Finances

Urban Outfitters, Inc. (URBN), a purveyor of clothing and accessories, reported its quarterly earnings on November 19.

The company reported record quarterly sales of $692.89 million. This represents an increase of 13.6% from the same period last year when the company reported net sales of $609.95 million.

Urban Outfitters reported net income of $59.52 million for the quarter. This represents an increase of 17.4% from the same period last year when it reported net income of $50.68 million.

"Favorable customer response to our product offerings and better marketing resulted in record third quarter sales and significant margin improvement," said CEO Richard A Hayne. "We see this trend continuing into the fourth quarter which bodes well for our Holiday season."

Urban Outfitters, Inc. operates 429 retail stores under the Urban Outfitters, Anthropologie, Free People, Terrain and BHLDN brand names in the US, Canada and Europe. Their main target market is men and women ages 18 to 30.

Urban Outfitters, Inc. (URBN) shares ended the week at $37.35.

Hewlett-Packard Reports Net Loss

Hewlett-Packard Company (HPQ), a merchant of technology products and services, reported its quarterly earnings on November 20.

The company reported revenue of $29.67 billion for the quarter. This represents a decrease of 3.3% from the same period last year when the company reported revenue of $30.69 billion.

The company reported a net loss of $8.86 billion for the quarter. This is a significant change from the same period last year when the company reported net income of $1.59 billion.

"HP is still in the early stages of a multi-year turnaround and we're making decent progress despite the headwinds," said Meg Whitman, HP President and CEO. "During the quarter we took important steps to focus on strategic priorities, manage costs, drive needed organizational change and improve the balance sheet. We continue to deliver on what we say we will do."

Hewlett-Packard now employs 349,600 people worldwide. The company was founded in 1939 in Palo Alto, California. Its first product was an audio oscillator, which was an electronic test instrument used by sound engineers. One of HP's first customers was Walt Disney Studios, which purchased eight oscillators to develop and test an innovative sound system for the movie Fantasia.

Hewlett-Packard Company (HPQ) shares ended the week at $11.94.

Best Buy Company Not Currently the Best Buy

Best Buy Company, Inc. (BBY), an electronics and entertainment retailer, announced its quarterly earnings on November 20.

The company reported quarterly revenue of $10.75 billion. This represents a decrease of 3.6% from the same period last year when the company reported revenue of $11.15 billion.

Best Buy reported a net loss of $10 million for the quarter. This is a significant change from the same period last year when the company reported net income of $156 million.

"In line with trends experienced over the last three years, Best Buy's third quarter financial performance was clearly unsatisfactory," said Hubert Joly, Best Buy President and CEO. "On November 13, we shared our candid assessment of Best Buy's situation and unveiled Renew Blue, a set of priorities to begin re-invigorating the company's performance and rejuvenating Best Buy. The results we are reporting today only strengthen our sense of urgency and purpose."

Best Buy was founded in 1966 and is headquartered in Richfield, Minnesota. The company was formerly known as Sound of Music, Inc. and changed its name to Best Buy Co., Inc. in 1983.

Best Buy Co., Inc. shares ended the week at $11.55.

The Dow started the week at 12,788 and closed at 12,837. The S&P 500 started the week at 1,388 and ended at 1,391. The NASDAQ started the week at 2,917 and finished at 2,927.

On November 20 Ben Bernanke stated, "Cooperation and creativity to deliver fiscal clarity – in particular, a plan for resolving the nation's long-term budgetary issues without harming the recovery – could help make the new year a very good one for the American economy. Failure to avoid the so-called fiscal cliff would pose a substantial threat to the recovery."

Economic data suggests that the economy is improving. Housing starts rose 3.6% to an 894,000 annual rate (the fastest since July 2008) and initial jobless claims fell last week by 41,000 to 410,000 in the week ending November 17. As a result, U.S. 10-year and 30-year note yields both rose this week to reach 1.67% and 2.82%, respectively. According to annual figures compiled by Bloomberg, treasuries have returned 2.7% this year compared with 9.6% in 2011 and stocks have returned 11% this year compared with a loss of 6.9% in 2011.

However, even with these signs of improvement, the market is slow to react as it waits for the result of budget talks in Washington. "The market reaction is muted, primarily because while the data is showing us some signs of strength, it's kind of taking a back seat to what's going on in Washington," said Thomas Simons, a government-debt economist in New York at Jefferies Group, Inc. "We'll see nothing major until there's an announcement from Washington," said Justin Lederer, an interest-rate strategist at Cantor Fitzgerald LP in New York.

President Obama met with House Speaker John Boehner (R-OH) and three other congressional leaders on Friday. Reports indicate that all parties emerged from the meeting positive that a bill to address the country's fiscal situation is possible before the end of the year. "There's some optimism they will come to some agreement to address the fiscal cliff," said Larry Milstein, managing director in New York of government-debt trading at R.W. Pressprich & Co.

There is a lull in the action this week, however, as Congress is out of session for the Thanksgiving Holiday recess. President Obama and congressional leaders will likely meet again next week. White House and House Republican aides are already beginning to craft the agenda to be considered at that meeting. Until then, the market will hold its collective breath.

The 10-year Treasury note yield finished the week at 1.69% while the 30-year Treasury note yield finished the week at 2.83%.

Freddie Mac released the results of its weekly Primary Mortgage Market Survey on November 15. The results show fixed mortgage rates reaching all-time record lows. The previous record low for the 30-year fixed rate mortgage was set on October 4 when it averaged 3.36%. The record low for the 15-year fixed rate mortgage was set the week of October 18 when it averaged 2.66%.

The 30-year fixed rate mortgage averaged 3.34% this week. This represents a decrease from last week when it averaged 3.40%. Last year at this time, the 30-year fixed rate mortgage averaged 4.00%.

The 15-year fixed rate mortgage averaged 2.65% this week. This represents a decrease from last week when it averaged 2.69%. One year ago at this time, the 15-year fixed rate mortgage averaged 3.31%.

Frank Nothaft, Vice President and Chief Economist at Freddie Mac, stated, "Fixed mortgage rates eased this week to record lows on indicators of higher consumer confidence and lower wholesale prices. Consumer sentiment rose in November to the highest reading since July 2007 according to the University of Michigan. Meanwhile, the core producer price index fell 0.2% in October."

The money market fund finished this week at 0.5%. The 1-year CD finished at 0.7%.