This sixth trading week of 2013 comes to a close with gas prices pushed to a 2013 high as Winter Storm Nemo finds the Northeast, threatening the region with record snowfall and power outages.
Hi. I'm Kristin Bianco. Welcome to the 'Weekly Market Wrap' for February 8, 2013.
The Dow Jones Industrial Average and the S&P 500 were lower for the week on Friday afternoon, and the Nasdaq was higher.
Crude oil futures are lower this week, trading around $95.70 per barrel on Friday afternoon.
Gold futures are slightly little changed this week, trading at $1666.41 an ounce in afternoon trading.
In notable economic news this week, the Labor Department announced that first-time jobless benefits claims fell by 5,000 to 366,000 this past week. Initial claims for unemployment benefits dropped to 366,000 from 371,000. The four-week rolling average for the week fell 2,250 to 350,500.
In corporate news this week, Oracle (NYSE:ORCL) announced that it will purchase networking equipment vendor Acme Packet (APKT) for $2.1 billion, or $1.7 billion net of cash. The purchase price represents a premium of 22% to the stock's closing price on Friday. Oracle believes that the merger will accelerate a migration to all-IP networks, and will allow the software company to provide customers with a broader range of services.
Archer Daniels Midland (NYSE:ADM) announced that it earned $510 million or 77 cents per share during the most recent fiscal quarter, up from $80 million, or 12 cents per share during the same period last year when it was undergoing a restructuring. Excluding certain items, earnings were 60 cents per share versus 51 cents in the same period last year.
Kellogg (NYSE:K) announced that it lost $32 million, or 9 cents per share, versus $195 million, or 54 cents per share, during the same period last year. Not counting a mark to market accounting change, the company earned 65 cents per share, down from 71 cents a year ago. Revenue increased to $3.56 billion from $3.02 billion. The company reiterated its 2013 outlook, saying it expects earnings growth of 5 to 7 percent and sales growth of 7 percent.
Sprint (NYSE:S) announced that it lost $1.3 billion during the fourth quarter, roughly the same as the same period last year. The loss amounted to 44 cents per share versus 43 cents per share a year earlier. Analysts had expected a loss of 46 cents per share. Revenue was $9 billion, 3.2 percent higher than a year ago, and beating expectations of $8.9 billion. The increase was attributed to customers switching to higher paying smartphone plans.
Professional social network LinkedIn (LNKD) announced that profit increased by 66% to $11.5 million, or 10 cents per share, up from $6.9 million, or 6 cents per share, during the same period a year earlier. Revenue increased to $303.6 million from $167.7 million. The company forecast that sales during the first quarter should be between $305 million and $310 million.
This is the 'Weekly Market Wrap' for Friday February 8, 2013. Please join us on Monday for the 'Week Ahead Market Report.
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