Financial News 5/13/12 – 5/19/12

Economy

-Euro-zone industrial production dropped 0.3% in March surprising analysts and increasing the likelihood that the region had entered recession.  5/15

-Retail sales were up 0.1% in April and year over year sales fell to 6.4%, the lowest level in more than a year.  5/16

-The CPI-U was flat between March and April ending three straight months of increases.  The current rate of inflation is 2.3%, the lowest level since February 2011.  The lack of an increase in April was driven by the fall in gas prices.  5/16

-The Euro-zone barely avoided recession in the first quarter as German growth outweighed falling growth in Italy and Spain.  The Euro zone’s GDP was flat in the first quarter.  5/16

-Industrial production rose 1.1% in April over March and manufacturing rose 0.6% after falling in March. 5/17

-Japan’s GDP jumped 4.1% in the first quarter driven by government spending at the country recovers from the tsunami disaster last year.  The result was stronger than expected.  5/17

-Mortgage delinquencies have dropped to their lowest level since 2008. 5/17

-New home starts rose a higher than expected 2.6% in April. 5/17

-The Conference Board’s index of leading economic indicators fell 0.1% in April after rising 0.3% in march.  The drop was attributed to increasing jobless claims and a decline in housing permits.  5/18

Corporate

-Yahoo’s CEO, Scott Thompson, was forced to resign over his résumé that was in a regulatory filing, which included a degree he did not earn.  5/14

-Groupon’s earnings improved with a smaller loss and an operating profit for the first time in two years.  The daily deals site’s revenue jumped 89%, but the pace trails its early rate. 5/15

-BestBuy’s founder will step down as chairman of the board after he failed to alert the board of a relationship the CEO was having with a subordinate.  5/15

-Moody’s lowered the credit rating of 26 Italian banks. 5/15

-J.P. Morgan announced the retirement of Ina Drew, who helmed the risk management unit behind the recent $2 billion plus trading loss. 5/15

-J.C. Penney reported a $163 million loss, double what was expected, said it would suspend its dividend and would not meet its prior earnings guidance.  5/16

-GM announced it plans to stop advertising on Facebook questioning the benefits.  5/16

-Wal-Mart’s first quarter profit rose 10% on improving sales in the U.S. and abroad.  5/18

-HP announced plan to cut between 25,000 and 30,000 jobs. 5/18

-Facebook priced shares for its IPO at $38 resulting in a valuation of the company at $104 billion when it begins trading.  5/18

-Facebook struggled out of the gates on its first day of trading.  Underwriters struggled to keep the price of the stock above its offering price of $38.  The stock finished up 23 cents or 0.6%.  It was the highest traded IPO of all time and was best by trading glitches on the NASDAQ.  5/19

Market

-Global markets continued their slide as investors feared the potential fallout from a Greek exit from the Euro.  Spanish yields soared to levels last seen in the panic last November.  The Spanish stock market dropped 2.7% as well.  Italy saw its market drop 2.7% as well and the Euro fell to $1.284, its lowest level in four months.  Europe was down 1.8% on the whole.  The S&P 500 fell 1.1% and the Dow dropped 1.0%.  5/15

-Global markets continued to head south over increasing concerns Greece will leave the euro-zone.  The S&P fell 0.6%, the Dow dropped 0.5%, Europe fell 0.7%, and Japan was down 0.8%.  Oil fell 0.8% to $93.98 a barrel.  5/16

-Weak economic news in the U.S. and rumors of a bank run in Spain led to global equity markets falling, and a rise in fixed income.  The yield on the 10 year treasury reached 1.702% setting an all time closing low.  The S&P 500 fell 1.5% and the Dow dropped 1.2% for their lowest levels since early January.  The Russell 2000 fell 2.3%.  Internationally, Europe was down 1.1%, but Japan was up 0.9%.  5/18

-World markets had their worst week of the year over continued concerns over Europe’s sovereign debt and banking crisis and the pace of global growth.  The S&P 500 fell 4.2% for the week reaching its lowest level since mid January.  The Dow fell 0.6% its 6th losing day in a row and its 12 drop in 13 days and fell 3.5% for the week.  The FTSE fell 5.5%, and Spain dropped 6.1%.  Overall, Europe dropped 5.2%, and Japan slide 3.8%.  Oil fell to $91.48 a barrel its lowest close since October.  5/19

DiggLinkedInDeliciousRead It LaterStumbleUponEmailGoogle BookmarksGoogle BuzzFacebookShare
This entry was posted in Monthly Market Commentary. Bookmark the permalink. Both comments and trackbacks are currently closed.
  • Contact Us
    Raffa Wealth Management
    1899 L Street, NW
    Suite 900
    Washington, DC 20036
    Tel: 202-955-6734