at 360 Huntington Ave, Boston , 02115
The NU Finance and Investment Club meets Thursday evenings from 6:00-7:30 pm. Check out our website www.neufic.com or email us at email@example.com
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Please join the finance and Investment Club TONIGHT in 101 Churchill at 6 PM as we partner with the Northeastern University Business Advisory Club (NUBAC). We will be presenting about the management consulting industry and there will be a case competition with prizes being handed out! *Business casual attire. *Pizza will be served.
Please join the finance and Investment Club TOMORROW in 101 Churchill at 6 PM as we partner with the Northeastern University Business Advisory Club (NUBAC). We will be presenting about the management consulting industry and there will be a case competition with prizes being handed out! *Business casual attire. *Pizza will be served.
Please join us TONIGHT from 6:00-7:15PM in 101 Churchill as we will be hosting: Senior Student Panel Michael Moschella, Matthew Saitta, Thomas Hughes, and Elizabeth Taistra will be in attendance to discuss their experiences here at Northeastern and how they converted co-op positions into full-time offers. Learn the tools and skills necessary to thrive while on co-op to ensure a successful experience! As always, please arrive on time and dressed in business casual attire. Pizza will be served.
A reminder to join us tomorrow, Thursday, November 6th from 6:00-7:15PM in 101 Churchill we will be hosting: Senior Student Panel Michael Moschella, Matthew Saitta, Thomas Hughes, and Elizabeth Taistra will be in attendance to discuss their experiences here at Northeastern and how they converted co-op positions into full-time offers. Learn the tools and skills necessary to thrive while on co-op to ensure a successful experience! As always, please arrive on time and dressed in business casual attire. Pizza will be served.
Market Recap 10/27/-10/31 The Great, the Good, and the Worse The Great: Japanese Markets Moves by Japan to add stimulus to their weakening economy sent Japans Nikkei 225 skyrocketing on Friday. The Nikkei rose 4.8% on the day, hitting numbers not seen since 2007. The Japanese central bank announced that it planned on boosting asset purchases in an attempt to raise the low level of inflation within the country. The Government Pension Fund also announced it would be changing its investment strategy and putting higher emphasis and higher amounts in higher-risk assets. In what is essentially quantitative easing, Japan hopes to improve the economy and raise low inflation levels. The move also helped to send other markets up in Asia, Europe, and the United States as well. The Good: The US Markets The US markets continued their strong performance from a week ago and continued to rise. The NASDAQ rose 3.28%, the DOW 3.48%, and the S&P 500 2.72% on the week. Friday was the best day for the markets, as the Japanese news helped to raise the indexes 1.41%, 1.13% and 1.17% respectively on the day. Strong earnings also helped to raise the markets as major companies like Apple and Visa saw great gains on the week after reporting strong earnings and profits. Shaking off a month where returns were as low as -6% for the major indexes, the markets surged back on earnings and actually ended up with all-time highs in both the S&P 500 and the Dow Jones. The Worse: Volatility Indexes On a week where returns were so strong and earnings were mainly better than expected, most companies saw positive returns for the week. However for indexes negatively correlated with the market such as volatility indexes, prices plummeted in response to the good market news. The market calmed down this week which was bad for the VIX and other fear indexes. The TVIX fell 15.41% for the week and the VIX fell just over 12.9%.
Market Recap: 11/3-11/7 The Great, the Good, and the Bad The Great: Economic Numbers Economic reports helped to boost the market on Friday after key payrolls data showed that the US economy added 214,000 jobs in October. The US economy has now added 200,000 plus workers in nine straight months, which is a feat that has not been done since 1994. The unemployment rate also declined to 5.8% which is the lowest it has been at since July of 2008. The unemployment rate for October of last year was 7.2, showing a large improvement in a span of only one year. The Good: Whole Foods Austin based company Whole Foods Market caters specifically to a market of health eating people who prefer natural organic foods. However, their high prices are a barrier for some who would like to shop for these foods. In the last quarter, these problems did not seem as apparent. Whole Foods EPS exceeded its expectations. Their fourth quarter earnings were reported as 35 cents a share, 3 cents greater than the expected value of 32 cents a share. The Texas based company had lowered some prices and has begun to use the newly revealed Apple Pay system. Their revenue growth was also higher than the average within the industry. Whole Foods rose 12.15% on Thursday and continued up another 4.37% Friday after reporting earnings. They ended the week at a price of 46.81, up 19.02% on the week. Bad: Gold and Silver Gold and Silver prices have been declining most of the year, but have been plummeting in recent weeks. Gold was trading at $1,145 on Thursday, which was its lowest level in over four years. Gold has been declining in recent weeks in part due to the overall strength of the market and the economy. When volatility is high and fear is as well, people buy up Gold. However, the market is doing well, the economy is strong, and geopolitical tensions have eased as of late. This has led to a strengthening of the US Dollar which in turn has hurt Gold and Silver. When other countries’ currencies are weakened in contrast to the US Dollar, it is more expensive for global investors to buy Gold and Silver. Gold prices have sunk 9% since October 21st. Silver has done even worse, falling 30% from its high in Mid-July.
Market Recap 10/20-10/24 The Great, the Good, and the Bad The Great: This week’s stock market. After a very painful period of time in which the stock market nearly erased all of 2014’s gains, this week saw a massive rally which brought confidence back to investors. Although worries about ISIS and Ebola still run rampant, fantastic earnings helped to bring the market up again this week. Most of the leading indicators had pointed to the US market being strong, and this week’s returns reaffirmed these indicators and showed that the sell-off may have been more based more on macroeconomic issues as a whole. This week, the S&P returned 4.12%, the DOW 2.59% and the NASDAQ a whopping 5.29% on the week. The Good: Apple Apple reported great results on Monday. Its nets sales were up 12% and gross margin improved to a fantastic 38%. EPS was also up 20%. Apple struggled with iPad sales, but sales of the new iPhone exceeded the expected and helped to bring up the price of the stock. Apple also announced that they are planning to increase their presence in China, possibly adding 25 stores to the country. Apple ended the week at its highest point in history, with a price of $105.22. The stock ended up 7.73% on the week, and is up more than 31% on the year. Investors also remain intrigued about Apple Pay, a digital wallet that Apple hopes will be able to change the way that people pay and check out. How popular this will be is yet to be seen, but it adds to an impressive list of products that Apple continues to drag out. The Bad: IBM and Amazon IBM dropped to a three year low after CEO Ginni Rometty abandoned earnings forecasts for 2015. The company had experienced weak software sales and much lower productivity in the third quarter. The company had been counting on a strong second half of the year to help reaffirm their earnings estimates, but a very week third quarter has already shown that these estimates are not likely to come to fruition. IBM dropped from a close of $182 last Friday to $169 on Monday and as of end of day Friday sat at a price of $162.08, 10.97% lower for the week. Amazon also saw a massive drop in price after reporting third quarter operating losses which amounted to nearly 22 times the amount of the loss just a year prior. Sales rose for Amazon, but not enough as they were downgraded by numerous analysts. For the week, Amazon dropped 5.46% after seeing a drop of 8.34% on Friday.
Market Recap October 17th, 2014 The Good, the Better, and the Bad The Good: Volatility Once again, the volatility indexes had a strong week. Fears about Ebola, ISIS, and Global Growth have led to a continued period of uncertainty in the market and resulted in this steep loss we have seen in the market over the past couple of weeks. As fear persists within the market, the volatility indexes continue to see gains and large swings. Seeing many a day where major indexes are down more than 1%, fear has continued to rise as a sell-off has continued. The volatility indexes have seen massive gains this week, with the VIX climbing from a starting point of around $19 on Monday to as high as about $31 mid may Thursday. Although the market bounced back slightly Thursday afternoon and had a very good day Friday, the VIX still ended up nearly 5.5 % for the week. The high point of about $31 was the highest the VIX has been at since November 2011. The TVIX also ended up nearly 18% for this week. The Better: Friday Friday helped to ease investors’ nerves slightly as the stock market rose up and rallied up nearly 1.5% in all three major market indexes. The S&P went up 1.29% on the day, the Dow 1.61%, and NASDAQ rose by .97%. Positive earnings and numbers helped to bring the market back after a scary week as major corporations reported profits and earnings that topped expectations. Morgan Stanley saw third quarter earnings beat estimates and General Electric saw quarterly profit reported as higher than expected. New home constructions climbed 6.3% in August, signaling that there was improvement within the residential real-estate market. The US Treasury note rate also went up 3 basis points, heading up to 2.188%. Despite continued concerns about Ebola, ISIS, and struggling global growth, the domestic markets rose on better than expected earnings and economic reports. The Bad: Netflix On Thursday, Netflix saw a drop of 19% for the day. The entertainment giant dropped from near $450 on the Wednesday close down to $342 to start Thursday. It rallied to end Thursday at $361.7 but the 19% loss marked the companies’ worst day since July of 2012. The company had seen six negative revisions within the past few weeks and the earnings consensus for the year had moved lower over the last month. HBO’s decision to stream web service also helped to bring the stock down, as concerns about subscriptions played a part in the day’s downfall. Netflix’s fourth quarter subscriber forecast missed analyst estimates and the company mentioned that its fourth quarter would be difficult due to increased expenses. Netflix closed Friday at $357.09, down 1.27% on the day.
Please join the Finance and Investment Club TONIGHT in 101 CHURCHILL at 6 PM as we welcome Gerry Coughlin from Oakpoint Advisors. Gerry is a Northeastern alum and a Managing Partner. Gerry will speak about his experience from 20+ years in finance. Please come in business casual attire. Pizza will be served.
Please join the Finance and Investment Club TOMORROW in 101 CHURCHILL as we welcome Gerry Coughlin from Oakpoint Advisors. Gerry is a Northeastern alum and a Managing Partner. Gerry will speak about his experience from 20+ years in finance. Please come in business casual attire. Pizza will be served.
Market Recap: The Good, The Bad, and the Ugly October 10, 2014 The Good: Volatility Indexes Once again volatility has a fantastic week. The past two weeks have seen a large number of days with either large losses or large gains and this has sent fear within the market spiraling and led to large increases in the volatility indexes. After rising by 2.5% on Monday and 14% on Tuesday due to massive drops in the major indexes and market as a whole, The TVIX plummeted right back down 16 percent due to a fantastic day in the stock market on Wednesday in which the S&P rose 1.8% and other major indexes followed suit. However, this was short lived and was erased by a terrible day in the market on Thursday. Thursday’s sell off helped to raise the TVIX up by nearly 16% and other volatility indexes up by substantial amounts as well. The further decrease in the overall market sent the TVIX up a whopping 23% on Friday to close the week. Overall for the week, the TVIX was up nearly 28%. The Bad: Major Car Companies Ford Motors Inc. continued its downward trend as of late, aided by news that they are struggling heavily in China; the largest passenger car market. Sales in September dropped more than 4% amid capacity constraints that the company has been facing. The company plans to create new facilities in China and hope that this will help to increase production capacity, which along with production of new models will increase hopefully increase to an increase in sales. For the week, Ford was down 5.8% and is down 20% in the last 3 months. The company has been struggling for quite some time, but the last two weeks have been particularly brutal. Tesla has also had a bad week. The car company is down nearly 9% on the week, but most of that can be attributed to a 7.8% drop on Friday. Thursday nights’ unveiling of the all-wheel drive Model S, complete with driver-assisting tools, did nothing to amaze investors and was largely as expected. Many analysts seemed to think that rather than doing what they are known for and going above and beyond, Tesla was instead doing things that purely allowed them to try and catch up with competition. The car may turn out to be a great product, but the massive speculation and hype was not lived up to and this led to a large decrease in value for Elon Musk’s pride and joy. The Ugly: Thursday’s Market and Friday's Too. Thursday was a terrible day for the market. After seeing a great day on Wednesday in which the S&P rose nearly 2%, the market experienced one of its worst days of the year. The Dow plunged 335 points on Thursday, its worst day of the entire year on a point basis. The S&P, NASDAQ and Russell 2000 all also experienced losses of over 2% for the day, sending investors into a worried frenzy. Energy stocks were particularly hard hit on Thursday, with the sector falling over 3.5% for the day. Small cap energy stocks were hit even harder, with the Russell 2000 Energy index falling more than 6% on the day. All ten sectors within the S&P 500 lost more than 1% for the day, though some like consumer staples and defense were not as badly damaged as the energy sector and other major fallers. Friday was also a very bad day for the market, as the S&P 500 was down 1.15% and the NASDAQ down 2.23%!
Just a reminder that this Thursday, March 26th we will be hosting a Young Professional Panel in 305 Shillman at 6:00PM. The panel will consist of graduating seniors who have solidified highly competitive full-time positions at firms such as Credit Suisse, Goldman Sachs, Barclays, and Morgan Stanley. This is an invaluable learning and networking opportunity for anybody interested in pursuing a career in financial services. The panelists will be sharing very helpful advice and insights for aspiring financiers. There is no dress code. Pizza will be provided. See you Thursday!
This Thursday, April 2nd we will be hosting traders from both buy-side and sell-side firms in 305 Shillman at 6:00PM. The traders will be discussing their functions within the markets, how their roles differ, and how students can best position themselves for a career in trading. This is an invaluable learning and networking opportunity for anybody interested in pursuing a career in financial services, particularly trading. There is no dress code, and pizza will be provided.
Just a reminder that we will be hosting Hercules Technology Growth Capital tomorrow, Thursday, February 12th at 6:00PM in 305 Shillman. Current employees and co-ops of Hercules will be giving a presentation on their co-op opportunities. We ask that participants please dress in business casual attire and do not interrupt the presentation by arriving late or leaving early. Pizza will be provided. Please take note that going forward all FIC meetings will be be held in 305 Shillman. Thanks and hope to see you all there!
Just a reminder that we will be hosting our resume prep seminar tomorrow, Thursday, February 5th, at 6:00PM in 200 Richards. As co-op applications are quickly approaching, we highly encourage everyone to attend to learn how to craft the perfect finance resume. Some of Northeastern's most successful upperclassmen will be joining us to share their insights on resume improvement as well. There is no dress code, and pizza will be provided. Thanks, and hope to see you all there!
Just a reminder that we will be hosting Credit Suisse tomorrow, Thursday, January 29th at 6:00PM in 200 Richards Hall. Current employees and co-ops of Credit Suisse will be giving a presentation on their co-op opportunities. We ask that participants please dress in business casual attire and do not interrupt the presentation by arriving late or leaving early. Pizza will be provided.
Please join us in welcoming Goldman Sachs this Thursday, January 22nd at 6:00PM in 200 Richards. In advance of their presentation on Thursday, Goldman Sachs Agency Lending (GSAL) would like to invite attendees to submit questions beforehand. Please make your questions relevant to the GSAL business and the co-op positions that GSAL is recruiting for. Please message us with any questions you may have!
Northeastern University Finance and Investment Club First General Meeting When: Thursday, January 15th from 6:00PM-7:30PM Where: 200 Richards Hall Hi All, Please join us for our first meeting of the semester this Thursday, January 15th from 6:00-7:30PM in 200 Richards. Come learn about the various career possibilities within financial services along with our exciting new events, seminars, and speakers planned for the semester. Business casual attire is encouraged, and pizza will be provided. Please remember to bring $20 for dues. Best, FIC Executive Board
Market Recap: 11/10-11/14 The Good, the Bad, and the Ugly The Good: Apple Inc. Apple has had a very good week, with the price of the stock rising from $109 at the start of the week to its ending price Friday of 114.18. This constitutes a 4.66% increase in price for the week and an increase of 17.06% over the past month. Apples’ unveiling of their strategy to compete in an increasingly cloud-based world has helped the stock giant to keep on climbing. Despite concerns about the new iPhone, Apple continues to show that it is a company that you just do not want to bet against. Their Apple Pay product is also gaining in popularity as it is being used more and more each day. The Bad: Gilead Sciences Gilead has been impressive on the year, rising nearly 36% since January 1st. However, they had a very poor week dropping 5.37% for the week. Gilead ran into some controversy over the high pricing of its Hepatitis C drug. There was also a large inside sell off this week which launched some concerns about future growth. John Milligan, president and COO, exercised stock options that generated a sale of about 147,000 shares. Gilead reported their financials on Friday as well, which helped the stock to drop 2.05% on the day. Sales of their Hepatitis C drug Sovaldi fell more than expected in the third quarter and increased scrutiny from insurance companies regarding the use of Hepatitis C therapies also contributed to a poor day for Gilead. The Ugly: Oil ETF’s ETF’s that track oil are getting pummeled as crude oil prices continue to fall. Prices have fallen to the lowest point in three years and oil investors are feeling the burn. The US Oil Fund closed at $28.14 on Wednesday, which was the lowest point in three years. Despite falling crude oil prices, crude-tracking ETFS have taken more than $400 million in new cash in the past six weeks, as investors clearly expect the ETF’s to rally. People are betting on and oil rebound as rising demand has seen more than on average 1 million shares in crude tracking ETF'S being created each day in November. These investors have faced massive losses so far, but as the price continues to drop, more and more people jump into the game.
Week in Review: This week, all eyes turned to Wednesday's FOMC minutes, as there was little in the way of US data. Several weeks ago Yellen spooked investors by announcing that rate hikes were likely to occur six months after the end of QE, however, the minutes show the Fed still shares a fairly dovish sentiment. It recognized that there were still many issues of concern and that any action would need to be calculated and executed with caution. For one, Inflation has been sitting around 1%, which is far below the Fed’s initial 2.5% expectations. More importantly, unemployment numbers, while improving, are still well above pre-crisis levels. Disappointing Chinese export numbers added on to the list of terrible economic data out of the region of late. This year the emerging markets have been getting slammed as a result of the currency volatility from global central bank policy. This is not to say the US markets have been doing much better. YTD the S&P is up around 2% and many analysts forecast no more than a 1% gain by the end of the year. In other news, with Alcoa’s earnings release on Tuesday, earnings season has officially begun. The harsh winter is expected to have a significant impact on most companies’ top lines so the Street is pretty pessimistic about what is in store. To prepare, many investors have been selling their riskiest assets, causing huge declines in Tech and Biotech stocks. Greece issued its first government bonds since the 2010 bailout this Friday with a 4.95% 5-year that generated enormous interest (8x oversubscribed). The offering sparked protests from those pushing for more government austerity.
We'd like to thank everyone for everyone for another great semester! We'll be taking a break for the summer but will be back in action in the fall with bigger and better programs. Stay tuned!
Come join us TOMORROW, April 16th from 5:30 - 8:00pm at the Alumni Center (6th floor) for our Student Faculty Reception. Join fellow students and professors to cap off a great semester. There will be hors d'oeuvres and a cash bar, in addition we will have some FIC giveaways. So come unwind with some food and beers before hitting the books. Hope to see you there!
Interested in Emerging Markets? Join us THIS THURSDAY, April 10th from 6:00-7:30pm in 135 Shillman for "A Conversation on Emerging Markets" with Claudio Brocado. Mr. Claudio Brocado was a Senior Portfolio Manager at Batterymarch Financial Management, Inc. He was a part of the emerging markets team and had joined the firm in 2005. Previously, Mr. Brocado was a Portfolio Manager at Fidelity Investments and Putnam Investments. Prior to that, he held research responsibilities at Dresdner RCM Global Investors and Valores Finamex International, Inc. Mr. Brocado holds an M.B.A. from the University of California and a B.A. degree from the Washington State University. As always, please arrive on time and dressed in business casual attire
Save The Date: Student Faculty Reception (4/16) Come celebrate the end of another great semester with the rest of FIC and the Finance & Co-op faculty next Wednesday (Reading Day) at 5:30pm. There will be plenty of free food and even a cash bar (for those over 21)! This is a great way to unwind and chat with your professors and peers in a casual, non-academic environment. Make sure to RSVP early to ensure your spot! www.neuficreception.eventbrite.com
Please join us TONIGHT for “A Conversation on Fixed Income and Portfolio Management” with Matt Eagan, vice president and portfolio manager at Loomis, Sayles & Company. Mr. Eagan serves as a Vice President, Portfolio Manager, and Co-Head of Full Discretion Team at Loomis, Sayles & Company, L.P. and all other Loomis funds. Mr. Eagan has been at Loomis Sayles for 17 years and has been managing portfolios for 12 years. He has a diversified background, before getting into fixed income he worked for Liberty Mutual covering investment grade corporates, high yield, and emerging market sovereigns. He now is a co-portfolio manager of the firm’s flagship Loomis Sayles Bond Fund which won the 2009 Morningstar Fund Manager of the Year award.
Interested in fixed income and portfolio management? Please join us THIS THURSDAY, April 3rd from 6:00-7:30pm in 135 Shillman for “A Conversation on Fixed Income and Portfolio Management” with Matthew Eagan, vice president and portfolio manager at Loomis, Sayles & Company. Matt is a co-portfolio manager of the firm’s star Loomis Sayles Bond Fund—which won the 2009 Morningstar Fund Manager of the Year award in the fixed income category. Mr. Eagan has over 20 years of investment experience, and we are pleased to welcome him back to his Alma mater! As always, please arrive on time and dressed in business casual attire.
A reminder that this week’s meeting is TOMORROW, Friday March 28th from 11:45am-1:30pm in 370 Dodge Hall. We will be hosting Will Thorndike for “A Conversation on Private Equity and Capital Allocation.” Mr. Thorndike is founder and managing director of Houstonic Partners, a Private Equity Investment Firm. Prior to Houstonic Partners, Mr. Thorndike worked for T.Rowe Price doing investment research and Walker & Company where he was named to the Board of Directors. Mr. Thorndike is also author of the book, The Outsider, which was number one on Warren Buffett’s recommended reading list in 2012. REMINDER: Please note, that the meeting is TOMORROW, Friday March 28th from 11:45am-1:30pm in 370 Dodge Hall. Below is a link to his book. http://www.barnesandnoble.com/w/the-outsiders-william-n-thorndike/1110898529?ean=9781422162675
Interested in Private Equity and Capital Allocation? Please join us THIS FRIDAY, March 28th from 11:45am – 1:30pm in 370 Dodge Hall for “A Conversation on Private Equity and Capital Allocation” with Will Thorndike, founder and Managing Director of Houstonic Partners, a Private Equity Investment Firm. Mr. Thorndike is author of the critically acclaimed book, The Outsiders, which was number one on Warren Buffett’s recommended reading list in 2012! Please note that our meeting is being held THIS FRIDAY, March 28th from 11:45am-1:30pm in 370 Dodge Hall. We are aware that there may be conflicts with class, but we encourage all that are available to attend! Below is a link to his book! http://www.barnesandnoble.com/w/the-outsiders-william-n-thorndike/1110898529?ean=9781422162675
Please join us TONIGHT from 6:00-7:30pm in 135 Shillman for "A Conversation on Financial Restructuring" with Michael Gries, co-founder and Managing Director of CDG Group. He has led a very successful career in financial restructuring and has been involved in over 100 successful restructurings and has restructured billions of dollars in debt. Mr. Gries is a nationally recognized leader in the restructuring profession with more than 30 years experience advising companies and creditors on complex corporate reorganizations. Mr. Gries has specialized in providing business and financial advice to Boards of Directors, management, investors and other parties in interest in distressed and turnaround situations. Click the link to find out more about CDG Group: http://www.cdggroup.com/ As always, please arrive on time and dressed in business casual attire.
Come join us THIS THURSDAY, March 20th from 6:00-7:30pm in 135 Shillman for "A Conversation on Financial Restructuring" with Michael Gries. Mr. Gries is co-founder and Managing Director for CDG Group, which was awarded with four Turnaround Awards in 2011 by M&A Advisor. Mr. Gries has over 30 years of experience and has successfully restructured billions of dollar in debt. He has served as the chairman of the board of directors of a major NYSE company, as chief executive officer and, on numerous occasions, as chief restructuring officer.
Come join us TONIGHT, 6:00-7:30pm in 135 Shillman for “A Conversation on the Role of CEO/CFOs” with Bob Lentz. Bob has served as CEO for multiple technology companies, most recently he was interim CEO for Digital Reef. Along with his years of executive management experience, he also has extensive knowledge and experience in the process of turning around companies, growing them, and bringing them public! As always, please arrive on time and dressed in business casual attire.
Interested in start-ups and pre-IPO businesses? Ever wonder how executives make decisions relating to capital allocation and acquiring outside funding from angels/VC/PE firms? Come join us in welcoming Bob Lentz THIS THURSDAY, March 13th from 6:00-7:30pm in 135 Shillman. Bob recently served as interim CEO at Digital Reef and prior to that was CEO at PermissionTV. He has also held executive management positions at Individual Inc., Appex Corporation, and Raster Technologies Inc., just to name a few. As always, please arrive on time and dressed in business casual attire.
Week in Review: The markets were generally well aware of Northeastern’s spring break and decided to take the majority of this week off as well. Coming into the week there was minimal data risk, barring Friday’s NonFarm Payrolls. Typically a big market mover, investors were poised to ignore any downsides related to the print and once again attribute a poor result to the weather. Combined with the fact that both Dudley and Lockhart of the Fed spoke this weak about the very high bar being set for reducing the pace of tapering this week’s employment numbers would have little significance on broader market tone. Consensus stood at 146K new jobs, while the actual numbers came in well above this at 175K. Unemployment rose to 6.7%, as more people entered into the employment pool by beginning to actively search for jobs. Meanwhile, in the bond world, this week saw the second largest issuance of all-time, with nearly $50bn in new issues prices. The turmoil in the Ukraine, which has been holding rates low, has provided an attractive time to come to market. As expected, all of this refinancing activity is brewing the cauldron for M&A activity, which has been on the rise. Cerberus Capital Management announced an enormous $9.4bn LBO of US retailer Safeway, which is expected to close Q4 this year. Are we finally nearing the long-awaited M&A boom? Or will this be another 2012, with only a select few megadeals? Only time will tell.
Week in Review: When times are tough, blame it on the weather! Well, at least that’s what Fed Chairwoman Janet Yellen did in her recent testimony yesterday. She attributed the recent soft data to the cold weather and record snow fall instead of the failings of Quantitative Easing. The announcement, combined with her assurance that QE tapering is not on a preset course gave investors something to cheer about. As a result, the S&P climbed to a record close yesterday after trending upward for the majority of the week. Also in the record books were New Home Sales, which hit a post-crisis high, a good sign for the housing and construction industries. Initial jobless claims rose slightly more than expectations, but this was essentially a non factor. The 10-year UST yield dropped nearly 10bps week over week after increased concerns over political instability in Turkey and the Ukraine spurred “a flight to safety”, driving up prices. In other news, JC Penny earnings far surpassed analyst expectations and as a result the stock soared over 25%. Tesla Motors gained 20% over the week after it unveiled plans to open up a giant battery factory while Bitcoin took a significant hit after a Japanese currency exchange shut down after losing a substantial amount of the digital currency.
Interested in Networking and Corporate Finance? Join us tonight for "A Conversation on Networking and Corporate Finance" from 6:00-7:30pm in 135 Shillman with Michael Simons, recently retired CFO of Blauer Manufacturing. In 2013, Mr. Simons received the Financial Executive Lifetime Achievement Award. In addition to sharing his knowledge in corporate finance he will be giving an overview on how to network for results! As always, please arrive on time and dressed in business casual attire.
Economic Commentary: With interest rates still hovering around historic lows and the unemployment rate just above the Fed’s initial 6.5% threshold, even the most dovish of investors expect rates to rise over the next 6-12 months. Low rates mean corporations have easier access to capital to fund projects and can refinance their outstanding debt to achieve lower interest payments, which equates to more money to the bottom line. The question is, however, are investors too concerned with rising rates? Rate hikes typically signal a strengthening economy and are historically correlated to large gains in the equity markets. Many feel that investors have become “addicted” to Quantitative Easing and have therefore been acting irrational. Check out the video below for more discussion on the subject. http://www.morningstar.co.uk/uk/news/112088/how-rising-interest-rates-affect-stocks.aspx
Market Recap: 11/24-11/28 The Great, The Mixed, and The Bad The Great: Major Retailers Three of the biggest retailers with major sales on Friday (Macy’s, Target and Wal Mart) were in for major shopping days and large sales on Friday and thanksgiving night. The three companies also were part of Zacks.Com’s list of companies likely to issue earnings surprises. This helped to give all three a boost on Friday, as expectations of good earnings reports got investors to buy buy buy! With results from 95.3% of the retailers in the S&P 500 index already, total earnings for the sector are up +2.4% on +5.3% higher revenues, with 65.9% beating consensus EPS estimates and 63.4% beating top-line estimates. These three retailers are expected to show earnings that are greater than their goals and increased revenues as well. On Friday alone, Wal Mart rose 3.01 % to a price of 87.54, and Target ended the day at $74.00, an increase of 2.55% on the day. Macy’s rose 2.17% on Friday, ending the day at a price of $64.91, an increase of 2.49% for the week. For the week, Target was up 3.48% and Wal Mart 3.41%. The Mixed: Volatility Indexes As the market continues to rise with no large negative days and the major indices continues to high new highs, volatility indexes continue to drop in value. However, even one day can lead to a huge spike in volatility and that’s exactly what we saw this week. The VIX and the TVIX were both down for most of the week, with the VIX ending the day Thursday at $12.07, the lowest it has closed at since September 18th. There is always room in the market for volatility however, and Friday proved that. Concerns about oil prices contributed to a spike in volatility for the VIX and the TVIX, with the VIX rising 10.52% on Friday to end at $13.34, and the TVIX seeing a smaller spike of 4.05% for the day, and ending the week at $2.31. For the week, the indexes actually varied a lot, with the VIX gaining 3.4 and the TVIX losing 3.3%. However, a good day Friday helped to cut larger losses on the week for volatility traders and even gave some gains to those invested in the VIX. The Bad: Oil Stocks Oil stocks plummeted Friday as news of lower oil prices came to. Oil prices fell 7.8% lowering the price to about $68 a barrel. Companies like Chevron, BP, and Exxon Mobil dropped greatly on Friday following the news. Exxon Mobil dropped 4.17% on the day, ending at a price of $90.54 which constitutes a 6.47% loss for the week. Chevron ended the early day Friday at $108.87, an 8.2% loss for the week. BP didn’t fare better, losing 5.46% on Friday and ending the week at a price of $39.32, 7.3% lower than the opening price Monday. Investors are fleeing from these companies as the possibility of oil going even lower still looms.
Tomorrow night at 6:00pm in 168 Snell Engineering representatives from Scotiabank will be coming to present and talk about the groups and co-op positions which they will be hiring for this fall. The following groups will be present at tomorrow's meeting: -Prime Services -Energy & Agricultural Commodities -Latin America Equity Sales -Global Loan Syndication -Equity Derivatives -U.S. Debt Capital Markets -Risk Solutions Group -Latin America & Caribbean Debt Capital Markets Hope to see many of you there!
Hope everyone had a great summer! Please join us for our first general meeting next Thursday, September 17th at 6:00PM to find out about the various exciting events we have planned for this upcoming semester. We look forward to going over the agenda and discussing the upcoming events. As always, please arrive on time and dressed in business casual attire. Pizza will be served.
Market Recap: 11/17-11/21 The Great, The Good, and The Not Quite so Good The Great: JetBlue JetBlue’s stock was boosted this week after finally giving in and deciding to add bag fees like most of the other airlines. JetBlue showed that they are attempting to raise revenues as they have also decided to decrease leg room in an attempt to gain extra seats. Loyal JetBlue customers will not be happy with these changes, but stockholders sure will, as the changes led to upgrades from many analysts and a great return on the week. JetBlue projects its operating income to increase by $100 million annually. Annual operating income of the carrier should rise by $150 million as a result of its other initiatives. On the week, JetBlue gained 5.6%, highlighted by a strong day on Wednesday, and an extended rally on Thursday. The Good: Major Market Indexes Helped by a great day on Friday, the major markets had another good week. The DOW and S&P500 continued to hit new highs this week with the S&P 500 ending at $2063.5 end of day Friday, constituting a 1.24% gain for the week. The DOW ended at $17810.06, a 1.01% for the week, and the NASDAQ ended up at 4712.97, a .74% increase for the week. Continued strong earnings reports and decreased macroeconomic tension helped to aid the markets this week. The strongest day was Friday, as rallies were sparked by China announcing a surprise interest rate cut, and the ECB saying they are ready to take steps to stimulate a weakened European economy. For the year, the S&P500 is up 11.98%, the DOW 7.86%, and the NASDAQ 13.25% . The Not Quite So Good: Netflix Netflix had a pretty poor week overall, falling from an open at about $385 to a closing price of $360.28 at end of day Friday. This constitutes a 6.5% loss for the week. Some of this loss was caused on Wednesday by Netflix’s decision to postpone a Bill Cosby stand up special that was in the works after further allegations of sex crimes arose. Netflix continues to deal with tougher competition from Amazon and Hulu, and HBO is also planning to bring an internet package to the U.S in 2015. Netflix has announced they are planning to expand into Australia and New Zealand in March, which will definitely add to expenses in the near future. Despite rising up to as high as 485 in early September, Netflix has struggled as of late, and at end of day Friday is down 1.43 %for the year.