Top 10 News Items 8/29-9/2: US Gains NO Nonfarm Jobs in August; DoJ Challenges AT&T/T-Mobile Deal; FOMC Minutes Show Mixed Bag on More Monetary Action
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Here is a recap of the top news items from this week on Wall Street:
1. The Dow Jones sunk more than 250 points on Friday following one of the worst readings on the job market since the start of the recovery in early 2009. Data from the Labor Department showed the U.S. added zero jobs in August, well short of the 68,000 jobs economist had expected. July was revised from a gain of 117,000 jobs to a gain of 85,000. Private payrolls rose 17,000, versus the consensus of 95,000. Manufacturing payrolls were down 3,000, versus the consensus of flat. The unemployment rate was flat at 9.1%.
2. Shares of AT&T (NYSE: T) sold off on Wednesday following news out of the Justice Department that it has filed a suit related to the merger with T-Mobile attempting to block the deal. Shares of Sprint (NYSE: S) rose nearly 6 percent that day. Tower companies also saw strength.
3. The Fed released the minutes from its latest FOMC meeting on Tuesday. The minutes showed some members were ready to pull the trigger on further monetary easing. Ideas thrown around were additional bond purchases or changing the composition of the balance sheet in favor of owning longer-term securities. A few members felt recent economic developments justified a more substantial move at this meeting, but they were willing to accept the stronger forward guidance as a step in the direction of additional accommodation.
4. Netflix (Nasdaq: NFLX) shares plunged more than $21 on Friday following headlines late Thursday that Starz has abandoned renewal talks with the company. Analysts were mixed on the development. Some suggested to buy on the weakness (as the Starz contract accounts for only about 8 percent of Netflix's domestic viewings. Another analyst said while the deal is probably not really ended, Netflix may now have to pay a premium if it does end up getting the Starz content back.
5. BofA (NYSE: BAC) shares were down more than 10 percent the last two trading sessions of this week as the Wall Street Journal reported the company is the subject of greater fed scrutiny. According to the Journal, "U.S. regulators have pushed Bank of America Corp. to show what measures it could take if conditions worsen for the Charlotte, N.C., lender, according to people familiar with the situation."
6. Gold settled around $1,881 per ounce this week, up nearly 5 percent for the week. Gold took a sharp move higher just after the jobs data was released Friday as traders piled into the QE3 trade.
7. Late Friday the FHFA confirmed earlier reports of a suit related to claims of misrepresentation of the quality of mortgage securities assembled and sold at the height of the housing bubble. Included in the suit was BofA's Merrill Lynch, Barclays (NYSE: BCS), Credit Suisse (NYSE: CS), Citibank and Nomura.
8. Hurricane Irene ripped up the East Coast of the US last weekend, causing flooding and wind-related damage across the region. While the devastation should not be understated, most insurance losses reported so far have been much less than expected.
9. Data from ISM Thursday morning showed manufacturing in the U.S. during August unexpectedly rose. The survey came in at 50.6 for the month, down from 50.9 in July, but better than the economist consensus calling for 48.5. The number is the lowest it's been since July 2009, when the ISM survey came in at 49.0. Index readings above 50 mean manufacturing is expanding.
10. In the Eurozone, Greee's second and third largest banks announced plans to merge Monday, creating the country's largest bank. Alpha Bank and EFG Eurobank announced a merger deal with the help of Qatar Investment Authority, a large shareholder of Alpha Bank.
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1. The Dow Jones sunk more than 250 points on Friday following one of the worst readings on the job market since the start of the recovery in early 2009. Data from the Labor Department showed the U.S. added zero jobs in August, well short of the 68,000 jobs economist had expected. July was revised from a gain of 117,000 jobs to a gain of 85,000. Private payrolls rose 17,000, versus the consensus of 95,000. Manufacturing payrolls were down 3,000, versus the consensus of flat. The unemployment rate was flat at 9.1%.
2. Shares of AT&T (NYSE: T) sold off on Wednesday following news out of the Justice Department that it has filed a suit related to the merger with T-Mobile attempting to block the deal. Shares of Sprint (NYSE: S) rose nearly 6 percent that day. Tower companies also saw strength.
3. The Fed released the minutes from its latest FOMC meeting on Tuesday. The minutes showed some members were ready to pull the trigger on further monetary easing. Ideas thrown around were additional bond purchases or changing the composition of the balance sheet in favor of owning longer-term securities. A few members felt recent economic developments justified a more substantial move at this meeting, but they were willing to accept the stronger forward guidance as a step in the direction of additional accommodation.
4. Netflix (Nasdaq: NFLX) shares plunged more than $21 on Friday following headlines late Thursday that Starz has abandoned renewal talks with the company. Analysts were mixed on the development. Some suggested to buy on the weakness (as the Starz contract accounts for only about 8 percent of Netflix's domestic viewings. Another analyst said while the deal is probably not really ended, Netflix may now have to pay a premium if it does end up getting the Starz content back.
5. BofA (NYSE: BAC) shares were down more than 10 percent the last two trading sessions of this week as the Wall Street Journal reported the company is the subject of greater fed scrutiny. According to the Journal, "U.S. regulators have pushed Bank of America Corp. to show what measures it could take if conditions worsen for the Charlotte, N.C., lender, according to people familiar with the situation."
6. Gold settled around $1,881 per ounce this week, up nearly 5 percent for the week. Gold took a sharp move higher just after the jobs data was released Friday as traders piled into the QE3 trade.
7. Late Friday the FHFA confirmed earlier reports of a suit related to claims of misrepresentation of the quality of mortgage securities assembled and sold at the height of the housing bubble. Included in the suit was BofA's Merrill Lynch, Barclays (NYSE: BCS), Credit Suisse (NYSE: CS), Citibank and Nomura.
8. Hurricane Irene ripped up the East Coast of the US last weekend, causing flooding and wind-related damage across the region. While the devastation should not be understated, most insurance losses reported so far have been much less than expected.
9. Data from ISM Thursday morning showed manufacturing in the U.S. during August unexpectedly rose. The survey came in at 50.6 for the month, down from 50.9 in July, but better than the economist consensus calling for 48.5. The number is the lowest it's been since July 2009, when the ISM survey came in at 49.0. Index readings above 50 mean manufacturing is expanding.
10. In the Eurozone, Greee's second and third largest banks announced plans to merge Monday, creating the country's largest bank. Alpha Bank and EFG Eurobank announced a merger deal with the help of Qatar Investment Authority, a large shareholder of Alpha Bank.
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