Weekly Market Recap: Bears BLOW OUT Bulls
Markets closed down on Wall Street Monday:
Dow -0.98%, S&P -1.11%, Nasdaq -1.06%, Oil -0.70%, Gold -0.28%.
On the commodities front, Oil (NYSE:USO) declined to $94.13 a barrel. Precious metals also declined, with Gold (NYSE:GLD) falling to $1558.00 an ounce while Silver (NYSE:SLV) fell 0.69% to settle at $28.17.
Here’s your Cheat Sheet to Monday’s top stock stories:
Groupon Inc. (NASDAQ:GRPN) reported better-than-expected revenue in the first quarter and a strong forecast; this upped the company’s shares in after-hours trading. Shares of Groupon rose almost 18 percent after announcing the results as adjusted earnings barely surpassed analysts’ estimates. During the trading day prior to the report, the stock also rose by more than 18 percent for a $11.73 close. This comes after last week’s all-time low. Here’s Your Cheat Sheet to Groupon’s Earnings >>
Yahoo Inc.’s (NASDAQ:YHOO) disgraced CEO Scott Thompson will leave the company without any serverance but under his contract terms he would have been required to return $7 million in cash and stock that he received after taking over at the company. Late on Monday, the company said that under Thompson’s separation agreement he will now get to keep the money.
A former JPMorgan (NYSE:JPM) executive hit the nail on the head when he said “in banking, there are very large knives.” In the fallout of the trading mess at its London office, which cost the bank $2 billion and counting, Chief Executive Jamie Dimon had to cut the firm’s ties with Ina Drew, chief investment officer and overseer of the London operations. She was replaced by Matthew E. James, co-head of JPMorgan’s global fixed-income group and an executive in its mortgage division. He has been cited as a possible successor to Dimon.
Gannett Co., Inc. (NYSE:GCI) CFO Paul Saleh has stepped down to take up a position at services provider Computer Sciences Corp. (NYSE:CSC). In a statement, Gannett said Saleh’s resignation was effective immediately, at the same time naming Michael Hart as interim CFO while the board seeks a replacement for Saleh, who has been with the company since November 2010.
Best Buy Co. (NYSE:BBY) announced on Monday that founder and current chairman Richard Schulze will resign after an investigation of former CEO Brian Dunn discovered that he acted “inappropriately” by failing to bring allegations of Dunn’s personal misconduct to the attention of the company’s board. Best Buy also said that after conducting a review, Dunn, did not misuse any company resources from his misconduct with a female employee.
Markets closed down on Wall Street today: Dow -0.26%, S&P -0.44%, Nasdaq -0.68%, Oil -1.42%, Gold -1.14%.
On the commodities front, Oil (NYSE:USO) declined to $92.63 a barrel. Precious metals also declined, with Gold (NYSE:GLD) falling to $1539.00 an ounce while Silver (NYSE:SLV) fell 0.91% to settle at $27.14.
Investing Insights: Gold & Silver Decline: George Soros Nearly Quadrupled Gold Stake in Q1.
Here’s your Cheat Sheet to today’s top stock stories:
Employees at Merrill Lynch, a subsidiary of Bank of America (NYSE:BAC), and Goldman Sachs Group (NYSE:GS) discussed helping naked short-sales by market-maker clients via e-mails the banks attempted to keep secret. Overstock.com (NASDAQ:OSTK) said in a court filing that a Merrill official told another to ignore compliance rules. It then accused Merrill Lynch and Goldman Sachs of manipulating its stock from 2005 to 2007, causing its shares to fall.
Robert Mueller, director of the Federal Bureau of Investigation, confirmed Wednesday that the agency has opened a “preliminary investigation” into JPMorgan Chase (NYSE:JPM) over a headline-making trade loss estimated at more than $2 billion. JPMorgan, the nation’s largest bank, disclosed the multi-billion dollar loss last week, saying it was due to a failed hedging strategy. JPMorgan CEO Jamie Dimon, appearing on NBC’s “Meet the Press” on Sunday, said the loss was a “terrible, egregious mistake.”
April FOMC meeting minutes released on Wednesday revealed that some Federal Reserve officials have not expressed confidence in signs of a growth upturn to change their guidance that rates will probably stay very low until late 2014. Fed officials also showed uncertainty in economic forecasts to not make any changes to the guidance. On a positive note, some officials did express more confidence about the recovery’s durability while others noted inflation concerns.
The HTC One X and Evo 4G LTE Android phones are facing an indefinite delay at US Customs for potentially infringing on an Apple Inc. (NASDAQ:AAPL) patent. The agency is currently investigating the patent issues with Apple according to The Washington Post. The One X is currently out of stock at AT&T’s (NYSE:T) online store and many retail stores did not know when more units would be available.
Don’t Miss: Apple Picks a Fight With HTC.
Markets closed down on Wall Street today: Dow -1.24%, S&P -1.51%, Nasdaq -2.10%, Oil -0.35%, Gold +2.44%.
On the commodities front, Oil (NYSE:USO) declined to $92.48 a barrel. Precious metals also declined, with Gold (NYSE:GLD) rising to $1574 an ounce while Silver (NYSE:SLV) increased 0.83% to settle at $28.00.
Don’t Miss: Gold & Silver Surge After Fed Philly Report.
Here’s your Cheat Sheet to today’s top stock stories:
BREAKING: Facebook (NASDAQ:FB) priced its initial public offering at $38 per share — a more than $100 billion valuation. The company will raise as much as $18.4 billion. Shares will begin trading Friday on the Nasdaq Stock Market, under the ticker symbol “FB.”
Goldman Sachs (NYSE:GS) and funds managed by the firm will sell approximately $1 billion of stock in Facebook’s (NASDAQ:FB) initial public offering. The investment bank and its funds will cash out almost half their stake after the social network doubled in value. This will include a sale of 28.7 million from the 65.9 million shares they own, which is more than twice the amount initially planned. The shares are being offered at $34 to $38 apiece. This means that the stock being sold in this week’s IPO is valued between $975 million and $1.09 billion.
Further Reading: Facebook IPO: Goldman Sachs Cashes Out Big.
Warren Buffet’s Berkshire Hathaway (NYSE:BRKA) has announced a purchase of 63 daily and weekly newspapers from Media General (NYSE:MEG) for $142 million, in Berkshire’s second move in six months to expand into the depressed newspaper market. Per the deal’s terms, Media General will issue warrants on stock equivalent to 19.9 percent of the media company’s stock. The company has also said that it owns TV stations as well as digital assets. Berkshire will provide Media General with a $400 million term loan and a $45 million revolving credit line. In turn, Media General will use the loan to repay its existing bank debt due next March.
On Thursday, the Commerce Department announced it will impose strict tariffs on Chinese solar panels imports after SolarWorld had accused companies of setting their prices below the cost of production. Chinese manufacturers including Suntech Power Holdings Co. (NYSE:STP) will pay tariffs of 31.22 percent while Trina Solar Ltd. (NYSE:TSL) had levies set at 31.14 percent; additional companies will pay duties between 31.18 percent to 249.96 percent. They will go back 90 days and will be reviewed again at the end of the year.
News leaked out that Hewlett-Packard (NYSE:HPQ) may cut up to 30,000 jobs or 10 percent of its workforce. The plans will supposedly be announced with the company’s second fiscal-quarter earnings report on Wednesday, May 23. The stock closed up 0.14 to $22.06.
Friday Facebook’s (NASDAQ:FB) IPO failed to impress. Retail investors who bought at the morning highs of $45 are down 15%, and the stock closed only 0.6% above the underwritten $38 initial offering.
Shares of Zynga (NASDAQ:ZNGA) were halted and resumed twice, and are decidedly lower. The cause is likely disappointment that Facebook’s big day hasn’t so far equaled (some) expectations.
Apple (NASDAQ:AAPL) was in the dumps, as speculation over Facebook’s IPO was taking all the oxygen out of the room, but shares of the former are up modestly on Friday, after a series of selloffs. A bullish comment from Morgan Stanley’s Katy Huberty, forecasting that average U.S. household spending on Apple gear will rise from $444 in 2011 to $635 in 2013, and possibly hit $888 in 2015, hasn’t exactly hurt. Also, BMO had heard chatter that carriers cutting iPhone subsidies would be harder to do than would be expected.