Indices Extend Gains with Nasdaq Near 12-Year High; Trade Gap Narrows

Weekly Wrap Up

The major indices in the US ended near highs by the end of the week. Nasdaq closed near a twelve-year high and the Dow Jones finished just under 14,000. Gold dropped on Friday but only ended the week modestly lower at just under $1,670 an ounce. The dollar gained about 1.4% on the week while the euro declined on recent pessimism in the euro zone. Also this week jobless claims in the US fell close to a five-year low, and the trade deficit made the largest drop in several years in December.

Earlier on Tuesday Dell Inc. (DELL: Charts, News) finally agreed to their buyout deal of $24.4 billion to take the company private.
Time Warner (TWX: Charts, News) posted positive earnings results and surprised many investors. Apple (AAPL: Charts, News) created buzz towards the end of the week after David Einhorn pushed the company to consider using preferred stock to return money to shareholders. More Market News

Economic News

New Claims for Jobless Edge Down
The number of Americans filing new applications for unemployment benefits fell last week and the trend line for jobless claims reached nearly a five-year low, providing signs that the slow recovery in the labor market remains on track. (Source: NY Times) Click here to read the full article
Oil Exports Trim U.S. Trade Deficit as Fuel Gap Shrinks
Record petroleum exports helped shrink the U.S. trade deficit in December to the smallest in almost three years as America moved closer to energy self- sufficiency, a goal the nation has been pursuing since the 1973 Arab oil embargo. (Source: Bloomberg) Click here to read the full article
Leaders Agree Cut to EU Spending
Leaders agreed the first ever cut to the European Union budget after setting spending to the end of the decade at €960bn. (Source: Financial Times) Click here to read the full article

Business News

Strong Studio Revenue Growth Strengthens Time Warner
Media giant Time Warner (TWX: Charts, News) impressed Wall Street this week after the company posted higher than expected fourth quarter earnings, which it attributed to higher cable and satellite fees, coupled with stronger ad revenue at its TV networks. (Source: InvestorGuide) Click here to read the full article
Virgin Media to be Acquired by Liberty Global
Shares of Virgin Media Inc. (VMED: Charts, News) closed up +6.92 or +17.89 percent to $45.61 per share on Tuesday after news that John Malone’s Liberty Global Inc. would be buying the company in a deal worth $16 billion in cash and stock. The deal will pit Malone against old rival Rupert Murdoch whose News Corp. owns 40 percent of the UK’s largest pay TV provider, British Sky Broadcasting Group. (Source: InvestorGuide) Click here to read the full article
Life Time Fitness Plunges on Bleak Fourth Quarter Warning
Shares of fitness club Life Time Fitness (LTM: Charts, News) plunged 21% after it released fourth quarter earnings that fell short of Wall Street forecasts. The Chanhassen, Minnesota-based company now expects to earn 53 to 56 cents per share, missing the consensus estimate of 65 cents. (Source: InvestorGuide) Click here to read the full article

Technology Focus

Zynga Surprisingly Beats Analysts Forecasts on the Top and Bottom Lines
Social games maker Zynga (ZNGA: Charts, News) surprised Wall Street this week with a surprising beat on both its top and bottom lines. Zynga has struggled ever since its IPO, and shares have lost 70% of their value since the first trading day. (Source: InvestorGuide) Click here to read the full article
Nuts and Bolts of 'Pretty Unusual' Dell Deal
Michael Dell has put a lot at stake personally in his effort to take the PC maker he founded private, but experts believe he has been wise to put an arm’s length between himself and the deal’s deliberations - especially given signs that other big shareholders may revolt. (Source: MarketWatch) Click here to read the full article

Your Money

A Wholesome Approach To Capitalism From Whole Foods Co-Founder
John Mackey is co-CEO of Whole Foods Market and co-author of a new book, Conscious Capitalism. I recently sat down with Mackey to talk about what he’s learned from crisis, the purpose of business and how to fix health care in America. Video and a transcript of our conversation follows. (Source: Forbes) Click here to read the full article
8 Most Common Tax Blunders
Tax season is finally in full swing, following the fiscal-cliff-induced late start. But some filers could see their refunds held up even further if they’re not careful. (Source: MarketWatch) Click here to read the full article
Published on Feb 8, 2013
By InvestorGuide Staff

Copyrighted 2020. Content published with author's permission.

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