Top 10 News Items 4/11-4/15: Google Plummets $48 Following Disappointing Q1 Report; Gold, Silver Continue to Rally; JPMorgan, BofA Kickoff Bank Earnings
Here is a recap of the top news items from this week on Wall Street:
1. Shares of Google (Nasdaq: GOOG) plunged the most in years Friday following a Q1 earnings miss. The search-giant reported quarterly EPS of $8.08, $0.05 worse than the analyst estimate. Sales on an adjusted basis (excluding traffic acquisition costs) came in at $6.54 billion, vs. the consensus of $6.32 billion. Google shares closed the session $48 lower to around $530.50.
2. Gold and silver continued charging this week; gold rose about $14 to close around $1,487.40 per ounce while silver rose nearly 5 percent to $42.56 per ounce. The SPDR Gold ETF (NYSE: GLD) is up 13.3 percent from the 2011 lows set in late-January. The iShares Silver ETF (NYSE: SLV) is up a whopping 59.5 percent over the same period.
3. JPMorgan (NYSE: JPM) set the Q1 bank earnings season in motion this week on Wednesday the 13th. The bank reported quarterly EPS of $1.28, 12 cents better than the Street estimate, on sales of $25.8 billion. The stock fell 0.8 percent. Elsewhere, BofA (NYSE: BAC) reported EPS of 17c on sales of $27.1 billion on Friday. The Street had been looking for quarterly EPS of 27c on sales of $26.88 billion. BofA shares fell about 2.4 percent on Friday.
4. Tyco International (NYSE: TYC) shares rose more than 10 percent on Monday and Tuesday amid reports a possible takeover bid from Schneider Electric. While Schneider said it is not currently in talks with Tyco, the stock sold off very modestly over the rest of the week, down just over 1 percent from Wednesday through Friday's session.
5. Alcoa (NYSE: AA) officially kicked off the Q1 earnings season Monday after the close. The company reported quarterly EPS of 28c, 1 cent better than the Street had been looking for, on sales of $5.96 billion. Shares fell more than 6 percent on Tuesday's session following the results.
6. On Sunday, the NYSE Euronext (NYSE: NYX) rejected the unsolicited takeover offer from NASDAQ OMX Group, Inc. (Nasdaq: NDAQ) and IntercontinentalExchange, Inc. (NYSE: ICE) calling it "strategically unattractive, with unacceptable execution risk." With the rejection, NYSE Euronext reaffirmed its commitment to the original combination deal with Deutsche Boerse AG saying it is "consistent with the long-term strategy" of the company. NYSE shares fell almost 3 percent on Monday, but traded higher each day after that.
7. After pricing at $18, well above the stock's expected price range of $14-$16, shares of Zipcar (Nasdaq: ZIP) rallied more than 55 percent to close at $28 Thursday, the securities first day as a public company. Shares gave up ground on Friday, falling about 3 percent to close this week at $27.16.
8. On the M&A front: American Medical (Nasdaq: AMMD) shares surged 32 percent on Monday amid a $2.9 billion deal with Endo Pharma (Nasdaq: ENDP). Graham Packaging (NYSE: GRM) shares jumped 33 percent following its $4.1 billion deal with Silgan (Nasdaq: SLGN).
9. Senator Carl Levin, the chairman of the U.S. Senate panel that investigated the causes of the financial crisis, said Goldman Sachs Group Inc. (NYSE: GS) misled clients and Congress about its bets on the housing market. Levin said he wants the Justice Department and the SEC to investigate if Goldman Sachs violated the law by not being truthful to clients that bought the complex mortgage securities known as collateralized debt obligation.
10. PPI and CPI readings from March were inline to better-than-expected this week. PPI for the month, reported Thursday, came in at 0.7%, compared to the 1.0% economist estimate, while core PPI was 0.3%. CPI, out Friday, was inline at 0.5%. Core CPI rose very modestly at 0.1%.
1. Shares of Google (Nasdaq: GOOG) plunged the most in years Friday following a Q1 earnings miss. The search-giant reported quarterly EPS of $8.08, $0.05 worse than the analyst estimate. Sales on an adjusted basis (excluding traffic acquisition costs) came in at $6.54 billion, vs. the consensus of $6.32 billion. Google shares closed the session $48 lower to around $530.50.
2. Gold and silver continued charging this week; gold rose about $14 to close around $1,487.40 per ounce while silver rose nearly 5 percent to $42.56 per ounce. The SPDR Gold ETF (NYSE: GLD) is up 13.3 percent from the 2011 lows set in late-January. The iShares Silver ETF (NYSE: SLV) is up a whopping 59.5 percent over the same period.
3. JPMorgan (NYSE: JPM) set the Q1 bank earnings season in motion this week on Wednesday the 13th. The bank reported quarterly EPS of $1.28, 12 cents better than the Street estimate, on sales of $25.8 billion. The stock fell 0.8 percent. Elsewhere, BofA (NYSE: BAC) reported EPS of 17c on sales of $27.1 billion on Friday. The Street had been looking for quarterly EPS of 27c on sales of $26.88 billion. BofA shares fell about 2.4 percent on Friday.
4. Tyco International (NYSE: TYC) shares rose more than 10 percent on Monday and Tuesday amid reports a possible takeover bid from Schneider Electric. While Schneider said it is not currently in talks with Tyco, the stock sold off very modestly over the rest of the week, down just over 1 percent from Wednesday through Friday's session.
5. Alcoa (NYSE: AA) officially kicked off the Q1 earnings season Monday after the close. The company reported quarterly EPS of 28c, 1 cent better than the Street had been looking for, on sales of $5.96 billion. Shares fell more than 6 percent on Tuesday's session following the results.
6. On Sunday, the NYSE Euronext (NYSE: NYX) rejected the unsolicited takeover offer from NASDAQ OMX Group, Inc. (Nasdaq: NDAQ) and IntercontinentalExchange, Inc. (NYSE: ICE) calling it "strategically unattractive, with unacceptable execution risk." With the rejection, NYSE Euronext reaffirmed its commitment to the original combination deal with Deutsche Boerse AG saying it is "consistent with the long-term strategy" of the company. NYSE shares fell almost 3 percent on Monday, but traded higher each day after that.
7. After pricing at $18, well above the stock's expected price range of $14-$16, shares of Zipcar (Nasdaq: ZIP) rallied more than 55 percent to close at $28 Thursday, the securities first day as a public company. Shares gave up ground on Friday, falling about 3 percent to close this week at $27.16.
8. On the M&A front: American Medical (Nasdaq: AMMD) shares surged 32 percent on Monday amid a $2.9 billion deal with Endo Pharma (Nasdaq: ENDP). Graham Packaging (NYSE: GRM) shares jumped 33 percent following its $4.1 billion deal with Silgan (Nasdaq: SLGN).
9. Senator Carl Levin, the chairman of the U.S. Senate panel that investigated the causes of the financial crisis, said Goldman Sachs Group Inc. (NYSE: GS) misled clients and Congress about its bets on the housing market. Levin said he wants the Justice Department and the SEC to investigate if Goldman Sachs violated the law by not being truthful to clients that bought the complex mortgage securities known as collateralized debt obligation.
10. PPI and CPI readings from March were inline to better-than-expected this week. PPI for the month, reported Thursday, came in at 0.7%, compared to the 1.0% economist estimate, while core PPI was 0.3%. CPI, out Friday, was inline at 0.5%. Core CPI rose very modestly at 0.1%.
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