Finances

Macy's, Inc. (M), a department store retailer, reported its fourth quarter and annual results on February 26.

Macy's reported fourth quarter sales of $9.35 billion. This represents an increase of 7.2% from the same period last year when the company reported sales of $8.72 billion. In addition, the company reported annual sales of $27.68 billion, which represents an increase of 4.9% from last year when the company reported annual sales of $26.41 billion.

The company reported operating income of $1.39 billion for the fourth quarter. This represents an increase from the same period last year when the company reported operating income of $1.28 billion. The company reported annual operating income of $2.66 billion. This represents an increase from last year when the company reported annual operating income of $2.41 billion.

"2012 was another great year in our company's evolving story of growth. The numbers reflect our success in pursuing the right strategies, and executing them with conviction in every part of the business with a talented team we consider to be the best in retailing," said Terry J. Lundgren, Chairman, President and CEO of Macy's, Inc. "We again added more than $1 billion in top-line sales growth in 2012. Comp sales rose by 3.7% for the year, on top of increases of 5.3% in 2011 and 4.6% in 2010. Earnings per share grew by double-digits for the fourth consecutive year. Operating cash flow continued to be strong, and we used excess cash to repurchase shares and double the dividend."

Macy's is one of the nation's premiere retailers, operating 840 stores in 45 states including the District of Columbia.

Macy's Inc. (M) shares ended the week at $40.66.

AMC Premieres Strong 2012 Fourth Quarter and Annual Results

AMC Networks, Inc. (AMCX), a cable television network, reported its quarterly and annual earnings on February 26.

AMC reported fourth quarter revenue of $367 million. This represents an increase of 8.2% from the same period last year when the company reported revenue of $339 million. In addition, the company reported annual revenue of $1.35 billion, which represents an increase of 13.9% from last year when the company reported annual revenue of $1.19 billion.

The company reported net income of $15 million for the fourth quarter. This represents a decrease from the same period last year when the company reported net income of $29 million. The company reported annual net income of $136 million. This represents an increase from last year when the company reported annual net income of $126 million.

President and CEO Josh Sapan said, "2012 was a successful year for AMC Networks. Our continued strategy of investing in original programming while developing strong brands with consumers resulted in record ratings, most notably for AMC's ratings juggernaut 'The Walking Dead.' We resolved our legal dispute with DISH Network, completed new carriage agreements with a number of leading distributors, and expanded our relationships with key advertisers. All of which, contributed to strong financial results for the full year and gives us confidence that we are well-positioned for continued success in the year ahead."

AMC operates several of cable television's most recognizable brands, including The Walking Dead, Breaking Bad and Mad Men.

AMC Networks, Inc. (AMCX) shares ended the week at $56.99.

3D Systems Prints 2012 Quarterly and Annual Results

3D Systems Corporation (DDD), a provider of 3D content-to-print solutions such as 3D printers, reported its quarterly and annual results on February 25.

3D Systems reported quarterly revenue of $101.6 million for the quarter. This represents an increase of 45% from the same period last year when the company reported revenue of $69.9 million. Annual revenue was $353.6 million. This number is a 53.5% increase from last year when the company reported revenue of $230.4 million.

The company reported net income for the quarter of $22.6 million. This represents a 63.6% increase from the same period last year when the company reported net income of $13.8 million. Annual net income was $67.9 million, a 65.7% increase from last year when the company reported net income of $41 million.

"We are very pleased to report outstanding quarterly and annual results on accelerated printers' sales," said Avi Reichental, 3D Systems' President and CEO. "We believe that our results reflect the potency of our diversified portfolio, productivity of our channels and effectiveness of our strategic growth initiatives." He concluded saying, "We entered 2013 with positive sales momentum shaped by increased demand from advanced manufacturing activities. While we may face lingering economic uncertainties in parts of the world, we expect to continue to benefit from robust R&D and manufacturing spending by our customers worldwide."

3D Systems was founded in 1986 in Valencia, CA by Chuck Hull. It is one of the premier companies involved in the design of 3D printer technology, which takes digital input from three-dimensional data to create three-dimensional parts through an additive, layer-by-layer process.

3D Systems Corporation (DDD) shares ended the week at $36.58.

The Dow started the week at 13,982 and closed at 14,090. The S&P 500 started the week at 1,520 and ended at 1,518. The NASDAQ started the week at 3,192 and finished at 3,170.

Treasuries rose for a second day on Friday to the highest level since January 24 as the sequester triggered $85 billion of automatic spending cuts. Congressional leaders had failed to reach an agreement to delay or replace the sequester by the March 1 deadline.

The 10-year note fell 3 basis points to 1.85% early Friday morning. The fall left the 10-year note 10 basis points lower this week, the biggest drop since November 9. 30-year bond yields also declined 3 basis points to 3.06% and yields on the 5-year note fell 1 basis point to 0.75%.

Bond yields remained high even after the release of positive news regarding U.S. manufacturing. The Institute for Supply Management's factory index increased to 54.2 last month, from 53.1 in January. This figure beat the 52.5 forecasted in a Bloomberg survey. An index reading greater than 50 indicates expansion.

The positive economic news had little effect on Treasuries, however, as investors faced uncertainty surrounding the sequester and growing Euro-zone instability. President Barack Obama and Congressional leaders met Friday to discuss the sequester. As expected, no agreement emerged from the closed-door meeting, continuing the uncertainty surrounding U.S. fiscal policy. In addition, Euro-zone unemployment was revealed to have reached a new high Friday, rising to a worse-than-expected 11.9% in January.

"High and still rising unemployment rates are probably the single most important threat to the mid to long-term economic stability of the Euro-zone," said Marie Diron, senior economic adviser at Ernst & Young. "As electorates fail to see the benefits of fiscal and economic reforms, we could see rising social tensions weakening governments and raising the possibility of a popular vote to exit the euro. In this context, it is essential to emphasize growth-enhancing reforms."

The 10-year Treasury note yield finished the week at 1.86% while the 30-year Treasury note yield finished the week at 3.06%.

Freddie Mac released the results of its weekly Primary Mortgage Market Survey (PMMS) on Thursday, February 28. After being unchanged for the past month, mortgage rates moved slightly lower this week. The historically low rates continue to help the housing recovery.

The 30-year fixed rate mortgage averaged 3.51% this week. This represents a slight decrease from last week when it averaged 3.56%. Last year at this time the 30-year fixed rate mortgage averaged 3.90%.

The 15-year fixed rate mortgage averaged 2.76% this week. This figure is a slight decrease from last week when it averaged 2.77%. One year ago, the 15-year fixed rate mortgage averaged 3.17%.

"Mortgage rates eased somewhat as the consumer price index in February held steady for the second month in a row. House price indicators, however, showed gains in 2012. The S&P/Case-Shiller® national home price index rose 7.3% last year, reflecting the largest four-quarter growth since the third quarter of 2006. This, in part, was a driving force that pushed up the number of existing and new home sales in February to the highest levels since July 2007 and July 2008, respectively."

The money market fund finished this week at 0.5%. The 1-year CD finished at 0.6%.