The S&P 500 Volatility Index (VIX), the market's fear gauge, rose nearly 4% on the day.
What Investors Need to Know Today
Market Recap: The Commerce Department said this morning that the nation's economy retracted at a 7% rate during the first three months of 2015. That is a downward revision from its initial estimate of 0.2% last month. Bad weather, a shutdown of West Coast ports, and weak retail spending were blamed for the economy's lackluster performance.
Japan Market News: This morning, Japan announced that its inflation level has slipped to zero, while household spending remains very weak. This is a bit of a paradox given that last week, the country surprised investors with a relatively strong GDP report. The Bank of Japan isn't expected to tighten monetary policy any time soon. Check out our "Japanese stock market" euphoria profit play here.
Tech Surge: Venture deals for upstart tech companies continue to raise incredible cash hoards. This afternoon, Snapchat Inc. announced it has raised $650 million in a private placement. Last year, the firm raised money from at least two investors that included Yahoo Inc. (Nasdaq: YHOO) and venture-capital firm Kleiner Perkins Caufield & Byers. The firm has a valuation between $15 billion and $19 billion. Check out this chart of the world's most valuable startups (Snapchat is fourth).
On Tap Next Week: Investors will be keeping a keen eye on a wealth of economic data, including the all-important May unemployment report, which will be central to the Federal Reserve's June FOMC meeting. Companies reporting earnings Monday include Riverbed Technology Inc. (Nasdaq: RVBD), QorvoTM Inc. (Nasdaq: QRVO), PVH Corp. (NYSE PVH), Bankrate Inc. (NYSE: RATE), and QEPM Midstream Partners Inc. (Nasdaq: QEPM).
Stocks to Watch No. 1, AMZN: Shares of com Inc. (Nasdaq: AMZN) were up 0.6% on big news for its private-label business. The company announced plans to boost its product lines to include grocery items like household cleaners, milk, cereal, and baby foods.
Stocks to Watch No. 2, INTC: Shares of Altera Corp. (Nasdaq: ALTR) were up nearly 4.3% after the New York Post broke a story that Intel Corp. (Nasdaq: INTC) is nearing a $15 billion deal for the semiconductor company. The deal will value Altera stock at $54 per share, a 15% premium over yesterday's closing price. It has been a busy week for the rapidly consolidating semiconductor sector. On Thursday, Avago Technologies Ltd. (Nasdaq: AVGO) announced plans to purchase rival Broadcom Corp. (Nasdaq: BRCM) for $37 billion.
Stocks to Watch No. 3, AXP: Shares of American Express Co. (NYSE: AXP) were down 0.46% on news that the company's president and likely next CEO died unexpectedly Friday after becoming ill on a flight home from Japan. Edward Gilligan passed away at the age of 55 and had worked at the company his entire career since graduating from New York University. He is survived by his wife and four children.
Stocks to Watch No. 4, RST: Shares of Rosetta Stone Inc. (NYSE: RST) surged more than 20% this afternoon on news that its board of directors has received a letter of interest from RDG Capital Fund Management. The news comes at a time when the language education company is seeking a new CEO after its former leader Steve Swad stepped down in April. Shares are still down more than 23% this year as the company has struggled due to weak product demand.
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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.