Markets were modestly lower on Monday. The S&P 500 was
down about 8 points at the day's lows, but staged a rally heading
into the final minutes of trading.
The Nasdaq was down most significantly, primarily led by the
drop in shares of Apple (NASDAQ:
). The Dow Jones was in the green for the majority of the trading
Apple was down over 4 percent in the premarket on Monday after
The Wall Street Journal reported that demand for iPhone
components had fallen. Several analysts, including JP Morgan and
UBS defended Apple, calling the report old news, but Apple was
unable to bounce back.
J.C. Penney (NYSE:
Shares of J.C. Penney were down sharply early on Monday, but
staged a rally later in the session. The New York Post reported
that same-store sales were down more than 30 percent during the
recent holiday shopping season.
Herbalife continued its recent rally, trading up as high as 10
percent. Now near $44 per share, Herbalife is above the level it
was trading at when it was first reported that Bill Ackman had
bet against the company.
Several hedge fund managers, most notably Dan Loeb, have taken
the other side of the trade, going long Herbalife much to the
chagrin of Ackman.
Shares of Dell spiked sharply higher Monday afternoon, after
Bloomberg reported that the company was in talks to go private.
The company was halted on circuit breaker, and had traded up as
high as 14 percent.
Facebook was higher in the premarket on Monday, but quickly
gave back its gains. In the late afternoon, shares were down
about 2 percent. The company has a special event tomorrow where
it is expected to announce something significant.
Monday was the first day the press was allowed into the
Detroit auto show. Ford (NYSE:
) debuted its Lincoln MKC concept car. The company has been
making statements recently that it would work to differentiate
its Lincoln lineup from its base Ford models.
Obama Talks Debt Ceiling
President Obama gave a press conference mid day. He covered
the debt ceiling, and made a few comments on gun control.
Obama reiterated his position that it would be irresponsible
not to raise the debt ceiling, and warned that a technical
default could lead to higher interest rates and threaten the
On gun control, Obama said that he would look to reinstate the
assault weapons ban, limit the size of gun magazines, and
strengthen the background check process. However, he tempered his
statement by acknowledging that Congress might not pass the
There were no significant economic releases Monday. The
Federal Reserve Chairman, Ben Bernanke, will deliver remarks at
the University of Michigan's Ford School after the market
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