July 29th, 2013 – August 2nd, 2013
The Dow Jones Industrial Average and the S&P 500 broke record highs this week, and the NASDAQ reached 13 year highs as well.
The second quarter GDP grew at a 1.7% annual rate, the Commerce Department reported, beating the first quarter’s downwardly revised 1.1%. This is the third straight quarter of GDP growth below 2%.
The Federal reserve announced they will hold interest rates near zero and will continue buying $85 billion in bonds every month while the economy continues to improve at a modest pace. The committee also reiterated that these exceptionally low interest rates are appropriate as long as unemployment remains above 6.5% and inflation is below 2%.
On Friday, the Labor Department figures released showed an increase in non-farm payroll jobs of 162,000 last month. This was the smallest gain in 4 months. Economists were expecting a gain of 185,000. Also, the unemployment rate dropped to 7.4% Market watchers considered these numbers disappointing, however, the major indexes didn’t move much on the news.
Yelp Inc. (NYSE: YELP) second-quarter earnings are in, and Wall Street was pleased. The internet review site beat the Street’s expectations with losses of one cent per share on revenue of $55 million, compared to estimates of a loss of four cents per share on $53.3 million in revenue. Yelp’s shares surged on this news.
Facebook Inc. (NASDAQ: FB) has shown huge gains in the past week, largely based on healthy Q2 earnings results and significant improvement on monetizing mobile users. The number of monthly mobile users increased 51 percent during the quarter and advertising on smaller screens comprised about $656 million of the company’s $1.6 billion in ad revenue.
Uranium Energy Corp. (NYSE: UEC), surged 48% in July. The company announced on Wednesday that they entered into a $20 million senior securied Credit Facility with Sprott Resource Lending Partnership and CEF Limited. Amir Adnani, President and CEO said the capital infusion creates a partnership to develop strategic ties in Asia, the fastest growing market for nuclear power.
Investors are watching Delcath Systems, Inc. (NASDAQ: DCTH) for a potential or non interested rally. Delcath is anticipating an FDA ruling on its Melblez system by September 13. Melblez is designed to treat cancer by delivering high doses of the chemotherapy drug melphalan directly to the liver while controlling exposure to the rest of the body. Delcath has asked for FDA approval to use the system for treating inoperable cancer of the eye. Currently trading around $.40, the stock has fallen from $14 since 2010.