Bernanke Comments on Debt Ceiling; Dell Soars on Buyout Talks (DELL)
The major indices ended mixed on Monday as investors awaited remarks from Ben Bernanke of the Federal Reserve on monetary policy. After Republican leaders echoed their call on Obama to increase the debt ceiling, the President stated that he refuses to trade cuts in government spending in exchange for raising the debt limit. The tech industry saw big moves today as Dell (DELL) and HP (HPQ) surged and Apple (AAPL) slid over 3% on demand concerns.
Dell soared 18% after reports that the company may be in talks to go private. Expectations for fourth-quarter earnings remain low despite recent highs for stocks. The reports will continue this week including those of major lenders like Bank of America (BAC) and Goldman Sachs Group (GS) as well as corporations in the auto industry. The yen fell to its lowest level in about two-and-a-half years against the US dollar on news that the Bank of Japan will further its monetary easing and give in to government pressure to raise its inflation target.
Word on the Street
- Obama rejects negotiations with Republicans over a raise of the debt ceiling.
- Swatch Group to buy Harry Winston Diamond Corp. (HWD) for $1 billion.
- The yen falls to its weakest level against the dollar since June 2010 on monetary easing bets.
- Herbalife (HLF) rises to its highest price since the Ackman pyramid allegation.
- PPG Industries (PPG) posts a Q4 increase in sales and earnings but warns of acquisition costs.
- While General Motors (GM) reported 2012 sales of 9.3 million cars, Toyota (TM) forecasts an even higher number.
- Shares of Dell (DELL) surge after talks with private-equity firms of a potential buyout.
- Share buybacks and dividends to rise at banks like Citigroup (C) after annual stress test.
Interesting Tidbits
- Becoming an entrepreneur? Tips on how to get past that fifth year and create a successful startup.
- A look into the future of technology at last week's Consumer Electronics Show.
Published on Jan 14, 2013
By InvestorGuide Staff 