Stocks ended the week higher, but not after paring gains on Friday. Unease in Ukraine as Russian troops entered Crimea sent stocks lower in late trading, however the major indices recovered slightly in late trading. The Dow Industrials finished the week up 1.4%, the Nasdaq gained 1% for the week, and the S&P 500 finished the week up 1.3%, at a new closing high of 1,859.47
The economy expanded at a slower pace in the fourth quarter than originally estimated. Gross Domestic Product grew 2.4% in the final three months of 2013, down from an initial reading of 3.2% growth. The downward revision was due in large part to consumers spending less than originally thought. The increase in consumer spending was cut back to 2.6% from the original estimate of 3.3%. That is still the fastest increase in nearly two years.
Citigroup (C) said it is cutting its previous fourth quarter and full year results by $235 million after the company uncovered fraud in a Mexican subsidiary. In a statement, Citigroup said the fraud involved $585 million in short-term credit extended by its Banamex unit to Mexican oil services firm, Oceanografia, a supplier to the Mexican state-owned oil company, Pemex.
Apple (AAPL) held its annual shareholder meeting in Cupertino, California. Earlier this year, the company averted an all-out showdown with billionaire shareholder Carl Icahn over his calls for Apple to spend more of its own cash buying back shares. CEO Tim Cook quieted Icahn by revealing the company had spent $14 billion to buy back its own shares since Apple's disappointing quarterly report in January.
Meanwhile, Icahn’s battle with eBay (EBAY) rages on. Icahn repeatedly has called for eBay to spin off its PayPal business. eBay repeatedly has refused to do so. eBay founder and Chairman Pierre Omidyar said the businesses are better off together.