A weaker than expected jobless claims report sent stocks lower as did the unlikelihood of further stimulus from the Federal Reserve. The number of Americans filing for unemployment benefits rose to a 5-week high last week, up 4,000 to a seasonally adjusted 372,000, according to the Labor Department.
As the saying goes, there are many possible reasons for an insider to sell a stock, but only one reason to buy — they expect to make money. So let’s look at two noteworthy recent insider buys.
In trading on Thursday, precious metals shares were relative leaders, up on the day by about 1.1%. Leading the group were shares of Entree Gold (EGI), up about 9.7% and shares of North American Palladium Limited (PAL) up about 6.8% on the day.
Hewlett-Packard (HPQ) announced that it lost $8.9 billion, or $4.49 per share, versus a profit of $1.93 billion, or 93 cents per share in the same period last year. Revenue was $29.7 billion versus $31.2 billion in the same period last year.
Some good economic data today, as the National Association of Realtors reports homes sales rose in July. Sales in July were up 2.3% from June and up 10.4% from the same time last year. The association attributes the surge in sales to the current market. Home prices are still low and consumers wish to capitalize on this while they can. These low prices coupled with the rising cost of renting has made home-ownership seem more attractive to some.The National Association of Realtors did say that an average annual rate for home sales should be between 5 and 5.5 million, still a ways above July’s 4.47 million.
The Congressional Budget Office has said today that President Obama and Congress are risking an economic disaster by not acting to avoid the 2013 fiscal cliff. According to the agency, If the government does nothing, the United States will fall into a recession for the first half of 2013. The CBO also said that the 2013 fiscal cliff, a planned surge in taxes and cut in spending, could raise the unemployment rate back up to 9.1% by the end of 2013. While the office’s view is bipartisan, Democrats and Republicans do not see eye-to-eye on what to do about looming changes. Republicans want an extension of the Bush era tax cuts and a decrease in spending, while Democrats would like to modify those tax cuts and limit the spending cuts. The budget office did report that if the fiscal cliff were to take effect, the United State’s deficit outlook would improve.
JetBlue in a bit of hot water after forgetting to tell passengers of their rights. The airline is being fined $90,000 for not notifying passengers that they could leave the plane while it was stuck on the tarmac for 3 hours. As a part of a new rule that went into effect over a year ago, passengers have the right to leave a plane if it is sitting at a gate, and airline personnel must announce this right every 30 minutes. An investigation into the incident found that JetBlue has no stated policy of informing passengers of their right to leave the plane, even though it is the law. JetBlue is the first airline to be penalized for this particular stipulation of the law. JetBlue CEO Dave Barger has said that in the wake of this incident his company is cooperating with the Department of Transportation.
Republicans may have a set back in store for them next week, and it has nothing to do with politics. Tropical storm Isaac is making its way towards the Southeast United States, conceivably affecting the Republican National Convention in Tampa, Florida. According to CNN, If Isaac were to become a category 4 hurricane, it could submerge the convention venue with close to 20 feet of water. Tampa’s Mayor is not worried, however, saying that they’ve prepared for any eventuality, and have 400 buses standing by to evacuate delegates if need be. At this point in time it is still all conjecture as to whether Isaac will even make its way near Tampa.
Church & Dwight (CHD) had its estimates raised by Oppenheimer (OPY) due to the acquisition of Avid. A $63 price target was issued with an outperform rating.
The markets extended their losses amid lackluster economic data and worries over the euro zone but stocks made a bit of a recovery this afternoon after the latest Fed minutes suggested stimulus may be on the way. On the economic front, Existing home sales rose by a less than expected 2.3 percent in July, to an annual rate of 4.47 million units.
