A day after thrilling broad market gains, finishing at the highest peaks this months, exchanges pulled back Wednesday. Growing negative sentiment among some investors who affirm the temporary global hubris and stock price boosts as a result of central bank measures may be a short-term experience at the sacrifice of long term gains. The burden of hope continues to rest on the shoulders of the US economy thanks to the halt of consistent exponential growth in the Chinese economy.
IBM (IBM) and Intel (INTC) led stocks down on higher than average volume. In corporate news, oil giants ExxonMobil (XOM) and Rosneft appear to be on the verge of a $500 billion joint venture to explore and produce oil in the Artic and Black Sea. . Legendary value investor Warren Buffett announced he has prostate cancer.
Word on the Street
- President Obama has tightened the regulatory grip on oil and gas drilling operations as the industry makes more moves into the use of shale to produce their product.
- Crude oil inventories rose last week, though, sending oil futures down.
- eBay (EBAY) reports better than expected earnings on the weight of PayPal performance.
- Mobile providers Verizon (VZ) and ATT (T) tell US congress they need more airwaves.
- Blackberry use in the US continues to free fall – but lucky for Research in Motion (RIMM), opportunity exists overseas.