Most stocks on Tuesday were unchanged while the S&P 500 saw gains for the third consecutive day. Hewlett-Packard (HPQ) dropped 12% today after sharing a lower-than-expected quarterly revenue and announcing a $8.8 billion charge related to its 2011 acquisition of Autonomy. Both H.J. Heinz Company (HNZ) and Campbell Soup (CPB) missed expectations as well. News Corp. (NWSA) is acquiring YES Network with a 49% stake in the New York Yankees' regional cable channel. Housing starts reportedly rose 3.6% in October, the highest rate in four years, furthering hopes for industry recovery. In global news, Moody's cut France's sovereign rating and gave it a negative fiscal outlook. Ben Bernanke acknowledged the looming threat of the fiscal cliff but stated that the Federal Reserve is not equiped with the tools to handle the possible damage. After a two session climb. crude oil fell on hopes for a cease-fire on the Gaza strip, which would lessen concerns over supply risks.
Word on the Street
- The SEC plans to pursue what may be the largest insider-trading scheme ever on Wall Street.
- Unemployment rates drop in almost all US states from one year earlier.
- Hewlett-Packard (HPQ) writes down Autonomy for $8.8 billion, but it is no where near the size of past tech write-offs.
- The IMF reaches a deal with Egypt for a $4.8 billion loan to revive the country's economy.
- News Corp. (NWSA) announces their acquisition of YES Network, home of the New York Yankees.
- Ben Bernanke makes comments that the Fed does not have the tools to offset fiscal cliff damage.
- Best Buy (BBY) drops after posting lower-than-expected quarterly earnings.
- Altria (MO) Rallies on an Upgrade as Income Investors Pile In.