Dow gains 291 points after strong holiday sales weekend
The Dow gained 291 points on Monday to close at 11,523 after strong holiday shopping reports, according to CNBC. Asian markets were up on Tuesday, but trading was somewhat subdued. European markets, however, are stagnant due to issues around resolving the sovereign debt issues, according to the New York Times. Dow futures remain positive.
Cyber Monday sales up 18 percent
Shoppers continued to click away on Cyber Monday with online traffic up 43 percent from last year according to content delivery network Akamai, as reported by USAToday. Sales were up 18 percent over 2010 as of 9 pm Eastern time. Electronics are the most popular item this year.
Facebook plans $10 billion IPO in 2012
The Wall Street Journal reports that Facebook is planning an April to June IPO in 2012. It intends to raise $10 billion which would value the company at $100 billion. Facebook currently has $4 billion in revenue. It has 800 million users. Only 13 IPOs have ever been completed with a value greater than $10 billion. Those IPOs included Visa, General Motors and AT&T Wireless. Facebook would be the largest IPO by any technology or internet company.
Fitch threatens 2013 downgrade of US if no credible budget deal
Fitch Ratings gave the US until 2013 to come up with a credible plan to tackle its deficit or risk a downgrade of its AAA rating, according to Reuters. The ratings agency revised the US outlook from stable to negative on Monday. It indicated that a potential downgrade was slightly greater than 50 percent. The agency does not expect meaningful debt reduction to occur in 2012 when the Presidential election will make political tensions even greater.
European Nations Pressuring Their Own Banks for Loans
Many European nations are struggling to find buyers of their bonds and are turning to their own banks to become buyers of last resort. The problem, according to the Wall Street Journal, is that the banks already own an excessive amount of the bonds that threaten their own stability. Italy and Portugal, in particular, are asking their own banks to continue buying the bonds. The European Banking Authority is calculating new capital requirements for banks based on their holdings of risky government bonds. The more sovereign bonds held by a bank, the higher the capital requirements. This may cause the bank to need to rely upon the government for more capital. Italian bonds are selling today at record highs. Nomura Bank of Japan slashed its holdings of European debt by 73 percent and its holdings of Italian debt by 83 percent, according to the Financial Times.
Catherine S. McBreen is President of Millionaire Corner. McBreen plans and develops content for Millionaire Corner. Catherine balances editorial content to meet the informational needs of both new and seasoned investors. She designs special monthly surveys on topical issues affecting the economic environment.
McBreen has a B.S. in speech communications from Northwestern University and a J.D. from DePail University College of Law. She is a member of the American Bar Association, the Illinois Bar Association, and the Chicago Bar Association.
Well-known for her expertise in the affluent and retirement arenas, McBreen is a frequent speaker at industry conferences. She has been quoted widely by the financial media, including The Financial Times, The Wall Street Journal, Research, Private Asset Management, On Wall Street, Reuters, Bloomberg News, The Dow Jones Newswires and Worth. Cathy has appeared as a guest on CNBC Closing Bell, First Business Morning News, Neal Cavuto at Fox Business News, ABC and CBS radio.
McBreen is co-author with Spectrem President George H. Walper, Jr. of the book "Get Rich, Stay Rich, Pass It On: The Wealth-Accumulation Secrets of America's Richest Families" (Portfolio, January 2008)
Catherine is the mother of four and is involved in many school and community events.