Yahoo & Google Have Their Eyes on Flipboard
It seems that the internet giants have got their eyes on Flipboard Inc., which is the maker of a newsreader app. While Flipboard has made it quite clear that they are open to discussions regarding their acquisition, Google Inc. (GOOG, -1.44%) and Yahoo Inc. (YHOO, -1.46%) have made it quite clear that they are possibly interested in purchasing the startup company. According to sources familiar with the matter, both Google and Yahoo have already had discussions with Flipboard which have involved how the app can be integrated into existing products. No discussions have occurred yet regarding the price. Interestingly, according to Recode technology news site. Twitter Inc. has also apparently had discussions with Flipboard and a price of $1 billion for the deal was discussed. These negotiations started months ago yet they seem to have stalled since April this year. Flipboard is a unique app which collects stories from various social networking sites as well as from various publishers and users are then able to create their own experience of reading the news in a digital magazine. Flipboard was founded at the end of 2010 and since then, this startup company already has over 65 million active users each month as seen in May. This was up from February’s user number at 50 million. Google and Yahoo’s interest in Flipboard is a clear indication that these internet giants want to be able to offer content which can be viewed with ease while on the go. This is evident with rivals such as Snapchat and Facebook Inc. (FB, -1.50%) who have already partnered with publishers in order to show more content within their apps.
In U.S. trading on Tuesday, stocks declined. This came in response to a sharp increase in the U.S. dollar (USD) which caused investors to turn to safe havens such as Treasury bonds. As a result of the inflation data that was released last week Friday, the greenback rallied and on Tuesday, the currency continued its upward movement in response to positive economic data which prompted investors to believe that the Federal Reserve is likely to increase interest rates this year. With the USD strengthening, gold and oil prices declined while Treasurys rose. As a result, the yield on the 10-year note declined to 2.19%, down 4 basis points. Added to this, an increase in the CBOE Volatility index (VIX, +19.95%) was seen which was a clear indication that investors are concerned regarding a possible pullback. At the close of trading, the Nasdaq Composite index (COMP) declined 1.1%, or 56 points, to 5,033. Meanwhile, the Dow Jones Industrial Average (DJIA) dropped 1%, or 180 points, to 18,1052 while the S&P 500 index (SPX) fell 0.9%, or 20 points, to 2,106.
As a result of positive economic data out of the U.S. on Monday, the U.S. dollar (USD) traded higher. Added to this, investors now strongly believe that with this positive data, the Federal Reserve is likely to increase interest rates this year. According to the Commerce Department, the sales of new home in April rose to 517,000 units, up 6.8%. This beat expectations of a gain to 510,000 units, up 5.0%. Meanwhile, the March new home sales were revised up from 481,000 units to 484,000 units. Also, the Commerce Department reported that total durable goods orders, which also include transportation items, dropped in April by 0.5%. Core durable goods orders also increased in April by 0.5% which also beat analyst expectations. The EUR/USD traded at 1.0890, down 0.81% while the USD/JPY traded at 123.18, up 1.32% for the day. Against the Swiss franc and the Canadian dollar, the greenback traded higher with USD/CHF up 0.56% at 0.9505 and with USD/CAD up 0.93% at 1.2428. Also, the U.S. dollar index was at 97.34, up 0.91%.
On Wednesday, in early morning Asian trade, crude oil prices increased. This came as investors turn their attention to industry data of U.S. stockpiles from last week which is due out today by the American Petroleum Institute. This data is normally released every Tuesday yet it has been delayed as a result of the public holiday in the U.S. on Monday. WTI crude oil for delivery in July traded at $58.44 a barrel, up 0.09%, on the NYMEX. Also, on Tuesday, Brent crude oil for delivery in July traded at $63.73 a barrel, down 2.73% or $1.79, on the Intercontinental Exchange (ICE).