Retail Sales, Softbank Buys Sprint, Gannett Earnings, BAC Sued: Market Recap
Markets closed up today on Wall Street:
S&P 500: +0.81%, Nasdaq: +0.66%, Dow: +0.72%, Oil: -0.76%, Gold: -1.20%.
On the commodities front, Oil (NYSE:USO) dropped to $91.16 per barrel. Precious metals are down, as Gold (NYSE:GLD) dropped to $1,738.70 per ounce, while Silver (NYSE:SLV) dropped 2.77% to $32.73 per ounce.
Here’s your Cheat Sheet to today’s top stock stories:
According to figures released by the U.S. Commerce Department on Monday, retail sales increased for the third straight month, rising 1.1 percent. September’s sales numbers improved more than analysts predicted; the Wall Street Journal reported that economists surveyed by Dow Jones Newswires had expected a 0.7 percent increase.
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Softbank Corp. announced Monday that it will buy up to 70 percent of Sprint Nextel Corp. (NYSE:S), the third-largest wireless carrier in the U.S., for about $20.1 billion. The acquisition will provide Softbank entry into the U.S. market, which is still growing, at a time when Japan’s market is stagnating. It will also give Sprint the funds to build its 4G network to better compete in a market dominated by AT&T (NYSE:T) and Verizon Wireless (NYSE:VZ).
S&P 500 (NYSEARCA:SPY) component Gannett Co. Inc. (NYSE:GCI) reported net income above Wall Street’s expectations for the second quarter. Gannett is an international news and information company operating mainly in the realms of publishing, digital and broadcasting. See our full Gannett Earnings Cheat Sheet.
Bank of America (NYSE:BAC) has named new heads of investment and corporate banking in the Middle East and North Africa. Wadih Boueiz, a 13-year veteran of Merrill Lynch, and Hakim Karoui will co-head the integration of the two businesses in the region.
Bank of America has also been targeted by a lawsuit filed by U.S. homeowners. According to Bloomberg BusinessWeek, Bank of America, JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C), and The Royal Bank of Scotland Group (NYSE:RBS), among others, are being sued because of their involvement in the LIBOR manipulation scandal. The plaintiffs allege that the manipulation made their mortgage repayment rates more expensive, and led to the repossession of their property.
Advanced Micro Devices is joining the list of companies cutting costs and reducing their workforce in the face of the spiraling PC industry. The company is slated to cut between 1,170 and 2,340 jobs.