US Indices Slump on Friday While Industrial Production Recovers (BBY, AAPL)
On Friday the Federal Reserve announced that about sixteen foreign banks including Deutsche Bank AG (DBK) and Barclays Plc (BARC) with operations in the US will face stricter rules for capital and liquidity. Earlier in the week rumors spread that Richard Schulze was going to make a bid for a Best Buy (BBY) buyout, but it was reported today that he was given an extension. Many wonder if there are enough finances to take the company private.For the month of November industrial production in the US rose on a rebound from Hurricane Sandy. It was the biggest jump in about two years. Apple (AAPL) continued to drop on Friday sending Nasdaq lower after UBS (UBS) cut its stock price from $780 to $700. The S&P 500 also fell as another tech stock, Jabil Circuit Inc.'s (JBL) shares dropped 5%. Positive economic data came out of China after manufacturing grew at its fastest pace in fourteen months in December.
Word on the Street
- Factory output gains the most in almost a year on November auto production.
- Apple (AAPL) stock slumps to a ten month low during Friday morning trading.
- The Fed looks to impose tougher capital and liquidity rules for foreign banks with operations in the US.
- Discovery Communications (DISCA) to buy 12 Nordic TV channels for $1.7 billion.
- Schulze is granted more time for his bid to buyout Best Buy (BBY).
- Chinese manufacturing improves in December and the Purchasing Manager's Index reaches a fourteen-month high.
- Lexmark International (LXK) slides after its stock is downgraded from hold to sell.
Published on Dec 14, 2012By InvestorGuide Staff