Stocks Fall After Mixed Economic Reports and European Worries (CG, JNJ)
Stocks were down on Thursday as investors cut back expectations for Bernanke and a new round of stimulus. Japan and South Korean economic data was increasingly weak and along with the euro zone drove down world markets. In the US, consumer spending rose the most in the last five months and income increased for the eighth month straight. In corporate news, Johnson & Johnson (JNJ) agreed to pay $181 billion to settle its dispute and Carlyle Group (CG) purchased DuPont Performace Coatings for $4.9 billion.Costco (COST) sales were up for the last month but computer-equipment maker Ciena (CIEN) saw shares fall 20%. The dollar inched lower to both the euro and the yen with the euro on track to hit its strongest level in several weeks.
Word on the Street
- Jobless claims are at a one month high after little change for the past week.
- Johnson & Johnson (JNJ) to pay $181 million to resolve claims over drugs Risperdal and Invega.
- Facebook (FB) reduces its yearly revenue by $1 billion down to a total of $5 billion.
- US consumer spending off to a good start for Q3, rises the most in five months.
- DuPont Co. (DD) makes a $4.9 billion cash deal with Carlyle Group (CG) to sell car paint unit.
- Retailers such as Costco (COST) post better-than-expected sales gains in August.
- Warren Buffet celebrates his 82nd birthday and donates $3.1 billion to his children's charities.
- WellPoint (WLP) Investors Cheer CEO's Departure; Stock Rallies 9%.
- Over the next few weeks the latest and best smartphone devices will see some serious competition.
- Twitter's pitch to advertisers gets more interesting with promoted tweets and accounts.
Published on Aug 30, 2012By InvestorGuide Staff