As we still recover from the aftermath of the government shutdown, we can now begin seeing improvements in the various markets. Hope was given this week as the announcement of a monetary stimulus coming into play for the future. In a direct reaction to this announcement markets reported earnings across the board. We’ll look into the monetary stimulus momentarily, as we will also give some insight on Twitter’s plans to go public, including their share prices and overall monetary value. We’ll wrap everything up with the up’s and down’s the markets experienced, and what can possibly be expected in the weeks to come.
(Photo credit to: Reuters.com)
About the Monetary Stimulus
The last time we had discussed the Fed’s monetary stimulus, it looked as though the FOMC was projecting the tapering to begin either at the end of this year or the beginning of next year. After the government shutdown that lasted over two weeks, it hindered these plans. Not only has there been a backlog of unemployment applications that are still awaiting to be processed, September’s actual added jobs accounted for less than analysts initially expected. The stimulus has greatly helped stocks throughout 2013, providing a more positive environment, causing more trades and earnings to be reported. The S&P alone reported a 22.8% increase for this year alone. It seems that the speculation of the stimulus will be delayed was confirmed recently with expectations for the taper to begin much later. Its more than likely that we will not begin to see any signs of the taper until the March or April months at earliest.
Earnings on Wall Street
Besides the news on the stimulus taper, as the closing bell rang today it looks as though all markets were up. The Dow Jones was up 95.88 points, S&P up 5.69, and the Nasdaq finished up 21.89 points. Another announcement that came to light upon the closing bell was Twitter’s news. They plan to sell off 70 million shares between $17 and $20 as they go public. This puts the value of the company at approximately $10.9 billion. Even the likes of Ford and Apple finished up Thursday up (Ford 1.4% -$17.76 Apple 1.3% -$531.91). The latter was a direct result of a public letter sent to CEO Tim Cook from Carl Icahn who requested that Apple starts their $150 billion buy-back as soon as possible. This isn’t the first time Icahn has swayed the shares and earnings with his influence. Not all companies ended on a good note though, like AT&T who dropped 1.8% to $34.63.
Last Bit of Good News and Earnings on Wall Street
The only other three companies who benefited after the closing bell were Amazon, Microsoft, and DuPont. Upon their quarterly postings results being reported both shares gained points. Amazon increased 7.8% to $358.10 with much stronger sales for this last quarter than they expected. Microsoft went up 5.6% to $35.60 when it’s profit totaled more than expected. DuPont’s announcement of a titanium dioxide unit spin off helped them rise 3% to $63.20. So even though the reports for the overall quarter are still looking somewhat disappointing at this time, some companies actually ended the day with a smile. Additionally, it seems that Twitter is so close to going public that we can taste it!
Are you going to purchase shares when Twitter goes public?
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