Jan. 2 - Summary: Rocky start for stocks in 2014; Apple, Netflix fall; U.S. economy still improving; Martha settles with Macy's; Fiat's Chrysler deal. Bobbi Rebell reports.
Stocks stumbled out of the gate on the first trading day of 2014. Investors booked profits- looking to lock in gains from 2013- the S&P had its best year since 1997. Apple shares led a decline in tech stocks- after Wells Fargo cuts its rating on the stock. Netflix - one of the biggest winners of 2013- also took a step backwards. Shares of Martha Stewart Living Omnimedia rose to a year-high. The lifestyle company said it settled a lawsuit with retailer Macy's over a home products deal with J.C. Penney- no terms were disclosed except to say that the deal would not be material to the company. But it could boost its merchandising revenue- which accounts for 42 percent of its total revenue. Good news on the economy - U.S. factory activity held near a 2-1/2 year high- and the number of Americans filing jobless claims fell for the second week in a row. Construction spending was its highest since December of 2008. In Europe, shares of Italian automaker Fiat soared after it struck a deal to gain full control over U.S. automaker Chrysler without raising fresh funds from the stock market. European stocks slipped after soft Chinese and French manufacturing data prompted investors to cash in on their 2013 gains.