Market Wrap: Draghi Calls on Germany; GDP Shows Pep, Needs More; Golden Boy Paulson?; Yelp Investors Lock-In


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August 29, 2012 5:37 PM EDT Send to a Friend
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Market wrap-up for August 29th

End of the Day: Dow Jones up 4.5 to 13,107.48; S&P 500 up 1.2 to 1,410.49; Nasdaq up 4.0 to 3,081.19

The following is a brief summary of events moving markets today:
  • As spending slows, savings soar: New revised data from the U.S. Department of Commerce's Bureau of Labor Statistics showed gross domestic product (GDP) expanded at an annual rate of 1.7 percent for the three-months ended June 30, 2012. The number was up 0.2 points from the initial Commerce Department estimate, although it was in-line with economists expectations.

    For more on the reading, click here.

  • Outspoken Draghi speaks: European Central Bank president Mario Draghi may be opting out of attending this weekend's Jackson Hole gather, but that doesn't mean he can make a few comments on the European economy on the interim. According to an op-ed piece published in a German newspaper Wednesday, Draghi said Europeans don't need to choose between extremes. In other words, they don't need to go back to the ways of the past or become the "United States of Europe."

    Specifically, Draghi singled-out Germany and its outspokeness to fiscal integration. "The root of Germany's success is its deep integration into the European and world economies. To continue to prosper, Germany needs to remain an anchor of a strong currency, at the centre of a zone of monetary stability and in a dynamic and competitive euro area economy. Only a stronger economic and monetary union can provide this."

  • What? Us sell? Hahahaaa!: Recent IPO Yelp, Inc. (NYSE: YELP) saw expiration of its post-IPO lock-up provisions on insiders and executives come and go...without a hitch! Not only was there not much in the way of insider's selling the stock, but shares rose 22.5 percent on the session. The move was in contrast to peer Facebook's (Nasdaq: FB) first lock-up expiration, which saw plenty of shares hit the market and a lack of buyers to scoop them back up.

  • Investors tune in to channel "Beat-and-Raise": Pandora Media (NYSE: P) issued a second-quarter 2012 loss of zero cents Wednesday, besting views calling for a loss of 3 cents per share. Total listener hours grew 80% to 3.30 billion for the second quarter of fiscal 2013, compared to 1.83 billion for the second quarter of fiscal 2012.

    Looking ahead, the streaming radio giant sees better than expected revs of $425 million to $432 million and narrowed loss expectations from 11 cents to 7 cents before to a new range of 8 cents to 4 cents per share. The consensus views calling for sales of $424.2 million and a loss of 12 cents per share.

    For more on the numbers, click here.

  • Golden funds, bronze returns: Despite lackluster performance from 2011 leaking into 2012, Bank of America (NYSE: BAC) said it would stick it out with John Paulson and his Paulson & Co. set of hedge funds. News comes following an interim conference call made Tuesday night, which had BofA advisors and investors grilling Paulson over returns and expectations on how to claw back following the drop.

    Paulson didn't issue a specific time frame on when he expected his Advantage and levered Advantage Plus funds to rebound. He also noted that markets as a whole don't need to produce gains, but some segments will need to perform better for a turnaround to commence.

    For more color on the call, click here.

  • Don't let the door hit ya!: Wellpoint (NYSE: WLP) got a little boost Wednesday following the departure of its CEO Angela Braly. Shares ended 7.7 percent higher following investors letting out a collective sigh of relief.

    Click here for more on the exit by Braly.
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