Weekly Wrap Up
The major indices were inconsistent over the last five sessions but finished the week with positive gains. Investors focused mostly on fiscal cliff talks between the House and President Obama, but hopes have faded as it seems unlikely that a deal will be reached soon.
Big news came from Intercontinental Exchange Inc.(ICE: Charts, News), who announced their acquisition of NYSE Euronext (NYX: Charts, News) for $8.2 billion. Also making headlines was Oracle (ORCL: Charts, News) after posting second-quarter results and Facebook (FB) after receiving backlash for attempting to change its Instagram policies. Despite a gain on Friday, gold ended the week with a loss at $1,660.10 an ounce. Oil dropped below $89 on Friday but closed with a weekly win. More Market News
The demise of House Speaker John A. Boehner’s “Plan B” prevents Republicans from credibly blaming President Obama if the New Year arrives without a deal to avert the massive, across-the-board tax hikes and spending cuts slated to begin on Jan. 1. That was one of the main goals of pushing Plan B through the House, considering that it wasn’t going to go anywhere in the Democratic-controlled Senate. (Source: LATimes) Click here to read the full article
Americans looked past the debate on fiscal policy in November as consumer spending and demand for durable goods climbed, indicating the economy strengthened heading into the current impasse on tax rates and spending cuts. (Source: Bloomberg) Click here to read the full article
On Wednesday, Atlanta-based IntercontinentalExchange Inc. (ICE: Charts, News) announced that it would acquire NYSE Euronext (NYX: Charts, News), and merge its commodities marketplace with the New York Stock Exchange to create one of the world’s largest global exchange groups. ICE is acquiring NYSE Euronext for $8.2 billion in cash and stock, which values the exchange operator at $33.12 per share. The deal implies a value of 13 times earnings for NYSE Euronext – a 37.7% acquisition premium to its previous closing price. To many long-time traders, the acquisition of NYSE Euronext marks the end of an era, as human traders are being rapidly replaced by electronic ones. (Source: InvestorGuide) Click here to read the full article
Shares of Research in Motion (RIMM: Charts, News) are down $2.89, or 20.5%, at $26.56, reversing gains of 5% or more last night, following the company’s fiscal Q3 beat, but also a new strategy for RIM’s subscriber business that has plenty of sell-side analysts worried this morning. (Source: Barron’s) Click here to read the full article
Shares of tobacco giant Philip Morris International (PM: Charts, News) slid 3% over the past two days, after European Union officials in Brussels proposed stricter restrictions on tobacco branding on Wednesday. The proposed bill aims to increase the required size of graphic visual and written warnings to cover up 75% of cigarette packets, leaving only 25% available for branding. (Source: InvestorGuide) Click here to read the full article
It didn’t take Facebook (FB: Charts, News) long to backtrack over controversial policy changes it intended to make regarding its photo-sharing app Instagram. (Source: CNET) Click here to read the full article
Shares of Oracle Corporation (ORCL: Charts, News) closed up +0.56 or +1.73 percent to $32.88 per share on Tuesday after the company reported earnings for its second fiscal quarter had exceeded analyst expectations by $0.03 per share. (Source: InvestorGuide) Click here to read the full article
Shares of software manufacturer Adobe Systems (ADBE: Charts, News) surged at the end of last week, after the company posted fourth quarter earnings of 44 cents per share, or $222.3 million, a 28% increase from the 35 cents per share, or $173.7 million, it posted a year earlier. (Source: InvestorGuide) Click here to read the full article
You’re a stockholder in Apple (AAPL: Charts, News). And – how should I put this? – you’re freaking out.Your wonderstock has collapsed by 25% in the past three months. That amounts to $170 billion in market value. (To put this in context, the amount of value Apple has lost is three times the entire market value of Boeing.) (Source: MarketWatch) Click here to read the full article
This is what happens when life imitates reporting.
The Securities and Exchange Commission charged TheStreet.com (TST: Charts, News), a website once known for investigating financial shenanigans, and three former executives with accounting fraud. (Source: CNN) Click here to read the full article