Despite the odds, the U.S. equity markets overcame early losses, negative international economic indicators, and the pending sequester to end Friday with fractional gains. A larger-than-expected increase in consumer sentiment helped spur the gains.
At the close: DJIA: +0.25%, S&P 500: +0.23%, NASDAQ: +0.30%.
On the commodities front, WTI crude oil (NYSEARCA:USO) fell 1.49 percent to $90.68 per barrel. Gold (NYSEARCA:GLD) futures for April delivery, the most active contract, dropped $5.80 to settle at $1,572.30 per ounce, while silver (NYSEARCA:SLV) futures for March edged 6 cents higher to close at $28.45. It was gold’s third consecutive trading day in the red.
Both precious metals were relatively stable, despite the U.S. dollar climbing higher. The automatic spending cuts, known as the sequester, are set to begin today with no truce being called between Democrats and Republicans.
Speaking about the inability to get a deal done, President Obama explains, “I know that this has been some of the conventional wisdom that’s been floating around Washington that somehow, even though most people agree that I’m being reasonable, that most people agree I’m presenting a fair deal, the fact that they don’t take it means that I should somehow, you know, do a Jedi mind meld with these folks and convince them to do what’s right.”
Here’s your Cheat Sheet to today’s top stock stories:
Herbalife (NYSE:HLF), the nutrient- and healthcare-supply company that has become the centerpiece of a dramatic showdown between celebrity hedge-fund managers, announced that it will be increasing the size of its board of directions by two, to a total of 11 members. What’s more, activist investor Carl Icahn, who currently owns about 13.6 percent of the company’s common stock, gets to designate who fills those two spots… (Read more.)
Just as analysts at Stifel Nicolaus and Barclays Capital indicated with the investment upgrades they gave Best Buy (NYSE:BBY) on February 19, the fortunes of the electronics retailer seem to be improving. And it’s not only analysts that have faith in the company’s resurrection. Investors have bid up the company’s shares to gains of 46 percent on the stock chart this year to date. Its stock has outperformed all others on Standard & Poor’s 500 Index except Netflix (NASDAQ:NFLX) since the beginning of January… (Read more.)
Marc Benioff, CEO and chairman of Salesforce.com (NYSE:CRM), can’t seem to resist an opportunity to boast. What makes a boast compelling is how much truth is behind it, and Benioff definitely has some strong numbers to back up his claim. What’s more, while perhaps lacking the same enthusiasm, investors seem to agree that the company’s results, reported after markets closed on Thursday, indicate continued strength at one of the world’s most innovative company. Shares closed up 7.5 percent on Friday… (Read more.)
Google’s (NASDAQ:GOOG) success with the mobile operating system Android is unquestionable; in the last quarter of 2012, the platform accounted for 69 percent of all smartphone shipments worldwide, beating Apple’s (NASDAQ:AAPL) iOS by a massive margin. But it was only through the help of Samsung (SSNLF.PK) — which manufactures a large percentage of the devices that run on Android — that Google was able to extend its dominance. However, Motorola, now owned by Google, hasn’t earned itself any badges… (Read more.)
A proposed merger between wireless service provider MetroPCS Communications (NYSE:PCS) and T-Mobile USA, a division of Deutsche Telekom AG (DTE.DE), is being opposed by the Paulson & Co investment management firm. As reported by Carew and Damouni at Reuters, Paulson will vote against the current form of the merger on March 28, because the merged entity would have “too much debt at too high an interest rate to be competitive.” The proposed combined company would hold $23.2 billion in debt… (Read more.)
In his recent testimony to Congress, Ben Bernanke unsurprisingly defended the Federal Reserve’s loose monetary policies. The Chairman even pushed back when he was called a dove by citing the consumer price index. However, looking at the bigger inflation picture, the central bank’s track record is anything but stellar. Senator Bob Corker, a Republican from Tennessee, called Bernanke the biggest dove since War World II and discussed how savers are being punished by the Fed’s ultra-low interest rate policy. He also referred to the Fed’s policies as “degrading.” Bernanke sees things a bit differently… (Read more.)
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