The rally from the previous day continued on Friday with further hopes that the European Central Bank will get to work on the high borrowing costs of Italy and Spain by launching a new round of bond purchases. Consumer spending in the US declined as expected but not as much as investor’s originally feared. GDP expanded at an annual rate of 1.5% in the period of April to June, the lowest since the third quarter of 2011. Facebook (FB) shares tumbled greatly with a net quarterly loss of about $157 million. Starbucks (SBUX) also saw a large drop in their stock and has cut its outlook for the third quarter. By the end of the day the 10-year US treasury note was down a full point.
Word on the Street
- US consumers are cutting back on spending as eurozone crisis grows and tax changes loom overhead.
- The USDA declares the largest disaster declaration ever due to the current drought.
- Starbucks (SBUX) sees big disappoint with a drop of more than 10% on Friday.
- JPMorgan (JPM) reorganizes its management team in order to get past its trading blunders.
- Spain’s jobless rate hits 24.6%, the highest among EU member countries.
- Stocks rise in anticipation of ECB plans for Spain and Italy and euro pares gains.
- Delta Air Lines (DAL) announces the end of its regional carrier Comair and cuts of about 1,700 employees.
- Las Vegas Sands (LVS) Misses Estimates Due to Sluggish Asian Growth.
- The delicate dance of job hunting and what negotiations arise as the market changes.
- As the Olympics begin on Friday, one six-year-old start-up will let you watch it on your phone.