Yesterday’s trading session started on shaky grounds but soon saw the U.S. Stock market moved higher, following remarks about US economy from the nominee to lead Federal Reserve, Janet Yellen. Yellen raised concerns about the high unemployment rate of 7.3% and stated that the economy was performing far short of its potential. She also reiterated that inflation below 2% does not pose a serious concern to the economy. These remarks provided enough fuel to the market to assume a possible delay in tapering and the possibility that the fed will continue with its asset purchasing program.
On Wednesday November 13th, the Dow Jones industrial average and S&P closed at new record highs. The Dow Jones industrial average rose 0.45%, or 70.96 points, before closing at 15,821.63. S&P 500 gained 0.81%, or 14.31 points, and ended the day at 1,782, while tech heavy Nasdaq composite rose 1.17%, or 45.66 points, ending the day at 3,965.58.
During Wednesday’s trade, all sectors firmed up over expectation of no immediate tapering. Major movers for the day were, Microsoft Corp. (NASDAQ:MSFT) up 2.13%, The Home Depot Inc. (NYSE:HD) up 1.86%, The Walt Disney Company (NYSE:DIS) up 1.77% , Pfizer Inc. (NYSE:PFE) up 1.56%, UnitedHealth Group Inc.(NYSE:UNH) up 1.52%, Nike Inc. (NYSE:NKE) up 1,27% and Cisco Systems, Inc. (NASDAQ:CSCO) up 1.12%. On the other hand, E .I. Du Pont De Nemours And Co. (NYSE:DD) lost 1.79%, Merck & Co. Inc. (NYSE:MRK) lost 0.53%, Verizon Communications Inc. (NYSE:VZ) lost 0.34%, AT&T Inc. (NYSE:T) lost 0.28%.
Yellen’s comment also helped commodities to rise from their recent fall. On Wednesday’s trade, Gold December futures rose by 1.40% to $1284.40, whereas Crude future firmed up by 0.55% to $93.61.
Obamacare Results are out
About 106,185 people have signed up for President Obama’s health-care program in the first month of its operation; these numbers are only for the state- run operations. Fewer than 27,000 Americans have selected an insurance plan through the federal site, healthcare.gov which is flawed by technical glitches and yet to be fully operational. Around 500,000 consumers were originally projected to enroll via the federal exchange in the first month.
A Million Dollar Battle
Apple Inc. (NASDAQ:AAPL) has demanded $380 million from Samsung Electronics Co. for copying vital features of the iPhone and the iPad, whereas Samsung has countered Apple’s claim with a figure of $52 million. The companies made their demands on the first day of testimony in a trial at San Jose, California. On August 2012, the previous jury has awarded Apple $1.05 billion after determining 26 Samsung devices had infringed 6 Apple patents. However, at a later stage a judge found out that the jury had miscalculated $400 million in damages for 13 products and ordered a retrial.
Starbucks Restates to Post Loss
On Wednesday November 13th, Coffee Giant Starbucks Corporation (NASDAQ:SBUX) has restated its fourth-quarter results after the arbitration has ordered it to pay $2.76 billion in damages to Kraft Foods Global Inc.
On October 30th, Starbucks had reported a record fourth quarter growth with profits rising 34% to $481.1 million or 63 cents per share, post the impact of the ruling the result would change to a loss of $2.12 billion or $1.64 per share.