Week of April 22th – April 26th:
Dow: 14,713 (+1.3% last week, +12.3% YTD)
S&P 500: 1,582 (+1.8% last week, +10.9% YTD)
Links Worth Snacking On:
- Chart of the Week - Gold by the numbers (visually)
- Wall Street Oasis - Some solid advice on the GMAT
- Bloomberg - The top 10 countries for hackers (following last week’s Wall Street tweet scare)
- Businessweek - A Pinterest investor describes his worst deal ever
- The Economist - Check out McDonald’s “University”
- Slate - Forget earnings, what’s Apple’s next big thing?
- The Atlantic - How little math do Americans actually use at work?
- WSJ - How many recent grads are choosing start-ups over finance?
- Apple Trailers - Syrup, the new comedy on the power of sex in the ad industry
April showers bring May flowers (…and really cold weather this year…and some Wall Street volatility). Quarterly earnings headlines, corporate drama, and rogue tweets yanked stocks up and down all last week for a bumpy ride.
#1. Stock Winners…
Stream this – Netflix enjoyed a revenues increase from its new original programming and customized content changes. Apple stock may be down over 20% so far in 2013, but investors liked news that Cupertino is increasing the firm’s iDividends and iShare-buyback program. Plus, JCPenny and Microsoft got some love on news they received some major recent investments by big-time hedge fund bosses.
#2. …Stock Losers
Yum Brands managed to top analysts’ (low) earnings expectations even though that freaky Asian Bird Flu caused a 20% drop in Chinese quarterly sales. Zynga‘s struggling with the age-old transition to mobile, losing 13% of its monthly users who are finally bored by stupid social network games. And the 10% drop in revenues from disappearing land lines over the last year smacked AT&T‘s balance sheet.
#3. US GDP Growth Didn’t Impress
Stocks barely budged at the end of the week after US GDP data ruined investors’ TGIF mojo. The largest measure of an economy’s size, the gross domestic product, measured that the US economy grew 2.4% in the first quarter of 2013. An improvement on Q4 2012′s weak 0.4%, but still the frustrating slow-growth that won’t reduce our unemployment rate anytime soon. The highlights were reduced defense spending from the budget cuts.
#4. Glitches & Hackers Shook Investors
The Tweet heard ’round the floor. The AP’s erroneous tweet that the White House was attacked sent markets into a short tizzy. Traders’ knee-jerk reaction shot stocks down on fear from the disaster that was quickly corrected when the news was learned to be false. Then Thursday a trading floor glitch in the Chicago Board Option Exchange showed that software has made Wall Street soft.
What MarketSnacks Is Checking Out This Week:
- Monday - Pending Home Sales, 1st Quarter Earnings Reports: Las Vegas Sands, Orbitz…
- Tuesday - Consumer Confidence, Earnings: Denny’s, Starwood Hotels…
- Wednesday - The Fed’s 2-Day Meeting Ends, Earnings: Facebook, Yelp…
- Thursday - Weekly Jobless Claims, Earnings: General Motors, Skullcandy…
- Friday - The March Non-Farm Payrolls Jobs Report, Earnings: Adidas, Madison Square Garden…
MarketSnacks Fact of the Day: Although supermarket juggernaut Trader Joe’s is a privately-owned company, its over $8 billion in annual sales is roughly the same as Whole Foods’ (and greater than Bed, Bath & Beyond’s).