Traders-Blog.com

The market took a dive today as investors became increasingly concerned over the possibility of rising interest rates and potential problems with Iran and Syria combining in the Middle East to begin making trouble. The Dow fell 80.62 points to close at 10,754.26, while the Nasdaq dropped 26.09 points closing at 2,061.34. The S&P also lost 9.59 points to close at 1,200.75.

Wal-Mart, the world’s largest retailer, announced that they had earnings of $10 billion for the year for the first time. The company’s profits rose 16.2% for the fourth quarter to reach $3.16 billion, which beat analyst expectations. During the Thanksgiving, however, the company’s profits remained flat, but then they turned to advertising markdowns on specific items, a move that greatly boosted sales.

New York Times Co. released their newest purchase today. Primemedia, Inc., the owner of the popular About.com, has agreed to sell their highly lucrative site to the Times. About.com has around 22 million members, and the discussions and information is led and posted by experts known as “guides.” The New York Times will now be able to have an online advertising base as well as a pay-per-click option for advertising by other businesses.

Starbucks and Jim Beam (owned by Fortune Brands) will be combining to produce a new coffee liqueur that was launched today. Currently, Kahlua is the dominant leader in the market and has been for decades. The liqueur will not be available in Starbucks stores and will cost around $23 for a 750 milliliter bottle, but after seeing the amazingly high numbers for the test product neither company has any concerns about being able to sell their product. The announcement didn’t help the stocks with Starbucks dropping 59 cents and Fortune Brands dropping 68 cents, but customers may be singing a different song after tasting the new liqueur.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter