Top News on Jan. 11 that You Might Have Missed
Brian is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Every day I provide the top news that you may or may not have heard for that particular day. This includes news that often slips through the cracks of whatever headline is dominating the market. On Friday, there was a lot of company specific news that could have long-lasting effects. Therefore, let’s take a look at a few of these top stories.
Boeing Can’t Stay Out of the News
Boeing (NYSE: BA) has dominated the news over the last week due to several issues related to its 787 Dreamliner. On Friday, there was yet another incidence, making four total for the week, as an oil leak in the left engine was discovered. As a result, the FAA has now ordered a comprehensive review of the new 787 Dreamliner, which pushed shares lower by 2.5% on Friday.
The company is now trying to defend itself, saying that early problems are not a result of outsourcing production or due to ramped production. Furthermore, the company says that the issues are not exceptionally unusual for a new plane. In the end, it’s up to investors to determine whether or not to buy on the dip. Personally, I think the problems seem excessive, and when combined with the potential effects from defense cuts, this might be a stock you want to avoid.
Ford Continues to Shine and ‘Give Back”
Just one day after raising its dividend 100% to return more capital to shareholders, Ford (NYSE: F) is making more strides to “give back.” After aggressive periods of hiring, the company announced that it intends to hire up to 2,000 white collar workers in 2013. This would mark the company’s largest expansion of salary employees in over a decade.
These new hires will reportedly come in engineering, manufacturing, and IT as the company updates its global product line, especially in China. This could be a major sign of yet more innovation in China, a country where the company is already planning to triple the number of models sold.
Wells Fargo Beats Expectations but Pushes the Industry Lower
Despite Wells Fargo’s (NYSE: WFC) quarterly beat, where it exceeded EPS expectations by $0.02 and revenue by $600 million, the stock still traded lower by nearly 1% and pushed the sector down lower as well. As usual, when large banks announce earnings, the entire quarter is dissected in search of any potential weakness. Therefore, the market did not respond well to its 10 basis point decline in net interest income compared to last year; nor did the market respond well to high net charge-offs.
Now, we wait until next week, to see the results from other banks. One development to watch closely is cash on the balance sheet of banks. Wells Fargo is considered one of the more aggressive, yet one of the best banks in the space, and continues to trade with excessive cash due to its inability to find a profitable investment. This was big news, and will be closely monitored by investors when other banks report their earnings.
Apple Continues to Seek Expansion
The talks between Apple (NASDAQ: AAPL) and China Mobile completely dominated the news for the world’s largest company last week. If successful, Apple would be positioned to grow by more than 50%, and fairly quickly. However, while the company continues to negotiate, it’s also close to striking a deal with Japanese carrier NTT DoCoMo, reportedly. Apple already sells iPhones in Japan through SoftBank, but would gain access to another large user base with this partnership. Although China Mobile is much more significant, this is still something major to follow.
On Friday some of these developments flew under the radar, others did not. Developments such as these ultimately dictate the direction of a stock, both short and long term. Therefore, it’s important that investors are aware of these developments and then, with additional due diligence, use the information to make an educated investment decision. With that being said, stay tuned to what may happen next, and for the top news on Monday.
BrianNichols owns shares of Apple and Ford. The Motley Fool recommends Apple, Ford, and Wells Fargo & Company. The Motley Fool owns shares of Apple, Ford, and Wells Fargo & Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!