Market Rearview: 1% RALLY Is Facebook-Less, Chesapeake Rebounds
Markets closed up on Wall Street today:
Dow +1.01%, S&P +1.11%, Nasdaq +1.18%, Oil -0.02%, Gold -0.80%.
On the commodities front, Oil (NYSE:USO) declined to $90.79 a barrel. Precious metals also declined, with Gold (NYSE:GLD) falling to $1,558 an ounce while Silver (NYSE:SLV) fell 0.53% to settle at $27.84.
Here’s your Cheat Sheet to today’s top stock stories:
Facebook’s (NASDAQ:FB) stock is in trouble. This company was supposed to be the biggest IPO of the current market cycle, but it’s quickly becoming the fastest way to lose money — not to mention a complete embarrassment for Facebook execs and Wall Street.
Don’t Miss: Facebook’s Love Affair With App Developers.
If you’re a retail investor who bought shares at the IPO, you’ve got only one question now: how low can Facebook go? For the day, Facebook closed down 9.62 percent to $28.84.
Caterpillar Inc. (NYSE:CAT) rose 2.5 percent, leading all 10 S&P 500 sectors higher. The company’s stock, as well as its peers including Alcoa (NYSE:AA), saw a rise thanks to news that is China increasing its spending after receiving approval for a new $11 billion steel mill at the Zhanjiang port in Guangdong.
Another top gainer in the S&P 500 index was Chesapeake Energy Corp. (NYSE:CHK). On Friday, Carl Icahn revealed a 7.6% stake in the company and said he’d like four of its board members to be replaced. He said in a letter, according to MarketWatch, that “We believe that Chesapeake has collected some of the best oil and gas assets in the world. However, we believe that the low stock price today does not reflect the value of those assets; rather the stock price suffers because of the enormous risk associated with an ever changing business strategy, enormous capital funding gap, poor governance, and unchecked risk taking.” Chesapeake is reviewing the letter and has said it agrees that its stock is undervalued.
Peabody Energy Corp.’s (NYSE:BTU) stock was upgraded by Goldman (NYSE:GS) to a “Buy” from a “Neutral.” It said the coal-producing company had a good outlook as the demand from China improves and its shares look attractive with the current valuations.