Market Focus Shifts to Global Issues, US Consumer Confidence Tumbles (HCBK, LXK)
On Tuesday attention shifted from domestic issues to the world markets and central bank action after Mario Draghi of the ECB cancelled his planned speech for this coming Friday. Spain's Catalonia region has asked for aid from the government to avoid having to seek a sovereign bailout and Japan has lowered its economic outlook for the second half of the year. The EPA has issued new fuel-efficiency standards for cars by the year 2025. US consumer confidence saw a large drop while the home price index was up for the month of June. In earnings news, Movado Group (MOV) shares soared 17% and Lexmark (LXK) announced job cut plans and saw shares rise 15%.
As Hurricane Isaac approaches the gulf, futures of oil continue to trade higher. The US dollar decreased slightly to both the euro and the Japanese yen.
Word on the Street
- US consumer confidence decreases 4.8%, the largest drop since last October.
- New fuel economy standards issued on Tuesday with goals of reducing dependence on foreign oil.
- The FDIC reports higher incomes for more than 62% of banks in this quarter compared to last year's Q2.
- Lexmark International Inc. (LXK) shares rise on plans to cut jobs and possible sell its inkjet technology.
- Companies such as PepsiCo Inc. (PEP) issued subpoenas by NY Attorney General.
- Home values rise in 20 US cities for the first time since 2010 and S&P/Case-Shiller index is up 0.5%.
- Sanderson Farms (SAFM) cuts its egg output after hitting record grain prices.
- M&T Bank (MTB) Buys Hudson City Bancorp (HCBK) for $3.7 Billion.
Interesting Tidbits
- A list of the top business innovators and creative risk takers of 2012.
- The #1 thing that in the end gets you the job instead of being passed up by hiring managers.
Published on Aug 28, 2012
By InvestorGuide Staff 