The second trading week of 2014 comes to a close with investors left wondering how the Federal Reserve will react to the most recent payroll report from the Labor Department.
Hi. I'm Sayoko Murase. Welcome to the 'Weekly Market Wrap' for January 10, 2014.
The Dow Jones Industrial Average is trading lower this week, while the Nasdaq and the S&P 500 were both trading higher this week.
Crude oil futures are lower this week, trading above $92.50 per barrel on Friday afternoon.
And Gold futures are higher this week, trading around $1,246 an ounce in Friday afternoon trading.
In economic news, the Labor Department released its December payroll report that showed just 74,000 jobs were added last month. This marks the smallest increase since January 2011 and is significantly below the consensus estimates. The Labor Department noted that cold weather may have played a factor as steep declines were seen in both construction and transportation.
In corporate news, Men's Wearhouse (NYSE:MW) strengthened its bid for Jos. A. Bank (NASDAQ:JOSB) from $55 per share up to $57.50 as activist investors continue to push the two companies to merge. The increased bid by Men's Wearhouse comes just days after Jos. A. Bank reduced its threshold from 20% to 10% for the shareholder rights plan.
Forest Labs (NYSE:FRX) announced it had agreed to acquire Aptalis for $2.9 billion in cash. Aptalis is a privately held company that specializes in treatments for both cystic fibrosis and gastrointestinal issues.
Morgan Stanley downgraded shares of Netflix (NASDAQ:NFLX) from equal weight to underweight as the company is seeing increased competition from other video streaming services. In the report, Morgan Stanley noted that similar products from Amazon (AMZN), HBO Go and Hulu Plus could impact the subscriber growth for Netflix -- who had previously been unchallenged in the sector.
Abercrombie & Fitch (NYSE:ANF) increased its full year earnings guidance to the range of $1.55 to $1.65 per share. The company said that cost cutting efforts and improved sales both domestically and internationally prompted the improved guidance.
This is the 'Weekly Market Wrap' for Friday January 10, 2014. Please join us on Monday for the Week Ahead Market Report.
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