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Wall Street news today, May 9, 2014: The Dow Jones Industrial Average jumped Thursday as U.S. Federal Reserve Chair Janet Yellen offered a positive outlook for the U.S. economy during her congressional testimony. The Nasdaq, however, was down after technology stocks took yet another hit.
This morning, U.S. Futures are in the red as new concerns over Ukraine have emerged.
Here's what you need to know to make your Friday profitable:
- Housing Struggles on Tap: The same day Federal Reserve Chair Janet Yellen expressed concerns over the housing market, a worrisome metric struck the airwaves. According to RealtyTrac, a record 43% of home purchases in the first quarter of 2014 were all-cash transactions. This is up from 38% in the previous quarter, and 19% from the same quarter of 2013. A combination of stricter lending standards and more intense competition have fueled this phenomenon. Such a high percentage suggests vulnerability in the housing market's recovery.
- Today's Economic Calendar: It's a relatively quiet day for data reports. This morning, the JOLTS report and wholesale trade numbers arrive at 10 a.m. Then, Dallas Federal Reserve President Richard Fisher speaks at noon. Fisher will likely reiterate his stance that the Federal Reserve should avoid raising interest rates in the near future.
Keeping the Beat: Rumors are swirling that Apple Inc. (Nasdaq: AAPL) is nearing a deal to acquire Beats Electronics for nearly $3.2 billion, according to the Financial Times. Just eight months ago, Carlyle Group (Nasdaq: CG) invested $500 million in the high-end audio device maker and distributor of streaming music, a move that valued Beats at roughly $1 billion. Beats was founded by music producer Jimmy Iovine and rap artist Dr. Dre. Full story - No Deal, America: It seems some marriages are too good to be true. On Thursday, marketing giants Omnicom Group (NYSE: OMC) and Publicis Group (OTC: PUBGY) called off a $35 billion merger. The deal fell through over a number of internal and external squabbles. First, the merger struggled to obtain tax reforms and regulatory approvals. Then the companies allegedly disagreed over which firm would be able to claim who was the acquirer and who would be the acquired. The deal would have created the world's largest advertising firm.
- Time to Upgrade: Taiwan's Economic Daily News, citing sources within the supply chain, reported that Apple will unveil the iPhone 6 in August, a month earlier than industry analysts had expected. The company will produce 80 million units this year, and will feature two different screen sizes.
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.