US Indices Fall Hard on Wednesday After the Fed Releases Minutes (TSLA, NYT)
On Wednesday the Federal Reserve released the minutes from their most recent meeting, showing that multiple members are worried about QE plans for the $85 billion per month bond purchases but do not agree on what to do next. After the news release gold fell over 2% to its lowest level in one year while the dollar made gains against both the euro and the yen. Another report that came out today revealed that US construction dropped in January but permits for new homes increased to more than a four-year high. Further information involving the merger between OfficeMax (OMX) and Office Depot (ODP) was announced on Wednesday--it will be a $1.2 billion all-stock deal.The planned acquisition of Heinz (HNZ) is facing lawsuits filed by investors who claim the merger undervalues the company. After the bell Tesla (TSLA) posted a fourth-quarter loss and along with the major US indices saw stocks retreat.
Word on the Street
- New home construction permits in the US hit a four-year high last month of 613,000 houses.
- Gold drops the most in one year on talk of hedge fund liquidation and Fed meeting.
- Further details released about Office Depot (ODP) and OfficeMax's (OMX) merger worth $1.2 billion.
- Heinz (HNZ) takeover by Berkshire Hathaway (BRK.A) faces two federal shareholder lawsuits.
- Herbalife (HLF) Up on Higher Earnings, Guidance.
- Techs fall on Wednesday with drops from Apple (AAPL) and Hewlett-Packard (HPQ).
- New York Times (NYT) explores possibility of selling the Boston Globe.
Published on Feb 20, 2013By InvestorGuide Staff