Market Wrap: Fed Split on Stimulus; Viacom Blacks Out; Obamacare? Not in This House!

July 11, 2012 5:34 PM EDT
Market wrap-up for July 11th

End of the Day: Dow Jones down 48.6 to 12,604.53; S&P 500 down flat to 1,341.45; Nasdaq down 14.4 to 2,887.98

The following is a brief summary of events moving markets today:
  • Fed more split over stimulus: Fed minutes today showed somewhat of split thoughts on whether or not more stimulus would be needed in the U.S. For example, according to the FOMC minutes from a meeting held on June 19th and 20th, "A few participants expressed concern that slow growth in employment and low levels of consumer confidence would further restrain consumer spending. Many participants, however, said that business contacts had reported that consumer spending was holding up. Several observed that recent declines in gasoline prices would increase households' real incomes and could boost consumer spending in coming quarters."

    Key metrics in the Fed's decision to use more stimulus include inflation running "persistently" below the Fed's 2 percent target, if the economic recovery loses momentum, or risks to the forecast "became sufficiently pronounced."

    Overall, 11 out of 12 Fed officials voted to keep easy-money policies in place. For the complete transcript, click here.

  • Wait, Jersey Shore is still on air?: Viacom (Nasdaq: VIAB) pulled the plug on DirecTV (Nasdaq: DTV) on Tuesday, following failed fee negotiations between the two. Viacom said it was willing to strike a deal, while DirecTV countered that Viacom was seeking $1 billion in additional fees as its most popular programs continues to lose viewership.

    For the press release, click here. Notably, headlines had the two going back to the negotiating tablet in late trading.

  • Not this again!: For the 33rd time, the U.S. House voted to repeal President Barack Obama's health care bill. With votes of 244 - 185, the Republican-led House passed H.R. 6079, which was formed to revoke the 2010 Patient Protection and Affordable Care Act.

    But, unless there's a change in the Senate, the House will need always end up repealing the bill.

    News comes following the June 28th ruling by the U.S. Supreme Court, calling "Obamacare" constitutional. Under the ruling, the Supreme Court said Congress can require Americans to carry health insurance or pay a penalty, which the court said is constituational for lawmakers to tax.

    High-fives amongst House GOP members have died down on the recent repeal, observers noted.

  • If you didn't see this coming, raise your hand: SUPERVALU (NYSE: SVU) shares are getting hit following a first-quarter 2013 loss from the discount grocer. The company reported EPS of 19 cents on revs of $10.6 billion, both missing expectations. Additionally, the company said it would be seeking strategic alternatives, though no transactions are guaranteed.

    SUPERVALU also suspended its dividend.

    Shares are down about 20 percent in late-trading Wednesday.

  • [There's a lack of ] gold in them there hills!: Following Goldcorp's (NYSE: GG) late 2012 production outlook cut Tuesday, peers in the group were feeling a pinch today. Notably lower were NovaGold (AMEX: NG) and AuRico (NYSE: AUY), though more in the sector were pressured. The Gold Miners ETF (NYSE: GDX) also ended about 1.6 percent lower on the session.

    Many miners escaped harm following the update, as many tagged the issue as a company-specific problem. Gold August contracts ended the session up modestly, to $1,576.0 per ounce on the Comex.

  • Let's get this ball rolling: Yahoo! (Nasdaq: YHOO) is said to be naming Ross Levinsohn as permanent CEO, a spot he's held on an interim basis since May. Levinsohn was in contention with Hulu's Jason Kilar until Kilar graciously backed out of the running.
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