Wall Street Ends Higher on the Week as Q4 Earnings Season Begins

Weekly Wrap Up

US stocks saw gains and global economies showed multiple signs of positive growth this week. By Friday the euro rose to its highest level against the dollar since April mostly due to encouragement from Mario Draghi of the European Central Bank. Japan released a large stimulus plan and world stock prices neared twenty-month highs. In the US, oil futures climbed for the week and natural-gass gained the most in three weeks on weather forecasts and a drop in inventories.

Causing a stir in corporate news was Herbalife's (HLF: Charts, News) Daniel Loeb after his 8.9% stake announcement in the company.
The fourth quarter earnings reports began and Wells Fargo (WFC) was one of the first major banks to share data, disappointing many with a drop in net interest margin despite higher earnings. For the first time in almost six months Facebook (FB: Charts, News) closed over $30 this week. More Market News

Economic News

US December Budget Deficit $260 Million
The U.S. government ran a budget deficit of $260 million in December, the Treasury Department said Friday, the best showing for the final month in five years. (Source: MarketWatch) Click here to read the full article
Increase in US Imports, Exports Signal Global Pickup
The trade deficit unexpectedly widened in November as U.S. imports jumped almost four times more than exports, gains that signal a rebound in global growth. (Source: Bloomberg) Click here to read the full article
Why Natural Gas Will Stay Cheap in 2013
Six weeks ago, natural gas bulls were riding high. By Thanksgiving, prices had more than doubled since hitting a decade low of $1.90 per million BTUs in April. Heading into what was supposed to be a cold winter for the U.S.- at least compared with last year - the consensus view was that natural gas prices would be higher in 2013, since about half of all U.S. households heat their homes with natural gas. (Source: Bloomberg) Click here to read the full article

Business News

Sears Holdings Majority Shareholder Eddie Lampert Crowns Himself CEO
This week, Sears Holdings (SHLD: Charts, News) announced the resignation of CEO Lou D’Ambrosio, who has led the company for the past two years. During his term, Sears stock slid 46%, continuing its five consecutive years of declining revenue. D’Ambrosio cited his premature departure was based on family reasons, but many analysts believe that he was forced out by hedge fund manager Eddie Lampert, who will succeed him as CEO. (Source: InvestorGuide) Click here to read the full article
Herbalife Swings and Misses in Rebuttal
If the stock market's reaction is any indication, supplements seller Herbalife (HLF: Charts, News) did less to help its public image than did hedge fund operator Daniel Loeb's decision to go long on the stock. At least after he took a large 8.2% stake in the stock, the market sent its shares soaring. When Herbalife addressed the accusations against it that it was a pyramid scheme, the stock fell more than 3%. Maybe management needs to let others do the talking for them. (Source: Fool.com) Click here to read the full article
Clearwire Gets Bid From Dish
Shares of Clearwire Corporation, (CLWR: Charts, News) gained +0.26 or +8.90 percent to $3.18 per share in after-hours trading Tuesday after Clearwire received an unsolicited bid of $3.30 per share from Dish Network. The bid from Dish comes only a month after Clearwire accepted a bid from Sprint-Nextel (S: Charts, News) for the remainder of stock not already owned by Sprint for $2.97 per share. (Source: InvestorGuide) Click here to read the full article

Technology Focus

Facebook Flirts With $30 Again
Shares of Facebook (FB: Charts, News) finally closed over $30 this week, the first time in nearly half a year, staging a remarkable comeback after the stock plunged to $18 last year. Facebook’s IPO was widely lamented as the worst IPO in recent history, trading higher than its IPO price of $38 for only a day before beginning its epic plunge. Later, news that underwriter Morgan Stanley leaked Facebook’s financials to big institutional investors prior to the IPO hurt the company’s credibility. (Source: InvestorGuide) Click here to read the full article
Amazon Surges on an Upgrade and Strong Kindle Fire Sales
Shares of e-commerce giant Amazon.com (AMZN: Charts, News) surged yesterday, after Morgan Stanley analysts. Led by Scott Devitt upgraded the stock from equal-weight to overweight, stating that investors are underestimating the company’s growth potential in China and emerging markets. (Source: InvestorGuide) Click here to read the full article

Your Money

New Mortgage Rules Left Out Down Payments
New rules announced Thursday by the federal Consumer Financial Protection Bureau aim to shield borrowers from the risky sorts of mortgages that helped cause the recent financial crisis. (Source: NY Times) Click here to read the full article
That World (Still) According to Peter Drucker
Everything you need to know about management you can still learn from reading Drucker. What would he think of your business? (Source: Inc.com) Click here to read the full article
Published on Jan 11, 2013
By InvestorGuide Staff

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