Market Wrap: ECB, BoE Leave Rates Firm; Priceline Scoops Up Growth; Groupon Checks Out; NYC Goes to License Plate Extremes

November 8, 2012 6:34 PM EST
Market wrap-up for November 8th

End of the Day: S&P 500 down 17.0 to 1,377.51; Dow Jones down 121.4 to 12,811.32; Nasdaq down 41.7 to 2,895.58

The following is a brief summary of events moving markets today:
  • You can do it, Europe!: ECB President Mario Draghi said he would be open to a rate cut in the coming months, but also noted that there was little more the ECB could do for Spain, Greece, and others. The ECB kept its benchmark rate unchanged at 0.75 percent.

    Draghi noted the quick consolidation through the euro-zone, hinting that a full recovery would be slow, but solid.

    Speaking of rates, the Bank of England kept its reference rate at 0.5 percent.

  • How can Europe not like group deals?: Groupon (Nasdaq: GRPN) shares are getting slammed in after-hours trading following third-quarter results from the daily-deals giant. Sales rose 32 percent to $568.6 million, leading to a net loss of $2.98 million, or break even for the quarter. The Street consensus was looking for sales of $590.1 million and EPS of 3 cents.

    One B. Riley analyst noted that Groupon continues to suffer under international expansion, currently fluctuation, and lack of demand for group discounts abroad.

    In addition, the Company is eliminating about 80 sales positions today. Groupon employes about 12,800, making the announcement negligible.

  • Food, folks, and flop: McDonald's are in need of some serious Happy Meal therapy today, following the venerable stock dropping about 2 percent on the session after reporting a monthly sales miss again. Last month, McDonald's reported a 1.9 percent gain in third-quarter comps, versus consensus expectations calling for a 2 percent increase.

    Global comps fell 1.8 percent, McDonald's reported this morning, which was about 0.7 points wider than expectations.

    Shares have fallen 17 percent since hitting an all-time higher of $102.22 in January 2012.

  • Baby steps turn into leaping bounds: JPMorgan Chase & Co. (NYSE: JPM) said the Fed doesn't object to its capital plan, which allows $3 billion in stock buyback in the first quarter of 2013. For more color, click here.

  • Priceline. Negotiating.: After markets closed Thursday, Incorporated (Nasdaq: PCLN) and KAYAK Software Corp (Nasdaq: KYAK) entered a deal where priceline would acquire KAYAK for $40 per share. For more color, click here.

  • Spray paint not allowed: NYC Mayor Michael Bloomberg is implementing a new odd-even license plate system to determine who gets gasoline and diesel, and when they'll be able to get it. In a statement today, Bloomberg said the system will help to "accelerate the recovery of the distribution network and ease disruptions and wait times for drivers."

  • Justice prevails: Jared Loughner was sentenced to life in prison today for the shooting in Tuscon, Arizona, that killed six and seriously injured former U.S. Representative Gabrielle Giffords.
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