Cart (0)
business newsPre-Market Primer: Facebook Files S-1
By
Vincent Trivett
Feb 02, 2012 9:25 am
US economic indicators are mixed.
PRINT
Some mixed economic data came out of the US today.
Initial jobless claims last week ticked down by 12,000 to 367,000. Economists projected 370,000 initial claims. The Labor Department revised up the previous week's count to 379,000. The four-week moving average fell to 375,750. Continuing claims fell by 130,000 to 3.44 million, the fewest since 2008.
According to Challenger, Gray & Christmas, a Chicago-based outplacement firm, planned job cuts increased in January. Challenger counts 53,486 layoffs in January, a 28% increase over December. Particularly hard hit were workers at financial firms and retailers.
Business productivity growth slowed in the last quarter of 2011. Non-farm productivity grew by 0.7%, slightly less than the consensus estimate of 0.8%. Productivity growth for the third quarter was revised down to 1.9% from 2.3%
US consumers are slightly less optimistic than they were in December. The RBC consumer outlook index declined 0.7 points to 45.1.
US futures barely budged on this data. Here's a snapshot of the main index futures ahead of the bell:
Deutsche Bank (DB) CEO Josef Ackermann said in a press conference that creditors will face a net present value loss of about 70%. He said that once a deal is reached, contagion risk in the eurozone will fall to a "very low level."
There are some signs that the price that European countries are paying to borrow money is going down. Yesterday, Portugal successfully sold 1.5 billion euros in short-term debt at lower rates. France and Spain together sold 12.5 billion euro of bonds, also with decreasing yields.
The Japanese yen is approaching a postwar-high on the dollar. At pixel time, one dollar buys just 76.1 yen. A strong yen is bad news for Japanese manufacturers, and the Bank of Japan is thought to intervene to devalue the yen.
Facebook finally filed its S-1 yesterday. The social network reported that its revenues grew 88% year over year in 2011 to $3.7 billion. Net income for the year hit $1 billion.
Facebook's filing revealed that the biggest chunk of the company's income --12% -- comes from Zynga (ZNGA), the social game service. Zynga shares rose 4.72% on the pre-market. If customers continue to get tired of Zynga games, this could represent a risk to Facebook.
Green Mountain Coffee Roasters (GMCR) smashed earnings expectations in the fourth quarter. The company's earnings were driven by doubled sales of K-cups. Shares of Green Mountain shot up 21.65% in the pre-market to $65.14 per share.
Twitter: @vincent_trivett
Initial jobless claims last week ticked down by 12,000 to 367,000. Economists projected 370,000 initial claims. The Labor Department revised up the previous week's count to 379,000. The four-week moving average fell to 375,750. Continuing claims fell by 130,000 to 3.44 million, the fewest since 2008.
According to Challenger, Gray & Christmas, a Chicago-based outplacement firm, planned job cuts increased in January. Challenger counts 53,486 layoffs in January, a 28% increase over December. Particularly hard hit were workers at financial firms and retailers.
Business productivity growth slowed in the last quarter of 2011. Non-farm productivity grew by 0.7%, slightly less than the consensus estimate of 0.8%. Productivity growth for the third quarter was revised down to 1.9% from 2.3%
US consumers are slightly less optimistic than they were in December. The RBC consumer outlook index declined 0.7 points to 45.1.
US futures barely budged on this data. Here's a snapshot of the main index futures ahead of the bell:
- The Dow (^DJI) is unchanged at 12,653.00
- The S&P 500 (SPY) is down 0.1% at 1,319.70
- The Nasdaq (^IXIC) is up 0.5% at 2,488.00
Deutsche Bank (DB) CEO Josef Ackermann said in a press conference that creditors will face a net present value loss of about 70%. He said that once a deal is reached, contagion risk in the eurozone will fall to a "very low level."
There are some signs that the price that European countries are paying to borrow money is going down. Yesterday, Portugal successfully sold 1.5 billion euros in short-term debt at lower rates. France and Spain together sold 12.5 billion euro of bonds, also with decreasing yields.
The Japanese yen is approaching a postwar-high on the dollar. At pixel time, one dollar buys just 76.1 yen. A strong yen is bad news for Japanese manufacturers, and the Bank of Japan is thought to intervene to devalue the yen.
Facebook finally filed its S-1 yesterday. The social network reported that its revenues grew 88% year over year in 2011 to $3.7 billion. Net income for the year hit $1 billion.
Facebook's filing revealed that the biggest chunk of the company's income --12% -- comes from Zynga (ZNGA), the social game service. Zynga shares rose 4.72% on the pre-market. If customers continue to get tired of Zynga games, this could represent a risk to Facebook.
Green Mountain Coffee Roasters (GMCR) smashed earnings expectations in the fourth quarter. The company's earnings were driven by doubled sales of K-cups. Shares of Green Mountain shot up 21.65% in the pre-market to $65.14 per share.
Twitter: @vincent_trivett
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
