After hitting new highs earlier in the week, stocks were under pressure for a third day Friday as worries about the economic recovery grow.
The Dow Jones industrial average, the S&P 500 and the Nasdaq were all down slightly in afternoon trading.
U.S. stocks fell hard Thursday.The major indexes are below their closing levels from a week ago, a dramatic turnaround from Tuesday when they were hitting new record highs. The Dow is down nearly 1% for the week. Meanwhile, the bond market has been on a tear.
The yield on the 10-year note fell to a 6-month low below 2.5% Thursday as investors expect the Federal Reserve to keep interest rates low for a considerable time.
Recent economic data has been mixed, and reports released Friday added to concerns about the lackluster recovery. An early reading on consumer sentiment in May unexpectedly fell, but a report on new home construction in April was strong.
The European Central Bank is also expected to introduce new stimulus measures soon as the euro area economy remains weak and inflation is tame.While the overall market was treading water, a number of well-known stocks were making moves.
Darden Restaurants (DRI, Fortune 500) announced plans to sell its Red Lobster chain to private equity firm Golden Gate Capital $2.1 billion. The company, which also owns Olive Garden, plans to use the proceeds to pay down debt.
But the stock fell more than 3% on the news.Shares of WWE (WWE) were body slammed, plunging more than 40% after the company unveiled a new television distribution agreement with Comcast (CMCSA, Fortune 500)-owned NBCU late Thursday.
WWE expects the deal to result in losses ranging from $35 million to $52 million over the next two years, depending on how many people sign up to watch the Raw and Smackdown broadcasts.
General Motors (GM, Fortune 500) agreed to pay a $35 million to settle a federal probe into the company's decision to delay a recall of vehicles with faulty ignition switches for 10 years.The company has been hit with a string of high-profile recalls lately, and investors seemed to take the news in stride.
GM shares were down 1%. J.C. Penney (JCP, Fortune 500) shares surged about 15% as the retailer posted quarterly sales that beat expectations and revealed a smaller-than-expected loss.
Luxury retailer Nordstrom (JWN, Fortune 500) shares also soared on better-than-expected earnings. Verizon (VZ, Fortune 500) shares were up about 2% after Warren Buffett's investment firm, Berkshire Hathaway (BRKA, Fortune 500), revealed it had purchased a stake worth nearly $530 million in the company. Two companies began trading for the first time Friday.
TrueCar (TRUE), a website that offers users guaranteed pricing on cars, priced its initial public offering of stock at $9 a share, well below the expected range.But the stock rose more than 15% once it started trading.
Scott Painter, the chief executive of TrueCar, acknowledged to CNNMoney that volatile market conditions led the company to lower its offering price. But he said TrueCar is profitable and plans to use the proceeds to boost its profile nationwide.
Jumei International Holdings (JMEI), the largest online seller of beauty products in China, rose nearly 15% in its debut.
That's after the company boosted the size of its IPO and priced the stock above the range at $22 a share. Strong demand for Jumei could be a sign that investors will have a similarly big appetite for Chinese e-commerce king Alibaba once it begins trading later this year.
Indian stocks were soaring.The nation's benchmark Sensex index surged to a record high as early election results suggested a sweeping victory for Narendra Modi and the pro-business Bharatiya Janata Party. Other Asian markets and European markets both ended the day mixed.
cnn.com
The Dow Jones industrial average, the S&P 500 and the Nasdaq were all down slightly in afternoon trading.
U.S. stocks fell hard Thursday.The major indexes are below their closing levels from a week ago, a dramatic turnaround from Tuesday when they were hitting new record highs. The Dow is down nearly 1% for the week. Meanwhile, the bond market has been on a tear.
The yield on the 10-year note fell to a 6-month low below 2.5% Thursday as investors expect the Federal Reserve to keep interest rates low for a considerable time.
Recent economic data has been mixed, and reports released Friday added to concerns about the lackluster recovery. An early reading on consumer sentiment in May unexpectedly fell, but a report on new home construction in April was strong.
The European Central Bank is also expected to introduce new stimulus measures soon as the euro area economy remains weak and inflation is tame.While the overall market was treading water, a number of well-known stocks were making moves.
Darden Restaurants (DRI, Fortune 500) announced plans to sell its Red Lobster chain to private equity firm Golden Gate Capital $2.1 billion. The company, which also owns Olive Garden, plans to use the proceeds to pay down debt.
But the stock fell more than 3% on the news.Shares of WWE (WWE) were body slammed, plunging more than 40% after the company unveiled a new television distribution agreement with Comcast (CMCSA, Fortune 500)-owned NBCU late Thursday.
WWE expects the deal to result in losses ranging from $35 million to $52 million over the next two years, depending on how many people sign up to watch the Raw and Smackdown broadcasts.
General Motors (GM, Fortune 500) agreed to pay a $35 million to settle a federal probe into the company's decision to delay a recall of vehicles with faulty ignition switches for 10 years.The company has been hit with a string of high-profile recalls lately, and investors seemed to take the news in stride.
GM shares were down 1%. J.C. Penney (JCP, Fortune 500) shares surged about 15% as the retailer posted quarterly sales that beat expectations and revealed a smaller-than-expected loss.
Luxury retailer Nordstrom (JWN, Fortune 500) shares also soared on better-than-expected earnings. Verizon (VZ, Fortune 500) shares were up about 2% after Warren Buffett's investment firm, Berkshire Hathaway (BRKA, Fortune 500), revealed it had purchased a stake worth nearly $530 million in the company. Two companies began trading for the first time Friday.
TrueCar (TRUE), a website that offers users guaranteed pricing on cars, priced its initial public offering of stock at $9 a share, well below the expected range.But the stock rose more than 15% once it started trading.
Scott Painter, the chief executive of TrueCar, acknowledged to CNNMoney that volatile market conditions led the company to lower its offering price. But he said TrueCar is profitable and plans to use the proceeds to boost its profile nationwide.
Jumei International Holdings (JMEI), the largest online seller of beauty products in China, rose nearly 15% in its debut.
That's after the company boosted the size of its IPO and priced the stock above the range at $22 a share. Strong demand for Jumei could be a sign that investors will have a similarly big appetite for Chinese e-commerce king Alibaba once it begins trading later this year.
Indian stocks were soaring.The nation's benchmark Sensex index surged to a record high as early election results suggested a sweeping victory for Narendra Modi and the pro-business Bharatiya Janata Party. Other Asian markets and European markets both ended the day mixed.
cnn.com
2 comments:
Yeah, you are right. The market seems to be in a bad mood and ended in a weak note. I kept my fingers crossed and did not trade these days. I trade with Greenvault FX and this week I just watched the market and did not enter into any position.Hope next week it will be brighter...
Thank you !!!
Really nice blog and more informative about European Central Bank news.
Its most useful to do trading with Greenvault FX.
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