Stocks were in the red again on Wednesday despite early optimism for fiscal cliff news in the US. All three major indices were down by the end of the day and global shares followed suit after little progress was made in the euro zone. President Obama reiterated his stance on ending Bush-era tax cuts although he said he was willing to work with Congress to avoid January 1’s impending cliff. Today marked the third sellof for Facebook (FB) and shares jumped as much as 13%, surprising many investors. In earnings news, NetApp (NTAP) topped expectations with a fiscal profit of $110 million, while Intel (INTC) and Advanced Micro Devices (AMD) hit new 52-week lows. Starbucks (SBUX) announced their acquisition of Teavana (TEA), which will help with their expansion into food and drink products. Also today the Fed met to discuss government debt, pushing Treasury prices up slightly. The dollar gained late in the day while the yen continued to slide.
Word on the Street
- Starbucks (SBUX) buys Teavana (TEA) for $620 million, causing shares of the tea company to surge 56%.
- Tech stocks hit new 52-week lows on demand worries; Intel (INTC) and AMD (AMD) shares fall.
- Facebook (FB) gains after Wednesday’s selloff, surprising many analysts.
- Seeking to trim expenses, only 70 new partners will join Goldman Sachs (GS).
- Abercrombie & Fitch (ANF) reports better-than-expected Q3 results and raises yearly outlook.
- Federal Reserve officials debate Operation Twist asset buying on Wednesday.
- Cisco (CSCO) Stock Soars After Earnings Report.
- Pinterest opens up to the business community with separate tools and terms.