Five Things We're Watching: May 20, 2011
Gap down big, LinkedIn up bigger. The Prince in our house and Strauss-Kahn out of the big house. Here's what we're watching…
Party like it's 1999: LinkedIn will be hard-pressed to duplicate Thursday's trading session. Even so, plenty of eyeballs are focused on the social network following its gangbusters debut. When the dust settled, LinkedIn closed up a whopping 109%. Enough of an impression was made to spark wonder of a new tech bubble. Whatever the answer, there's no question about the tremendous wealth creation born out of the new internet landscape. What's on Mark Zuckerberg's mind?
Strauss-Kahn in the City: Following his resignation from the top post at the IMF Thursday morning, Dominique Strauss-Kahn found himself in court that afternoon to make his case for bail provisions. He succeeded, resulting in his release from prison subject to onerous bail terms. Of course, the good news is limited for Mr. Strauss-Kahn, as the hearing also revealed his indictment on the previously disclosed criminal charges.
Gapping Lower: Perennial retail lagard Gap got crushed after hours Thursday. While the company's weak earnings report was enough to beat Wall Street estimates by a penny, they couldn't remove focus from dramatically lowered full-year guidance. Apparently, the much ballyhooed turnaround isn't in the cards in the coming quarters.
Following the Flood: Not to be lost in the frenzy of market news is the crest of the flooded Mississippi River, which makes way towards critical economic points in Louisiana. Despite the opening of gates at the Morganza Spillway, dramatic risk remains for major cities like Baton Rouge and New Orleans, not to mention the oil infrastructure which dots the river.
Squawking with the Prince: Legendary Saudi investor Prince Alwaleed bin Talal will sit in with the Squawk Box crew for an hour-long interview. Best known for his long-term investment in Citi as well as his unique panache, Prince Alwaleed will address everything from the global economy to the state of the markets, not to mention his view of some of Kingdom Holding Company's biggest stakes: Citi, General Motors and News Corp amongst others.