Weekly Recap: GM, GMCR Underperform

Weekly Wrap Up

Markets finish the week ahead despite heavy losses recorded on Wednesday. Italy's bonds continue to see increases in rate, raising more fears the country will be forced to abandon the euro, causing the mid-week sell off. But stocks recovered Thursday and Friday despite looming international economic concerns.

In corporate news, General Motors (GM: Charts, News) posted a third quarter loss thanks to disappoint performance in Europe, raising concerns over immediate outlook for the once-troubled auto manufacturer.
Green Mountain Coffee (GMCR: Charts, News) also had a bad week, seeing shares dip as much as 30% after missing analysts expectations. More Market News

Economic News

Fed to conduct fourth round of stress tests on largest banks
The Federal Reserve will conduct a fourth round of stress tests in coming weeks to determine if U.S. banks can withstand a recession.

Fed Vice Chairman Janet Yellen, the central bank's second-ranking official, says the tests are necessary because of the increased downside risks that Europe's debt crisis poses to the U.S. economy and financial markets. (Source: USA Today) Click here to read the full article
Italy Senate Vote to Make Way for Coalition Government Led by Mario Monti
Italy’s Senate will vote on debt- reduction measures today in an attempt to shore up investor confidence and pave the way for a new government that may be led by former European Union Competition Commissioner Mario Monti.

The Senate will vote on a package of measures promised to the European Union aimed at boosting growth and cutting Italy’s debt of 1.9 trillion euros ($2.6 trillion), the world’s fourth biggest. Lawmakers rushed to pass the measures after Prime Minister Silvio Berlusconi’s parliamentary majority unraveled this week, leading bond yields to surge to euro-era records. (Source: Bloomberg) Click here to read the full article

Business News

GM outlook disappoints, shares tumble
General Motors Co (GM: Charts, News) posted a lower third-quarter profit on losses in Europe and offered a disappointing outlook that raised doubts about the speed of its turnaround two years after emerging from bankruptcy.

GM vowed to slash costs to shore up margins in a sputtering economy but its fourth-quarter outlook disappointed investors and sent shares tumbling 10 per cent on Wednesday. (Source: India Times) Click here to read the full article
Green Mountain Coffee -- The Numbers Don't Lie
Investors dumped shares of Green Mountain Coffee Roasters (GMCR: Charts, News) after the K-cup coffee and Keurig maker reported revenue that missed analysts' estimates. But that wasn't the most disturbing figure.

Revenue jumped 91% in the fiscal fourth quarter, well below management's guidance for a gain of 100% to 105%, raising concerns of the company's credibility. (Source: The Street) Click here to read the full article

Technology Focus

Best Buy Buys Into Cloud With mindSHIFT
Best Buy is expanding into the cloud services arena.

The company said today it had agreed to acquire managed service provider mindSHIFT Technologies for $167 million.

The transaction will accelerate Best Buy's (BBY: Charts, News) growth in the small and mid-sized business IT services category, the company said. It estimates the small and mid-sized managed services provider market is worth $40 billion. (Source: Forbes) Click here to read the full article
Call of Duty: Modern Warfare 3 sets sales record; hoopla reigns
Call of Duty: Modern Warfare 3 has set a one-day sales record, taking in $400 million in North America and Britain, and game publisher Activision is popping open the bubbly - and the hype.

"We believe the launch of Call of Duty: Modern Warfare 3 is the biggest entertainment launch of all time in any medium," Activision Blizzard (ATVI: Charts, News) chief executive Bobby Kotick said in a statement Friday.

That claim is up for debate, but for launch-day sales of a video game, Modern Warfare 3 appears to have broken the previous record held by Call of Duty: Black Ops, which generated $360 million on its first day last year. (Source: LA Times) Click here to read the full article

Your Money

4 Reasons Resumes Are Rejected
Recruiters spend countless hours reviewing resumes and screening candidates. In fact, they spend so much time scanning resumes, they can often do it in one minute or less.

As disappointing as that may be given all the hard work you put into your resume, it's the unfortunate reality...and with such a small amount of time to make an impression, it's no wonder they occasionally get it wrong. You may have been the perfect person for the position, but because you failed to successfully package yourself, your resume and your chances end up meeting their demise with the click of a mouse. Read on to learn the top four reasons your resume may end up in recycle bin or folder. (Source: Daily Finance) Click here to read the full article
The Weakest Link in The U.S. Economy
Apple used 49,400 employees to generate revenues of $65 billion in 2010. Its outsourcing partner, Chinese Foxconn, employed nearly a million people for $59 billion in the same year. In the U.S., Apple focuses on creating high-paying jobs while it outsources the low-paying ones to Asia. For companies from Dell to HP to Intel, outsourcing provides competitiveness. It makes the shareholders happy and helps produce good earnings. Every global company has the right to pursue opportunities to remain competitive. But the state of events happening in the U.S. economy right now calls for solutions which these very companies could provide. (Source: Harvard Business Review) Click here to read the full article
Published on Nov 11, 2011
By InvestorGuide Staff

Copyrighted 2020. Content published with author's permission.

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