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Fed Continues to Trim Stimulus; Amazon Unveils 3-D Fire Phone

By: , dated June 20th, 2014

Weekly Wrap Up

The week ended on a high note with the Dow Jones and S&P 500 closing at record highs. In addition, Nasdaq closed at a 14-year high. The Federal Reserve met this week and announced, as expected, that they would be cutting the stimulus package by another $10 billion, reducing monthly spending from $45 billion to $35 billion. They also decided to reduce the forecast for U.S. economic growth in 2014, but remain confident that the unemployment rate will continue to fall.

This week was heavy on the tech side, with Facebook (FB) releasing its new Slingshot app and Amazon (AMZN) unveiling its much anticipated Fire Phone. YouTube also announced this week that it will soon start its own online music service that can be listened to on mobile devices. This music service may eat into Spotify and Pandora’s (P) market since more people already listen to music on YouTube than anywhere else.

Economic News

Housing Market Falters Amid Rising Prices, Lower-Paying Jobs
The two-year-old U.S. housing recovery is faltering. The Mortgage Bankers Association yesterday lowered its forecast for combined new and existing home sales in 2014 to 5.28 million — a decline of 4.1 percent that would be the first annual drop in four years. (Source: Bloomberg) Click here to read the full article

A Controversial Way to Create 10 Million Jobs
Here are two problems with the U.S. economy that reinforce each other: Employers aren’t creating enough jobs, and big companies increasingly seek tax advantages by relocating overseas. (Source: Yahoo Finance) Click here to read the full article

Business News

Oracle (ORCL) Shares Down After Earnings Miss
Shares of the Oracle Corporation (ORCL) were down -2.62 or -6.16 percent to $39.89 in pre-market trading this morning, after the company announced lower than expected fourth quarter earnings late yesterday. (Source: InvestorGuide) Click here to read the full article

Measurement Specialties (MEAS) to be Acquired by TE Connectivity.
Shares of Measurement Specialties Inc. (MEAS) were up + 8.15 or +10.45 percent to $86.15 per share in pre market trading early Thursday, after news released late Wednesday that TE Connectivity Ltd. (TEL) and Measurement Specialties had entered into a definitive agreement for the acquisition of Measurement Specialties by TE Connectivity for $86.00 per share. (Source: InvestorGuide) Click here to read the full article

RadioShack Is A Penny Stock (RSH)
RadioShack is officially a penny stock. Shares of the electronics retailer are now under $1.00, currently at about $0.92. (Source: Business Insider) Click here to read the full article

Technology Focus

eBay’s (EBAY) PayPal Expands to 10 New Countries
Shares of eBay Inc. (EBAY) were trading up +0.17 or +0.35 percent to $49.17 per share in pre-market trading on Tuesday, after the company announced yesterday that their PayPal unit was expanding into ten new countries including Nigeria. (Source: InvestorGuide) Click here to read the full article

SolarCity (SCTY) Up on Acquisition of Solar Panel Manufacturer 
Shares of San Mateo, California based SolarCity Corp. (SCTY) rose sharply on an overall up day on Wall Street. SolarCity’s stock was up 17.58%, rising $9.65 per share to close at $64.53, on volume of 24,105,997 shares. (Source: InvestorGuide) Click here to read the full article

Your Money

10 Things Everyone Should Know About Money
Americans tend to score poorly on financial literacy tests, but it’s not entirely their fault: School systems don’t generally require personal finance classes, and many parents feel ill-equipped to pass on big lessons about spending, saving and investing to their kids. (Source: Yahoo News) Click here to read the full article

Your Money: 6 New Ways to Measure Your Financial Goals
Some metrics that we cling to in our financial lives end can up being wildly counterproductive. But what should we replace them with? (Source: New York Times) Click here to read the full article

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

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