Stocks take it on the chin, worst week since April
Friday, July 11, 2014 - 02:18
Summary: Wall St. turned slightly higher on Friday but endured its worst weekly loss since April; Icahn worried about equities; China takes aim at iPhone; U.S. cigarette makers confirm merger talks. Conway G. Gittens reports.
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Wall Street limps into the weekend as Portugal fears recede and earnings get ready to scale up.
The Dow, the S&P 500 and the Nasdaq ended in the plus after a choppy session.
The bears, however, were in full control this week - making this the worst week for stocks since April.
Even billionaire investor activist Carl Icahn is worried about equity prices. In a telephone interview he told us "In my mind, it is time to be cautious about the U.S. stock markets. While we are having a great year, I am being very selective about the companies I purchase."
But Ross Gerber of money management firm Gerber Kawasaki thinks there's still more gas in this rally.
SOUNDBITE: ROSS GERBER, PRESIDENT/CEO, GERBER KAWASAKI (ENGLISH) SAYING:
"So I'm actually really bullish on the market as long as rates stay low and that's what we think is going to be the case for quite some time. So I think it's actually a good time to add money to the market but being very selective where you put that money."
By the way, yields on the 10-year note - at one point seeing its biggest one week drop in roughly four months.
Profits at Wells Fargo - up for the quarter compared to a year ago. And America's largest mortgage lender says it's seeing signs of an economic pickup. But shares slipped because it was the first time in 17 quarters Wells did not grow earnings quarter-to-quarter. A mixed bag for the rest of the big banks, all which report next week.
The iPhone is under fire in China. State media there say Apple's popular smartphone poses a national security risk because of its ability to track and reveal a user's location. Apple is not the only hi-tech target of Beijing. Google services have been disrupted in China for at least a month, while Microsoft Windows 8 has been banned from government computers.
Cigarette companies Reynolds American and Lorillard heading in different directions after confirming they are in talks to merge. No terms were disclosed. Britain's Imperial Tobacco will buy some of the assets sold as part of the deal and that stock was up in London.
Shares of buyer and seller moved higher in a different case. Whirlpool is buying almost 67 percent of the voting shares of Italy's Indesit for a little more than a billion dollars.
As for European markets, Portugal bank Espirito Santo's attempts to soothe markets seemed to work. Stocks in Germany, France and the U.K. finished higher on Friday.
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