» As for the stocks affected: Some of the smaller stocks, like Wizzard Software (which made a dramatic leap from $3.50 to $14 as a result of the trading glitch) had their trades cancelled, with no penalties for the steep increases. Other bigger stocks, like Abercrombie & Fitch, are still being investigated. Glitches in complex software like this could be spooking smaller investors, already weary of the stock market after the financial crisis and the 2010 Flash Crash.
And then I asked him the question, I said .. ‘I would use it for buybacks if I thought my stock was undervalued.’ And I said, ‘How do you feel about that?’ The stock was 200-and-something. He said, ‘I think my stock is very undervalued.’ I said, ‘Well, what better to do with your money?’Warren Buffett • Explaining how, in a conversation with Steve Jobs a few years ago, the duo discussed what Apple should do with its huge cash reserves. Buffett told Jobs to buy back some of the company’s stock. Jobs reportedly later told his friends that Buffett agreed that they should do nothing with the money — which, in case you missed the last sentence, is the opposite of what he said. Since Jobs died last year, the company has discussed a stock buyback, though it’s made a number of acquisitions of late. The stock, currently at $526, is still considered undervalued.
» On May 20th, to be precise: The most successful private sectors early in 2012 have been finance and information technology, up nearly 13% when trading began today. The 13,000 figure is considered something of a benchmark for the Dow’s health, and while analysts are right to warn that the significance may be predominantly symbolic, the nature of investor confidence is such that a positive psychological message can itself be a big boon. The Dow crossed this threshold at a time when most attention was focused on Greece, which secured a second bailout from the Euro Zone as their fiscal crisis continued.