Major indices saw a bump today as Greek officials finally agreed to the terms of the austerity requirements for the debt bailout that was negotiated earlier by European authorities. New jobless claims also fell to 358,000, according to the Labor Department; a decrease of 4 percent. In corporate news, PepsiCo (PEP) forecast lower earnings for 2012 than analysts had been expecting, and announced a plan to cut 8,700 jobs. Markets reacted with the stock value falling almost 4 percent by the end of day. Meanwhile, Groupon’s (GRPN) first earnings call went poorly, as they continue to take net losses in spite of greater than expected revenue.
Word on the Street
- Greek officials agreed to the requisite austerity cuts to get the new bailout deal.
- Warren Buffet explains why equity outperforms commodities in the long run.
- The Postal Service reported a$3.3 billion loss for Q1.
- Eastman Kodak will be getting out of the camera business entirely.
- Five national banks reached a $25 billion settlement over mortgage fraud with state officials.
- PepsiCo (PEP) forecast a slowdown in 2012, including a plan to cut thousands of jobs.
- Groupon (GRPN) disappointed investors by reporting a net loss on their first quarterly earnings call.
- New jobless claims fell by 15,000, the Labor Department reported.