Stock Market Wrapup June 28th
The major indexes were mixed today, with the Dow Jones and S&P trading slightly lower and the Nasdaq eking out a gain. Oil prices continued to spike higher getting ever closer to that physiological $70 level. Natural gas was once again the big loser on the day in the energy complex, as prices slid -43 cents to $6.65. Treasuries eased a bit, with the benchmark 10-year note yielding 5.11%.
The FOMC left interest rates unchanged at 5.25% noting that they are not fully convinced that inflation has slowed. The committee did say that inflation modestly improved, while growth is expected to be moderate. The FOMC did point to inflation as still being the greatest risk to the economy, however. In other economic news today, the Commerce Department said the economy expanded at an annual rate of 0.7% last quarter, the slowest rate in nearly four years. Wall Street economists had expected a rise of 0.8%.
Shares of Beazer Homes (Nasdaq: BZH) fell -9.6% on the trading day after the company fired its CFO after he attempted to shed documents. The FBI is currently investing Beazer for fraud. Continuing recent poor momentum of the housing sector, KB Home (NYSE: KBH) reported a massive loss for the period just ended. For the second quarter, the homebuilder posted a loss from continuing operations of -$174.2 million, or -$2.26 a share, on a -36% drop in revenues. The majority of the loss was attributed to an inventory charge that came to $308.2 million. New home orders fell -3%. Shares finished the day down -1.3%
General Motors (NYSE: GM), meanwhile, agreed to sell its Allison Transmission unit to a group of private equity firms. GM will sell the unit to The Carlyle Group and Onex for $5.6 billion. The deal will allow the automotive giant to free up cash. Shares of GM rose 2.1% on the day.
Shares of retailing giant Dillard's (NYSE: DDS) rose by 8.1% after an investment company said that it is seeking changes at the clothing retailer. Barington Capital Group, which owns a 3.2% stake in Dillard's, said it is looking to make changes at the top, citing recent inconsistent results.
By the BullMarket.com Staff
The FOMC left interest rates unchanged at 5.25% noting that they are not fully convinced that inflation has slowed. The committee did say that inflation modestly improved, while growth is expected to be moderate. The FOMC did point to inflation as still being the greatest risk to the economy, however. In other economic news today, the Commerce Department said the economy expanded at an annual rate of 0.7% last quarter, the slowest rate in nearly four years. Wall Street economists had expected a rise of 0.8%.
Shares of Beazer Homes (Nasdaq: BZH) fell -9.6% on the trading day after the company fired its CFO after he attempted to shed documents. The FBI is currently investing Beazer for fraud. Continuing recent poor momentum of the housing sector, KB Home (NYSE: KBH) reported a massive loss for the period just ended. For the second quarter, the homebuilder posted a loss from continuing operations of -$174.2 million, or -$2.26 a share, on a -36% drop in revenues. The majority of the loss was attributed to an inventory charge that came to $308.2 million. New home orders fell -3%. Shares finished the day down -1.3%
General Motors (NYSE: GM), meanwhile, agreed to sell its Allison Transmission unit to a group of private equity firms. GM will sell the unit to The Carlyle Group and Onex for $5.6 billion. The deal will allow the automotive giant to free up cash. Shares of GM rose 2.1% on the day.
Shares of retailing giant Dillard's (NYSE: DDS) rose by 8.1% after an investment company said that it is seeking changes at the clothing retailer. Barington Capital Group, which owns a 3.2% stake in Dillard's, said it is looking to make changes at the top, citing recent inconsistent results.
By the BullMarket.com Staff
posted by Stock Administrator @ 7:35 PM
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