Market Wrap: Fed Standing By; Microsoft's Other Unveiling; JPMorgan De-Risks Further; BK is Back

June 20, 2012 5:40 PM EDT
Market wrap-up for June 20th

End of the Day: Dow Jones down 12.9 to 12,824.39; S&P 500 down 2.3 to 1,355.69; Nasdaq up 0.7 to 2,930.45

The following is a brief summary of events moving markets today:
  • Twist and shout: The Fed today signaled continuation of Operation Twist through the end of the year and it was "prepared to take action" if needed in the event economic data showed negative implications.

    In Operation Twist, the Fed said it would be buying longer-term Treasury bonds while selling shorter-term Treasuries. In doing so, the Fed hopes to spur inflation, growth, and, eventually, rate increases.

    Investors weren't expecting anything in the way of an actual rate change, which the Fed said would remain low through at least the end of 2014. Some were positioning for another round of bond buying, which didn't happen either.

    For more on the statement, click here.

  • U.S. consumers now appear disinterested in Old Spice, Luvs: Procter & Gamble (NYSE: PG) dropped 3 percent on the session after it issued a release early announcing reduced guidance.

    Citing slower growth rates and market share softness in developed areas, as well as currency headwinds, P&G said core earnings per share are now expected to be in the range of $0.75 to $0.79 per share, compared to a prior range of $0.79 to $0.85. The Street was looking for EPS of $0.82.

    The announcement was made ahead of the Deutsche Bank Global Consumer Conference today.

  • What's behind door number 3?: Striking whilst the iron was hot, Microsoft (Nasdaq: MSFT) wasted no time in debuting its new Windows Phone 8 system. The new mobile OS will run on the same core as Windows 8, meaning games and other apps will be much more transferable between your mobile device and PC. In addition, the OS will support dual- and quad-core setups. For a brief rundown of some of what was discussed at the event today, click here.

    The debut comes just two days after Microsoft entered the PC business with its first tablet line. Shares ended up nearly 0.8 percent.

  • Holy leverage, Batman!: JPMorgan (NYSE: JPM) is said to have cut a large chunk of its debt exposure. The WSJ, citing people familiar with the matter, said JPMorgan has trimmed its position in the credit derivatives index known as CDX.NA.IG.9 by about $50 billion, with a sizable portion happening this week.

    Markit data showed $31 billion of trades in the index maturing in 2017 happened Tuesday, compared with its usual volume of $1 billion to $5 billion.

    The trades followed a disclosure by JPMorgan last month of a $2 billion loss in its CIO unit. The bank said it would issue another update with its second-quarter report on July 13th.

    Over the last week, CEO Jamie Dimon has testified in front of both a Senate Panel and Congressional Committee.

  • Reforms begin in the Mediterranean: Greece swore in Greece's New Democratic party leader Antonis Samaras as its Prime Minister today. Samaras said his cabinet -- slated to be sworn-in Thursday -- would immediately get to work on reforms which aim to bring Greece out of its financial crisis at a quicker pace.

  • Flame-grilled in stock form: Almost as soon as it left, you missed it. But, it's back and better than ever. We're referring to Burger King stock.

    After settling its business combination with Justice Holdings, Burger King Worldwide (NYSE: BKW) was back at the NYSE. Shares opened at $14.50 and finished a respectable 3.5 percent higher, leading the casual dining segment on the session.

    What was more curious was the lack of pomp and circumstance associated with the IPO. Doesn't anyone know (or care) that they now serve bacon shakes? Anyone?
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