Top 10 News Items 02/10: Greece Drags Toward Its Latest Bailout; DoJ Offers Details Into Foreclosure Probe; Diamond Foods Debacle
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Here is a recap of the top news items from this week on Wall Street:
1. As Greek officials stamped out the final details of the nation's latest austerity package, the nation dominating headlines returned to the stock market once again this week. The EU has required Greece to cut its debt to below 120 percent of GDP by 2020, however, the latest austerity measures would put the country's debt level at 136 percent of GDP. A number of EU officials have already suggested political leaders head back to the drawing board so as to make further budget cuts. Greece's parliament will vote on the austerity package this weekend. Social unrest in Athens has been widespread following the outline of the measures.
2. The Department of Justice Thursday released details of a deal between the federal government and the five largest US mortgage lenders following a probe into possible abusive foreclosure practices which began in October of last year. BofA's (NYSE: BAC) commitment in the deal sits at $11.8 billion, exposure at JPMorgan (NYSE: JPM) and Wells Fargo (NYSE: WFC) each is $5.3 billion, Citi's (NYSE: C) commitment is $2.2 billion, and Ally Financial is said to have $310 million of the total.
3. Diamond Foods (Nasdaq: DMND) investors got details of a probe into questionable payments to walnut growers this week. The Audit Committee said internal controls were inadequate and the 2010 and 2011 financial statements would need to be restated. The company's Chairman and CEO Mendes and CFO Neil were also put on administrative leave. Following the news P&G (NYSE: PG) reportedly said it would now need to consider the next step in its sale of Pringles. Shares of Diamond Foods plunged 37 percent 37 percent.
4. Shares of Taleo (Nasdaq: TLEO) rose 17 percent on Thursday after Oracle (Nasdaq: ORCL) announced a $46 per share bid for the company. The deal was valued at $1.9 billion.
5. Earnings season is slowly winding down. Around the Street: Coca-Cola (NYSE: KO), Disney (NYSE: DIS), Visa (NYSE: V), Cisco (Nasdaq: CSCO), Yum! (NYSE: YUM), Sprint (NYSE: S), Pepsi (NYSE: PEP), Buffalo Wild Wings (Nasdaq: BWLD), Sirius (Nasdaq: SIRI), Expedia (Nasdaq: EXPE), and Activision Blizzard (Nasdaq: ATVI).
6. Apple (Nasdaq: AAPL) shares closed around $493.80 this week, now flirting with the magical $500 level. Shares rose about 7 percent this week. The stock rose more than 3 percent on Thursday amid reports the company will unveil the iPad 3 at its next event in March.
7. The IPO for Caesars Entertainment (Nasdaq: CZR) went off without a hitch this week, surging to as high as $17.90 after pricing at $9 and opening at $9.06. The stock closed Friday's session at $14.34.
8. Initial jobless claims for the week ended February 4 fell to 358,000, which compares to the economist estimate of 370,000. The prior week reading was revised higher from 367,000 to 373,000.
9. A number of further developments into the Yahoo! (Nasdaq: YHOO)/Alibaba sage came this week. The WSJ reported Alibaba is looking for about $3 billion in financing in order to buyback the 40 percent stake Yahoo! owns. Then on Friday, a report suggested Alibaba would take its Hong Kong unit private in order to smooth the deal with Yahoo!.
10. The dry bulk shipping sector had a strong move higher this week as the dry bulk index moved off 25-year lows. The index had declined for more than two months straight. The index is now nearing the 700 level. Shares of DryShips (Nasdaq: DRYS), as just one example, surged by more than 16 percent on Monday and another 8 percent on Wednesday.
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1. As Greek officials stamped out the final details of the nation's latest austerity package, the nation dominating headlines returned to the stock market once again this week. The EU has required Greece to cut its debt to below 120 percent of GDP by 2020, however, the latest austerity measures would put the country's debt level at 136 percent of GDP. A number of EU officials have already suggested political leaders head back to the drawing board so as to make further budget cuts. Greece's parliament will vote on the austerity package this weekend. Social unrest in Athens has been widespread following the outline of the measures.
2. The Department of Justice Thursday released details of a deal between the federal government and the five largest US mortgage lenders following a probe into possible abusive foreclosure practices which began in October of last year. BofA's (NYSE: BAC) commitment in the deal sits at $11.8 billion, exposure at JPMorgan (NYSE: JPM) and Wells Fargo (NYSE: WFC) each is $5.3 billion, Citi's (NYSE: C) commitment is $2.2 billion, and Ally Financial is said to have $310 million of the total.
3. Diamond Foods (Nasdaq: DMND) investors got details of a probe into questionable payments to walnut growers this week. The Audit Committee said internal controls were inadequate and the 2010 and 2011 financial statements would need to be restated. The company's Chairman and CEO Mendes and CFO Neil were also put on administrative leave. Following the news P&G (NYSE: PG) reportedly said it would now need to consider the next step in its sale of Pringles. Shares of Diamond Foods plunged 37 percent 37 percent.
4. Shares of Taleo (Nasdaq: TLEO) rose 17 percent on Thursday after Oracle (Nasdaq: ORCL) announced a $46 per share bid for the company. The deal was valued at $1.9 billion.
5. Earnings season is slowly winding down. Around the Street: Coca-Cola (NYSE: KO), Disney (NYSE: DIS), Visa (NYSE: V), Cisco (Nasdaq: CSCO), Yum! (NYSE: YUM), Sprint (NYSE: S), Pepsi (NYSE: PEP), Buffalo Wild Wings (Nasdaq: BWLD), Sirius (Nasdaq: SIRI), Expedia (Nasdaq: EXPE), and Activision Blizzard (Nasdaq: ATVI).
6. Apple (Nasdaq: AAPL) shares closed around $493.80 this week, now flirting with the magical $500 level. Shares rose about 7 percent this week. The stock rose more than 3 percent on Thursday amid reports the company will unveil the iPad 3 at its next event in March.
7. The IPO for Caesars Entertainment (Nasdaq: CZR) went off without a hitch this week, surging to as high as $17.90 after pricing at $9 and opening at $9.06. The stock closed Friday's session at $14.34.
8. Initial jobless claims for the week ended February 4 fell to 358,000, which compares to the economist estimate of 370,000. The prior week reading was revised higher from 367,000 to 373,000.
9. A number of further developments into the Yahoo! (Nasdaq: YHOO)/Alibaba sage came this week. The WSJ reported Alibaba is looking for about $3 billion in financing in order to buyback the 40 percent stake Yahoo! owns. Then on Friday, a report suggested Alibaba would take its Hong Kong unit private in order to smooth the deal with Yahoo!.
10. The dry bulk shipping sector had a strong move higher this week as the dry bulk index moved off 25-year lows. The index had declined for more than two months straight. The index is now nearing the 700 level. Shares of DryShips (Nasdaq: DRYS), as just one example, surged by more than 16 percent on Monday and another 8 percent on Wednesday.
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