This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Things You Need to Know Before the Stock Market Opens

BOSTON ( TheStreet) -- The global reaction to the Federal Reserve's latest statement on interest rates leads your quick fix of company, market, economic and investing news for Wednesday, Dec. 14.

Wednesday's 5 Biggest Stories

The Federal Reserve did nothing yesterday with interest rates or the central bank's communications strategy. But there still were some noticeable changes. [<a href="http://alephblog.com/2011/12/13/redacted-version-of-the-december-2011-fomc-statement/" target="blank" rel="nofollow">Aleph Blog</a>]

Nokia (NOK - Get Report) will reportedly sell its smartphone unit to Microsoft (MSFT - Get Report) early next year. [<a href="http://www.intomobile.com/2011/12/14/danske-bank-nokia-likely-sell-their-smartphone-unit-microsoft-during-first-half-2012/" target="blank" rel="nofollow">IntoMobile</a>]

Remember Germany's disastrous bond auction a few weeks ago? Today, Germany sold 2-year debt at near zero percent. [<a href="http://www.reuters.com/article/2011/12/14/italy-bonds-auction-idUSL6E7NE18C20111214" target="blank" rel="nofollow">Reuters</a>]

On the other hand, Italy's borrowing costs surged after its own bond auction, with the 10-year yielding 7% and the 5-year yielding 6.6%. [<a href="http://online.wsj.com/article/SB10001424052970203893404577097763905228818.html" target="blank" rel="nofollow">WSJ</a>]

OPEC reportedly sets a production limit of 30 million barrels per day to rebuild global inventories. [<a href="http://www.reuters.com/article/2011/12/14/us-opec-idUSTRE7BD0JX20111214" target="blank" rel="nofollow">Reuters</a>]

Quote of the Day

"You know, I mean, I can argue that someone else could think that a -- being short in front of a 'sell' recommendation is a non-event because it's not going to move the stock, and somebody else would think, you know, that's trading on material nonpublic information regardless if it moves the stock or not. These are judgment calls," Steven Cohen, manager of hedge fund SAC Capital, said during a two-day deposition on the subject of insider trading, according to a transcript. [<a href="http://www.reuters.com/article/2011/12/13/us-sac-cohen-deposition-idUSTRE7BC1UJ20111213" target="blank" rel="nofollow">Reuters</a>]

Company News

There is a lot of research out on Groupon (GRPN - Get Report) as the quiet period ends today, but was yesterday's pop the biggest reaction we'll see? [<a href="http://blogs.wsj.com/deals/2011/12/13/is-this-groupons-wall-street-research-stock-pop/" target="blank" rel="nofollow">WSJ</a>]

Avon (AVP - Get Report) shows its long-tenured CEO the door after a 45% drop in share price this year. [<a href="http://online.wsj.com/article/SB10001424052970203518404577096901465046874.html" target="blank" rel="nofollow">WSJ</a>]

More bad news for the solar industry: First Solar (FSLR - Get Report) slashes its full-year forecast. [<a href="http://www.rttnews.com/1781089/first-solar-slashes-fy11-forecast-on-project-delays-update.aspx" target="blank" rel="nofollow">RTT News</a>]

After a rash of Internet and social media IPOs, Michael Kors (KORS - Get Report) brings some fashion to Wall Street. [<a href="http://online.wsj.com/article/SB10001424052970204336104577096861817280168.html" target="blank" rel="nofollow">WSJ</a>]

Olympus finally gives investors a restatement of financial accounts that includes a $1.1 billion hit. Did somebody say "merger"? [<a href="http://www.reuters.com/article/2011/12/14/us-olympus-idUSTRE7BB04P20111214" target="blank" rel="nofollow">Reuters</a>]

Markets

Unemployment in the U.K. hits a 17-year high. The drumbeat of recession grows louder. [<a href="http://www.bloomberg.com/news/2011-12-14/u-k-unemployment-climbs-to-17-year-high-amid-euro-turmoil-1-.html" target="blank" rel="nofollow">Bloomberg</a>]

While testifying Tuesday before Congress about the MF Global collapse, Jon Corzine had a Nixon moment. [<a href="http://www.thestreet.com/story/11344299/1/jon-corzine-faces-nixon-moment.html" target="blank">TheStreet</a>]

Goldman Sachs (GS - Get Report) loses out on the busiest IPO market by avoiding China. [<a href="http://www.bloomberg.com/news/2011-12-13/goldman-cautious-on-china-deals-losing-out-on-busiest-ipo-market.html" target="blank" rel="nofollow">Bloomberg</a>]

Investment Strategy

Even your money manager is worried about a potential eurozone breakup. [<a href="http://www.marketwatch.com/story/money-managers-fear-euro-zone-breakup-2011-12-14" target="blank" rel="nofollow">MarketWatch</a>]

Several stocks are flashing a golden cross, which is a bullish signal for technical analysts. [<a href="http://tradewithpete.com/2011/12/13/notable-golden-cross-signals/" target="blank" rel="nofollow">Trade With Pete</a>]

Odds and Ends

Time magazine names "The Protestor" as Person of the Year, narrowly beating out my suggestion of "The Can," which has been continually kicked down the road this year. [<a href="http://www.npr.org/blogs/thetwo-way/2011/12/14/143699593/the-protester-is-time-magazines-person-of-the-year" target="blank" rel="nofollow">NPR</a>]

Speaking of the can, the House passed a payroll tax cut bill that will never get past Democrats. [<a href="http://www.cbsnews.com/8301-250_162-57342767/payroll-tax-cut-row-threatens-govt-shutdown/" target="blank" rel="nofollow">CBS News</a>]

And speaking of Congress, the Stock Act dies before it can go to a Congressional vote. [<a href="http://www.wgrz.com/news/article/145317/37/STOCK-Act-Scuttled" target="blank" rel="nofollow">WGRZ</a>]

It's Wednesday, the middle of your week. Here's Jimmy Eat World with an appropriate song to mark hump day. [<a href="http://www.youtube.com/watch?v=oKsxPW6i3pM&amp;ob=av2e" target="blank" rel="nofollow">YouTube</a>]

-- Written by Robert Holmes in Boston.

>To contact the writer of this article, click here: Robert Holmes.

>To follow Robert Holmes on Twitter, go to http://twitter.com/RobTheStreet.

>To submit a news tip, send an email to: tips@thestreet.com.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AVP $5.67 0.00%
FSLR $44.30 0.00%
GRPN $4.82 0.00%
GS $205.07 0.00%
KORS $41.99 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs