Stocks start the week with modest losses

Investors returned from the holidays in a cautious mood, starting the first full week of 2014 with some light selling. The Dow Jones industrial average, the S&P 500 and the Nasdaq all ended Monday modestly lower.

And there’s a new index in town! CNNMoney’s Tech 30 Index made its debut. The index is designed to give investors a snapshot of 30 tech industry leaders around the globe.

The index includes U.S. tech heavyweights such as Apple (AAPL, Fortune 500), Google (GOOG, Fortune 500), Microsoft (MSFT, Fortune 500) and Facebook (FB, Fortune 500) as well as international companies Baidu (BIDU) and SAP (SAP). The Tech 30 was up slightly. 

After starting the year with a lackluster performance last week, stocks could continue to tread water in the run-up to Friday’s big jobs report.
Investors are also awaiting the release of minutes from the Federal Reserve’s December meeting, when it announced plans to trim its monthly bond purchases by $10 billion to $75 billion beginning this month. Later Monday, the U.S. Senate is expected to confirm Janet Yellen to serve as the next chair of the Federal Reserve, after Ben Bernanke’s second term ends in January.

Fool’s gold? Gold prices briefly plunged $30 an ounce before bouncing back. The move triggered a 10 second pause in trading after a “velocity logic event” occurred, according to a spokesman for exchange operator CME Group. Velocity logic events are relatively common in electronic markets, the spokesman said. They provide a brief window for investors to modify or cancel orders, he added.

While the CME spokesman said there were no erroneous trades, there was rampant speculation on StockTwits about what caused the drop. Some compared it to the 2010 Flash Crash in stocks, while others claimed that gold prices are being manipulated. But most were just trying to figure out what happened.

“Very erratic & unusual trades in $GLD last couple minutes – wonder what that is about – perhaps news pending” said BenCBanks.
In corporate news, Men’s Wearhouse (MW) launched a hostile bid for rival suit seller Jos. A. Bank (JOSB). After a series of friendly offers and counter offers, Men’s Wearhouse made a $1.6 billion cash bid and notified that it will nominate two members for its board of directors.

Liberty Media Corporation (LMCA) unveiled a complex proposal to take full control of satellite radio company Sirius XM Holdings (SIRI) by swapping stock. Liberty already owns a controlling stake in Sirius, but one analyst said the move is linked to a potential deal between cable companies Charter Communications (CHTR, Fortune 500) and Time Warner Cable (TWC, Fortune 500).

Charter, which Liberty also owns a stake in, has reportedly been in talks with major banks to borrow money to fund a possible bid for Time Warner Cable. Shares of Twitter (TWTR) fell 4% after the stock was downgraded by several analysts. Twitter had a strong rally last month, but shares have been volatile recently as analysts have warned that the stock is overvalued.

Bearish traders on StockTwits seized on the downgrades.
“$TWTR This stock is way too overvalued. With the downgrade, Id make the wager we’ll see the 50’s this week,” said drhee2k.
Twitter shares were trading around $66, down from a high near $75 in late December. But Twitter wasn’t the only stock moving in response to an analyst report. ”I wonder what made more money today, MS downgrade of $TWTR or GS upgrade of $SCTY?,” said soopy9.

SolarCity (SCTY) shares jumped after being upgraded by Goldman Sachs (GS, Fortune 500). SolarCity’s chairman is Tesla (TSLA) CEO Elon Musk. Meanwhile, First Solar (FSLR) shares tumbled after Goldman downgraded the stock in the same report. But one trader quipped about how the two big moves canceled each other. The Guggenheim Solar (TAN)exchange-traded fund barely budged.

“Goldman cuts First Solar to Sell (down 9%), raises Solar City to Buy (up 9%). Investors in the solar ETF yawn (flat). $FSLR $SCTY $TAN,” said reformedbroker. European markets ended mixed after the latest purchasing managers’ survey showed the euro zone services sector lost some momentum in December. Many Asian markets ended lower. The latest report from HSBC on China’s services sectors showed a slower rate of growth in December, adding to the downbeat tone.

Share and Enjoy

Posted In: EHR News

About The Author

Joseph Sabeh Jr.

Please let me introduce myself, I am Joseph Sabeh, Jr a full time licensed professional realtor. I have been with Executive Homes Realty for over 13 years and was trained by my late father and Broker, Joseph Sabeh. I recently incorporated the company and we moved the office to 43513 Mission Blvd just last summer. I could not have found a more honorable place to work. After earning my experience selling high end Ralph Lauren suits and studying business management in southern California, I decided to pursue my dream of selling real estate and working with my father. He had already had such an excellent reputation and established a niche market of high end clientele that catered to the very best. I wanted to become the consummate professional just like him and have strived to become just that being just a phone call or email away from getting back to my client’s immediate needs! Known by my clients for my tenacity, perseverance , and excellence in negotia- tion(Certified Negotiation Expert), I have always strived to meet my clients high demands and goals. As a result of my professionalism, I have achieved an extensive portfolio of referrals from past and present clients. I credit my current values from my upbringing of my parents and the credit is due to them without question. Their integrity, pride, and willingness to sacrifice for the better of my life and my sister’s always left a mark on me that one day I will pass on. Their desire to achieve a better life and live it to the fullest is one that some families dream of and I certainly am appreciative of all of the education and etiquette I have learned from them both. I have sold condos up to 3.2 million dollar homes and I am here for any and all of your future real estate needs and wishing you the very best experience in your future real estate endeavors with me.

No Comments

No comments yet.

Leave a comment

RSS feed for comments on this post. TrackBack URL