AIG Mulls a Lawsuit and Bank of America Slims Down: Market Recap
The markets closed down on Wall Street for the second day in a row on Tuesday. Investors seem to be reconsidering last week’s bullish plays in light of lingering economic and political concerns heading into earnings season.
At the close: DJIA: -0.41%, S&P 500: -0.32%, NASDAQ: -0.23%.
On the commodities front, Oil (NYSE:USO) climbed 0.10 percent to $93.28 per barrel. Precious metals were also up, with Gold (NYSE:GLD) climbing 0.77 percent to $1,659,00 per ounce, and Silver (NYSE:SLV) climbing 1.06 percent to $30.40 per ounce about 15 minutes after the bell. U.S. 10-year yields fell to 1.864 percent.
Aluminum giant Alcoa (NYSE:AA) released its fourth-quarter financial results after the bell, kicking off the January earnings season. Income of $0.21 per share came in ahead of expectations of $0.06 per share. Revenue of $5.9 billion also came in ahead of expectations of about $5.6 billion. Shares were flat at the end of the regular session and were trading up in the after market.
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American International Group (NYSE:AIG) has once again found itself between a rock and a hard place. The New York Times reports that the insurance company is thinking about joining a $25 billion lawsuit filed by former CEO Maurice Greenberg, who accuses the government of constructing an illegal and inequitable bailout… (Read more.)
GameStop (NYSE:GME), the world’s largest video-game retailer, is delivering a lump of coal to investors for the holiday season. The company reported holiday sales results for the nine-week period ending December 29, 2012. Total global sales came in at $2.88 billion, representing a 4.6 percent decrease from the same period in 2011. Total comparable store sales also fell 4.4 percent, with U.S. and international comps declining 3.5 percent and 6.4 percent, respectively… (Read more.)
Bank of America Trims the Fat: As if the first $300 billion of mortgages that Bank of America (NYSE:BAC) sold the service rights to wasn’t enough, the bank is said to be trying to sell servicing rights to another $100 billion of mortgages. CEO Brian Moynihan said that the bank is working to streamline and reduce long-term expenses. Selling off the servicing rights to the massive amount of mortgages that Bank of America owns will help the company move away from mortgage servicing, which is just the kind of streamlining Moynihan wants… (Read more.)
Although the fiscal cliff soap opera was pushed aside for a New York minute, the debt ceiling issue in Washington still has plenty of airtime. The U.S. started the new year by hitting its record debt ceiling of $16.394 trillion. In the final days of 2012, Treasury Secretary Timothy Geithner sent a letter to Congress warning of the inevitable event and said the Treasury Department will take “extraordinary measures” to provide approximately $200 billion in headroom. The tricks were first estimated to give the bobble-heads in Washington about two months of wiggle room, but new calculations show less time on the clock… (Read more.)
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