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The stock market today (Wednesday) rose despite news that the U.S. economy slumped more than expected in the first quarter. Revised GDP figures for Q1 revealed the worst non-recession performance in four decades, with a 2.9% slip. The decline is also the sharpest downturn in five years and is a significant revision from the 1% decline tallied in April.
Here's the scorecard from today's trading session:
DOW: 16,867.51 (+0.29%)
S&P 500: 1,959.53 (+0.49%)
NASDAQ: 4,379.76 (+0.68%)
And here are the top stories that affected the stock market today:
- The Next Split: Struggling book retailer Barnes & Noble Inc. (NYSE: BKS) announced plans to split its bookstore chain and Nook electronic-reader business into separate companies. After the spinoff, both firms will trade publicly, allowing the firms to focus on maximizing profitability. The bookstore business is facing increased competition from online retailers and a greater consumer transition to electronic reading devices. Despite having a robust e-reader platform, the company's Nook business continues to struggle against its dominant competitors Apple Inc.'s (Nasdaq: AAPL) iPad and Amazon.com Inc.'s (Nasdaq: AMZN) Kindle.
- Get in the Grain: Seed giant Monsanto Co. (NYSE: MON) surged nearly 5% on news that the company announced a $10 billion share buyback plan and increased its earnings expectations for the year from $5.10 to $5.20 a share.
- More Sanctions on Tap: The Wall Street Journal reports that German Chancellor Angela Merkel has warned Russian politicians and businessmen that the country could face more sanctions if it doesn't accelerate efforts to end geopolitical problems in Ukraine. Merkel has accused Moscow officials of moving "too slow" to ensure peace in the region.
- Another OPEC Problem: As unrest continues in Iraq and Ukraine, a massive bombing took place in the capital of Nigeria this afternoon that left 21 dead. The bombing is likely the result of insurgency forces known as Boko Haram. Although recent terrorist attacks in the north have done little to impact oil prices, analysts are raising new concerns about separatist movements in the south where the nation's primary oil fields are located.
- The Court Kills Aereo: The U.S. Supreme Court ruled 6 to 3 today that Aereo, a service that allows subscribers to watch broadcast stations online, violates the Copyright Act. The service, which will be defunct after this ruling, allowed users to rent TV antennas and beam signals to tablets and computers. The court ruled that Aereo needed to pay a license fee for content. This is a huge deal for U.S. broadcasters, and will make it harder for internet providers to split cable operations and provide a la carte channels. Nearly every major broadcaster released a press release praising the Supreme Court's decision.
Now our experts share some of the most important investment moves to make based on today's market trading – for Money Morning Members only:
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.