Fed Officials Remain Wary of Financial Markets and Send Stocks Lower
Minutes from the Federal Reserve's latest policy meeting were released on Thursday, dragging down the US markets. Officials stated that bond purchases would last at most until the end of 2013 due to continuing concerns of financial stability. Job growth in the US remained steady despite an increase in new claims for unemployment benefits. The auto industry saw positive reports with sales jumping 12.5% in 2012. Sales are expected to hit 15 million within the coming year. Transocean (RIG) settled with the Justice Department for $1.4 billion over the 2010 oil spill.Hormel Foods (HRL) announced their acquisition of Unilver's (UL) Skippy peanut butter products for $700 million. The tech and materials sectors finished lower for the day and the euro has now declined to almost a three-week low against the US dollar. John Boehner was re-elected as the speaker of the House on Thursday as well.
Word on the Street
- First time jobless claims rise to 372,000, reflecting consistent moderate market growth.
- Toyota (TM) and other auto companies see big gains in 2012.
- The Federal Reserve signals that it may soon stop or slow bond purchases.
- Transocean (RIG) agrees to a $1.4 billion settlement to resolve its 2010 gulf oil spill.
- Hormel Foods Corporation (HRL) to buy Skippy from Unilever (UL) for $700 million cash.
- December sales beat estimates for retail stores Macy's Inc. (M) and Gap Inc. (GPS).
- The euro slips to a near three-week low against the dollar.
Published on Jan 3, 2013By InvestorGuide Staff