Market Sees Third Straight Week of Gains on Solid Earnings (MS, AAPL)

Weekly Wrap Up

This week investors' attention was drawn to fourth-quarter earnings results from major corporations. Many companies reported positive data including major banks like Morgan Stanley (MS) and Goldman Sachs (GS). The tech sector also had a busy week as news spread about a potential buyout of Dell (DELL) and new features were released by Facebook's (FB) President Mark Zuckerberg.

Oil gained more than 2% for the week due to a forecasted increase in demand for the year and unexpected economic growth in China.
Earlier on Thursday the Japanese yen fell to a two-and-a-half-year low against the US dollar which finished the week with a 1.1% gain. Also by Friday the Dow and S&P 500 hit five-year highs. More Market News

Economic News

Consumer Confidence Falls as US Payroll Tax Rise Hits
Confidence among American households unexpectedly fell to a one-year low in January, as higher payroll taxes create a risk that the biggest part of the economy will slow in early 2013. (Source: Bloomberg) Click here to read the full article
Jobless Claims Drop to Five-Year Low
The number of Americans filing new claims for unemployment benefits tumbled to a five-year low last week, a hopeful sign for the sluggish labor market. (Source: NBC News) Click here to read the full article
Oil Caps Longest Run of Weekly Gains in 14 Months
Oil capped the longest weekly winning streak in 14 months in New York as House Republicans planned a vote next week on a three-month extension of the U.S. borrowing authority. (Source: Bloomberg) Click here to read the full article

Business News

Goldman Sachs Easily Tops Earnings Expectations
Yesterday, Goldman Sachs (GS: Charts, News) topped analyst forecasts on both its top and bottom lines, attributing strong growth in its investment banking arm, equity offerings and debt underwriting results. The banking giant posted fourth quarter earnings of $5.60 per share on revenue of $9.24 billion, up from the $1.84 per share on revenue of $6.05 billion it posted in the prior year quarter. Analysts had forecast the bank to earn $3.78 per share on $7.91 billion in revenue. (Source: InvestorGuide) Click here to read the full article
Morgan Stanley Swings to Quarterly Profit
Morgan Stanley (MS: Charts, News) shareholders cheered the strategic overhaul and better than expected fourth-quarter results revealed by the investment bank on Friday. (Source: Financial Times) Click here to read the full article

Technology Focus

Dell in Talks for LBO
Shares of Dell Inc., (DELL: Charts, News) closed up +0.88 or +7.16 percent to $13.17 per share in active trading on Tuesday, after reports that the company was in talks with Silver Lake, Texas Pacific Group and several other large investor groups on a possible leveraged buyout. The potential deal could be worth as much as $25 billion or more. (Source: InvestorGuide) Click here to read the full article
Review: Facebook's Graph Search is Promising but Incomplete
According to Facebook's (FB: Charts, News) new search feature, only two of my 526 friends like cats. Judging by the number of cat photos filling my feed every day, this is obviously not accurate. (Source: CNN) Click here to read the full article
eBay Rises After Narrowly Topping Estimates
Shares of eBay (EBAY: Charts, News) rose yesterday, after the online auction site posted fourth quarter earnings that topped analysts expectations. The company earned 57 cents per share, or $751 million, on revenue of $4 billion. EPS declined 62%, while revenue rose 18%, from the prior year quarter. (Source: InvestorGuide) Click here to read the full article

Your Money

Why Debt Ceiling is Far Scarier Than the 'Fiscal Cliff'
As far as menacing metaphors go, there's almost no contest between the fiscal cliff and the debt ceiling. The cliff summons up images of plunging to our doom. The ceiling is just something that keeps the rain off our heads. (Source: CNBC) Click here to read the full article
Persistence, Possibility, and Whether You Can Cut it as an Entrepreneur
The climate has never been better for entrepreneurs, but the startling reality is that for the past thirty years, the failure rate of new businesses hasn’t changed--and it’s pretty depressing. Whatever way you look at it, the fact is, most companies fail. (Source: Fast Company) Click here to read the full article
Published on Jan 18, 2013
By InvestorGuide Staff

Copyrighted 2020. Content published with author's permission.

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