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Roller Coaster of a Week for U.S. Stocks; TrueCar Shares Up 16% During IPO Debut

By: , dated May 16th, 2014

Weekly Wrap Up

Stocks had a roller coaster of a week. The Dow Jones and the S&P 500 achieved a record high on Monday, rose even higher on Tuesday to end at a new record high, then retreated from the record highs on Wednesday. General Motors (GM) was in the news a lot this week. On Thursday the auto-maker issued a recall of nearly 3 million cars and trucks. Then on Friday the U.S. Department of Transportation issued the maximum fine of $35 million to GM for delays in recalling cars with a faulty ignition switch. The company was issued the fine since they did not notify the government in a timely manner after the faulty ignition switch was discovered.

Walmart’s (WMT) shares have been struggling all week, partially due to the company missing first quarter earning expectations. While their net profit was down 5% in Q1, the real problem seems to be the lack of revenue growth. TrueCar (TRUE) debuted its IPO at $9, down from the $12-$14 range that the company predicted. Despite debuting at a lower price, its shares were up nearly 16% throughout the day.

Economic News

Uneven Global Economy a Test for Central Banks
The global economy is plodding ahead in fits and starts as the largest countries struggle to achieve consistent growth. (Source: Yahoo News) Click here to read the full article

NewsWatch: Treasury-Bond Market Shows Signs of Fear, Panic Buying
The bond market is showing some serious fear, suggesting that there may be movement in stocks that many investors are not anticipating. (Source: Market Watch) Click here to read the full article

Business News

J.C. Penney (JCP) Stock Soars on First Quarter Earnings
Shares of J.C. Penney Company Inc. (JCP) were trading +1.60 or +19.12 percent higher to $9.97 per share in pre-market trading this morning, after the company announced better than expected earnings for the company’s first quarter 2014 fiscal year after the close yesterday. (Source: InvestorGuide) Click here to read the full article

Elizabeth Arden (RDEN) Falls on Much Weaker Than Expected Results
Shares of Miramar, Florida, based Elizabeth Arden, Inc. (RDEN) fell sharply on Tuesday in response to the announcement of the company’s earnings for the third fiscal quarter ended March 31. Elizabeth Arden fell 22.82%, down $8.13, to close at $27.50 on volume of 4,008,958 shares. (Source: InvestorGuide) Click here to read the full article

What’s Really Wrong with Wal-Mart
Shares of Wal-Mart aren’t just struggling because the company missed first quarter earnings forecasts, although that didn’t help. (Source: USA Today) Click here to read the full article

Technology Focus

AT&T to Acquire DirecTV (DTV) in $50B Deal
Shares of DirecTV (DTV) were trading up +4.28 or +4.91 percent to $91.44 per share in pre-market trading on Tuesday, after sources revealed yesterday that the two companies were working towards a formal announcement. (Source: InvestorGuide) Click here to read the full article

Cisco (CSCO) Stock Gains on Third Quarter Results
Shares of Cisco Systems Inc. (CSCO) were up +1.51 or +6.62 percent to $24.32 per share in pre-market trading this morning, after the company reported solid third quarter earnings yesterday after the market close. (Source: InvestorGuide) Click here to read the full article

Your Money

The No-Risk Way to Learn to Invest
If you’re an investing beginner, the prospect of putting your money at risk can scare you to death. (Source: The Motley Fool) Click here to read the full article

5 Unconventional Truths About Money 
Imagine you spent years getting really good at something — maybe weightlifting, or ice skating, or personal styling, whatever. Then you went back and read the “introductory” articles about how to succeed. (Source: I Will Teach You To Be Rich) Click here to read the full article

This article was brought to you by the InvestorGuide Staff Writers and Editors.

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