Stocks were lower on the first day back from a three-day holiday weekend, but the Dow still closed above the 17,000 level it eclipsed for the first time last Thursday.
First, the scoreboard:
- Dow: 17,024.21, -44.1, (-0.3%)
- S&P 500: 1,977.65, -7.8, (-0.4%)
- Nasdaq: 4,451.53, -34.4, (-0.8%)
And now, the top stories of the day:
1) There were no major economic data releases today, after last week’s flood of data, which was punctuated by the better than expected June jobs report. BI’s Rob Wile noted, however, that despite the broad gains in the labour market since the financial crisis, those with Masters degrees or Ph.Ds have actually seen unemployment creep up.
2) Over the weekend, Let’s Gowex, a Spanish company that provided free WiFi for public spaces like malls, filed for involuntary insolvency. The company’s CEO Jenaro Garcia also announced his resignation, and said that some of the company’s financials over the last four years were falsified. After the company’s announcement, Garcia simply tweeted, “I apologise to everyone. Sorry wholeheartedly.” Let’s Gowex’s announcement came just a few days after independent research firm Gotham City Research said it believed more than 90% of the company’s revenues did not exist and said shares were worth $US0.
3) Let’s Gowex, however, isn’t the only company that Gotham City has been bearish on, and shares of company’s that have previously found themselves in the crosshairs of a sceptical report from Gotham City fell following the demise of Let’s Gowex. Shares of Blucora, Tile Shop, and Ebix all fell after the news that Let’s Gowex would go under. Tile Shop shares were the biggest loser, falling more than 3.5%, while Blucora lost 2%, and Ebix was down just less than 1%.
4) Earnings season is set to kick off tomorrow, with Alcoa’s report expected after the closing bell. Ahead of the frenzy of earnings that will be reported over the next month or so, here’s a friendly reminder from BI’s Sam Ro that the stock market does not accurately represent the health of the economy.
5) Since Eric Cantor’s shocking primary defeat, the fate of the Export-Import Bank, which provides direct loans and credit insurance to aid foreign purchasers of U.S.-made goods, has been very much up in the air. Over the weekend in an op-ed for the Financial Times, Larry Summers came out in support of the Ex-Im Bank, saying that failure to renew the Bank’s charter would be the economic equivalent of “unilateral disarmament.”
6) In corporate news, Archer Daniels Midland announced the acquisition of WILD Flavours, which offers beverage companies “full flavour and ingredient solutions,” for €2.3 billion. Shares of Archer Daniels gained more than 1.5% on Monday.