Market Wrap: Plosser Sours on Stimulus; Tesla's Model S Problem; Home Prices Robust Growth; Yahoo!'s Morse is Out

September 25, 2012 5:18 PM EDT Send to a Friend
Market wrap-up for September 25th

End of the Day: S&P 500 down 15.3 to 1,441.59; Dow Jones down 101.4 to 13,457.55; Nasdaq down 43.1 to 3,117.73

The following is a brief summary of events moving markets today:
  • Haters gonna hate: Philly Fed president Chrles Plosser issued comments that new stimulus measures from the Fed probably wouldn't boost growth. In fact, Plosser says it'll jeopardize the Fed's credibility.

    "I opposed the Committee’s actions in September because I believe that increasing monetary policy accommodation is neither appropriate nor likely to be effective in the current environment," Plosser commented in a speech Tuesday. He noted that every Fed policy action has costs and benefits, with recent FOMC action having greater costs versus benefits.

    For more on the September 13th announcement by the FOMC, click here.

  • Hit the brakes!: Tesla Motors (Nasdaq: TSLA) said production of its Model S sedan is about four to five weeks behind schedule. As a result, the company is facing a revenue squeeze and is aiming to sell about 5 million shares to raise equity.

    Tesla also reduced its sales outlook for 2012, from a range of $560 million to $600 million down to a new range of $400 million to $440 million. The Street was at $542.6 million.

    Shares of the company ended about 9.8 percent lower Tuesday.

  • Home sweet home: According to the report, the S&P/Case-Shiller Home Price index rose 1.6 percent in its 20-city composite from the same period last year. The Street was looking for a gain of 0.8 percent. The reading for June came in at 0.5 percent.

    Year-to-date, home prices are up 5.9 percent which is the largest gain in seven years.

    For more color on the data, click here.

  • Jobs, jobs, confidence: Data from the Conference Board on Tuesday had U.S. consumer confidence 9 points to 70.3 for September, its highest level in seven months.

    "Consumers were more positive in their assessment of current conditions, in particular the job market," commented Lynn Franco of the Conference Board. "[A]nd considerably more optimistic about the short-term outlook for business conditions, employment and their financial situation." For more color, click here.

  • Tech and finance, like peas and carrots: Late in the session, Yahoo! (Nasdaq: YHOO) said its finance chief (and venerable interim CEO) Tim Morse was leaving the company. In his place, the company grabbed Ken Goldman from Fortinet (Nasdaq: FTNT).

    Prior to Fortinet, Goldman spent nearly six years as senior vice president of finance and administration and CFO of Siebel Systems, until the company’s acquisition by Oracle Corp. in January 2006. He has held CFO positions at Excite@Home, Sybase, Cypress Semiconductor and VLSI Technology.

    Shares of Yahoo! are a little bit lower in late trading, following an initial pop higher.

  • Are the delays over?: Research In Motion (Nasdaq: RIMM) broke out Tuesday following comments at its BlackBerry 10 Jam developer event Tuesday, with RIM saying BlackBerry 10 was on track and it already met with 30 carriers to demo the product. RIM plans to launch BB10 on every hospitable continent in the first quarter (sorry Antarctica).

    The company is slated to report quarterly results on Thursday.
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Charles Plosser, Federal Open Market Committee, Standard & Poor's, S&P/Case-Shiller Home Price Index, Consumer Confidence Index, Tesla

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