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The Dow Jones Industrial Average was flat on Friday as the market looks ahead to a critical succession vote by Pro-Russian loyalists in the Ukraine. Unimpressive jobs data also played a factor in the markets' performance.
Here are the closing numbers:
DOW: 16,583.34, +0.2%
S&P 500: 1,878.47, +0.15%
NASDAQ: 4,071.87, +0.5%
Now here are the top stories from today's trading session:
- An Overvalued Buy: Shares of Apple Inc. (Nasdaq: AAPL) slid more than 1% on rumors that the company would purchase Beats Electronics, a headphone and music streaming service, for $3.2 billion. Concerns have been raised about the valuation of the deal, given that eight months ago, Carlyle Group invested in Beats on a valuation of $1 billion. The deal is expected to make recording artist and company founder Dr. Dre a billionaire.
- Further Weakness in the Job Market: Yesterday's comments by U.S. Federal Reserve Chair Janet Yellen on the "considerable slack" in the labor market foreshadowed today's economic calendar. Friday's JOLTS report showed a decline in available job positions across the country (we're down more than 100,000 openings in three months), suggesting a fundamental weakness in the U.S. economy.
- Banks Behaving Badly: Shares of Goldman Sachs Group Inc. (NYSE: GS) dipped lower on Friday after the bank announced that its quarterly reports drew government inquiries into high-frequency trading activities and concerns that its foreign hiring practices violated U.S. anti-bribery laws.
- End to Bond Buying: The President of the Dallas Federal Reserve Bank announced his support to end the central bank's bond-purchasing program in October. Richard Fisher said the bank should continue to reduce the pace of QE3 at $10 billion per FOMC meeting, until it reaches a final balance of $15 billion in October. At that point, Fisher would advocate that the central bank
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.