Stocks recovered slightly from the past two days of declines on Wall Street. Several strong reports countered continued fears of the fiscal cliff in the US including a rise in consumer sentiment to the highest level since 2007 and an increase in wholesale inventories and sales. In Europe, industrial output was weak and concerns grew over Greece’s budget vote on Sunday, driving the euro lower to a two-month low. In earnings news, JC Penney (JCP) reported lower than expected sales and saw shares dropped. Groupon (GRPN) continued to struggle on Friday after announcing earnings yesterday. Priceline (PCLN) announced that it will be acquiring Kayak Software (KYAK) in a $1.8 billion deal. In China, consumer inflation eased slightly to 1.7% in October yet shares ended lower. General Petraeus resigned today from his post at the CIA.
Word on the Street
- Newly-elected Obama says tax increase for the rich must be part of the bargain.
- Knight Capital (KCG) will be subject to a SEC investigation involving the Aug. 1 tech issue.
- Shares of Molycorp (MCP) drop over 12% on SEC investigation.
- JC Penney (JCP) reports $203 million loss in its third quarter, shares drop 10%.
- Consumer sentiment is at its highest since 2007 says data on Friday.
- Estimates raised for this fall’s corn and soybean harvests, crops damaged less than feared.
- Will Priceline’s (PCLN) acquisition of Kayak.com change customer deals?
- Gold futures are up over 3% for the week, climb on Friday amid China and India demand prospects.