Stocks surged more than 2 percent on Friday, but it was not enough to make up for a month of heavy losses. Bobbi Rebell reports.
Worst January for stocks in 7 years
The Bank of Japan’s stunning interest rate cut sparked a global rally. The U.S. economy’s weak report card also fueled stocks. Investors betting the 0.7 percent fourth quarter GDP growth will slow the Fed’s drive to lift interest rates.
Ross Gerber of Gerber Kawasaki:
SOUNDBITE: ROSS GERBER, CEO, GERBER KAWASAKI (ENGLISH) SAYING:
” It’s actually caused a positive response because the Fed is basically out of the game now. It looks like it’s going to be a one-and-done rate hike cycle for the Fed right now.”
But despite Friday’s gain, January was terrible for U.S. stocks. The Dow and S&P 500 both lost more than 5 percent. The Nasdaq lost almost 8 percent. That was the largest monthly percentage loss since May of 2010 for the tech heavy index.
Copy that, Carl? Xerox is splitting into two companies to become more flexible: its printer business and outsourcing business. Investor Carl Icahn will get three board seats on the outsourcing company.
Chevron surprised Wall Street by losing money instead of making money amid the drop in oil prices. That’s its first quarterly loss in more than 13 years.
Amazon’s shares plummeted even though profit more than doubled to a record. But operating costs rose, and earnings widely missed estimates.
The new Star Wars game didn’t boost Electronic Arts’ fortunes as much as expected. Fans bought more disks than expected, weighing on EA’s highly profitable digital business.
In Europe, the US GDP report and BOJ move powered stocks higher for the second straight weekly gain.