Stocks Have Worst Week Since June, Election Causes Large Drops (GRPN, MCD)

Weekly Wrap Up

Major indices sank this week as investors' worries grew over the looming fiscal cliff and lack of major change that came from the elections on Tuesday. Now that President Obama has been re-elected, Wall Street must refocus on issues such as the euro zone and the fiscal health of the US. At the end of the week it was reported that consumer sentiment hit the highest level since 2007, mustering a small amount of confidence in the economy's ability to continue to grow. For the week gold futures rose more than 3% after investors predicted strong demand from India and China.

In corporate news, Groupon (GRPN: Charts, News) reported weak results and saw shares crash 29% on Friday.
Earlier in the week AOL surged 8% after announcing a third quarter net profit of $20.8 million and its strongest growth in advertising in seven years. Time Warner Inc. (TWX: Charts, News) also had a good week and saw shares climb 4% on Wednesday. Retail companies are preparing for post-Thanksgiving Black Friday sales and Greece is looking to this weekend's EU meeting and next week's budget vote. More Market News

Economic News

November Sentiment Highest Since 2007
Consumer sentiment is at the highest level in more than five years, led by brighter views on current conditions, according to data released Friday. (Source: MarketWatch) Click here to read the full article
Obama Says Tax Hike on Rich Should Be Part of Fiscal Deal
Newly re-elected President Barack Obama offered on Friday to deal with Republicans to avert a looming U.S. fiscal calamity but insisted a tax increase for the very rich must be part of the bargain. (Source: Reuters) Click here to read the full article
Weekly US Jobless Claims Fall to 355K Last Week
The number of people seeking unemployment benefits fell last week by 8,000 to a seasonally adjusted 355,000, a possible sign of a healing job market. But officials cautioned that the figures were distorted by Superstorm Sandy. (Source: BusinessWeek) Click here to read the full article

Business News

McDonald's Posts First Sales Drop in 9 Years
McDonald's Corp. (MCD: Charts, News) said same-store sales dropped 1.8 percent in October from a year ago, the hamburger chain’s first monthly sales drop since April 2003. (Source: Chicago Business Journal) Click here to read the full article
Groupon Slide Continues, Stock Falls Below $3 in 29% Plunge
Whatever is happening with Groupon Inc. (GRPN: Charts, News), investors don’t like it, sending the daily deals company’s stock to another record low. (Source: LA Times) Click here to read the full article
Disney Declines Most in 15 Months After Sales Fall Short
Walt Disney Co. (DIS: Charts, News) dropped the most in 15 months after reporting fiscal fourth-quarter sales that missed analysts’ estimates amid declines in film revenue and ABC network advertising. (Source: BusinessWeek) Click here to read the full article

Technology Focus

Apple's Wall Street Supporters Have Few Options
The recent trajectory of Apple Inc.’s (AAPL: Charts, News) shares have put the stock into a territory that many on Wall Street might refer to as a "screaming buy," but the company’s broad fan base of brokers face some limits as to what else they can do. (Source: MarketWatch) Click here to read the full article
Sprint's 4G LTE Spectrum Buying Spree Continues With US Cellular Deal
Sprint (S: Charts, News) has announced plans to buy a small portion of smaller carrier US Cellular in a bid to build up its presence in the Midwest and add to its LTE spectrum holdings. (Source: eWeek) Click here to read the full article

Your Money

Why College Savers Should Fear the Fiscal Cliff
President Obama, whom college kids overwhelmingly favored in Tuesday’s election, vowed on the campaign trail to increase federal financial aid. But experts say a divided Congress could put those changes on hold - and lead to higher college costs for many families. (Source: MarketWatch) Click here to read the full article
Fred Wilson: 5 Essential Tips for Start-Up Success
Fred Wilson likes to call his first venture firm, Flatiron Partners, his "Web 1.0 start-up" and his current firm, Union Square Ventures, his "Web 2.0 start-up." Speaking at Ad:Tech New York on Wednesday, the venture capitalist and frequent blogger expanded his thoughts on a number of topics from branding and advertising to Facebook (FB: Charts, News) and Twitter. (Source: Click here to read the full article
Published on Nov 9, 2012
By InvestorGuide Staff

Copyrighted 2020. Content published with author's permission.

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