InvestorGuide Weekly Newsletter - October 26, 2012

Weekly Wrap Up

Early this week the markets saw large drops on disappointing earnings reports and growing economic concerns. On Tuesday the Dow Jones dropped close to 250 points, and for the week about 230 points overall. Reports were released showing home sales that hit a two-year high, US GDP grew at an annual rate of 2% for the third quarter compared to 1.3% previously, and on Friday overall consumer sentiment hit a five-year high.

In earnings reports, Apple (AAPL: Charts, News) disappointed investors with results that were weaker than expected and Amazon (AMZN: Charts, News) swung to a loss.
Earlier in the week Facebook (FB: Charts, News) announced a 32% surge in revenue and saw shares soar on Wednesday. Gold marked its third-weekly decline in a row and while oil finished Friday on a small gain, futures dropped over 4% for the week. More Market News

Economic News

Economy in U.S. Grows at 2%Rate, More Than Forecast
Economic growth in the U.S. was stronger than forecast in the third quarter, propelled by gains in consumer spending, defense outlays and homebuilding.

Gross domestic product, the value of all goods and services produced, rose at a 2 percent annual rate after climbing 1.3 percent in the prior quarter, Commerce Department figures showed today in Washington. The median forecast of 86 economists surveyed by Bloomberg called for a 1.8 percent gain. (Source: Bloomberg) Click here to read the full article
US Consumer Confidence at Highest Level in 5 Years
A survey shows consumer confidence rose this month to the highest level in five years, an encouraging sign for the still-weak economy.
The University of Michigan's final index of October consumer sentiment rose to 82.6 from 78.3 in September. That's the highest since September 2007 - three months before the Great Recession began. (Source: The Seattle Times) Click here to read the full article
Home Sales Rising to Two-Year High Spur US Growth
Americans bought new homes in September at the fastest pace in two years, another sign the industry whose decline was at the heart of the recession is bouncing back. Sales climbed 5.7 percent to a 389,000 annual pace, the most since April 2010, following a revised 368,000 rate in August, figures from the Commerce Department showed today in Washington. The median estimate of 75 economists surveyed by Bloomberg called for an increase to 385,000. (Source: Bloomberg) Click here to read the full article

Business News

Bad Apple Earnings: What to do Now
Apple (AAPL: Charts, News) reported bad earnings. The company missed estimates on almost all metrics as shown below. (Source: MarketWatch) Click here to read the full article
Amazon and its Admirers Shrug Off Report of a Loss as Sales Keep Climbing
If Amazon (AMZN: Charts, News) were an ordinary company, investors would long ago have strapped its management to a rocket ship and sent it far, far away. Amazon said Thursday that it lost money in the third quarter, continuing a trend of unimpressive earnings reports for the retailer. Similar disappointments are causing carnage at some of Amazon’s land-based electronics competitors. But Amazon’s many fans seemed largely unfazed. (Source: NY Times) Click here to read the full article
Best Buy Stokes Online Sales, Pricing Initiatives
In a move to better gear itself against competition from the likes of Amazon.com Inc., Best Buy Co. (BBY: Charts, News) is beefing up its online sales efforts and getting more aggressive on matching competitors’ online prices. The question is will it be enough to help turn around the struggling electronics chain. (Source: MarketWatch) Click here to read the full article

Technology Focus

Windows 8: Game-Changer or Vista Redux?
Three decades after Microsoft Corp’s (MSFT: Charts, News) Windows operating system helped kick off the personal computer revolution, the tech giant is unwrapping what some analysts consider the most critical version of the iconic software. (Source: MarketWatch) Click here to read the full article
Are You Pre-Ordering an iPad Mini?
As of this morning, Apple (AAPL: Charts, News) made available for pre-order the iPad mini - will you be buying one? (Source: Forbes.com) Click here to read the full article

Your Money

Six Marketing Lessons From Red Bull Stratos
It was a greater feat than any 30-second spot has ever achieved: skydiver Felix Baumgartner dropped from near-space (23 miles high) back to the Earth’s surface. (Source: BrandRepublic) Click here to read the full article
I Just Bought Intel - Am I Crazy?
On Wednesday, I added semiconductor giant Intel (INTC: Charts, News) to my personal portfolio at $21.50. Am I nuts? (Source: MarketWatch) Click here to read the full article
Are Facebook Shares Finally Worth Buying?
Is Facebook growing fast enough to justify its stock price? Mark Hulbert has his take on Markets. (Source: Wall Street Journal) Click here to read the full article
Published on Oct 25, 2012
By InvestorGuide Staff

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