announcement comes on the heels of its aggressive effort to hire a new CEO after its efforts with private equity investments firms failed to yield any tangible results. The current announcement of Thomson's appointment might effectively seal any thought of the company being sold completely at least for the time being.

TiVo Inc. (NASDAQ:TIVO) jumped 9.8 percent to $9.79. The company will receive a minimum of $215 million and additional monthly licensing fees from AT&T Inc. (NYSE: T) over settlement of a patent infringement dispute related to digital video recording technology.

Progress Software Corp. (NASDAQ: PRGS) fell 12.3 percent to $17.35 after the business software maker issued first-quarter earnings outlook below Wall Street projections and year-ago levels. The company expects non-GAAP earnings per share of about 25 cents on revenue of $120 million. Analysts expect earnings per share of 38 cents on revenue of $132 million.

Acme Packet Inc. (NASDAQ: APKT) slumped 20.1 percent after the networking equipment maker cut its fourth-quarter forecast. The company now sees non-GAAP earnings of 26 to 28 cents a share on revenue between $84 million and $86 million. Analysts expect earnings of 37 cents on revenue of $93.4 million.

The euro weakened 0.96 percent to 1.2924 against the dollar while the greenback edged down 0.05 percent against the yen.

Crude oil futures fell 0.59 percent to $102.35/barrel, while gold futures gained 0.67 percent.

The European markets pulled back from its recent rally as worries over liquidity among euro-zone banks weighed on the sentiment.  U.K. FTSE 100 closed 0.58 percent lower, German DAX30 lost 0.87 percent and French CAC 40 closed 1.51 percent lower