Market Minute: Summers Bows Out; Chevron Settles With Brazil

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Stocks are set to rally, and this could be a big week for Microsoft shareholders. That story and more are in today's Market Minute.

The Dow Industrials (^DJI) rallied 453 points last week, a gain of 3 percent. That's the second best gain this year. The S&P 500 (^GPSC) rose 2 percent and the Nasdaq gained 1.7 percent.

The market is set to rally following Larry Summers' decision to bow out of the running to succeed Ben Bernanke as chairman of the Federal Reserve. Though widely praised for his intellect, Summers was seen as a lightening rod for controversy.


US National Economic Council (NEC) Direc

Bernanke and the Fed will be in the spotlight this week. Most economists believe the central bank will begin to taper back on its massive stimulus program at meetings that conclude on Wednesday. The big question then becomes: by how much?

Another meeting we'll pay close attention to this week is Microsoft's (MSFT) first official sit-down with analysts in two years. CEO Steve Ballmer will be asked about his recently announced decision to retire next year, as well as the company's plan to boost the pace of growth.
Chevron (CVX) is shelling out about $130 million to settle a lawsuit over damages from an oil spill in 2011. And investors are happy it's only $130 million. Brazil had sued the oil giant for $20 billion in damages. The settlement allows Chevron to bid on future contracts with Brazil.

Chili's is preparing to roll out table-top computers at most of its 1,200 restaurants. The Wall Street Journal says customers will be able to place orders, make credit card payments and play videogames. Chili's is owned by Brinker International (EAT).

Paper maker Boise has agreed to be acquired by Packaging Corp. of America (PKG). The deal is valued at $1.3 billion.

And the board shake-up at J.C. Penney (JCP) continues. The head of Vornado Realty Trust resigned as a director of the struggling retailer late on Friday. Earlier in the week, Vornado said it plans to sell its entire J.C. Penney stake of more than 13 million shares.

-Produced by Drew Trachetenberg

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cjaneke

The reason why the US economy crawls on is because the Fed and the President's economic advisors are run by bureaucrats and (banking) insiders. The remedy to reinstate commerce January 20, 2009 was for President Obama to issue an IMMEDIATE order to stop foreclosures and shift the burden to the banks to seek foreclosure release in exchange for TARP funding instead of the underwater homeowners seeking relief from the banks which were almost impossible, even in event of good faith dealings by the banks. President Obama however opted for Guatanamo Bay which is still going nowhere. Same token for the economic advisory team.

September 16 2013 at 12:10 PM Report abuse -1 rate up rate down Reply
Tracie

The reason Microsoft is out again, is because Bill Gates is raping rural school districts with Common Core state testing. It's costing rural areas MILLIONS of extra dollars JUST FOR STATE TESTS, this is NOT including the cost for the evil, brainwashing, indoctrinating cirriculum...I hope he chokes on all that money!!!

September 16 2013 at 10:51 AM Report abuse rate up rate down Reply