New Stock Market Highs, This Big Earnings Surprise: Weekly Market Recap
Here’s your Cheat Sheet to the top market moving headlines of the week:
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The markets were mixed, with declining issues out-numbering advancing issues across the board. Investors are looking ahead to more financial earnings releases later this week.
At the close: DJIA: +0.14%, S&P 500: -0.09%, NASDAQ: -0.26%.
On the commodities front, Oil (NYSE:USO) climbed 0.69 percent to $94.21 per barrel. Precious metals were were also up, with Gold (NYSE:GLD) climbing 0.40 percent to $1,667.20 per ounce, and Silver (NYSE:SLV) climbing 2.09 percent to $31.05 per ounce. The yield on the 10-year T-bill dropped 0.021 points to 1.847 percent.
Reports on Monday that Apple (NASDAQ:AAPL) had cut orders for iPhone 5 components after lowered demand took the company’s shares down, but according to UBS, there was nothing new in the news to spark worry. Analyst Steve Milunovich wrote in a research note that there had been no change in component orders since a cut by his firm last month. While the research team had reduced its iPhone quarterly sales forecast last month, it did not see the need to take a fresh look at numbers now… (Read more.)
After nearly a year of negotiations and review, United Parcel Service (NYSE:UPS) is expecting European officials to veto its 5.2 billion euro ($7 billion) takeover bid for TNT Express, a Dutch delivery company. UPS had hoped to acquire the firm in order to increase its footprint in Europe and take advantage of its fast-growing network in Asia… (Read more.)
There appears to be a communication breakdown between General Motors (NYSE:GM), PSA Peugeot Citroen, and the media. While GM said more than once, in simple terms, that its Opel unit was not for sale, the French media said in less simple terms that Peugeot could take over Opel… (Read more.)
Due to a wealth of crude oil coming up in Alberta, Canada, and Bakken, North Dakota, oil and natural gas companies are investing hundreds of millions of dollars in rail projects to get the oil flowing as soon as possible. Specifically, many in the oil industry are investing in rail depots, with more than $1 billion planned to go into such projects, according to Plains All American Pipeline LP (NYSE:PAA)… (Read more.)
President Barack Obama held the last press conference of his first term on Monday. The President’s swearing-in ceremony will take place in just one week, on January 21, following a private oath of office on January 20.
“Right now, our economy is growing and our businesses are creating new jobs,” Obama said at the beginning of the press conference. “So, we are poised for a good year if we make smart decisions and sound investments, and as long as Washington politics don’t get in the way of America’s progress.” (Read more.)
At the Asian Financial Forum in Hong Kong on Monday, Chicago Fed president Charles Evans said that “Given more explicit conditionality, markets can be more confident that we will provide the monetary accommodation necessary to close the large resource gaps that currently exist. Additionally, the public can be more certain that we will not wait too long to tighten if inflation were to become a substantial concern.” Evans rotates into a voting spot this year, and his focus on removing uncertainty could be a boon for the markets… (Read more.)
With consumers no longer viewing personal computers as the number one gift, and problems that go far beyond a weak economy, preliminary worldwide PC shipments declined in the fourth quarter. According to Gartner, the world’s leading information technology research and advisory company, PC shipments on a global basis totaled 90.3 million units in the fourth quarter, representing a 4.9 percent drop from the prior year… (Read more.)
The U.S. equity markets were mixed on Tuesday, as participants weathered ongoing debt-ceiling drama and digested positive December retail sales numbers.
At the close: DJIA: +0.20%, S&P 500: +0.11%, NASDAQ: -0.22%.
On the commodities front, Oil (NYSEARCA:USO) fell 0.76 percent to $93.42 per barrel. Precious metals were up, with Gold (NYSEARCA:GLD) climbing 0.56 percent to $1,678.80 per ounce, and Silver (NYSEARCA:SLV) climbing 0.84 percent to $31.37 per ounce. The yield on the 10-year T-bill fell 0.012 points to 1.833 percent.
At a special press event in California, Facebook (NASDAQ:FB) unveiled a new product called Graph Search, which is a social search tool that allows users to customize how they view content through filters. The new feature delivers information with exact answers, as opposed to blue links that claim to hold the answer. Graph Search focuses on people, places, photos and interests… (Read more.)
With its share of the personal computer market hovering behind Hewlett-Packard (NYSE:HPQ) and Lenovo (LNVGY.PK), and its stock price losing almost a third of its value last year, a leveraged buyout does not seem out of the realm of possibility for Dell (NASDAQ:DELL). But while a report published in Bloomberg, indicating that the company had been discussing plans to go private, caused shares to shoot up by as much as 18 percent on Monday, not everyone was convinced of the agreement’s plausibility… (Read more.)
European regulators are not the only authorities coming after Amazon (NASDAQ:AMZN) for alleged tax avoidance. The U.S. Internal Revenue Service has determined that the company owes the agency $234 million in back taxes, a charge the Internet retailer has contested… (Read more.)
For its role in rigging the London Interbank Offered Rate, or LIBOR, the Royal Bank of Scotland (NYSE:RBS) is expected to be fined between 400 million pounds and 500 million pounds. This approximately $803 million penalty will be much larger than the one given to rival British bank Barclays (NYSE:BCS), which was fined $450 million last June, but smaller than the record $1.5 billion fine given Switzerland’s UBS (NYSE:UBS) last month… (Read more.)
“Inadequate oversight and governance to protect the bank from material risk, inadequate risk management processes and procedures, inadequate control over trade valuation, inadequate development and implementation of models used by the bank, and inadequate internal audit processes,” are among the deficiencies that the Federal Reserve and Office of the Comptroller of the Currency found in JPMorgan’s (NYSE:JPM) derivative trading activities… (Read more.)
Despite the fiscal cliff drama and economic headwinds facing consumers, retail sales in the United States increased more than projected in December. According to the Commerce Department, retail sales last month rose 0.5 percent to a seasonally adjusted $415.7 billion. December sales were higher than an upwardly revised 0.4 percent gain in November, and 4.7 percent above December 2011 levels. Economists surveyed by Bloomberg and Dow Jones Newswires expected a 0.2 percent rise last month… (Read more.)
The U.S. equity markets closed Wednesday on a mixed note. Volatility remains relatively low despite a battery of economic news as investors seem determined to focus on earnings this season.
At the close: DJIA: -0.17%, S&P 500: +0.02%, NASDAQ: +0.22%.
On the commodities front, Oil (NYSE:USO) climbed 0.95 percent to $94.17 per barrel. Precious metals were also down, with Gold (NYSE:GLD) falling 0.24 percent to $1,679.80 per ounce, and Silver (NYSE:SLV) falling 0.11 percent to $31.50 per ounce. The U.S. Treasury 10-year yield fell 0.019 points to 1.817 percent.
Japan’s two largest airlines, All Nippon Airways and Japan Airlines, grounded their fleets of Boeing (NYSE:BA) 787 Dreamliners on Wednesday after a battery issue on a domestic flight forced an emergency landing. Shares were off 3.38 percent for the day… (Read more.)
Chipotle Mexican Grill (NYSE:CMG) fell over 8 percent in morning trading on Wednesday before cooling off to more modest losses of about 5.6 percent. Investors jumped ship after the company announced preliminary results for the fourth quarter, which suggest a weak end to the year and continued troubles in 2013… (Read more.)
New data compiled by the NPD Group revealed a trend in coffee drinking habits that bodes well for Green Mountain Coffee Roasters (NASDAQ:GMCR). Based upon coffee drinking habits in the United Kingdom, the firm released a chart that showed a distinct difference between the growth rates of the traditional coffee sector and the specialty coffee sector… (Read more.)
Apple (NASDAQ:AAPL) rallied over 4 percent, closing the day at $506.09. But despite the positive movement, some analysts think that the stock lacks the potential to move materially higher in the next 12 to 24 months. Andy Hargreaves at Pacific Crest cut the company’s rating from “Outperform” to “Sector Perform” on Wednesday… (Read more.)
On Wednesday, President Barack Obama and Vice President Joe Biden rolled out a wide-ranging list of executive actions regarding gun control. The event took place at the White House with an audience that included children from across the country. In addition to the executive actions, Obama called on Congress to: ban military-style assault weapons, ban capacities of more than 10 rounds, require background checks on all gun sales and create tougher penalties for those selling guns to people who are not legally allowed to have them.
Despite the moves made by the Obama Administration, investors were pleased with the news. Gun-related stocks rallied across the board… (Read more.)
The markets rallied on Thursday, pressing against five-year highs on the back of some mixed earnings reports and positive economic data. Initial unemployment claims fell to a five-year low, while housing starts hit a four-year high in December.
At the close: DJIA: +0.63%, S&P 500: +0.67%, NASDAQ: +0.59%.
On the commodities front, Oil (NYSE:USO) climbed 1.16 percent to $95.33 per barrel. Precious metals were also up, with Gold (NYSE:GLD) climbing 0.22 percent to $1,686.80 per ounce, and Silver (NYSE:SLV) climbing 0.60 percent to $31.73 per ounce. The yield on the 10-year T-bill increased 0.057 points to 1.857 percent.
Intel (NASDAQ:INTC) generated a profit and beat Wall Street’s expectation. Despite exceeding analyst estimates, Intel delivered a decline in top-line and bottom-line year-over-year numbers, catalyzing a post-market sell-off… (Read more.)
A near worst-case scenario has come to pass for Boeing (NYSE:BA). The Federal Aviation Administration announced on Wednesday evening that the risk of fire because of battery issues on the 787 Dreamliner requires grounding of the entire U.S.-registered fleet… (Read more.)
News surrounding Facebook’s (NASDAQ:FB) Graph Search has had Yelp (NYSE:YELP) sweating off share value this week, and now an update from Bing puts Yelp in even greater danger of becoming irrelevant, while also casting a shadow on Facebook’s news… (Read more.)
Citing burdensome legal costs from its continuing mortgage woes and a challenging operating environment, Citigroup (NYSE:C) became the first bank to miss analysts’ estimates for the fourth quarter. The bank reported fourth-quarter profit of $1.2 billion, or 38 cents per share, and earnings of $2.2 billion, or 69 cents per share. Both figures fell significantly below quarterly profit and earnings forecasts… (Read more.)
A careful look at the news in the past couple weeks would have shown Bank of America (NYSE:BAC) wading through some sticky situations, or sticky litigation, that cost the bank billions. Now, a report of their quarterly earnings shows just how much money got “stuck” and taken from the bank… (Read more.)
Lenders repossessed fewer homes in 2012 than in the previous year, pursuing alternatives to foreclosures following government mortgage settlements with large U.S. banks and harsher state laws. RealtyTrac’s year-end Foreclosure Market Report for 2012 showed that foreclosure filings, including default notices, scheduled auctions, and bank repossessions, were made on a total of 1.8 million properties last year, down 3 percent from 2011 and more than 36 percent from a 2010 peak of 2.9 million properties… (Read more.)
The markets started Friday with a hangover, but picked themselves up to close in mixed territory. The big news in the afternoon that turned everything around was a Republican announcement that next week, the House would vote on a short-term increase to the debt ceiling.
At close: DJIA: +0.39%, S&P 500: +0.34%, NASDAQ: -0.04%.
On the commodities front, Oil (NYSE:USO) remained flat at $95.48 per barrel. Precious metals were mixed, with Gold (NYSE:GLD) falling 0.40 percent to $1,684.00 per ounce, and Silver (NYSE:SLV) climbing 0.13 percent to $31.84 per ounce. The yield on the 10-year T-bill fell 0.041 points to 1.839 percent.
Apple (NASDAQ:AAPL) chief executive Tim Cook has been asked to give a court deposition in a lawsuit against the iPhone maker and several other tech companies that claims they violated antitrust laws. According to the lawsuit filed by several former employees, the companies entered into agreements to not place “cold calls” to recruit workers from each other… (Read more.)
Increases in wealth management and investment banking pushed Morgan Stanley’s (NYSE:MS) fourth-quarter earnings above analysts’ expectations. But despite these positives, the results revealed continued problems in the firm’s business… (Read more.)
After months of deliberating with the Federal Communications Commission, Liberty Media Corp. (NASDAQ:LMCAD) has completed its bid for a majority stake in Sirius XM Radio (NASDAQ:SIRI). The media company, which recently spun off its TV and movie business Starz (NASDAQ:STRZA) into an independent entity, purchased 50 million shares of Sirius at $3.15 a piece, bringing its total stake to 50.7 percent… (Read more.)
The Internet revolutionized how people view and consume information. From email to social-media networking, users are finding more content to digest than ever before. The popularity of the Internet also paved the way for more advertising in our daily lives.
According to comScore, a leader in measuring several aspects of the digital world, Americans are viewing massive amounts of online video. The company recently announced that data from its Video Metrix service showed about 182 million U.S. Internet users watched nearly 38.7 billion online content videos in December… (Read more.)
The price movement of gold and silver often attract much attention. When prices make a noticeable increase, it regularly leads to permabulls calling for the next great explosion in precious metals. On the other hand, any dips or corrections lead to critics calling for an end to the 12-year bull market. Both sides are debatable, but there is no denying that physical bullion made impressive moves this past week… (Read more.)
United States Treasury Secretary Timothy Geithner will be leaving for greener pastures on January 25. Geithner has been looking to leave his post for a while, but has delayed an exit because of the tremendous fiscal problems facing the country. First it was the fiscal cliff, and now it’s the debt ceiling, which has become politically tied to the half of the fiscal cliff that has yet to be resolved: the sequester.
President Barack Obama has nominated White House chief of staff Jack Lew to fill his shoes… (Read more.)