Market Minute: Facebook IPO Scammers Arrested; Warren Buffett's Portfolio

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Arrests are made in a scam involving Facebook's stock, and Warren Buffett tweaks his stock holdings.

Another day, another record. The Dow Jones industrial average rose 60 points yesterday, ringing up its 20th record close this year. The S&P 500 gained 8, and the Nasdaq rose 9.

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Lots of investors feel like they were suckered by Facebook's (FB) much ballyhooed IPO last year, but none like a New Zealand man who bought Facebook stock that didn't exist. Bloomberg Businessweek reports that federal officials in New Jersey have charged three men with scamming the foreign investor into paying $3 million for shares he never received, and another $3.5 million in a different scheme. The three men could face up to 20 years in prison for wire fraud, and a fine of $250,000.

Warren Buffet's company, Berkshire Hathaway (BRK-A, BRK-B), is out with the quarterly changes to its investment portfolio. It increased its holdings in IBM (IBM), Wells Fargo (WFC) and Walmart (WMT), but sold its entire stakes in General Dynamics (GD) and Archer Daniels Midland (ADM).

Walmart's quarterly earnings and sales came in slightly below expectations. After the close, J.C. Penney (JCP) is expected to post another loss.

Shares of Cisco System (CSCO) are set to pop after the technology bellwether reported better-than-expected sales and earnings. That's seen as a good sign for corporate spending on technology in general.

More manufacturing problems for Boeing (BA). The aerospace giant says engines made by General Electric (GE) for some 777 models are defective and need to be replaced. This comes just as Boeing is near completion of a battery fix for the 787 "Dreamliner"; that mishap prompted the grounding of the entire fleet.

Southwest Airlines (LUV) is returning some profits to shareholders. It's quadrupling its quarterly dividend to 4¢ a share from a penny, and it plans to buy back more stock.

And Tesla Motors (TSLA), which has been red-hot of late, plans to raise 830-million in a secondary stock offering. It will use the proceeds to repay an Energy Department loan ahead of schedule.

-Produced by Drew Trachtenberg

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liondog96

And don't fall victim to the check fraud scammers in your emails. I thought I had a job lined up driving this dude's wife around town that he would send me a check to cash and bring them the money when she arrives. It ended up being a stolen check to a major insurance company. The bank manager asked me to come inside----I did----offered me donuts, coffee; really nice woman. In the mean time the police were on the way. Don't get suckered into believing any of that stuff. I was fooled when the scammer told me he owned the insurance company and that this was his business account. No charges were filed. The police claim they have seen it hundreds of times.

May 16 2013 at 12:30 PM Report abuse rate up rate down Reply
jimbo1350

Hint-
Check to see if the "Investment Professional" controlling your retirement nest egg was selling life insurance or used cars two years ago.

May 16 2013 at 12:04 PM Report abuse rate up rate down Reply
MaryLou

PS- I only saved and worked for 42 years---very hard for me to save that amount for retirement- would have been better off on welfare raising my 2 kids. Go figure.

May 16 2013 at 11:40 AM Report abuse rate up rate down Reply
MaryLou

My fiancial investor thought it was a great stock- I lost 20,000 but he got his money. The financial advisor at Wells Fargo , Salisbury, NC lost over half of my money- 5-6 000,000. Crooks

May 16 2013 at 11:37 AM Report abuse rate up rate down Reply
racurrry

A fine of $250,000.00 ? What about a fine of $6,500,000.00 !?!

May 16 2013 at 10:42 AM Report abuse +1 rate up rate down Reply