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After a Rough Week Stock Market Hits a Three-Month High (FB, NITE)

By: , dated August 2nd, 2012

Weekly Wrap Up

After a series of poor trading days this week, stocks ended positive on Friday. At the end of the week, jobs were reported to have increased by 163,000 in July, helping the stock market rally to a three-month high. Investors awaited talks from both the Fed and ECB earlier in the week but were disappointed by the lack of action taken by President Draghi. For the first time in two weeks, crude oil jumped above $91 a barrel. Stock market glitches in the middle of the week created disruptions and irked many traders.In corporate news, Facebook (FB: Charts, News) struggled this week and saw shares drop below $20. The auto industry saw large declines as well, including companies like GM (GM: Charts, News) and Ford (F: Charts, News). Earlier in the week it was reported that US manufacturing unexpectedly contracted for the month of July. More Market News

Economic News

July’s New Jobs of 163K Beats Forecasts
The economy added 163,000 new jobs in July, a better-than-expected gain that sent stocks and bonds higher even as the nation’s unemployment rate rate ticked up from 8.2% to 8.3%. Source: USA Today. Click here to read the full article
Crude Soars Above $91
Crude-oil futures vaulted almost 5% to close above $91 a barrel after better-than-expected U.S. data fueled hopes that economic strengthening would lead to increased oil demand. Source: WSJ. Click here to read the full article
Draghi Edges Closer to Bond Purchases, But Hopes are Blunted
Maybe this is why central bankers typically don’t like to say much.In what seemed a rare communications blunder by one of Europe’s most politically polished technocrats, the president of the European Central Bank, Mario Draghi, set off a market rebellion Thursday as investors who were apparently hoping for a bold euro rescue plan instead heard a general statement of good intentions. Source: NYTimes. Click here to read the full article

Business News

Toyota Raises Sales Target as Quarterly Profit Rises
Toyota (TM: Charts, News) roared back to a hefty profit in the first quarter and said Friday that it aimed to build a record-breaking 9.76 million cars this year, leading a recovery by Japanese automakers after a year of natural disasters and a punishingly strong currency. Source: NYTimes. Click here to read the full article
Knight Capital Wins Back TD Ameritrade, Scottrade
TD Ameritrade (AMTD: Charts, News) and Scottrade will resume trading with Knight Capital Group (NITE: Charts, News), reversing their decision to abandon the company in the wake of a technology glitch that resulted in hundreds of millions of dollars in loses. Source: CNBC. Click here to read the full article
Dupont Loses a $1 Billion Settlement to Monsanto
Chemical manufacturing giant DuPont (DD: Charts, News) suffered a major setback this week, after a federal jury ordered the company to pay a $1 billion patent infringement settlement to rival Monsanto (MON: Charts, News) over its genetically modified seeds technology. The jury found that DuPont knowingly infringed on Monsanto’s patent for its herbicide-resistant Roundup Ready seeds. Source: InvestorGuide. Click here to read the full article

Technology Focus

Facebook’s Slide Continues Despite the Company’s Reach and the Market Hopes
Facebook shares fell nearly 4 percent on Wednesday to $20.88 – nearly half of what they were worth when the company went public on May 17.It has been a tough week for Facebook. Last Thursday, the company’s shares declined 8.5 percent in regular trading, as investors reacted to the weak earnings report the day before of Zynga, the social gaming site that is a major Facebook partner. Then last Friday, the stock was down again, to slightly under $23 a share in after-hours trading, after Facebook’s own earnings report. Source: NYTimes. Click here to read the full article

Electronic Arts Sues Zynga, Says it Copied “Sims” Game
Video game publisher Electronic Arts Inc sued Zynga Inc on Friday, accusing the social gaming company of copying key elements of EA’s “The Sims Social” game in Zynga’s “The Ville.” Source: Reuters. Click here to read the full article

Your Money

Social Media Are Giving a Voice to Taste Buds
Frito-Lay is developing a new potato chip flavor, which, in the old days, would have involved a series of focus groups, research and trend analysis.Now, it uses Facebook.

Visitors to the new Lay’s Facebook app are asked to suggest new flavors and click an “I’d Eat That” button to register their preferences. So far, the results show that a beer-battered onion-ring flavor is popular in California and Ohio, while a churros flavor is a hit in New York. Source: NYTimes. Click here to read the full article

Stephen Covey’s ‘The Seven Habits of Highly Effective People’
Washington Post leadership blogger Jena McGregor walks through Stephen Covey’s famous work “The Seven Habits of Highly Effective People,” using real-world leaders as illustrations. Source: Washington Post. Click here to read the full article
This article was brought to you by the InvestorGuide Staff Writers and Editors.

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