U.S. stocks climbed Friday despite the strongest earthquake to hit Japan in at least 300 years, but the market posted a weekly drop, with the Dow falling 1.03%, the S&P 500 off 1.28% and the Nasdaq down 2.48% for the week.
For all three measures /quotes/comstock/10w!i:dji/delayed (DJIA 12,044, +59.79, +0.50%) /quotes/comstock/10y!i:comp (COMP 2,716, +14.59, +0.54%) /quotes/comstock/21z!i1:in\x (SPX 1,304, +9.17, +0.71%) , it marked the second weekly decline in the past three weeks.
The Japanese yen rose by the most in at least two weeks against the U.S. dollar and euro on Friday as traders anticipated Japanese investors and businesses will shift more assets back into the yen after the quake.
“The earthquake is likely to spur a large-scale repatriation of yen to fund the rebuild effort,” said Kathleen Brooks, research director at Forex.com. “Japan’s large current account surplus gives it room to sell assets and thus bring yen back onshore.”
“We saw the same action in 1995 when Japan experienced a large earthquake,” she said.
Gold notched a mild weekly loss, falling 0.5% as worries about mideast tension eased a bit.
On the week, oil lost 3.1%, and it settled lower Friday, for the fourth consecutive session, as Japan’s earthquake diverted attention from political strife in the Middle East and North Africa and stoked fears of a drop in demand for oil.
Also please remember to Watch our Week Ahead videos for Europe and the U.S.
Greg Morcroft, assistant managing editor
U.S. Week Ahead: HP’s New CEO to Meet Wall Street
Europe Week Ahead: Deutsche Lufthansa Reports
Huge quake devastates Japan
Japan’s most powerful earthquake in more than 100 years killed at least 1,000 people and triggered rising radiation levels at one of the nation’s several nuclear-power plants, according to reports Friday.The 8.9-magnitude earthquake struck at 2:46 p.m. local time near the east coast of Honshu, about 231 miles northeast of Tokyo.The quake also spawned a devastating 10-meter-high tsunami that wrecked the country’s northeastern coast and set off a series of tsunami alerts across four continents. Read MarketWatch coverage of Japan quake
Rattled Japanese face long, tough night
With subway and rail services halted, thousands of workers in Tokyo prepared for a long night, unsure whether families in the suburbs — or in the harder-hit northern prefectures — were safe. Earlier Friday, an 8.9-magnitude earthquake struck Japan, shaking buildings in Tokyo and sending workers running into the streets as offices were evacuated. Read more about the 8.9-magnitude Japan earthquake. Cell-phone networks were overwhelmed as thousands tried at the same time to call families and friends. Read MarketWatch’s Lisa Twaronite’s first person account of quake
Let demographic trends be your friends
As lives get longer, modern medicine becomes increasingly valuable to the elderly. China’s middle class and cities are growing at breakneck paces. There are a lot of hungry people in the world creating massive strain on food supplies and significant inflation. To show you what we mean, here are seven demographic shifts under way in the global economy right now — and the investments that could help you prosper as a result. Read MarketWatch commentary on demographic trends and investing.
GM CFO departure disappoints investors
The Microsoft guy who brought his much-needed financial chops to General Motors Co. /quotes/comstock/13*!gm/quotes/nls/gm (GM 31.93, +0.51, +1.62%) when the Detroit auto maker needed them the most is on his way out after just a year on the job. GM, in yet another surprise shake-up, announced this week that CFO Chris Liddell will step down on April 1. Taking his place is a 38-year-old Morgan Stanley alum. And investors don’t seem to like it one bit. Read MarketWatch story on GM CFO departure
Apple starts iPad 2 rollout amid heavy demand
Apple Inc. /quotes/comstock/15*!aapl/quotes/nls/aapl (AAPL 351.99, +5.32, +1.53%) will kicked off sales of its latest gadget — the iPad 2 — at 5 PM local time Friday. Analysts are expecting demand to be much stronger than it was for the original iPad last year, when the market size for such tablet devices was relatively unknown. The iPad 2 will go on sale at Apple’s own retail stores as well as at retail giants Best Buy Inc. /quotes/comstock/13*!bby/quotes/nls/bby (BBY 31.52, +0.61, +1.97%) , Target Corp. /quotes/comstock/13*!tgt/quotes/nls/tgt (TGT 51.53, +0.37, +0.72%) and Wal-Mart Stores Inc. /quotes/comstock/13*!wmt/quotes/nls/wmt (WMT 52.59, -0.06, -0.11%) Wireless carriers AT&T Inc. /quotes/comstock/13*!t/quotes/nls/t (T 28.46, -0.15, -0.52%) and Verizon /quotes/comstock/13*!vz/quotes/nls/vz (VZ 35.85, -0.55, -1.51%) will also sell the device at their own retail locations. The new device has a much larger retail footprint than the first iPad, which was sold only at Apple and Best Buy stores. Read full MarketWatch coverage of iPad 2 rollout
OPEC loses clout as production hikes limited
A hike in output from the Organization of the Petroleum Exporting Countries may rattle energy markets, but it is unlikely to put much downward pressure on prices. Member countries are debating whether to increase their production, Kuwait’s oil minister told reporters in Kuwait City on Tuesday. A rise would come as the cartel tries to make up for lost output from Libya and quell fears of other supply disruptions elsewhere in the Middle East and North Africa. Read MarketWatch’s story on OPEC capacity
Ford’s Mulally drives home with muscle car payday
Charlie Sheen made almost $2 million for each episode of “Two and a Half Men.” San Francisco Giants pitcher Barry Zito will earn $18.5 million this year for his 78-mph fastball and abysmal earned-run average. Perhaps $56.5 million in stock for the man who saved Ford Motor Co. /quotes/comstock/13*!f/quotes/nls/f (F 14.36, +0.30, +2.13%) , enriched shareholders and did his part in turning around a flagging U.S. industry doesn’t sound all that unreasonable. Ford’s Alan Mulally was awarded more than 3.8 million shares valued at $14.76 each. He also received 884,433 in underwater stock options as well as another 543,000 units that will be converted to stock in 2013. Read MarketWatch coverage of Ford CEO’s big payday
Banking on consolidation
The typical way most analysts recommend to investors to profit from mergers-and-acquisition activity is to look for possible targets before a deal is announced. But RBC Capital Markets analyst Gerard Cassidy proposed a new way to play the expected boom in bank mergers and acquisitions in coming years — not looking for prospective targets but snapping up acquirers, after they announce a purchase. Investors should “buy the buyers” roughly two days after deals are announced, according to Cassidy. Read MarketWatch story about investing strategy for expected bank consolidation
Middle east turmoil threatens to dampen luxury retailers’ outlook
The unrest in North Africa and the Middle East is enough to make investors in most industries nervous, but for the luxury sector in particular, it has the potential to become a significant problem. Not only is the industry particularly sensitive to economic expectations — and therefore to the growth worries created by spiking oil prices — it also generates healthy sales from the richer countries in the region, which could come under pressure if the political turmoil spreads. European luxury stocks have clearly underperformed in recent weeks compared to the Stoxx Europe 600 index. Read MarketWatch look at unrest’s knock-on effect on luxury retailers
Commentary: Capitalism tightens its grip on the U.S.
This country is a mess: Twenty million people can’t find a decent job. Twenty million live in a home that’s worth less than what they owe on it. Forty-three million can’t afford to eat without handouts from the government. Health care is increasingly expensive and humiliating. Retirement is out of reach. Our bridges and roads are crumbling. Our children aren’t learning. But there’s one group that’s doing just fine: the capitalists, you know, the people who own just about everything, the people we work for, shop for, die for. Read Rex Nutting commentary on capitalism’s tightening grip.
The Japanese yen rose by the most in at least two weeks against the U.S. dollar and euro on Friday as traders anticipated Japanese investors and businesses will shift more assets back into the yen after the quake.
“The earthquake is likely to spur a large-scale repatriation of yen to fund the rebuild effort,” said Kathleen Brooks, research director at Forex.com. “Japan’s large current account surplus gives it room to sell assets and thus bring yen back onshore.”
“We saw the same action in 1995 when Japan experienced a large earthquake,” she said.
Gold notched a mild weekly loss, falling 0.5% as worries about mideast tension eased a bit.
On the week, oil lost 3.1%, and it settled lower Friday, for the fourth consecutive session, as Japan’s earthquake diverted attention from political strife in the Middle East and North Africa and stoked fears of a drop in demand for oil.
Also please remember to Watch our Week Ahead videos for Europe and the U.S.
Greg Morcroft, assistant managing editor
U.S. Week Ahead: HP’s New CEO to Meet Wall Street
Europe Week Ahead: Deutsche Lufthansa Reports
Huge quake devastates Japan
Japan’s most powerful earthquake in more than 100 years killed at least 1,000 people and triggered rising radiation levels at one of the nation’s several nuclear-power plants, according to reports Friday.The 8.9-magnitude earthquake struck at 2:46 p.m. local time near the east coast of Honshu, about 231 miles northeast of Tokyo.The quake also spawned a devastating 10-meter-high tsunami that wrecked the country’s northeastern coast and set off a series of tsunami alerts across four continents. Read MarketWatch coverage of Japan quake
Rattled Japanese face long, tough night
With subway and rail services halted, thousands of workers in Tokyo prepared for a long night, unsure whether families in the suburbs — or in the harder-hit northern prefectures — were safe. Earlier Friday, an 8.9-magnitude earthquake struck Japan, shaking buildings in Tokyo and sending workers running into the streets as offices were evacuated. Read more about the 8.9-magnitude Japan earthquake. Cell-phone networks were overwhelmed as thousands tried at the same time to call families and friends. Read MarketWatch’s Lisa Twaronite’s first person account of quake
Let demographic trends be your friends
As lives get longer, modern medicine becomes increasingly valuable to the elderly. China’s middle class and cities are growing at breakneck paces. There are a lot of hungry people in the world creating massive strain on food supplies and significant inflation. To show you what we mean, here are seven demographic shifts under way in the global economy right now — and the investments that could help you prosper as a result. Read MarketWatch commentary on demographic trends and investing.
GM CFO departure disappoints investors
The Microsoft guy who brought his much-needed financial chops to General Motors Co. /quotes/comstock/13*!gm/quotes/nls/gm (GM 31.93, +0.51, +1.62%) when the Detroit auto maker needed them the most is on his way out after just a year on the job. GM, in yet another surprise shake-up, announced this week that CFO Chris Liddell will step down on April 1. Taking his place is a 38-year-old Morgan Stanley alum. And investors don’t seem to like it one bit. Read MarketWatch story on GM CFO departure
Apple starts iPad 2 rollout amid heavy demand
Apple Inc. /quotes/comstock/15*!aapl/quotes/nls/aapl (AAPL 351.99, +5.32, +1.53%) will kicked off sales of its latest gadget — the iPad 2 — at 5 PM local time Friday. Analysts are expecting demand to be much stronger than it was for the original iPad last year, when the market size for such tablet devices was relatively unknown. The iPad 2 will go on sale at Apple’s own retail stores as well as at retail giants Best Buy Inc. /quotes/comstock/13*!bby/quotes/nls/bby (BBY 31.52, +0.61, +1.97%) , Target Corp. /quotes/comstock/13*!tgt/quotes/nls/tgt (TGT 51.53, +0.37, +0.72%) and Wal-Mart Stores Inc. /quotes/comstock/13*!wmt/quotes/nls/wmt (WMT 52.59, -0.06, -0.11%) Wireless carriers AT&T Inc. /quotes/comstock/13*!t/quotes/nls/t (T 28.46, -0.15, -0.52%) and Verizon /quotes/comstock/13*!vz/quotes/nls/vz (VZ 35.85, -0.55, -1.51%) will also sell the device at their own retail locations. The new device has a much larger retail footprint than the first iPad, which was sold only at Apple and Best Buy stores. Read full MarketWatch coverage of iPad 2 rollout
OPEC loses clout as production hikes limited
A hike in output from the Organization of the Petroleum Exporting Countries may rattle energy markets, but it is unlikely to put much downward pressure on prices. Member countries are debating whether to increase their production, Kuwait’s oil minister told reporters in Kuwait City on Tuesday. A rise would come as the cartel tries to make up for lost output from Libya and quell fears of other supply disruptions elsewhere in the Middle East and North Africa. Read MarketWatch’s story on OPEC capacity
Ford’s Mulally drives home with muscle car payday
Charlie Sheen made almost $2 million for each episode of “Two and a Half Men.” San Francisco Giants pitcher Barry Zito will earn $18.5 million this year for his 78-mph fastball and abysmal earned-run average. Perhaps $56.5 million in stock for the man who saved Ford Motor Co. /quotes/comstock/13*!f/quotes/nls/f (F 14.36, +0.30, +2.13%) , enriched shareholders and did his part in turning around a flagging U.S. industry doesn’t sound all that unreasonable. Ford’s Alan Mulally was awarded more than 3.8 million shares valued at $14.76 each. He also received 884,433 in underwater stock options as well as another 543,000 units that will be converted to stock in 2013. Read MarketWatch coverage of Ford CEO’s big payday
Banking on consolidation
The typical way most analysts recommend to investors to profit from mergers-and-acquisition activity is to look for possible targets before a deal is announced. But RBC Capital Markets analyst Gerard Cassidy proposed a new way to play the expected boom in bank mergers and acquisitions in coming years — not looking for prospective targets but snapping up acquirers, after they announce a purchase. Investors should “buy the buyers” roughly two days after deals are announced, according to Cassidy. Read MarketWatch story about investing strategy for expected bank consolidation
Middle east turmoil threatens to dampen luxury retailers’ outlook
The unrest in North Africa and the Middle East is enough to make investors in most industries nervous, but for the luxury sector in particular, it has the potential to become a significant problem. Not only is the industry particularly sensitive to economic expectations — and therefore to the growth worries created by spiking oil prices — it also generates healthy sales from the richer countries in the region, which could come under pressure if the political turmoil spreads. European luxury stocks have clearly underperformed in recent weeks compared to the Stoxx Europe 600 index. Read MarketWatch look at unrest’s knock-on effect on luxury retailers
Commentary: Capitalism tightens its grip on the U.S.
This country is a mess: Twenty million people can’t find a decent job. Twenty million live in a home that’s worth less than what they owe on it. Forty-three million can’t afford to eat without handouts from the government. Health care is increasingly expensive and humiliating. Retirement is out of reach. Our bridges and roads are crumbling. Our children aren’t learning. But there’s one group that’s doing just fine: the capitalists, you know, the people who own just about everything, the people we work for, shop for, die for. Read Rex Nutting commentary on capitalism’s tightening grip.
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