Did the gold bubble burst today as it fell an astonishing $104!
Steve Jobs stepped down today from his post at Apple. He was the consummate example of the American Dream by starting this company in his garage. Hopefully his health will allow him to see Apple continue to grow like it did under his ingenuity and leadership.
Here are the top financial stories of the day:
1) U.S. Stocks Post Strong Gains-From The Wall Street Journal
U.S. stocks notched a third straight day of gains as an upbeat durable goods report set a positive tone while investors await Federal Reserve Chairman Ben Bernanke's highly anticipated speech later this week.
The Dow Jones Industrial Average gained 143.95 points, or 1.29%, to 11320.71. All but one of the Dow's 30 components closed higher.
Bank of Amerca led blue-chip gains, surging 69 cents, or 11%, to $6.99. The stock had been battered in recent weeks amid worries over mortgage litigation woes and the possibility of more capital raises. But analysts say the bank is much sounder now than it was before the financial crisis.
The Standard & Poor's 500-stock index gained 15.25 points, or 1.31%, to 1177.60. Financial and utility stocks registered the biggest gains in a broad rally. All 10 of the S&P 500's sectors rose. The technology-heavy Nasdaq Composite rose 21.63 points, or 0.88%, to 2467.69.
The recent gains comes as investors hope Mr. Bernanke's much-awaited speech on Friday will offer clues on how the central bank prepares to combat the slowing economy. That optimism may be fleeting, however, as the Fed hasn't given signs that it's ready to enact additional stimulative measures.
Stocks got a jolt early Wednesday as demand for long-lasting manufactured goods bounced back in July, giving the fragile economy a much-needed boost.
Orders for factory goods rose by 4.0% from the prior month to $201.45 billion, according to the Commerce Department. However, orders for nondefense capital goods excluding aircraft, which economists use to gauge business spending on new equipment, dropped by 1.5%.
2) Gold's Price Tumbles 5.6% in Abrupt Halt to Its Rise-From The Wall Street Journal
Gold's glittering rise came to an abrupt halt on Wednesday as investors piled out of the metal, driving prices down 5.6%.
The decline lopped $104.20 off the price of a troy ounce, pushing it down to $1,754.10. It marked a dramatic reversal after weeks of gains.
The slump began in early trading, and selling accelerated quickly as volume spiked. Ominously, in some people's opinions, the move came amid very little obviously negative news. That underscored for many analysts and investors how quickly sentiment can turn and how rapidly money can be siphoned out of the market.
Gold's decade-long rally picked up steam in recent months, driving the metal from record to record, in nominal terms. In less than two months, it rose 27%, and it appeared to be headed to $2,000 an ounce. Just one year ago, gold was at $1,200.
"An exponential move like that is unsustainable," said Pratik Sharma, managing director of Atyant Capital, a firm in Boca Raton, Fla., that has a gold fund. "Exuberance has to be washed out."
In dollar terms, the decline on Wednesday was topped only by a $143.50 plunge in January 1980, which came the day after the market peaked at close to $825.50, equal to an inflation-adjusted record of $2,397.15. That marked the end of the last great bull market in bullion.
Responding to the big swing, CME Group, which operates the main exchange where gold futures are traded, late Wednesday raised margins on gold for the second time this month, upping the amount of money it requires investors to put up to trade futures. CME said gold margins will be raised 27% as of the close of trading Thursday.
While gold is typically used as a hedge against inflation—it is considered a fixed asset that tends to retain value as other assets fall—its recent appeal has been as a protection against much worse scenarios, such as the debt problems in Europe, fears of a double-dip recession in the U.S. and possible widespread financial crisis.
3) Top 10 Reasons Steve Jobs Will Be Missed By Apple Employees-From Glassdoor.com Blog
The world is buzzing about Steve Jobs’ resignation as CEO of Apple and likely will be for weeks. After all, Jobs founded the company decades ago in his garage and has led the tech giant with groundbreaking innovations from the Apple II in the 1980’s to the iPad 2 earlier this year.
But Jobs wasn’t just a tech genius, he was a highly rated CEO (97% approval rating) with thousands of employees who will sincerely miss his outstanding leadership. But what is it that made Jobs a well-liked boss?
Glassdoor turns to those who know best – the employees who work at Apple.
Top 10 Reasons Steve Jobs Will Be Missed By Apple Employees
1. “Steve Jobs is the Thomas Edison of this century…the Steve Jobs keynote presentations are as close to ‘rock star’ as an engineer is ever going to get.” – Apple Middle Manager (Cupertino, CA)
2. “You will have lots of opportunity to practice working in a somewhat chaotic, but often creative workplace, and to benefit from the genius of Steve Jobs.” – Apple Employee (Cupertino, CA)
3. “Steve Jobs is on top of things; if he see’s bureaucracy he will cut it out, and even if he doesn’t there is a fear that if he does see you as a bureaucrat he will cut you out.” – Apple Software Engineer IV (Cupertino, CA)
4. “Absolutely loved working for Uncle Steve. The corporation, even as a corporation, was a great thing to be a part of.” – Apple Genius (Mission Viejo, CA)
5. “Great senior level management, I can see how Steve Jobs gets voted the Best CEO.” – Apple Engineer (Cupertino, CA)
6. “Steve Jobs is revered at the company. He seems to be a great leader and everyone is excited about the products.” – Apple Employee (Cupertino, CA)
7. “It’s one of the most exciting places to work for! Watching Apple grow in the Steve 2.0 era has been nothing short of astonishing.” – Apple Network Engineer (Cupertino, CA)
8. “Apple takes care of its employees. Full time workers receive health benefits, all employees are offered stock options and very good prices on previous generation apple products.” – Apple Mac Specialist (location n/a)
9. “I am proud to say that I work for Apple. The products speak for themselves and it is great to be able to use them.” - Apple Project Manager (Austin, TX)
10. “Management is transparent and very friend, great colleagues, pleasant work environment in which you encouraged to be who you are.” – Apple Employee (location n/a)Quote of the Day from Dave Ramsey.com:
If a leader demonstrates competency, genuine concern for others and admirable character, people will follow. — Richard Chase
No comments:
Post a Comment