Stocks stumbled yesterday as investors awaited comments from Ben Bernanke at the big Fed meeting in Jackson Hole, Wyo. The Dow Industrials dropped 106 and held just slightly above the 13,000 level. The concerns about Europe are back again and it is not uncommon to see investors pull away from stocks before the start of a long holiday weekend.
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Bernanke simply reiterated his position on the economy in his speech today. He told the audience at the symposium the Fed is ready, willing and able to expand QE3 -- if necessary -- to prevent a new recession and to stimulate employment. It seems to be working as the markets have rallied significantly after the speech.
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It’s a new low for Facebook this morning after a Bank of America analyst cut the rating on the company because of the pending post-IPO lock-up expirations that should result in even more selling pressure. The report says 40 percent of the shares eligible to trade will be released on Nov. 14 and it would be unlikely any serious buying will occur before then. The stock has traded as low as $18.28 in early action today.
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SAIC, once one of the largest companies headquartered in San Diego, has announced plans to split into two separate publicly traded companies. Now based outside of Washington, D.C., it still has large operations here that employ thousands of workers. When completed next year, SAIC will become two companies, one dealing with technical government services and the other will focus on science and technology solutions. "This affords both companies an excellent opportunity to combine optimized cost structures, unrestricted access to their own respective markets, and the leveraging of SAIC's scientific and engineering excellence to unleash the growth and value we can deliver to our customers, employees and shareholders," said CEO John Jumper.
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A new report from NYSE Euronext anticipates most new job creation in 2013 will come from large U.S. companies than from the traditional source of hiring, small businesses. A survey of CEOs finds two-thirds of small business owners say they may not add jobs next year with some anticipating reductions in their work force. They also say reducing tax rates on businesses would be the most effective solution to accelerate the growth of permanent jobs. "More than 80 percent of the U.S. small business leaders said that lack of access to capital, economic uncertainty and other burdens are having a significant impact on their ability to create jobs," said Duncan Niederauer, CEO of NYSE Euronext.
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Warren Buffett celebrated his 82nd birthday yesterday by giving $2 billion to his kids. Well, not exactly to his kids but to their separate charitable foundations. Peter, Howard and Susan each received about $600,000 worth of Berkshire Hathaway stock to support their various efforts to help with impoverished women, children issues and poverty. Six years ago he made a similar gift and, in a letter to the kids, Buffett said, "I knew you would apply your considerable brains and energies in order to make the most of the funds from my gift. However, you have exceeded my high expectations. Your mother would be as proud of you as I am." The gifts are part of Buffett's plan to give away all of his assets before he dies. The bulk of his wealth will go to the Bill and Melinda Gates Foundation. There is no word what the kids gave him for his birthday. He probably would have been glad to go to the Dairy Queen in Omaha and enjoy a meal there. After all, DQ is one of the valuable companies owned by Berkshire Hathaway.
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America does not have a lot of competitive players on the world tennis tour anymore and the guy who has been one of the most identifiable American players is calling it quits. Andy Roddick said yesterday the current U.S. Open will be his last tournament. At a press conference yesterday, the 30-year-old said he has known for a while it was time to stop. "Walking off at Wimbledon, I felt like I knew," he told reporters. Roddick seems to be a great guy who just couldn't compete with superstars like Nadal and Federer. By the way, yesterday was also Andy's birthday, and like Buffett, he is a native of Omaha, Neb.
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Notre Dame takes on Navy tomorrow -- what a great way to start the first Saturday of college football. For us early risers that game will be a treat because it starts at 6 a.m., Pacific time. The Aztecs will kick off their season tomorrow night against Washington.
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