It was a strange week, starting with the arrest of Dominique Strauss-Kahn, the (now former) leader of the International Monetary Fund (IMF), which threw the European debt crisis into limbo. On the economic front, the housing market continues to be weak, despite mortgage rates dropping to 2011 lows.
Amid these disturbing headlines, shares in professional-networking site LinkedIn (LNKD) more than doubled on the company's first day of trading. Although the range of the IPO had been $42- $45 a share, the stock opened at $83 dollars; spiked as high as $122 intra-day; and ultimately closed at $94.25, up over 109 percent. With 94.5 million shares outstanding, at the end of the first day of trading, the company's market capitalization was nearly $9 billion.
Not a LinkedIn stock owner from way back? Well, at least gas prices dropped a dime over the past week!
- DJIA: 12,512, down 0.6% on week, up 8% YTD (3rd week of losses)
- S&P 500: 1333, down 0.3% on week, up 6% YTD
- NASDAQ: 2803, down 0.9% on week, up 5.7% YTD
- June Crude Oil: $99.49, down 0.1% on week
- June Gold: $1508.90, up 1% on week
Total bank failures for 2011 = 43 (3 new bank failures over weekend)
FACTOIDS OF THE WEEK: State Unemployment Version The Bureau of Labor Statistics released state unemployment rates for April. 39 states saw rates a drop, 3 states and the District of Columbia were up and 8 states had no rate change. National Journal notes that media coverage (LA Times, NY Times, USA Today, Wall Street Journal and the Washington Post) of unemployment peaked in August 2010.
- US = 9%
- Nevada = 12.5% (down 0.7% in month)
- California = 11.9%
- RI = 10.9%
- FL = 10.8%
- New Hampshire = 4.9%
- South Dakota = 4.9%
- Nebraska = 4.2%
- North Dakota = 3.3%
10:00 New Home Sales
Costco, Ralph Lauren
8:30 Durable Goods Orders
FHFA Home Price Index
Sony, Heinz, Tiffany
8:30 Weekly Claims
8:30 GDP - 2nd estimate of Q1 growth (expected to rise to 2.2% from 1.8%)
8:30 Corporate Profits
Annual meeting of Group of Eight in Deauville, France, with the focus on debt-the European and US varieties
8:30 Personal Income and Spending
9:55 Consumer Sentiment
10:00 Pending Home Sales