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Small End of Week Rebound After Thursday’s Losses, the Second-Worst of the Year

By: , dated June 22nd, 2012

Weekly Wrap Up

This week brought the second-worst loss this year for the stock market, due to fears about global economic growth stemming from weak manufacturing reports. Despite Thursday’s losses, on Friday the markets rallied with gains for a few like JP Morgan Chase (JPM: Charts, News) and Bank of America (BAC: Charts, News). Morgan Stanley escaped Moody’s bank downgrade on Thursday while 15 others did not, adding a great deal of pressure on their borrowing costs and business models. Due to decreasing activity in the eurozone, four of the largest economies met on Friday to discuss how to intervene in the markets and revive economic growth. Earlier in the week the Fed was stirring things up with its changes to Operation Twist, with Bernanke deciding to extend and expand long term bonds until the end of the year.Several companies made big headlines this week, including Walgreens (WAG: Charts, News) announcement of a future partnership with Alliance Boots and its plans to buy a 45% stake in the company for about $6.5 billion. This would extend the company’s international exposure and expand its pharmaceutical sales. Microsoft (MSFT: Charts, News) made a couple of announcements about its new Windows Phone 8 platform to be released sometime this fall as well as a new tablet, both products to compete with industry-leader Apple (AAPL: Charts, News). Towards the end of the week news was released that GM (GM: Charts, News) was calling a little under 500,000 of its Chevrolet Cruze compact sedan. More Market News

Economic News

Eurozone rift deepens over debt crisis
Leaders of the eurozone’s four largest economies pledged on Friday to back a €130bn growth package and defend the common currency but remained divided over the credit crisis as Germany continued to resist proposals to issue common debt and use bailout funds to stabilise financial markets. (Source: Financial Times) Click here to read the full article
Why oil prices are the lowest they’ve been in months
The free-fall in crude prices is unlikely to reverse course without significant signs that the world economy is improving.Oil, like stocks and other risk assets, fell sharply Thursday as fears of slowing global growth gripped markets, which were also beset by speculation about pending bank downgrades and Europe’s sovereign crisis. (Source: MSNBC) Click here to read the full article

Business News

GM to recall Cruze cars over risk of engine fire
A risk of engine fires is forcing General Motors (GM: Charts, News) to recall its popular Chevrolet Cruze compact car.The recall covers the 2011 and 2012 model years and affects more than 475,000 cars, which have ranked among the top-selling U.S. compacts over the past two years. (Source: Yahoo! Finance) Click here to read the full article
Goldman Sachs: short today, long tomorrow, winning either way
On March 21st of this year analysts at Goldman Sachs (GS: Charts, News) announced that it was the best moment to get long stocks in at least a generation. In a report Goldman’s Chief Global Equity strategist Peter Oppenheimer made the case that stocks were historically cheap relative to bonds and the anticipated growth rate. The work is largely forgotten now but created a lot of buzz with the S&P over 1,400 at the time. (Source: Yahoo! Finance) Click here to read the full article

Technology Focus

Microsoft debuts Windows Phone 8 platform
Microsoft Corp. (MSFT: Charts, News) on Wednesday unveiled the latest version of its Windows Phone software, which will be closely tied to the company’s flagship Windows 8 operating system that will come on the market this fall.
Reuters Microsoft VP Joe Belfiore introduces the Windows Phone 8 mobile operating system in San Francisco on June 20, 2012. (Source: Yahoo! Finance) Click here to read the full article
Privacy settlement could dent Facebook’s quest for revenue
Facebook (FB: Charts, News) has hit a potential stumbling block in its efforts to make money from its more than 900 million active users.The social network has agreed to pay $20 million to settle a lawsuit in California claiming it publicized that some of its users had “liked” certain advertisers but didn’t pay the users, or give them a way to opt out. (Source: MSNBC) Click here to read the full article

Your Money

Is your 401(k) up to par?
By surveying a sample of the 500,000 401(k) retirement plans covering 60 million Americans, the Internal Revenue Service has put together a handy list of what features employees can expect–or demand–in their plans. Policies on employer matching, vesting, after-tax contributions and the like all have an impact on your potential retirement nest egg. (Source: Forbes) Click here to read the full article
Debate over work-life balance hits a ‘tipping point’
The debate over whether working women can have it all and who’s to blame if they don’t is getting lots of attention this week because another high-powered woman entered the fray. (Source: MSNBC) Click here to read the full article
This article was brought to you by the InvestorGuide Staff Writers and Editors.

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