Top 10 News Items 9/6-9/9: Obama Unveils Aggressive Jobs Plan; Euro Fears Dominate US Concerns; Yahoo!'s Bartz Fired
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Here is a recap of the top ten news items from this week on Wall Street:
1. In a speech to the country Thursday night, President Obama unveiled an aggressive jobs plan to the US public. Much of the plan, which is about $447 billion in total size, circles around payroll-tax cuts for employees and employers.
Additionally, the proposed plan would include $62 billion in spending to extend unemployment insurance benefits through 2012. While its tough to say if the stock market was disappointed with the plan or more concerned about euro/double-dip fears, stocks sold off by about 2.5 percent on Friday.
2. Concerns in Europe are spiraling to near-dizzying heights as a number of issues hit the region this week. First, the ECB cut its 2011 GDP outlook from 1.5-2.3% to 1.4-1.8% and its 2012 growth outlook from 0.6-2.8% to 0.4-2.2%. The group also suggested it was ready to do whatever need in order to support the Euro and growth in European countries. Later in the week, an ECB executive member, Stark, announced his resignation following an incident related to a recent bond buying program in Italy and Spain. Rumors of a possible Greek default over the weekend were also heard, however officials denied these claims.
3. Yahoo!'s (Nasdaq: YHOO) potty-mouthed CEO Carol Bartz was fired this week as the company as well as the stock have floundered since she took the reins. Apparently the Board told Bartz she would either need to resign or be fired. Her response: "The Yahoo! Board f#&(ed me over..." Takeover talks were heard following the news. Midday Thursday, Dan Loeb's Third Point fund disclosed a 5.15% stake in the company. Yahoo! shares rose more than 6 percent on Thursday following news of the Loeb stake.
4. Shares of Temple-Inland (NYSE: TIN) jumped 25 percent on Tuesday following a $32 per share in cash offer from International Paper (NYSE: IP). IP shares rose almost 9 percent on the news.
5. The Swiss franc fell sharply Tuesday after the Swiss National Bank said it will peg the currency against the euro in an attempt to stop its rapid appreciation as traders run to it as a safe haven. The ECB said it has been informed by the Swiss National Bank about its decision to "no longer tolerate a EUR/CHF exchange rate below the minimum rate of CHF 1.20."
6. Speculation around Walter Energy (NYSE: WLT) boosted the entire Coal sector by nearly 6 percent on Wednesday (as measured by the Market Vectors Coal ETF (NYSE: KOL)). Shares of Walter rose more than 20 percent on that day. Anglo-American and BHP were mentioned as possible suitors. The stock sold off about 4 percent on Thursday as the company announced it was not aware of any corporate developments.
7. Initial jobless claims for the week ended Sept. 3rd were 414,000, which compares to the Street estimate of 405,000. An initial reading of 409,000 for the prior week was revised higher to 412,000. Continuing claims for the week ended Aug. 27th were 3.717 million, which compares to the economist estimate of 3.706 million.
8. The Fed's Beige Book of the 12 regions showed: growth was slower in some regions during July and August. Fed members called the rate of expansion in the US economy "modest."
9. TI (NYSE: TXN) offered its mid-quarter update Thursday night: Revenue is now expected to be $3.23-$3.27 billion, down from $3.4-$3.7 billion. The consensus is $3.53 billion. EPS is now expected to be $0.56-$0.60 for the quarter, narrowed from its previous guidance of $0.55-$0.65. The consensus is currently $0.59. The stock rose 1 percent on Friday following the updated guidance.
10. Google (Nasdaq: GOOG) purchased restaurant review service Zagat Survey LLC this week. The reported price was $125 million.
1. In a speech to the country Thursday night, President Obama unveiled an aggressive jobs plan to the US public. Much of the plan, which is about $447 billion in total size, circles around payroll-tax cuts for employees and employers.
Additionally, the proposed plan would include $62 billion in spending to extend unemployment insurance benefits through 2012. While its tough to say if the stock market was disappointed with the plan or more concerned about euro/double-dip fears, stocks sold off by about 2.5 percent on Friday.
2. Concerns in Europe are spiraling to near-dizzying heights as a number of issues hit the region this week. First, the ECB cut its 2011 GDP outlook from 1.5-2.3% to 1.4-1.8% and its 2012 growth outlook from 0.6-2.8% to 0.4-2.2%. The group also suggested it was ready to do whatever need in order to support the Euro and growth in European countries. Later in the week, an ECB executive member, Stark, announced his resignation following an incident related to a recent bond buying program in Italy and Spain. Rumors of a possible Greek default over the weekend were also heard, however officials denied these claims.
3. Yahoo!'s (Nasdaq: YHOO) potty-mouthed CEO Carol Bartz was fired this week as the company as well as the stock have floundered since she took the reins. Apparently the Board told Bartz she would either need to resign or be fired. Her response: "The Yahoo! Board f#&(ed me over..." Takeover talks were heard following the news. Midday Thursday, Dan Loeb's Third Point fund disclosed a 5.15% stake in the company. Yahoo! shares rose more than 6 percent on Thursday following news of the Loeb stake.
4. Shares of Temple-Inland (NYSE: TIN) jumped 25 percent on Tuesday following a $32 per share in cash offer from International Paper (NYSE: IP). IP shares rose almost 9 percent on the news.
5. The Swiss franc fell sharply Tuesday after the Swiss National Bank said it will peg the currency against the euro in an attempt to stop its rapid appreciation as traders run to it as a safe haven. The ECB said it has been informed by the Swiss National Bank about its decision to "no longer tolerate a EUR/CHF exchange rate below the minimum rate of CHF 1.20."
6. Speculation around Walter Energy (NYSE: WLT) boosted the entire Coal sector by nearly 6 percent on Wednesday (as measured by the Market Vectors Coal ETF (NYSE: KOL)). Shares of Walter rose more than 20 percent on that day. Anglo-American and BHP were mentioned as possible suitors. The stock sold off about 4 percent on Thursday as the company announced it was not aware of any corporate developments.
7. Initial jobless claims for the week ended Sept. 3rd were 414,000, which compares to the Street estimate of 405,000. An initial reading of 409,000 for the prior week was revised higher to 412,000. Continuing claims for the week ended Aug. 27th were 3.717 million, which compares to the economist estimate of 3.706 million.
8. The Fed's Beige Book of the 12 regions showed: growth was slower in some regions during July and August. Fed members called the rate of expansion in the US economy "modest."
9. TI (NYSE: TXN) offered its mid-quarter update Thursday night: Revenue is now expected to be $3.23-$3.27 billion, down from $3.4-$3.7 billion. The consensus is $3.53 billion. EPS is now expected to be $0.56-$0.60 for the quarter, narrowed from its previous guidance of $0.55-$0.65. The consensus is currently $0.59. The stock rose 1 percent on Friday following the updated guidance.
10. Google (Nasdaq: GOOG) purchased restaurant review service Zagat Survey LLC this week. The reported price was $125 million.
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