Welcome to Financial Buzz Market Weekly, here at the New York Stock Exchange, bringing you a review of this week’s stock market.
The major indexes stayed strong, with the Dow Industrials and the S&P 500 reaching new highs while remaining resistant to profit taking. Overseas, The Bank of England reported accelerating growth and a four-year low in unemployment in the U.K., reiterating its desire to keep interest rates low in order to ensure the recovery continues.
The bank also raised growth forecasts, expecting GDP to expand 2.8% in 2014. The Chinese communist party held their highly anticipatedThird Plenum meeting but the results were disappointingly vague. Analysts were hoping for a decisive roadmap for continuing to grow the economy and tackling numerous economic and societal problems. However, the 5000 word summary precedes the release of the official document by 7 days, so there is hope the full document will offer more details.
In the U.S., applications for mortgages fell 1.8% in the week ended November 8, according to the Mortgage Bankers Association. Initial claims for unemployment benefits fell slightly to 339,000. Although the number of claims is trending down, analysts are still disappointed with the slow progress.
The Commerce Department reported the U.S. trade deficit increased to $41.8 billion in September, up from $38.7 billion in August. On Thursday, Janet Yellen, Vice Chair of the Federal Reserve testified in front of the Senate Banking Committee. Yellen, nominated to replace outgoing Fed Chair Ben Bernanke, reiterated her opinion that the Fed needs to continue using its monetary policy tools to promote a more robust recovery.
Now let’s take a look at some stocks.
Unilife Corporation (NASDAQ: UNIS) announced that they have entered into an agreement with MedImmune to customize MedImmune’s portfolio of wearable drug injectors. Wearable drug injectors allows patients to administer their medication regardless of their location with minimal interruption to daily lifestyle.
The Descartes Systems Group Inc. (NASDAQ: DSGX) announced this week that they have entered into a partnership with InfoSky to streamline logistics messaging for the Chinese air cargo industry. Shares climbed steadily upwards throughout the week.
Zalicus Inc. (NASDAQ: ZLCS) plummeted this week when they announced that their drug, Z160 a non-opiod pain reliever, did not achieve results better than placebo medication. Based on these results, testing for Z160 is discontinued. Zalicus shares plunged 72% on the news.
Heartland Express (NASDAQ: HTLD) shares skyrocketed when the company announced they acquired all of the stock of rival company, Gordon Trucking Inc., in a deal worth approximately $300 million. Combined revenues will reach $1 billion.
And finally, Potbelly Corporation (NASDAQ: PBPB), recently coming off their IPO, announced solid 3rd quarter earnings this week, with net income up 26.7% compared to last year’s 3rd quarter. Shares jumped on the news.