Stocks Slump for Five Straight Sessions on Dimming Hopes for a Cliff Deal

Weekly Wrap Up

Stocks ended on Friday with five straight sessions of losses after investors' hopes of a budget agreement continued to decrease. Many awaited news from President Obama about a cliff deal on Friday while the GOP is not set to reconvene until Sunday evening. Several positive reports were released this week indicating that both the housing industry and job market are maintaining moderate growth.

Despite the holiday shopping season, retail sales were lower than expected, however non-traditional retailers saw growth with online sales that jumped on Christmas Day.
Oil futures posted a weekly win despite slipping on Friday. The market had a short week due to the holiday and closes for another day next week for New Year's on Tuesday. More Market News

Economic News

Expectations Low for White House "Fiscal Cliff" Meeting
resident Barack Obama and congressional leaders were to meet on Friday for the first time since November, with no sign of progress in resolving their differences over the U.S. federal budget and expectations low for a "fiscal cliff" deal before January 1. (Source: Reuters) Click here to read the full article
Housing, Factory Data Point to Momentum in Economy
Contracts for U.S. home resales hit a 2-1/2-year high in November and factory activity in the Midwest expanded this month, suggesting some strength in the economy despite the threat of tighter fiscal policy. (Source: Reuters) Click here to read the full article
Oil Little Changed as Gasoline Supplies Surge
Oil was little changed as gasoline supplies climbed to a nine-month high on weaker demand and President Barack Obama was set to propose a scaled-back package to avert a fiscal crisis. (Source: Businessweek) Click here to read the full article

Business News

Barnes & Noble, Pearson, Microsoft Called ‘Online-Education Dream Team’
Analysts at Janney have some enthusiasm for Barnes & Noble’s (BKS: Charts, News) newest partner in its Nook business.By adding Pearson (PSO: Charts, News) as an investor in the unit along with Microsoft (MSFT: Charts, News), and with Barnes & Noble’s own stock-holder Liberty Media, the Nook is putting together an "online-education dream team," the analysts said in a note today. (Source; The Wall Street Journal) Click here to read the full article
Nike Rallies on Strong North American Sales
Footwear and sports apparel retailer Nike (NKE: Charts, News) rallied sharply last week, after the Beaverton, Oregon-based company reported its second quarter earnings. For its second quarter, Nike reported adjusted earnings of $1.14 per share, or $384 million, on revenue of $5.96 billion. Analysts had expected Nike to earn $1 per share on revenue of $6.01 billion. This was an 18% decline in EPS and a 7.4% increase in revenue from the prior year quarter. (Source: InvestorGuide) Click here to read the full article
Nutritional and weight-loss supplements company Herbalife (HLF: Charts, News) suffered a major setback this week, after Pershing Square Capital CEO William Ackman called the company’s multi-level marketing business model a "pyramid scheme" and stated that he was shorting the company for as long as possible. (Source: InvestorGuide) Click here to read the full article

Technology Focus

Marvell to Seek to Void $1.17 Billion Patent Verdict
Marvell Technology Group Ltd. (MRVL: Charts, News) said it will seek to overturn a $1.17 billion jury verdict, one of the biggest awards on record, for infringing integrated-circuit patents held by Carnegie Mellon University. (Source: Businessweek) Click here to read the full article
Tweet Me Maybe: Twitter IPO in 2013?
Facebook’s (FB: Charts, News) messy IPO last May is going down as one of the worst debuts in history, and certainly one of the biggest finance events of 2012; if only because of the hype. Looking ahead to 2013, you can’t help but wonder whether Twitter is the next big event on the IPO docket. A management shuffle just last week makes it look like the company is taking some preparations to go public. (Source: Yahoo! Finance) Click here to read the full article

Your Money

Who's to Blame for Fiscal Cliff? You Are
It would be a rare person who, in looking at Barack Obama, Harry Reid, Nancy Pelosi, John Boehner and Mitch McConnell in a room together, would have something positive to say about all five. (Source: MarketWatch) Click here to read the full article
The World in 2013: Who's Winning in Mobile?
Landline phones were largely replaced by mobile phones in 2001 and 11 years later it appears personal computers are headed in the same direction. The number of Internet-connected mobile devices are projected to surpass the number of desktop and laptop personal computers in use in 2013. (Source: Yahoo! Finance) Click here to read the full article
Published on Dec 28, 2012
By InvestorGuide Staff

Copyrighted 2020. Content published with author's permission.

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