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US Stocks Week Ended June 8, 2012
Heading into Monday's opening, it appears Spain has reached some resolution on its funding crisis. Earlier in the week, Spain said the situation had reached critical levels when the country was having trouble obtaining funding. Then over the weekend, Spain secured $126 billion in funding to shore up its banking system, a positive sign for market's this week. Thursday, equity investors looking to Chairman Bernanke for direction were disappointed, as the Chairman revealed little regarding the Fed's plans to avert a potential slowdown caused by a slowing Europe. Across the World, China cut interest rates for the first time since 2008. The country reduced interest rates by a quarter of a point in an effort to avert a slowdown in the World's second largest economy. In company specific news, natural gas company, Chesapeake Energy, agreed to an investor proposal to replace four members of the board of directors. The new directors will be appointed by large shareholders, Southeastern Asset Management and activist investor, Carl Icahn. Men's retailer, Men's Wearhouse dropped almost 19% early in the week, when it missed investor expectations for revenue and earnings. Ulta Salon and Cosmetics reported strong top and bottom line results during their first quarter, the stock advanced 8.42% on the announcement. Document retention provider, Iron Mountain also pleased investors with its announcement that it would convert to a REIT in 2014, the stock advanced almost 14%. One of last week's biggest losers was Tempur-Pedic International. The stock fell 48% when it reduced full year EPS guidance to $2.70 from $3.80 to $3.95. Looking ahead to this week, all eyes will remain on Spain and Greece to see if they can finally make progress in aiding their banks. Sunday, Greece will head to the polls to elect a government which may decide whether the country will stay in the Euro. Finally, embattled retailer, Best Buy will announce earnings on Monday.
Monday, June 11, 2012 @ 8:16 AM
These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.