Market Update – Boeing (NYSE:BA), Citigroup (NYSE:C), Palm (NASDAQ:PALM), Wells Fargo (NYSE:WFC)
The concerns over the Greece debt situation are having an effect on the Euro’s trading price. The EU’s currency is having its worst week since January of this year. Investors have reacted conservatively after news that the Balkan state seems likely to seek a bailout from either the Eurozone or the International Monetary Fund, or both. The US Dollar is trading higher against the Euro this morning as a result.
Oil prices have fallen below $82 a barrel, based partially on US Dollar’s strong gains. Oil prices are still up over last month, where they ended at $69 a barrel. Trading has been pushed by news that OPEC is keeping production steady and speculation that US demand will increase soon based on a recovering economy. Stocks have started trading down overall for the day, as a “barren economic calendar [is] providing few catalysts”, according to Yahoo. Investors are hopeful that things can turn around and the market can make the end of the week a ninth consecutive positive day for the Dow.
One of the positive catalysts driving up the market is news that Boeing (NYSE:BA) is planning to increase production of their popular 747 and highly-profitable 777 series airplanes. The military and airplane producing company had previously planned to increase production, but is moving up its timeline due to increased demand. European based competitor Airbus is also increasing production, specifically of their A230 aircraft.
Unfortunately, Citigroup (NYSE:C) stock has not been a catalyst as expected. The banking institution recently received a ‘buy’ recommendation from popular financial television host Jim Cramer. According to Cramer, the mega-bank is undervalued because hedge and mutual fund managers are shying away from it, due in part to its stigma as a bailout recipient.
Shares of Palm (NASDAQ:PALM) have reached a 52-week low today. The company, which was made extremely popular by their “Pilot” cell phone, announced earlier in the month that projected revenue from their lines “Pre” and “Pixi” would be down for the quarter. Experts are predicting the company will lose money in 2010, and may be bought out.
To end the update on a positive note, Wells Fargo (NYSE:WFC) stock prices are up today. The corporations Wachovia bank made news yesterday after making a reported $160 million payment towards a fine to the US government to resolve an investigation on Mexican drug cartels using the investment bank to launder money. Wachovia agreed to admit it failed to properly monitor $420 billion in transactions between 2003-2008, allowing the cartels to launder an estimated $110 million through the American-based bank. This news hasn’t seemed to shake investors, and shares of the corporation have move briskly this morning.
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