The Fed Reveals Tapering Plans as U.S. Economy Expands

Weekly Wrap Up

The week began with the stocks up after third quarter productivity data was released on Monday, showing that U.S. worker productivity jumped up 3%. But, the big news this week occurred on Wednesday as the Federal Reserve finally announced that they will begin tapering the stimulus package in January 2014. They have decided to start small - cutting government bond purchases by $10 billion to $75 billion per month, in addition to cutting Treasury bond purchases by $5 billion and cutting purchases in mortgage-backed securities by $5 billion.
Also on Wednesday the Dow Jones and S&P 500 had record closes. The week ended with an announcement on Friday reveling that the U.S. economy expanded 4.1% in the third quarter.

Target (TGT) addressed that they suffered a major breach that spread over multiple weeks, including Black Friday. During this breach, the hackers were able to obtain information from approximately 40 million credit cards. BlackBerry (BBRY) reported a $4.4 billion loss in the third quarter on Friday. But shortly after this information was released Blackberry's stocks jumped up 12% after they announced a five-year partnership with Foxconn, a Taiwanese manufacturer. As Christmas is only 4 days away, stores are staying open for extremely long hours to accommodate last minute shoppers. Kohl's (KSS) is one of the stores that will remain open for 100 hours straight. These "marathon" shopping hours began Friday morning at 6 a.m. and will continue until around 6 p.m. on Christmas Eve.

Economic News

Economic Report: U.S. Third-Quarter Growth Raised to 4.1%
The U.S. economy expanded in the third quarter at its fastest pace in two years owing to stronger consumer spending and business investment than previously reported, according to newly revised government figures. (Source: Market Watch) Click here to read the full article

Fed Finally Tapers its Stimulus
Federal Reserve officials decided on Wednesday to start gradually reducing their massive economic stimulus program. Beginning in January, the Fed will buy $75 billion in bonds each month, down from the $85 billion it had been buying since September 2012. (Source: CNN Money) Click here to read the full article

Business News

Shares of Lennar Corporation (LEN) were up +2.23 or +6.34 percent to close at $37.43 per share on Wednesday, after the company reported a 13 percent increase in new sales for the quarter ended on November 30th. (Source: InvestorGuide) Click here to read the full article

Shares of LSI Corporation (LSI) were up +3.05 or +38.6 percent to close at $10.96 per share on Monday, after news the company entered into an agreement to be taken over by Singapore based Avago Technologies Limited (AVGO) for $11.15 per share. (Source: InvestorGuide) Click here to read the full article

Shares of Nimble Storage Inc. (NMBL) closed up +12.93 or +61.6 percent to $33.93 per share after its initial public offering on Friday. The stock traded as high as $35.13 during its first day of trading on the New York Stock Exchange, after opening at $31.10. (Source: InvestorGuide) Click here to read the full article

Technology Focus

Shares of Facebook Inc. (FB) were down -0.52 or -0.94 percent to close at $55.05 per share on Thursday, after news that the company and its founder, Mark Zuckerberg would be selling shares in a secondary offering valued at $4 billion. The sale will be the first for the company since its initial public offering last year. (Source: InvestorGuide) Click here to read the full article

AT&T Falls on Sale of Landline Business in Connecticut 
Shares of multinational telecommunications giant AT&T (T) fell .30 to $33.85, down .88%, on Tuesday on news of the sale of it’s landline business in Connecticut to Frontier Communications (FTR). (Source: InvestorGuide) Click here to read the full article

Your Money

Seven Stocks Parents Should Give to Their Kids for Christmas
Christmas is almost here, and hopefully most parents have finished their holiday shopping for the kids. 24/7 Wall St. wanted to take the lesson of investing to youngsters, via their parents' pocketbooks and efforts, of course. (Source: Yahoo Finance) Click here to read the full article

Employees Will Pay More for Health Care in 2014
If you're one of the 150 million Americans who get health insurance through your job, prepare to pay more. The new year will likely bring higher deductibles and copayments, penalties for not joining wellness programs and smaller employer contributions toward family coverage. (Source: USA Today) Click here to read the full article

Published on Dec 20, 2013
By InvestorGuide Staff

Copyrighted 2020. Content published with author's permission.

Posted in ...