Top 10 News Items 8/22-8/26: Buffett Bets with BofA; Steve Jobs Resigns as CEO of Apple; Bernanke Stays Tight-Lipped at Jackson Hole
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Here is a recap of the top news items from this week on Wall Street:
1. Warren Buffett shocked the Street Thursday with a extremely timely investment in none other than Bank of America (NYSE: BAC). The Oracle reached an agreement to invest $5 billion in the bank in exchange for 50,000 shares of Cumulative Perpetual Preferred Stock with a liquidation value of $100,000 per share to Buffett's Berkshire Hathaway. Shares of BofA initially surged more than 20 percent just following the news, however closed the session up just 9.4 percent.
2. The Buffett/BofA news somehow topped news Steve Jobs announced his resignation as Apple (Nasdaq: AAPL) CEO. The Jobs news would be the top weekly story for probably 49 or 50 weeks out of the year. In a saddening note late Wednesday, Jobs said he could no longer effectively fulfill his obligations as the top Apple exec. Tim Cook has been named Jobs replacement. Jobs will continue to serve as Chairman of the company.
3. Fed heads around the US gathered in Jackson Hole, Montana this week. Ben Bernanke delivered his highly-anticipated speech Friday morning, making no indication for QE3. Bernanke said the President and Congress need to stimulate the economy on the fiscal side.
4. Again, likely a #1 story in a less eventful week, Hurricane Irene is currently cruising up the East Coast of the US. The storm is nearing landfall in North Carolina and will make its way north nearing New Jersey by Sunday. The governors of New York and New Jersey have already declared a state of emergency. Irene is currently a Category 2 hurricane. The NHC does not expect Irene to regain Category 3 status, however, winds could intensify once the storm passes over North Carolina.
5. According to the U.S. commerce department, the U.S. economy grew at a slower pace in the second-quarter than previously estimated. Data Friday shows gross domestic product was revised lower from 1.3 percent to 1 percent flat, capping the slowest six-months since the start of the U.S. recovery that began in the middle of 2009. Economists were looking for a slightly better revision to 1.1 percent growth.
6. Gold marked a new all-time high over $1,900/oz on Tuesday, only to sell off by more than $100/oz on Wednesday. The metal dipped to as low as $1,707 on Thursday and closed at $1,806/oz on Friday.
7. Sprint (NYSE: S) shares rose 10 percent Tuesday following headlines that it will start carrying Apple's iPhone before the end of 2011. Sprint will also be carrying Apple's not-even-introduced iPhone 5 in mid-October. The stock gave up most of the gains on Wednesday and Thursday.
8. Data from the U.S. Commerce Department Wednesday showed a 4 percent increase in U.S. durable goods orders. The number is the largest gain in four months, and reverses a 1.3 percent drop in June. Analysts had been expecting a gain of just 2 percent in the month. Excluding transportation, and the number surprisingly rose 0.7 percent, compared to a 0.5 percent drop expected by the Street's economists.
9. Shares of Universal Display (Nasdaq: PANL) had an extremely volatile week, surging more than 67 percent amid news of a supply agreement with Samsung. The company closed this week's session with a market cap over $2.35 billion.
10. Analysts around the Street reduced global growth estimates this week. JPMorgan, Citi and UBS joined the parade. Morgan Stanley and Goldman, among others, reduced estimates over the last two weeks.
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1. Warren Buffett shocked the Street Thursday with a extremely timely investment in none other than Bank of America (NYSE: BAC). The Oracle reached an agreement to invest $5 billion in the bank in exchange for 50,000 shares of Cumulative Perpetual Preferred Stock with a liquidation value of $100,000 per share to Buffett's Berkshire Hathaway. Shares of BofA initially surged more than 20 percent just following the news, however closed the session up just 9.4 percent.
2. The Buffett/BofA news somehow topped news Steve Jobs announced his resignation as Apple (Nasdaq: AAPL) CEO. The Jobs news would be the top weekly story for probably 49 or 50 weeks out of the year. In a saddening note late Wednesday, Jobs said he could no longer effectively fulfill his obligations as the top Apple exec. Tim Cook has been named Jobs replacement. Jobs will continue to serve as Chairman of the company.
3. Fed heads around the US gathered in Jackson Hole, Montana this week. Ben Bernanke delivered his highly-anticipated speech Friday morning, making no indication for QE3. Bernanke said the President and Congress need to stimulate the economy on the fiscal side.
4. Again, likely a #1 story in a less eventful week, Hurricane Irene is currently cruising up the East Coast of the US. The storm is nearing landfall in North Carolina and will make its way north nearing New Jersey by Sunday. The governors of New York and New Jersey have already declared a state of emergency. Irene is currently a Category 2 hurricane. The NHC does not expect Irene to regain Category 3 status, however, winds could intensify once the storm passes over North Carolina.
5. According to the U.S. commerce department, the U.S. economy grew at a slower pace in the second-quarter than previously estimated. Data Friday shows gross domestic product was revised lower from 1.3 percent to 1 percent flat, capping the slowest six-months since the start of the U.S. recovery that began in the middle of 2009. Economists were looking for a slightly better revision to 1.1 percent growth.
6. Gold marked a new all-time high over $1,900/oz on Tuesday, only to sell off by more than $100/oz on Wednesday. The metal dipped to as low as $1,707 on Thursday and closed at $1,806/oz on Friday.
7. Sprint (NYSE: S) shares rose 10 percent Tuesday following headlines that it will start carrying Apple's iPhone before the end of 2011. Sprint will also be carrying Apple's not-even-introduced iPhone 5 in mid-October. The stock gave up most of the gains on Wednesday and Thursday.
8. Data from the U.S. Commerce Department Wednesday showed a 4 percent increase in U.S. durable goods orders. The number is the largest gain in four months, and reverses a 1.3 percent drop in June. Analysts had been expecting a gain of just 2 percent in the month. Excluding transportation, and the number surprisingly rose 0.7 percent, compared to a 0.5 percent drop expected by the Street's economists.
9. Shares of Universal Display (Nasdaq: PANL) had an extremely volatile week, surging more than 67 percent amid news of a supply agreement with Samsung. The company closed this week's session with a market cap over $2.35 billion.
10. Analysts around the Street reduced global growth estimates this week. JPMorgan, Citi and UBS joined the parade. Morgan Stanley and Goldman, among others, reduced estimates over the last two weeks.
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