Stock Close Mixed with Very Little Volume
Stocks started the trading session mixed, but the theme of consolidation continued to keep the markets relatively subdued. Market volume as relatively light on Monday as the Veterans Day holiday kept many on the sidelines as the bond market was closed along with US banks. Momentum was strong on Friday, but the carryover from the better than expected jobs data seemed to hit a roadblock in the form of higher bond yields. The major indices closed mixed with the Nasdaq notching up a small gain.
Bond yields moved higher on Tuesday, moving up above 2.78% for the first time in the past three months. Higher yields are a reflection of stronger growth, which seems to be weighing on the equity markets. In September yields notched up a high print of 3%, before moving back down to the 2.25% level as growth prospect edged lower.
In corporate news, T-Mobile USA announced that they could raise almost $2billion in stock offering. T-Mobile USA plans to offer 66.15 million shares, which could bring in proceeds of $1.96 billion based on a closing price of $29.67. The number four U.S. carrier intends to use the money for “general corporate purposes,” including capital expenditures and opportunistic spectrum purchases.
New trial is starting in Apple (NASDAQ:AAPL) versus Samsung battle. Apple and Samsung are back in court in the U.S. over how much the latter should pay for breaching Apple’s patents. Jury selection started last Tuesday and is expected to last a week. In August 2012, the jury in the first trial awarded Apple over $1 billion, a sum that the judge later reduced to $600 million after vacating $450 millino because she was unclear about how the amount was calculated. The latest trial is over how much more Samsung needs to pay.
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