Stocks Fall Following 5-day Advance
Investors threw in the towel and ended a five day rally on Friday. Stocks managed slim gains through midday as investors welcomed FedEx's (FDX) upbeat profit forecast and a jump in consumer sentiment . The University of Michigan's initial reading on consumer sentiment rose to 70.2 in September, topping previous forecasts. Traders started to pullback during afternoon trading as they contemplated the next direction of the market. U.S. light crude oil for October delivery fell $2.65 to settle at $69.29 a barrel on the New York Mercantile Exchange. The slide in oil hurt energy companies, which have been some of the biggest supporters of the recent rally. The dollar continued its slide against other major currencies, falling to multi-month lows versus the euro and the Japanese yen. Looking ahead, a surge in economic data next week could help investors determine whether the expected economic rebound is on track. If so, more advances will likely occur.
Is This Stock Market Rally For Real?
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Campbell Soup (CPB) is still um um good. The company reported a higher-than-expected quarterly profit and was able to top Wall Street's expectations. The soup maker is still reaping the benefits from consumers opting to fix meals at home and now expects a more normal economy given its recent quarterly results.
One day after it was announced that John Mack would step down as CEO of Morgan Stanley (MS), the company has already named someone to succeed him. James Gorman has been chosen to take over after Mack's departure in January 2010. Here is a little background on Gorman in case you're scratching your head asking who this guy is?
Video -- Morgan Stanley: Executive Changes
As we all know, some things are continuing to suffer despite a slight rebound in the economy. Endowments at some of the most well-known universities are still declining. Columbia , Harvard and Yale all reported hefty losses over the last year. Harvard's Endowment Chief Jane Mendillo is making a move to bring more of the money back in-house, but will it stir up more bonus controversy ?
General Motors is making headlines again, but not for the wrong reasons. The company announced a money-back guarantee program that allows new car buyers to return the vehicle within 60 days if they are dissatisfied with their purchase.
Will GM's Money-Back Guarantee Work?
In other automaker news, Ford Motor Co. (F) said that it has adopted a plan to preserve $19 billion in deferred tax assets by placing restrictions on large shareholders.
The Commerce Department reported another decline in wholesale inventories, but not because of declining sales. This time a dip in production is to blame, but analysts are expecting this number to tick up soon as demand increases.
Kraft's (KFT) play for Cadbury (CBY) just got a little more difficult thanks to a declining dollar . The company may also need to prepare for potential hostile bids from multiple companies.
Other Juicy Tidbits
Americans are still asking the government to show them the jobs! As unemployment continues to rise, people are having a hard time seeing the light at the end of the tunnel. Could double-digit unemployment be here to stay ?
It was 8 years ago today that numerous Americans lost their lives in one of the worst terror attacks in the history of the United States. Todd Harrison reveals his memories from that horrible day.
Video -- 9/11 Moment of Silence
Despite its nasty reputation, this September has not triggered the long-awaited stock market selloff. A market correction is still very likely. Here are 4 things that may trigger the September curse.
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