DJIA Today, Sept. 30, 2014: The Dow Jones Industrial Average fell 28 points Tuesday as both domestic and global data stamped out gains fueled by increased spin-off and merger activity.
Here's the scorecard from today's trading session:
According to reports, U.S. consumer confidence slipped in September for the first time in five months, while annual home prices growth crawled in July to its slowest pace in two years, according to the S&P/Case-Shiller home price index. On the manufacturing front, the Chicago PMI showed a positive reading in September; however, growth has been fueled by rising inventories, which are climbing at their fastest pace in 41 years.
On the global front, Eurozone inflation levels reached a five-year low in September, while unemployment across the region remains stagnant. The poor economic data in the world's largest economic bloc is leading many to speculate that the European Central Bank will launch its own quantitative easing program soon. On the day, the S&P 500 Volatility Index (VIX) was up roughly 1.4% to reach 16.21.
Now, here's a breakdown of today's other top stories and stock performances:
Mobile Surge: Mobile payments are heating up. This morning, eBay Inc. (Nasdaq: EBAY) formally announced plans to spin off its PayPal division in 2015. Shares of eBay soared more than 7% on the news. PayPal, as a standalone division, has generated $7.2 billion in revenue over the last 12 months. The news was a boon for activist investor Carl Icahn, who launched a high-profile battle with eBay in January in an attempt to force it to spin off its payment division.
Merger Mania: Shares of Move Inc. (Nasdaq: MOVE) soared by more than 37% this afternoon on news it would be acquired by News Corp. (Nasdaq: NWSA) for roughly $950 million. The acquisition of a real-estate listing company by a powerful media firm raised eyebrows early this morning. Shares of News Corp. were down more than 2.5% on the day.
Tax Troubles: This morning, European Union regulators published a report that details the tax practices of Apple Inc. (Nasdaq: AAPL) and Fiat S.p.A. (OTCMKTS ADR: FIATY) and asserts that the companies are violating EU laws. The European Union said that Apple has been accepting sweetheart deals from the Irish government for nearly two decades, including multiple rounds of "illegal" state aid. According to the report, Apple may owe up to $200 million in back taxes to the European Union. Despite the bad news, Apple stock was up 0.64% today after China approved sales of the iPhone 6 to start on Oct. 17.
PR Move: In a bold public relations and marketing move, Microsoft Corp. (Nasdaq: MSFT) announced plans to skip the branding of Windows 9 and will instead go directly to naming its next operating system Windows 10. The company said that its move represents it ability to press forward into a world now dominated by mobile and cloud services. Microsoft plans to release Windows 10 in mid-2015. Find out here why the Microsoft stock comeback is just getting started...
Auto Slump: Shares of Ford Motor Co. (NYSE: F) slid by another 2% on Wednesday, a day after shares plunged. The company is facing increased pressure after it slashed its 2014 and 2015 earnings guidance. The company's newly appointed CEO Mark Fields said yesterday that he expects 2014 profits to be $6 billion, nearly 1 billion less than the company's previous annual estimate. The company cited weak growth in Europe and growing concerns about sales in emerging markets like Brazil and Russia.
Now our experts share some of the most important investment moves to make based on today's market trading - for Money Morning Members only:
A Post-Petrodollar Play for Triple-Digit Gains: It is now clear that both Russia and China are making concerted efforts to move off the petrodollar system. The result of this trend will roil the currency markets, and we can expect these seismic shifts to affect the U.S. dollar - and the stock market. The changes open up profit opportunities, too, and Peter Krauth has found the perfect stock to benefit from the petrodollar's demise.....
(Other) Investors Will Hate You for Using This Investment Strategy: Even with interest rates so low and the economy steadily improving, many nervous investors - worried about a correction - are selling off. Whenever this sort of negative noise is in the air, it's not a time to sell; it's a profit opportunity for tech investors. That's why Defense & Tech Specialist Michael A. Robinson is sharing three strategies designed to turn market declines to your financial advantage. With them, you'll leave the nervous sellers in the dust...
252 Million Years Ago, This Nearly Wiped Out All Life... Tomorrow, It Could Solve Our Energy Problems: According to an April study issued in the Proceedings of the National Academy of Sciences, permafrost soil, which typically remains frozen all year, is thawing and decomposing at an accelerating rate. But after a shocking discovery, it seems something locked in the soil could become the fuel of the future... and you could profit big off the new revolution.
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.