Stocks were headed for a lower open Monday after hitting record highs to end the shortened holiday week last week. The Dow crossed the 17,000 mark for the first time on Thursday after a surprisingly strong jobs report for June showed the economy added 288,000 jobs. The S&P set a new closing high of 1,985.
This week will be light on economic data, but earnings season begins with aluminum maker Alcoa (AA) reporting tomorrow and Wells Fargo (WFC) kicking off financial earnings Friday. Nobel Prize-winning economist Joseph Stiglitz this morning told CNBC the current levels of stock prices make him "very uncomfortable." He said market levels are high because interest rates are low, wages are low and emerging markets are growing faster than the United States.
Meanwhile, food prices continue to rise. The Wall Street Journal reported that the price of ground beef rose 10.4% in May from a year earlier. Pork rose 12.7%. And oranges rose 17.1%.
Poll: We want to know what you think about current market levels. Does Dow 17,000 make you feel more confident about the recovery or more uncertain? Cast your vote and post a comment below as well. Or you can post a comment on our Facebook page or tweet us @HotStockTeam.
Among the stocks the Yahoo Finance team will be watching for you today: GoPro (GPRO). The stock is expected to be active today as options on the shares begin trading this morning. The active-camera maker's shares were volatile last week, after doubling in its first four days of trading. The shares plunged Wednesday, tripping a Nasdaq circuit breaker, and slid further Thursday.
We're also watching shares of King Digital Entertainment (KING), the maker of Candy Crush Saga, which were moving higher in early trading after Piper Jaffray upgraded the stock to "overweight" this morning. The game-maker has been volatile since its March IPO. Several analysts have issued more upbeat reports on the stock in recent weeks, despite initial concern the company is too dependent on Candy Crush.
One of two retail dramas we're continuing to follow: Lululemon (LULU) after reports the athletic apparel maker may be looking to go private. Founder Chip Wilson has reportedly been in talks with private equity firms. Wilson stepped down as Chairman and Chief Executive earlier this year. Any attempt to take the company private would face challenges, including topping the company's $6 billion market cap.
We're also watching American Apparel (APP) after reports that the company is in talks with hedge fund Standard General about new funding that would allow it to pay off a $10 million loan to Lion Capital that came due when the company's board ousted its chairman and co-founder Dov Charney last month. Reportedly, all but one or two of American Apparel's board members would be replaced as part of the deal. It's not clear what role, if any, there would be for Charney who is still under investigation over alleged misconduct.
- Investment & Company Information