Stocks Slightly Higher After Data, Ahead of Fed Minutes

U.S. Market
Stocks were slightly above the flat line at midday following a heavy load of data and earnings reports. The markets will closely watch for any bond-taper language in the Federal Open Market Committee's October meeting minutes, which are scheduled for release this afternoon.

The consumer-price index, which is a key measure of inflation, fell by 0.1% last month from September's reading, the Labor Department reported. It was the first monthly decline in six months, though year-over-year prices were 1% higher. Yet, the yearly gain was the weakest increase in five years and shows that inflation still remains well below the Fed's annual inflation target of 2%. The lower CPI could provide Fed officials more reason to continue the bond-buying program in the coming months.

Despite the lower CPI, retail sales for October increased by 0.4%, seasonally adjusted, from the previous month, beating economists' forecasts and showing the government shutdown had little impact on spending. Auto sales led the way during the month, but when excluding autos, overall sales increased by 0.2%, still better than expected.

Meanwhile, existing-home sales fell by 3.2% in October, falling short of consensus expectations. It was the second month in a row with a decline, and it also could indicate that homebuyers are still concerned about the summer increase in interest rates.

The Dow was up 0.1% at midday. The S&P 500 had gained 0.2%, and the Nasdaq was 0.4% higher.

Stocks on the Move
Deere's (DE) fiscal fourth-quarter results reflected falling year-over-year sales, but improved operating margins stemming from continued positive price action and solid execution. The company outlined declining industry-level farm equipment volume for 2014 given lower expected farm cash receipts, but sees its own sales roughly flat. Morningstar analysts are encouraged that adjusted operating margins climbed to nearly 15% from 13% last year, owing to the firm's continued focus on cost control. Shares were 2.6% higher at midday.

J.C. Penney (JCP) posted a third-quarter loss of $489 million, down from a loss of $123 million the same time last year. Revenue fell by 5.1%, slightly lower than Wall Street estimates, while the loss per share was also worse than expected. However, investors are encouraged by the firm's turnaround efforts, such as improvements in October comparable-store sales, and shares were up by 8.5% at midday.

Staples (SPLS) reported a $135.2 million profit for the third quarter, up from the loss of $596.3 million. Revenue dropped by 3.8% year over year, and earnings per share and total sales were lower than Street forecasts, as demand for office products remained weak. Shares were 1.1% lower at midday.

Lowe's (LOW) posted a 26% gain in third-quarter earnings of $0.47 per share, just short of Street forecasts, but sales increased by 7.3%, exceeding forecasts. The home-improvement firm also increased its EPS and sales forecast for the year. Shares, however, were down by 5% at midday.

Late Tuesday, J.P. Morgan Chase (JPM) announced an additional $13 billion settlement (including $4 billion previously announced) with the U.S. Department of Justice, resolving longstanding disputes over misrepresentations made by the company and particularly its predecessors (Washington Mutual and Bear Stearns) about the quality of mortgage loans that were packaged into residential mortgage-backed securities. Morningstar analysts are troubled by the revelations of misdeeds at the bank but don't expect much in the way of further adjustments for litigation charges. Shares were 2.1% lower at midday.

Foreign Markets
Stocks in Asia were mixed Wednesday. The Shanghai Composite rose 0.6%, and the Hang Seng gained 0.2%. The Nikkei 225 was 0.3% lower.

European stocks were mixed, as well. The FTSE 100 and the Paris CAC each lost 0.3% and 0.1%, while the DAX gained 0.1%.