Jan 07 - Summary: Ford confirms CEO Alan Mulally will stay through the end of 2014; techs help Wall Street end three-day slump despite Netflix downgrade; JPMorgan shares slide with Madoff settlement to hurt Q4 results. Conway G. Gittens reports.
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PLEASE NOTE: THIS EDIT CONTAINS CONVERTED 4:3 MATERIAL
It may be freezing outside - but inside the New York Stock Exchange - stocks were hot.
The Dow had its first triple-digit rally of the year as the rest of the market bounces back from a three-day slide.
Speculation over? Ford CEO Alan Mulally is reportedly staying put and not heading over to Microsoft, according to the Associated Press. Some investors were hoping Mulally would help lead a much needed revival at the software giant.
Techs were strong despite a downgrade of Netflix. Shares of the video streaming service were downgraded by Morgan Stanley. The research team thinks subscriber growth expectations may be too high, and the predictions on the cost of acquiring content too low, with competitors like Amazon Prime, HBO GO and Hulu Plus stepping up efforts. Shares of Netflix were more than 5 percent down after surging nearly 300 percent for all of 2013.
The number of Android powered smartphones and tablets expected to smash through the 1 billion mark this year, according to Gartner Group. The growth of the operating system is being fueled by demand for lower priced smartphones and tablets, especially in emerging markets. Shares of Google touching an all-time high above $1,138.
JPMorgan Chase agreed to fork over more than $2 billion, and regulators will hand that over to victims of the Bernie Madoff Ponzi scheme. The bank agreed that it failed to properly report suspicious activity in Madoff's accounts to regulators. The total fines include the largest forefeiture a bank has ever had to pay to resolve anti-money laundering violations.
U.S. Attorney General for the Southern District of New York Preet Bharara:
SOUNDBITE: PREET BHARARA, U.S. ATTORNEY, SOUTHERN DISTRICT OF NEW YORK (ENGLISH) SAYING:
"JPMorgan as an institution failed and failed miserably. In part because of that failure, for decades Bernie Madoff was able to launder billions of dollars in Ponzi proceeds, essentially through a single set of accounts at JPMorgan."
JPMorgan says the settlement will reduce fourth quarter net income by about $850 million. Shares were off more than a full percent.
The other top story of the day is the weather. The deep freeze held its grip across the country and various sectors, but impact the energy complex in two ways: the freeze - threatening supplies with possible refinery disruptions, at the same time demand is expected to spike. Oil prices, however, only getting a slight bump up in Tuesday trade.
As for Europe, stocks were up with Spain continuing to be a positive force.
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