Stocks slipped on Thursday as tension continued with federal budget talks between Speaker Boehner and President Obama. The two are planning to meet at 5pm today to discuss the fiscal cliff and recent proposals in order to find a resolution. Also on Thursday the S&P 500 cut the UK’s credit rating outlook from stable to negative. This put even more pressure on oil, which settled lower due to demand worries. In the US, it was announced that retail sales were up for the month of November mostly due to strong holiday spending. In corporate news, Best Buy (BBY) saw shares jump 17% after reports that a bid for the company will be made by the end of the week. Google (GOOG) gained after releasing their map application for Apple Inc.’s (AAPL) iPhone. UBS AG (UBS) is now facing a $1 billion fine in the Libor probe, the largest so far for the sixteen banks involved.
Word on the Street
- The Dollar remains steady against the euro despite positive Fed policy announced on Wednesday.
- Standard & Poor’s rating agency fears economic growth in the UK will be weaker than forecast.
- SolarCity (SCTY) enters the market for the first time on Thursday, shares soar 50%.
- November retail sales rebound and jobless claims drop more than forecast last week.
- Best Buy (BBY) stock jumps 17% on Schulze bid report.
- Videogame stocks make gains despite lower sales–Electronic Arts (EA) stays in the game.
- Apple (AAPL) gives Google (GOOG) an edge in what many called the “map-gate.“
- Shares of Priceline.com (PCLN) have apparently stalled after being downgraded.