Financials held the markets back yesterday, but today they help the markets recover yesterdays decline. News from Deutsche Bank helped spur a rally in financials that ultimately led to a rally in the markets. The Dow 30 shot up 202, the S&P 500 added 16, and the Nasdaq 100 gained 42. Next week starts off with much anticipated manufacturing numbers early on Monday.
Deutsche Bank's (DB ) shares came roaring back today, up over 14%. Just yesterday the stock hit a new all time low, as investors digested the media blitz about the troubled German bank. CEO John Cryan is trying to reassure employees that the bank remains strong despite "some few" hedge fund clients pulling out their money. Cryan's letter also blames "speculation" for unfavorable media coverage. Fears about the bank's capital position were ignited by reports US regulators want Deutsche to pay $14 billion to settle cases related to the sale of toxic mortgage securities before the financial crisis. It now appears that the number will be closer to 5 billion.
Costco (COST ) shot 3.4% today as the large wholesale club chain delivered better than expected earnings for its fiscal fourth quarter. The company's switch to Visa (V ) from American Express (AXP ) translated in to lower fees, which helped offset a decline in food prices.
NXP Semiconductors (NXPI ) blasted off another 6.13% today, adding to Thursday's nearly 17% gain. The continuation move comes due to reports that Qualcomm (QCOM ) is in talks to buy the Netherlands based chip maker in a deal valued at more than $30 billion. Analysts claime that the deal would help Qualcomm expand its reach beyond smartphones to automotive electronics, which has become a hot market for new chip technology.
