Digital News Report – This week the Philadelphia Federal Reserve Bank said that economic activity improved in April,but progress was less than expected. The economic outlook weakened from 18.5 in April to 3.9 in May. This was lowest figure since October 2010.
The demand for manufactured goods slow and shipments slowed. There was a “slight growth” last month, but the momentum has slowed. Both unfilled orders and delivery times were also falling. “According to respondents to the May Business Outlook Survey, the region’s manufacturing sector grew, but at a slower pace this month,” the Fed said in a statement.
There were fewer initial unemployment jobless claims last week. Economists had expected there to be 420,000 claims, but there were only 409,000. There were 434,000 claims the week before.
Stocks closed the week lower. The Dow Jones Industrial Average was 12,512.04, down 93.28 points Friday, down -0.66% for the week. The S&P was down 0.34% and the Nasdaq was down 0.89% for the week.
John Malone’s Liberty Media is in talks with Barnes and Noble. In a press release on Thursday, the company said that the Board of Directors received a proposal from Liberty Media to acquire the company at a price of $17 per share in cash.
Investors pushed the price higher. On Friday the share price for Barnes & Noble, Inc. (NYSE:BKS) was up 4.22 (+29.91%) to $18.33. This exceeds the price offered by Liberty.
This week Amazon said that e-books outsold printed books. Amazon has been selling printed books for 12 year but only introduced the Kindle in 2007. “By July 2010, Kindle book sales had surpassed hardcover book sales, and six months later, Kindle books overtook paperback books to become the most popular format on Amazon.com,” the company said in a statement.
The new digital book media may be the primary asset that is fueling Liberty’s interest in Barnes and Noble. Brick-and-mortar book stores have been struggling. Matthew Harrigan, an analyst with Wunderlich Securities is quoted as saying the readers are the “principal area of interest.”
By Sam Lee