Gold hits another new record high as the Fed signals continued concern for the economy. The Fed signals it favors fighting unemployment over inflation just before the Thanksgiving holiday.
Hi. I’m SAYOKO MURASE. Welcome to the “Weekly Market Wrap” for Friday November 27, 2009.
Crude futures had spent most of this shortened trading week under $78 a barrel.
Gold surged to record high prices again on Tuesday evening, trading north of $1,176 an ounce as the U.S. dollar index fell below the critical 75 level.
On the economic front, the Commerce Department revised its estimate for third-quarter economic growth to 2.8 percent from a preliminary 3.5 percent, just under expectations of 2.9 percent growth. The downward revision was due largely to declines in consumer spending, business investment, and changes to imports and exports.
Minutes of the November 3rd and 4th Federal Open Market Committee were released on Monday. Federal Reserve officials indicated that record-low interest rates might fuel “excessive” speculation in financial markets, suggesting they were comfortable with higher inflation to boost employment. Gold prices touched a then-record high of $1,174 an ounce in New York on the news.
The day after Thanksgiving traditionally signals the first shopping day of the holiday season and shoppers are expected to be out in full force for 2009. According to the National Retail Federation, as many as 134 million people, 4.7 percent more than last year, will shop on Black Friday, Saturday, or Sunday.
These early holiday shoppers are projected to spend 4 to 6 percent more than in 2008.
In third quarter earnings news, TiVo (NASDAQ:TIVO) reported a net loss of $6.7 million, or 6 cents a share on Tuesday afternoon and meeting consensus estimates. This compares to earnings of $100.6 million, or 98 cents per share in the same quarter last year.
J. Crew (NYSE:JCG) posted profits of 67 cents per share, beating the street and more than doubling the 30 cents a share in the same quarter a year ago. Analysts were expecting 58 cents a share.
Barnes & Noble (NYSE:BKS) reported a loss of 43 cents per share for the most recent quarter. The company expects to report a profit next quarter of $1.30 to $1.50 per share.
Minneapolis-based Medtronic Incorporated (NYSE:MDT) surprised investors with reported profits per share of 78 cents for the most recent quarter. Analysts were expecting 74 cents. The medical technology company also raised guidance for 2010 to $3.17 to $3.22 a share.
This is the “Weekly Market Wrap” for Friday November 27. Have a wonderful Thanksgiving holiday. Please join us on Monday with the “Week Ahead Market Report.”
For MarketNewsVideo.com, I'm SAYOKO MURASE.
