Home » Archive for November, 2012

Spending by Consumers Drop to Five Month Low

Consumer spending in the U.S. fell during October for just the first time in the past five months. Growth in income stalled, which suggested that slower economic growth would take place during this year’s last quarter. On Friday, the Department of Commerce said consumer spending dropped 0.2% following a 0.8% unrevised increase for September. The Commerce Department said it was unable to quantify Superstorm Sandy’s impact, but said it had made adjustments in areas were source data was still not available or did not show any reflection of the... 
 

Investors Sue HP Board and Auditors for Autonomy Deal

Hewlett-Packard’s directors and auditors as well as Autonomy Corp. founder Mike Lynch were sued by investors over fraud regarding last year’s acquisition of the software company. The lawsuit was filed November 27 in a federal court in San Jose, California. Among the defendants are Deloitte LLP, KPMG LLP, Barclays Plc, and Perella Weinberg Partners UK LLP as well as Chief Executive Officer Meg Whitman and former HP officers and directors including former CEO Leo Apotheker. HP said that $5 billion of the $8.8 billion write down was due to falsified... 
 

Costco announces Special Dividend Prior to Fiscal Cliff

Warehouse merchant, Costco Wholesale has announced it will have a special dividend of $3 billion before the end of 2012, saving its shareholders from being bit should the increase in taxes take place due to the pending fiscal cliff. The company announced that the dividend of $7 per share is possible because it has a strong balance sheet and good access to capital. The special dividend is in addition to the 27.5-cent regular dividend to be paid out November 30. Shareholders will be paid the special dividend December 18 to all shareholders of record... 
 

Research In Motion Stock Surges

Research In Motion the maker of the Blackberry 10 saw its shares surge even higher on Friday. The rally by RIM stock on Friday followed a bullish report from analysts. The price target for the stock was moved up along with the amount of shipments in units for 2014. After that report was released, shares of RIM jumped 14%. RIM announced last week that the Blackberry 10, the long-delayed operating system would finally be debuted January 30 of next year, a full year after RIM’s next generation handset and new software was due to be launched. Initially... 
 

Gas Rationing to End Soon in New York

Mayor Michael R. Bloomberg said that the gas rationing system implemented in the city two weeks ago will come to an end on Saturday. He introduced the gas rationing for city drivers for the first time since the 1970s on November 9 after Hurricane Sandy crippled the area’s fuel supply network. It resulted to low supply in the city. Lines were hours long at stations in the city. Gas stations were closed as people left without power and need fuel for generators. New York City’s plan was implemented the same day that a gas rationing plan began on... 
 

International Union Confronts Wal-Mart Suppliers as Employees Stage Walkouts

An international trade union asked Wal-Mart suppliers to raise concerns with the giant retailer about how it treats its US workforce. The company has been affected by several walkouts and protests by union-supported groups wanting to highlight the low pay, poor benefits, and retaliatory measures against workers who speak out. A couple of high profile demonstrations are planned during Black Friday this week. The day is the busiest single shopping day in the United States. Organizers say that up to 1,000 actions are planned and a couple of walkouts... 
 

Stock Price Surges for Groupon

Groupon Inc. stock shares increased earlier this week by over 10% after a 9.9% stake in the company was purchased by a hedge fund. Tiger Global Investments discloses it had purchased 65 million shares in their securities filing Monday. Tiger Global is the owner of a small percentage of Facebook, Inc. as well. Groupon was the pioneer of daily deals on the Internet, offering its subscribers huge discounts on things ranging from restaurant meals to spa sessions to treatment of skin and hair. To increase business, and attempting to set itself apart... 
 

Earnings Miss Wall Street Estimates at John Deere

The largest maker of agricultural equipment, John Deere & Co. reported its fourth quarter earnings on Tuesday that missed estimates by analysts after the company saw sales outside Canada and the U.S. decline. Profit jumped to over $1.75 per share during the three months that ended October 31. That was up from profits of a year ago of $1.62 per share. The company, based in Moline, Illinois was expected to have a profit of up to $1.88 per share. Net Income for Deere will be nearly $3.2 billion during the year up through the end of October 2013,... 
 

Fraud Alleged by Hewlett-Packard in Autonomy Acquisition

On Tuesday morning, Hewlett-Packard asserted there were instances of financial fraud involved with its purchase of Autonomy, the software business, in 2011. HP paid over $10 billion for the business. At the same time, the company released third quarter profits that were slightly better than estimated on Wall Street, but also cautioned that the quarter profits for January would be less than analysts’ estimates. HP announced over $8.8 billion in charges that were non-cash items and linked to disclosure failures, accounting improprieties and misrepresentations... 
 

Wall Street cuts into Apple Market Capitalization

Apple stock took another big hit on Wall Street last week. The hit took the tech giant’s market cap below the $500 billion mark for only the first time in close to six months. Even though Apple had strong financials for the third quarter, the Cupertino-based company’s stock still slid. The prolonged weakness of Apple’s stock, which has put it into territory of a bear market, has taken it from one of the highest perches that exist on Wall Street, the famed $500 billion club. On Thursday, the stock fell 2% to close under the $500 billion capitalization... 
 

Walmart Hit by Walkouts and Protests

Employees at Walmart this week started to walk off the job in advance of next week’s Black Friday, when three groups backed by unions expect thousands to protest nationwide. During October, a strike took place in Los Angeles at a Walmart and spread to Walmarts in 12 other cities, with protests held by national and local leaders at over 200 stores asking for better pay, affordable healthcare and fairer schedules. Since then, workers have walked out in Richmond, California and Dallas, Texas along with strikes due in Chicago, Miami, Washington D.C.... 
 

FedEx and UPS Investigated by Department of Justice

Fed Ex and UPS announced they both were targets of an investigation by the Department of Justice related to illegal online pharmacies. The pharmacies have become the target of a crackdown by federal investigators and international authorities for prescription drug abuse. The two companies disclosed they were being investigated in recent regulatory filings. A FedEx spokesperson said the probe was ongoing in a statement and interview Thursday afternoon. The Department of Justice crackdown against pharmacies operating online was launched seven years... 
 

Walmart Earnings Increase, but Sales Fall Short

Walmart Stores Inc., the discount retailer, said on Thursday that its profits for the third quarter had increased by 9%, which beat estimates, but that its revenues had fallen short of Wall Street expectations, while sales for same-store increased by 1.5%. Earnings for Walmart have been challenged of late as it low-income customers who have been the core customers of the store throughout the U.S. try to cope with high unemployment and high prices of gasoline. Walmart’s net profit was $3.64 billion or just above $1.08 a share, an increase from... 
 

Microsoft’s Sinofsky Steps Down

Microsoft’s head of Windows, Steven Sinofsky resigned on Monday. Sinofsky was thought by many to be in line to take CEO Steven Ballmer’s place. However, he left Microsoft on Monday only three weeks after the software giant launched Windows 8, its newest flagship product. His role in Microsoft will be taken over by Julie Larson-Green who will lead the Windows engineering for both hardware and software. The current Chief of marketing and CFO, Tami Reller, will run the business side of Windows. Both women will report to CEO Ballmer. In a prepared... 
 

Japan’s Economy Shrinks

The Japanese economy contracted during the third quarter. The rate of contraction was at 3.5% at an annualized figure. That ended up sparking concerns that the shrinkage would cause a sustained slowdown across the region. The GDP figures for Japan Monday were much worse than economists had expected. This was Japan’s biggest contraction in its economy since the earthquake and tsunami that devastated the country in 2011. The rate for this latest quarter was worse than the contraction that took place during the second quarter from April through June.... 
 
Advertisement
Advertisement
© 2006-2015 Leoncheng.