MARKET CURRENTS
real-time news and commentary for investors
MARKET CURRENTS
Flip Order
-
Today - Tuesday, May 22
-
7:53 PM Vanguard's Jack Bogle takes advantage of Facebook's (FB) plunge and the negative impact it's had on the psyche of the retail investor to hammer home the merits of index investing. Bogle says: "It all comes down to value and it all goes away from price, and avoiding IPO's and avoiding individual stocks is the best strategy for investors." (video) [U.S. Economy, Tech] 2 Comments
-
7:37 PM More on Compuware (CPWR): FQ4 EPS beats on a per share basis. Net earnings sank 22% Y/Y on softer professional service fees and higher expenses. Going forward, the company forecast earnings of $0.45 - $0.49 cents per share on revenue of $1.07B - $1.08B. Street estimates are for an EPS of $0.51 on revenue of $1.07B, respectively. Shares +7.8% AH. [Earnings, Tech, On the Move] Comment!
-
7:24 PM As conerns grows on the economic front, former Council of Economic Advisers Chairman Martin Feldstein says the dangers are all too real. We're stumbling along right now, Feldstein says, and the folks forecasting 3% growth are far too optimistic. "We'll be lucky if we have 2%." As for the "economic cliff" we're facing in 2013, if everything that's due to expire expires, it will in fact be an economic disaster. (video) [U.S. Economy] 1 Comment
-
7:10 PM As FINRA and the SEC investigate allegations that analysts cut their Facebook (FB -8.9%) estimates ahead of its IPO and only shared the info with select clients, a source tells BI the estimates were cut because a Facebook exec told them to. Backing up this claim is a May 11 Bloomberg column in which sources claim Facebook is telling analysts its sales "may not meet their most optimistic projections." [Tech] 5 Comments
-
7:02 PM More on Avago Technologies (AVGO): FQ2 beats on a per share basis on continued Y/Y revenue growth. Net earnings eased 0.7% amid higher operating costs and weaker margins. Comp store sales decreased 5.5% in U.S. dollars and 5.1% in local currency. Shares +3.5% AH. [Earnings, On the Move] Comment!
-
6:58 PM The application delivery controller (ADC) market grew 5% Q/Q in seasonally weak Q1, according to Dell'Oro. Especially positive for market leader F5 (FFIV) is Dell O'ro's estimate that sales of physical high-end ADCs - a market F5 dominates - rose 14%. Less positive is the fact the budding market for virtual (i.e. software-based) ADCs grew 167% - while F5 sells virtual ADCs, they risk cannibalizing hardware sales. Citrix Systems (CTXS) and Cisco (CSCO) also participate in the ADC market. (previous) [Tech] Comment!
-
6:38 PM Renowned NYU finance prof. Aswath Damodaran assigns Facebook (FB -8.9%) a value of $29/share, a little below today's $31 closing price, based on a detailed valuation analysis. His assumptions: Facebook's annual revenue growth will average 40% over the next 5 years before slowing; its operating margin will fall from a sky-high 45.68% to 35%; and its cost of capital will be a relatively high 11.42% (to account for higher-than-normal risk). (Blodget's valuation) [Tech, Quick Ideas] Comment!
-
6:31 PM More on Qihoo 360 Technology (QIHU): Q1 beats on all counts as total revenue soared over 202% Y/Y. Non-GAAP Net Income was $25.7M, up 290% over the prior year. Monthly active users grew to 411M and browser user penetration rate was a record 62%. Shares +4.7% AH. [Global & FX, Tech, On the Move] Comment!
-
6:24 PM OmniVision (OVTI -2%) announces two 16MP image sensors for smartphones and digital cameras. The chips are capable of taking 60 fps video at full resolution (3840x2160), and also support burst photography at 16MP. Overkill? Probably for many consumers. But smartphone vendors are pulling out all the stops to differentiate themselves, and OmniVision needs the margin boost provided by high-end sensors, given tough competition from Sony (SNE) and others. [Tech] Comment!
-
6:20 PM A Booz survey of ~200 auto industry executives finds bullish views abound, as 94% of automaker execs and 92% of auto supplier execs say the sector is somewhat or much better off Y/Y. Profitable growth is seen, with 52% projecting revenue will rise 11% or more, and strong majorities expect Detroit's big three to hold or gain market share next year. [Consumer] Comment!
-
6:10 PM Think housing will improve? Buy truckers, KeyBanc's Todd Fowler suggests. “All the freight required to build a new home has a very positive impact on trucking activity," he says, noting each new residence requires 5-8 truckloads to transport supplies such as lumber, roofing materials and interior furnishings. Fowler likes KNX, WERN and CGI, plus retailers HD and LOW. [Quick Ideas] Comment!
-
6:07 PM VMware (VMW) is acquiring Wanova, a developer of software for managing and syncing enterprise PC "images" that contain a user's apps and data, for an undisclosed sum. Wanova's software should strengthen VMware's offerings for the PC virtualization market, a business where (unlike server virtualization) the company trails Citrix Systems (CTXS), and also faces strong competition from Dell's (DELL) Wyse Technology unit. [Tech, M&A] Comment!
-
6:00 PM On the hour: S&P -0.11%. 10-yr +0.02%. Euro -0.02% vs. dollar. Crude +0.03% to $91.6. Gold -0.04% to $1567.75. Comment!
-
5:51 PM Driving home its commitment to financing original programming at the expense of library size, Netflix (NFLX -5.6%) has created a new position of VP of Original Content. Filling the position is content acquisition VP Cindy Holland, whose current job will be assumed by Latin America/Canada content acquisition chief Jason Ropell. The shakeup comes on a day when Netflix made new lows for 2012. [Tech, On the Move] 1 Comment
-
5:49 PM RailAmerica (RA) +8.7% AH after announcing, in response to market rumors, its board is considering strategic alternatives, which may include a sale of the company. [M&A, On the Move] Comment!
-
5:36 PM During its FQ1 earnings call (webcast), Dell admits its 10% Y/Y drop in notebook sales had much to do with tablet cannibalization (more with consumers, but also among businesses). Dell also claims price competition (especially in emerging markets) hurt PC sales, and an inefficient sales structure affected enterprise sales. Also, it adds April was particularly weak, and some enterprises are delaying IT purchases. DELL -12% AH. HPQ -2.5%. INTC -1.1%. (presentation - PDF). [Tech, Earnings, On the Move] 1 Comment
-
5:35 PM The proposed Keystone XL pipeline would raise U.S. gasoline prices, according to the National Resources Defense Council: The pipeline would divert crude oil from the U.S. Midwest to Gulf Coast refineries geared to producing diesel fuel for export, which would reduce gasoline produced for U.S. consumers and raise production costs, making the fuel more expensive. [Energy] 6 Comments
-
5:20 PM Starboard Value can exhale: AOL CEO Tim Armstrong says his company has no plans to invest in a social network. However, he adds AOL, whose troubled Patch local news subsidiary just notified its 1,000-person staff of upcoming layoffs, remains committed to investing in its online media ops, in spite of the losses posted by the division. [Tech] Comment!
-
5:17 PM Massachusetts subpoenas Morgan Stanley over the Facebook IPO amid allegations about leaked negative views. MS -1.4% AH. [Financials, On the Move, Breaking News] 7 Comments
-
5:09 PM In an interview with FierceMobile, Zynga (ZNGA) mobile VP Travis Boatman says his company is focused on maintaining a "freemium" model for its games, while occasionally charging for ad removal and other features. He also suggests Zynga is open to developing for Windows Phone (MSFT, NOK), but doesn't provide any firm commitments. Separately, Zynga has announced a partnership with American Express that allows cardholders to earn Zynga virtual game cash. [Tech] 1 Comment
-
5:06 PM The CBO warns about the "fiscal cliff," saying the U.S. economy would enter another recession in H1 2013 if planned tax increases and spending cuts are allowed to go into effect in January. CBO projects the economy would contract 1.3% in H1; if all the spending cuts and tax increases are removed, CBO says the economy would add 2M jobs in 2013 and U.S. GDP would grow 4.4%. [U.S. Economy] 11 Comments
-
5:00 PM On the hour: S&P -0.08%. 10-yr +0.02%. Euro -1.05% vs. dollar. Crude +0.01% to $91.58. Gold -0.02% to $1568.05. Comment!
-
4:47 PM More on PetSmart (PETM): Q1 beats estimates on a 9.4% Y/Y jump in total revenue. Comp store sales grew 7.4%, benefiting from comparable transactions growth of 3.3%. Services sales grew 8.3% to $181 million. The company also raises its 2012 EPS outlook to a range of $3.19 to $3.31 versus $3.02 to $3.16. Shares of PetSmart jumped 7% to $59.49 in after hours. Shares +8% AH. [Earnings, On the Move] Comment!
-
4:45 PM A group of investors led by Warburg Pincus will pump as much as $1.125B into a deepwater oil-and-gas exploration start-up, continuing private equity's dive into the Gulf of Mexico but differing from many in its focus on the high-risk, high-reward deepwater business. "With the improved safety procedures and ramp-up in activity, the timing is great," says Brian Reinsborough, head of the start-up. [Energy] Comment!
-
4:38 PM More on Take-Two Interactive's FQ4: The game developer, whose results are historically volatile and difficult to project, is guiding for FQ1 revenue of $225M-$275M and EPS of -$0.75 to -$0.60, well below a consensus of $302.1M and $0.14. For FY13, it expects revenue of $1.75B-$1.85B and EPS of $2-$2.25 vs. a consensus of $1.8B and $2.77. The in-line revenue guidance is apparently enough to satisfy lowered expectations. TTWO +5.7% AH. (PR) [Tech, Earnings, On the Move] Comment!
-
4:34 PM Falling commodity prices, tightening processing margins and renewed fears of a European banking crisis have dragged down master limited partnerships, but Credit Suisse says fundamentals remain strong. The firm suggests investors overweight MLP portfolios with large-cap, diversified names such as Kinder Morgan (KMP), Enterprise Products (EPD) and Plains All American (PAA). [Energy, Quick Ideas] 2 Comments
-
4:32 PM More on the Papademos comments: In the full interview, it becomes clear the former PM isn't predicting a euro exit, but warning of nuclear winter in the event of an exit as a way to push Greeks into voting for the establishment parties. "There is no upside to a Greek departure from the euro." [Global & FX] Comment!
-
4:25 PM More on Collective Brands (PSS): Q1 beats on both EPS and revenue estimates. Net sales rose 5% to $912M, driven by an 8/1% jump in comp store sales, and sales growth of 8.3% in its Performance + Lifestyle Group wholesale segment. Bottom line margins also benefited from lower SG&A expenses. Shares +0.3% AH. [Earnings, Consumer] Comment!
-
4:24 PM More on Guess? FQ1: Retail comparable-store sales declined 5.5%. Net revenue in Europe segment fell 9.7% to $189.8M, while Asia revenues up 8%. For Q2, see EPS of $0.48-$0.52 and revenue of $625M-$635M. Shares +5.4% AH. (PR) [Earnings, On the Move] Comment!
-
4:15 PM More on Dell's FQ1: No EPS guidance. Services only +4% Y/Y vs. FQ4's 12%. Public revenue -4%, large enterprises -3% (+5% in FQ4). Asia-Pac/Japan flat (+10% in FQ4), EMEA -1%, Americas -7%. Storage -8%, servers/networking +2%, desktops -1%, notebooks -10%, software/peripherals -7%. Gross margin was 21.3%, +20 bps Q/Q but -160 bps Y/Y. $324M spent to repurchase shares. Dell is the second enterprise IT giant to recently post weak results, after Cisco. DELL -9% AH. CC starts at 5PM ET (webcast). (PR) [Tech, Earnings, On the Move] Comment!
-
4:12 PM PetSmart (PETM): Q1 EPS of $0.85 beats by $0.12. Revenue of $1.63B (+9.4% Y/Y) beats by $30M. Shares +7.1% AH. (PR) [Earnings, On the Move] Comment!
-
4:12 PM More on Wet Seal (WTSLA): Q1 misses across the board on a 5% Y/Y decline in total revenue. Net earnings also declined 6% versus the year ago period, as top line margins were hit by dismal comp store sales numbers. CEO Susan McGalla commented: "We are disappointed with our first quarter results and recent sales trends at both Wet Seal and Arden B. We are taking immediate actions to rebalance the assortments towards stronger selling categories." [Consumer, Earnings] Comment!
-
4:10 PM Market recap: Late-day selling picked up as the euro dove to lows on headlines from former Greece PM Papademos, who said a Greece exit from the euro is being considered and would have "catastrophic" consequences for Europe. A rebound in JPM lifted bank stocks. Crude oil slid 1% to $91.66 on signs of progress with Iran. NYSE decliners led advancers five to three. [Top Stories] 9 Comments
-
4:09 PM Guess? (GES): Q1 EPS of $0.30 beats by $0.03. Revenue of $579M (-2% Y/Y) beats by $8M. Shares -4.3% AH. (PR) [Earnings, On the Move] Comment!
-
4:05 PM Dell (DELL): FQ1 EPS of $0.43 misses by $0.03. Revenue of $14.42B (-4% Y/Y) misses by $490M. Expects FQ2 revenue of $14.7B-$15B, below $15.4B consensus. Shares -7.5% AH. (PR) [Tech, Earnings, On the Move] 4 Comments
-
4:04 PM Wet Seal (WTSLA): Q1 EPS of $0.02 in-line. Revenue of $147.9M (-5% Y/Y) misses by $2M. Shares -2.8% AH. (PR) [Earnings, On the Move] Comment!
-
4:00 PM At the close: Dow +0.03% to 12508. S&P +0.1% to 1317. Nasdaq -0.29% to 2839.
Treasurys: 30-year -0.44%. 10-yr -0.1%. 5-yr -0.07%.
Commodities: Crude -1.42% to $91.54. Gold -1.39% to $1566.65.
Currencies: Euro -1.06% vs. dollar. Yen +0.83%. Pound +0.51%. Comment! -
3:59 PM Seabridge Gold (SA +5.6%) has remained strong all day on no apparent news, although gold stocks of all sorts have received a flurry of interest in recent sessions. Trading volume near the close is 1.35M vs. the average daily volume of 322K shares. Options on SA had traded more than 22K times by mid-afternoon. [Commodities, On the Move] 1 Comment
-
3:58 PM Ford (F) is upgraded by Moody's one notch to Baa3 with stable outlook. Combining the move with Fitch's upgrade last month makes the automaker an investment-grade credit again. [Consumer] 5 Comments
-
3:53 PM William Blair says Expeditors (EXPD -0.4%) regulatory filing last night indicates that its soft Q1 trends continued into April and may persist in the short-term. In its defense however, the firm also believes most investors anticipated a weak environment in Q2 and continues to feel the stock is attractive at current levels. [Earnings] Comment!
-
3:49 PM Morgan Stanley housing strategist (there are any left on Wall Street?) Oliver Chang is leaving the firm to set up his own single-family housing rental fund. "I believe it represents one of the most compelling investment opportunities available across all asset classes today." [U.S. Economy] Comment!
-
3:40 PM Alongside a wave of regulatory investigations hitting market sentiment this afternoon, former Greek PM Papademos tells Dow Jones preparations for Greece exiting the euro are being considered; the risk of leaving is real. Estimates of a cost of €500B-€1T underscore the magnitude of the consequences, he says. [Global & FX] 10 Comments
-
3:35 PM "Sell your house ... yesterday," Gary Shilling tells Bloomberg. It will take 4 years, he says, to work off still-high inventories, during which time prices could fall another 20%. Turning to Facebook: "(It's) the end of the social media boom ... reminds me of Pets.com." [U.S. Economy] 15 Comments
-
3:31 PM Transocean (RIG -0.9%) says its CFO misspoke when he said the company expected the U.S. to file more charges against "ourselves and BP and Halliburton and other employees" of the companies involved in the 2010 Gulf oil spill. RIG is well prepared to defend itself in court, although it is also open to a fair settlement, Steve Cauthen had said. [Energy] Comment!
-
3:28 PM Don't give up on the commodity sector yet, writes Russ Koesterich. Even as recent action has all asset classes seemingly moving together, he reminds commodities typically provide excellent diversification from equities. Real interest rates remain negative, and commodities - especially gold - tend to outperform in these periods. [Commodities] 1 Comment
-
3:23 PM Shares of Chipotle (CMG +0.4%) slide lower off of a report that the U.S. Attorney's Office is investigating possible securities laws violations. The company already disclosed that it's been taking heat from the SEC over work authorization verification compliance. [Consumer] Comment!
-
3:18 PM Facing growing losses from its exposure to Greece (an ill-fated 2006 purchase of Emporiki Bank), France's Credit Agricole is again applying for assistance from the Greek central bank. There is little reason, however, to think the BoG will change its stance. Credit Agricole -74% Y/Y. [Global & FX, Financials] Comment!
-
3:14 PM More on SAP/Ariba: The purchase follows SAP's $3.4B acquisition of cloud HR software vendor SuccessFactors, and gives it a set of products and services that complement its core ERP software solutions. Also, Ariba's market leadership means there are no major rivals Oracle (ORCL) can acquire in response, though SciQuest (SQI +1.6%), a much smaller competitor, is rallying a bit. SAP is nearly unchanged, Ariba will resume trading at 3:15 PM ET. [Tech, M&A, On the Move] 1 Comment
-
3:13 PM ConAgra Foods (CAG +0.3%) acquires Kangaroo Brands' pita chip business for an undisclosed sum. The company says the acquisition is a good fit in its strategy for growing its presence in private label foods. [M&A] Comment!
-
3:10 PM Are cable companies lining up for a money grab? Word out of DC is that FCC chief Julius Genachowski backs a pay-for-play Internet fee model, which he claims would raise efficiencies in the market. Cable providers have already been tossing around the idea of charging customers based on Internet usage, instead of a flat fee - with Comcast (CMCSA +1.1%) going as far as saying it will test the model in two U.S. cities. [Consumer] 2 Comments
-
3:06 PM STAG Industrial (STAG -6.8%) slides after saying it plans a 7.3M share secondary stock offering. The company plans to use the proceeds to fund acquisitions, repay debt and for general working capital. [On the Move] Comment!
-
3:02 PM Patriot Coal's (PCX -29.4%) news release this afternoon offered no new information, 24/7's Paul Ausick writes. It doesn’t deny the company's need for restructuring help, and says nothing new about the $625M term loan it couldn't close last week. "Is the commitment letter signed, sealed, and delivered? Doesn’t sound like it." [Energy, On the Move] Comment!
-
3:00 PM On the hour: Dow +0.4%. 10-yr -0.19%. Euro -0.77% vs. dollar. Crude -1.13% to $91.81. Gold -1.04% to $1572.25. Comment!
-
2:59 PM SAP is acquiring cloud spend management software/B2B e-commerce network owner Ariba (ARBA) for $45/share in cash, or $4.3B. The price represents an 18% premium to Ariba's final trade before shares were halted at 2:30 PM ET. The deal will be funded using a combo of SAP's existing cash and a €2.4B term loan facility. SAP expects it to close in Q3, and be accretive to 2013 EPS. (PR) (previous) [Tech, M&A, On the Move, Breaking News] Comment!
-
2:56 PM The SEC and Finra look set to launch separate investigations of the Facebook IPO. Finra Chief Rick Ketchum calls allegations analysts for the lead underwriters leaked negative views about FB to select clients ahead of the IPO, "a matter of regulatory concern." [Breaking News, Financials, Tech] 5 Comments
-
2:47 PM Sony (SNE) throws its hat into the crowded mobile music market by releasing an iOS app for its Music Unlimited service. The service charges $3.99/month for access to "core" online music stations and a user's collection, and $9.99/month for full access to Sony's library and "premium" stations. It competes with services from Apple, Google, Pandora, Spotify, Clear Channel, MOG, Rdio, Turntable.fm, and a few other companies. [Tech] 1 Comment
-
2:46 PM Chesapeake (CHK +0.2%) stands by its plan to expand its oil production, saying it will spend 90% of its planned $7B capital budget for 2013 on drilling in oil fields, including ~40% earmarked for the liquids-rich Eagle Ford shale formation. CHK still plans on spending 7% of capex on dry gas production despite depressed gas prices. [Energy] Comment!
-
2:38 PM China Mobile (CHA +1.8%) trades higher on an upgrade to Outperform from Credit Suisse, which sees strong 3G uptake in "Tier 2" Chinese cities leading to double-digit revenue growth for the country's carriers. CS notes 2/3 of China's net adds since April '11 have involved 3G, leading its penetration rate to grow to 15.6% of phones, and that 3G subs tend to sport higher ARPUs. Outperforms are reiterated for China Mobile (CHL) and China Unicom (CHU - previous). [Tech, Quick Ideas] 1 Comment
-
2:35 PM Shares of Target (TGT +1.5%) keep trickling higher as execs at the Citi Global Consumer Conference tip off how the firm's prospects are shaping up. While the company reaffirms FY12 EPS of $4.60-$4.80, part of the focus remains up north were the company plans to open 125-130 stores in the next couple of years and see its investment start to kick into profits in 2014. (webcast) [Consumer] Comment!
-
2:26 PM Devon Energy (DVN -1.2%) slips after being downgraded to Market Perform at Wells Fargo earlier today. Wells says the company lacks a niche within the large-cap space and are likely to underperform over the next few quarters. The firm lowers its target range to $65 - $71 from $74 - $80. 1 Comment
-
2:21 PM Fast-growing enterprise videoconferencing firm Vidyo is set to close a $97M funding round that includes an investment from Juniper (JNPR). Vidyo's solutions, which use a combo of routing technology and proprietary software, have been causing headaches for market leaders Cisco (CSCO) and Polycom (PLCM), each of whom recently reported soft videoconferencing gear sales (I, II). Juniper may be interested in integrating Vidyo's tech with its own networking hardware. [Tech] Comment!
-
2:20 PM Shares of Generac Holdings (GNRC -6.1%) fall after the company announces a number of changes to its capitalization plan including cutting the size of a refinancing plan and reducing a special dividend planned for Q2 to $6/share from $10/share. [On the Move, Consumer] 1 Comment
-
2:17 PM Rent-A-Center's (RCII +1.4%) weakness has created a great buying opportunity, says Stifel Nicolaus. The firm thinks that several issues facing the company are misunderstood by investors, but thinks its EPS can compound at a 10% plus pace over the next few years. [On the Move] Comment!
-
2:13 PM Patriot Coal (PCX) says it has entered into a commitment letter for a new revolving credit facility and new term loan facility for a total of $625M. Shares had collapsed -34.5% before the announcement; trading now halted. [Breaking News, Energy, On the Move] Comment!
-
2:10 PM The Street is pricing Qualcomm (QCOM +1.2%) as if its business model is broken, says Bernstein's Stacy Rasgon. At a sub-$60 stock price, he thinks investors are pricing in a major decline in Qualcomm's royalty payments, either due to a lower rate or declining 3G/4G phone prices, and/or a drop in its chip margins. Rasgon, who has a $75 PT on Qualcomm, doesn't see either scenario as likely. (earlier) [Tech, Quick Ideas] 1 Comment
-
2:04 PM The National Association of Broadcasters files a federal court appeal to prevent new rules from being implemented that require political ad sponsors to be identified online. The big 4 networks - owned by Disney (DIS), CBS, News Corp. (NWSA), and Comcast (CMCSA) - argue public disclosure of their information and advertising rates gives an unfair advantage to cable and Internet rivals unaffected by the legislation. [Consumer] Comment!
-
2:00 PM On the hour: Dow +0.34%. 10-yr -0.19%. Euro -0.78% vs. dollar. Crude -0.91% to $92.02. Gold -0.87% to $1574.95. Comment!
-
1:48 PM Machinima, a YouTube video developer that generated 1.6B views in April, has closed a $35M funding round led by Google (GOOG). The investment, which comes a year after YouTube acquired video developer Next New Networks, underscores Google's willingness to spend heavily to turn YouTube into a top professional content hub. Those efforts appear to be paying off. [Tech] Comment!
-
1:31 PM RBC Capital questions DaVita's (DVA -3.4%) $4.4B decision to merge with HealthCare Partners, saying it's unsure whether the merger will produce a company that's worth more than the sum of its parts. [Healthcare, On the Move] Comment!
-
1:27 PM Maybe Facebook (FB) won't prove a major boon for newspapers after all: AppData reports the Washington Post (WPO) and The Guardian have each seen dramatic falls in monthly users for their Facebook "social reader" apps, following news feed changes. Peter Kafka is pleased. "I don’t need to automatically know what my friends are reading — I only want to know about the articles they want me to read." Many users might not be crazy about sharing all of their reading activity either. [Tech, Consumer] 2 Comments
-
1:22 PM Alaska, Texas, Louisiana and North Dakota have returned to their peak pre-recession employment levels, a new analysis from IHS Global Insight shows, with 16 set to do so by the end of 2013. The formula for success includes avoiding the housing bust and having lots of oil and gas. [U.S. Economy] 3 Comments
-
1:22 PM Further steps to juice its economy, Brazil announces another $1B in tax cuts and the central bank frees up about $9B in reserves in exchange for banks allowing auto loans on better terms. Perhaps disappointed with the minor measures (GDP = $2.5T), the Bovespa continues to struggle, -2.1%. [Global & FX] Comment!
-
1:17 PM As Dish Network (DISH) tells the FCC to wait until at least 2016 for a 4G network launch, MetroPCS (PCS) and T-Mobile (DTEGY.PK) are calling for the agency to require Dish to sell half of its 40 MHz. of spectrum. Like others, the carriers think Dish will try to sell some or all of its spectrum to Verizon Wireless (VZ, VOD and/or AT&T (T), thereby putting smaller rivals at a disadvantage. [Tech, M&A] Comment!
-
1:16 PM Southwest Airlines (LUV -1.1%) strikes an agreement with Delta Air Lines (DAL +0.1%) to lease the company 88 Boeing 717s after deciding it didn't need the jets acquired in its purchase of Airtran. The deal could be a win-win, with Delta able to update its aging fleet and Southwest cutting back costs by only flying 737s. [Consumer] 2 Comments
-
1:10 PM Looking to win over enterprises worried about handing major contracts to a cloud software vendor, Salesforce.com (CRM) is expanding its partnership with Accenture (ACN). As part of the deal, the companies will cooperate on R&D, and create "Cloud Centers of Excellence" in North America and Europe. Separately, Salesforce is introducing instant messaging capabilities for its Chatter business social networking software, which competes with JIVE's offerings. (earlier) [Tech] Comment!
-
1:10 PM Alexion Pharmaceuticals (ALXN +5.2%) pops after Standard & Poors announces it will replace Motorola Mobility (MMI) in the S&P 500 index after the close of trading on Thursday, May 24. [Healthcare, Tech] Comment!
-
1:05 PM The technology led revolution in energy supply in the Western hemisphere means that "the days of Opec...are numbered," writes Roger Altman in the FT. "The threat of disruptions is actually diminishing," and "no embargo...will be severely disruptive." [Energy] 5 Comments
-
1:04 PM The Treasury sells $35B in two-year notes at 0.300%. Bid-to-cover ratio of 3.95, vs. a recent average of 3.69; indirect bidders take 33.5%, vs. a recent 33.8%. Direct bidders take 9%, vs. a recent 14.4%. [U.S. Economy] Comment!
-
1:02 PM Shares of Home Depot (HD +1.4%) and Lowe's (LOW +1.3%) trade higher after existing home sales came in strong for April and provide a whisp of optimism after both names have fallen off over the last month. SA author Kraken says the lack of momentum with the pair of home improvement giants is because the stocks were priced for a recovery - an event that hasn't materialized yet. [On the Move, Consumer] Comment!
-
1:00 PM On the hour: Dow +0.37%. 10-yr -0.21%. Euro -0.64% vs. dollar. Crude -0.94% to $91.98. Gold -0.42% to $1581.95. Comment!
-
1:00 PM JPMorgan is sued on behalf of its employees, accused of violating its duties to 401(k) and other retirement plan participants by including JPM as an investment choice and hiding the stock's risk. Also named in the suit are individuals, including Jamie Dimon and Ina Drew. Shares are finally getting a bounce today, +5.3%. [Financials] 4 Comments
-
12:50 PM While not arguing against the reinstatement of Glass-Stegall, Andrew Ross Sorkin looks to explode the "myth" that it would have prevented the financial crisis. Bear Stearns, Lehman, Merrill Lynch, AIG, Fannie Mae and Freddie Mac had nothing to do with Glass Stegall, nor did the provision of lots of dodgy loans. [U.S. Economy, Financials] 2 Comments
-
12:48 PM With the end of the post-IPO quiet period at hand, analysts are out with calls on Oaktree (OAK). The leading bulls are at Morgan Stanley which says the firm's "countercyclical" strategies make it a "natural complement" to Blackstone. Among the bears is KBW, which calls the stock inexpensive but says the opportunity for Oaktree to profit from distressed strategies "has moderated." [Financials] 1 Comment
-
12:46 PM Alcatel-Lucent (ALU +0.7%) has released its 7950 XRS line, its first products for a lucrative core router market currently dominated by Cisco (CSCO) and Juniper (JNPR). The 7950 line offers very high densities and runs on Alcatel's hyped FP3 network processor, which can handle 400 Gbps transmission speeds. Carrier inertia and comfort with Cisco and Juniper's software will be major challenges for Alcatel, but Nomura is optimistic the company can carve a niche. [Tech] 1 Comment
-
12:45 PM Northern Dynasty (NAK -17.5%) rips the EPA's draft Bristol Bay watershed assessment on the potential effects of mineral development in southwest Alaska as "rushed and inadequate." NAK owns 50% of the Pebble Partnership, which aims to develop a copper-gold-molybdenum project in Alaska. [Commodities, On the Move] 1 Comment
-
12:44 PM Shares of ECOtality (ECTY +26%) jump after reporting in yesterday's after-hours session that its Q1 revenue increased 215% Y/Y to $13.7M, compared to Q1 2011 revenue of $4.3M. The increase was largely attributed to the continued outperformance of the company's network infrastructure unit and by a Blink network licensing agreement. (PR) [Earnings, On the Move] Comment!
-
12:40 PM Urban Outfitters (URBN +7.4%) CFO Francis Conforti highlights in an earnings CC that online growth is big part of the company's future as direct-to-consumer sales rose to $115M during Q1, largely driven by the 35% Y/Y increase in website traffic. Similar to news breaking from Macy's yesterday, the company also says it will be able to realize inventory efficiencies by selectively fulfilling online orders from stores. [Consumer] Comment!
-
12:38 PM China Gerui Advanced Materials (CHOP +18.2%) shares are strong after the cold-rolled steel production company reaffirms its 2012 estimates, expecting revenue of $395M-$410M vs. $404M analyst consensus and EPS of $1.32-$1.37 vs. $1.27 consensus. Q1 EPS of $0.24 beat consensus, while revenue of $73M missed. [Earnings, Commodities, On the Move] Comment!
-
12:35 PM Three lunchtime reads:
1) Where are gold prices headed: flat, down or up?
2) Smack! The BRICs hit a wall of their own making
3) Fed pondering why inflation and deflation threats ebbed [Commodities, Global & FX, U.S. Economy] Comment! -
12:33 PM United Tech (UTX +0.9%) CEO Louis Chenevert tells an investor conference that he's confident that the company's $16.5B acquisition of Goodrich (GR +0.4%) will close in July despite the EU giving itself until the end of August to complete an antitrust review. "We have done the right things to wrap this deal up," Chenevert says. [M&A] Comment!
-
12:28 PM Apple (AAPL) still has the world's most valuable brand, according to BrandZ's annual study, which estimates its value has risen 19% Y/Y to $182.9B. IBM is believed to have passed Google (GOOG) for the #2 spot thanks to a 15% increase, while McDonald's (MCD) is seen holding steady at #4 in spite of a 17% gain. Also in the top 10: Microsoft (MSFT), Coca-Cola (KO), Marlboro (PM), AT&T (T), Verizon (VZ), and China Mobile (CHL). [Tech, Consumer] Comment!
-
12:26 PM Eaton's (ETN) proposed incorporation in Ireland once its completes its $11.8B acquisition of Cooper (CBE) will allow the combined company to enjoy the country's 12.5% corporate tax rate, saving $160M a year. Eaton will follow seven other U.S. companies that in recent months have renounced their U.S. corporate citizenship through relocation. [U.S. Economy] 5 Comments
-
12:22 PM Despite some individual names being taken out and shot, the consumer discretionary sector (XLY) continues a near year-long trend of outperforming the S&P, notes Bespoke. The weakest sectors - energy (XLE), industrials (XLI), materials (XLB) - suggest maybe slowing in China is driving macro more than events in Europe. 1 Comment
-
12:19 PM Patriot Coal (PCX -28.6%) plunges and is pulling all coal stocks (KOL -1.8%) lower, due to a report the company has fielded informal pitches from bankruptcy advisors. Last week, PCX delayed a refinancing after disclosing a potential contract cancellation from a key customer. ACI -7%, JRCC -6.3%, ANR -5.1%, BTU -3.8%, WLT -3.5%, CNX -2.3%. [Energy, On the Move] 10 Comments
-
12:19 PM In tandem with Windows 8's fall launch, AMD is planning to release a new low-voltage CPU line, codenamed Hondo. Though based on an older 40nm manufacturing process, Hondo chips will consume only 4W-5W of power, making them rivals to Intel's (INTC) upcoming Clover Trail CPUs. AMD's Trinity CPU line, released last week, has been praised for its battery life gains, though commentary about its performance has been muted. [Tech] Comment!
-
12:15 PM Roth Capital takes advantage of a 66% price drop over the past year to upgrade Uroplasty (UPI -2.1%) to Buy on valuation. Roth says the company is well positioned for higher relative growth and has better margins versus its peers. [Healthcare] Comment!
-
12:06 PM "The bar ... should remain high," says Atlanta Fed President Lockhart, responding to questions about further QE. "I would have to see a serious deterioration of the economy ... "real layoffs, real job destruction," he adds, suggesting it's going to take more than a few weeks of falling stock prices to spur him on. [U.S. Economy] 3 Comments
-
12:05 PM InterActiveCorp-backed (IACI +1.1%) Aereo succeeds in getting an unfair competition claim that was part of a lawsuit attempting to shut down its $12/month local TV streaming service dismissed. A ruling is still pending on a copyright infringement claim. Broadcasters such as CBS, ABC, NBC, and Fox accuse Aereo of depriving them of retransmission fees from pay-TV providers (ed: the pay-TV providers aren't thrilled about paying for content that's aired for free). [Tech, Consumer] Comment!
-
12:05 PM Amidst Sony's (SNE -0.3%) global woes, a bright spot is India, where the company forecasts that sales will jump 30% this FY from $1.15B last year as it benefits from rising incomes. [Tech, Consumer] Comment!
-
12:00 PM On the hour: Dow +0.39%. 10-yr -0.23%. Euro -0.65% vs. dollar. Crude -0.65% to $92.25. Gold -0.31% to $1583.75. Comment!
-
11:58 AM Chinese demand for copper is likely to improve in H2, the head of Xstrata's (XSRAF.PK) copper unit says, as the miner pledges to lift output by ~60% over three years even as rivals such as BHP and RIO have put the brakes on expansion. Recent data from China show its economy cooling faster than expected, prompting premier Wen Jiabao to call for new growth measures. [Commodities, Global & FX] Comment!
-
11:57 AM Ralcorp (RAL -0.1%) says it will report FQ2 earnings after the market closes today after twice delaying its report. [Consumer] Comment!
-
11:53 AM CareFusion (CFN +0.2%) receives an FDA warning letter regarding a manufacturing site in Mexico where it found violations and that a company follow up dated February 13 was not adequate. The FDA claims that CFN's facility, Productos Urologos de Mexico SA, failed to uphold adequate procedures in regards to correcting issues related to device errors. [Healthcare] Comment!
-
11:50 AM It's the citizens of Macau who may hit the jackpot as gaming operators such as Las Vegas Sands (LVS +1.9%) and Wynn Resorts (WYNN +0.6%) face a labor shortage on the thinly-populated island with rules in place that allow only local citizens to work certain key roles. The inevitable result for the casinos setting up shop for 28M visitors amid 2% local unemployment will be wages that spike higher. [Consumer, Global & FX] Comment!
-
11:48 AM Genetic Technologies (GENE) +39% after the Aussie biotech releases a positive business update for BREVAGen, which is used to test for certain genetic variations that are associated with an increased risk of developing breast cancer. [On the Move, Healthcare] Comment!
-
11:47 AM European markets close sharply higher, a rare breather from a 2-month 17% rout (for the broad index). Stoxx 50 +2%, Germany +1.6%, France +1.9% Italy +3.2%, Spain +2.1%, U.K. +1.9%. Euro -0.6% to $1.2743 as pressure is sure to come on the ECB to ease policy further. [Global & FX] Comment!
-
11:46 AM The massive oil fields in the Santos Basin cluster found off Brazil's coast by Petrobras (PBR -1%) and its partners hold 15B-20B barrels of oil to be developed, CFO Almir Barbassa says. Oil from the region will start being produced in the next three to four years and "we will soon be cash-flow positive," Barbassa says. [Energy, Global & FX] Comment!
-
11:42 AM Goldman's Bill Shope is encouraged by the huge product refresh announced yesterday by EMC (EMC +0.7%). Shope sees the company's new VMAX systems allowing it to re-take share in the high-end storage market, and believes its OneFS system, a product of the Isilon acquisition, will put EMC on better footing in the network-attached storage (NAS) market relative to NetApp (NTAP). He also likes EMC's continued embrace of flash memory. (earlier) [Tech, Quick Ideas] Comment!
-
11:36 AM A bull on mortgage REITs, Dividend Master nevertheless unloads American Capital Agency (AGNC) and American Capital Mortgage (MTGE). AGNC's and MTGE's share prices tower by about 10% over their book values ($29.06 and $21.78 respectively, as of 3/31). Expect secondaries soon to "monetize the premium." [Financials] 17 Comments
-
11:35 AM CalSTRS plans to keep the heat on Wal-Mart (WMT +0.7%) by using its 5.3M shares to vote against the entire sitting board at the company. It's not a shocker considering the teachers retirement fund filed suit against the company two weeks ago and has been a vocal shareholder in the past. (Previous: Proxy firms on WMT vote) [Consumer] 5 Comments
-
11:34 AM Facebook's (FB) precipitous decline yesterday tripped a circuit-breaker just 15 minutes after the open and triggered restrictions on shorting. The break will remain in place until the end of today's session. Finra data shows that 23.6M Facebook shares were shorted on Friday and 6.4M yesterday. [Tech, On the Move, Consumer] 3 Comments
-
11:21 AM What those bearish on stocks have to contend with - Morgan Stanley provides a summary of possible central bank firepower over the coming month. (via) [Global & FX, U.S. Economy] Comment!
-
11:20 AM More on Hugoton Realty Trust (HGT -23%): The company disclosed late Friday it will bear ~80% of a $29.6M XTO Energy (XOM) settlement, which is expected will cause costs to exceed revenues for HGT in its Oklahoma and Kansas properties and affect the Trust's distributions going forward. (earlier) [Energy, On the Move] Comment!
-
11:19 AM Stephens initiates coverage on Starbucks (SBUX +0.1%) with an Overweight rating and $66 price target after seeing shares slip 10% over the last month. The bullish vibe is nothing new on the Street, with 22 out of 28 analysts rating the stock a Buy or Overweight and nary an analyst coming in below a Hold. [Consumer] Comment!
-
11:16 AM Sterne Agee says concerns over commercial aerospace companies generating excess capacity are overblown, as Boeing's (BA +0.3%) backlog deferral rates are at trough levels and the growth of the global fleet shows no signs of a slowdown. The firm reiterates its Buy rating on the shares. 2 Comments
-
11:16 AM Millennial Media (MM +11.2%) rallies some more (previous) off of last week's lows after CEO Paul Palmieri makes a CNBC appearance (video) that touches on mobile ad monetization. Fellow mobile ad player Velti (VELT +6.2%), crushed last week following its Q1 report, is also jumping. [Tech, On the Move] Comment!
-
11:12 AM Shares of Hugoton Royalty Trust (HGT -22.9%) plunge as a Sir Perfluis analysis on Seeking Alpha says "purchasing HGT units at current prices is like buying 60 cents for a dollar... Quite literally, unless natural gas prices stage a rally, a current HGT unit-holder can expect to receive total cash flows of less than the current share price." [Energy, Quick Ideas, On the Move] 6 Comments
-
11:08 AM SEC Chairwoman Mary Schapiro tells the Senate Banking Committee that the agency will look into the "appropriateness and completeness" of JPMorgan's (JPM) financial reporting following its $2B+ trading losses. Schapiro was speaking at hearings to examine implementing derivatives reform. [Financials] Comment!
-
11:07 AM Shares of Quantum Fuel Systems (QTWW +15.1%) power up a rally after the firm outlines its plans to stick to a core automotive technology focus and make a series of cost-savings initiatives. The news comes in the wake of a big management shakeup at the company earlier this month. [On the Move, Consumer] Comment!
-
11:03 AM Now that the merger is official, Bloomberg BusinessWeek has published a lengthy piece on Google's (GOOG) plans for Motorola (MMI), and the background of new Motorola chief Dennis Woodside. Woodside promises not to ask for special treatment from the Android unit, but wants to use Google's resources towards goals such as improving battery life and camera image quality. It's added Google will be creating a new Motorola R&D lab focused on advanced technology projects. [Tech, M&A] Comment!
-
11:03 AM Hanger Orthopedic (HGR -1.2%) slips after saying its CEO Thomas Kirk, has decided to retire. In accordance with its succession plan, current President and COO Vinit Asar, has been appointed to succeed Mr. Kirk and has joined the board of directors. [Healthcare] Comment!
-
11:00 AM On the hour: Dow +0.54%. 10-yr -0.27%. Euro -0.47% vs. dollar. Crude -0.22% to $92.66. Gold -0.07% to $1587.65. Comment!
-
10:56 AM Investors can grab Plains All American Pipeline (PAA +1%) and its 5.3% dividend yield even cheaper than director Gary Petersen did when he bought 5K shares on May 17 at $79.47 each, DividendChannel writes. A long-term dividend history chart strongly suggests PAA is likely to continue paying a comparably attractive dividend. [Energy, Quick Ideas] Comment!
-
10:55 AM A nice bookend to Goldman's bell-ringing March 21 buy stocks/sell bonds call, David Kostin and crew are today out with a bearish note warning about poor near-term prospects for stocks. The S&P vs. Treasurys in the period before and after the March 21 boner. 1 Comment
-
10:53 AM Shares of Ralph Lauren (RL) are falling fast - now up only 2.4% after sporting an early 9% gain - as the company explains on a CC that macro concerns remain in place in Europe, Asia, and the U.S. The more execs talk, the more the shine comes off the firm's FQ4 earnings beat. (webcast) [On the Move, Consumer] Comment!
-
10:48 AM Nordson (NDSN) +9.4% after its guidance yesterday offsets an FQ2 miss. Net profit -20% to $52.1M as lighter organic volume and higher expenses weakened margins. Nordson also announced the $200M buy of extrusion-dies producer EDI. In FQ3, Nordson expects EPS of $0.96-$1.04 vs. forecasts of $0.86 and revenue of $337M-$$349M vs. $326M. [Earnings, M&A] Comment!
-
10:43 AM Global Hunter fires up Buy ratings on a number of shipping stocks including Diana Shipping (DSX +2.5%), DryShips (DRYS +9.5%), Safe Bulkers (SB +2.1%), and Baltic Trading (BALT +4.5%) - while starting Eagle Bulk Shipping (EGLE -0.9%), Excel Maritime (EXM -1.8%), Genco Shipping (GNK +1.1%) with below-keel Reduce ratings. While individual names in the sector tend to get tied up with momentum trading, the overriding theme has been a moderate bounce back off of a 25-year low in the Baltic Dry Index in February. Guggenheim Shipping ETF (SEA) +8.1% YTD. [On the Move, Consumer] 1 Comment
-
10:42 AM Despite the fiscal compact being "misguided and poorly conceived," it's clearly in Ireland's interest to vote for it, writes Megan Greene. Why? Because Ireland is going to need another bailout and can't draw funds from the ESM if it rejects the treaty. The treaty is moving forward with or without Ireland - voting "no" accomplishes nothing for the country. [Global & FX] 1 Comment
-
10:40 AM Nigeria's oil minister says it expects to renew onshore oil drilling licenses with Chevron (CVX) and Royal Dutch Shell (RDS.A, RDS.B) by June. Several licenses that expired as far back as 2008 have been in negotiations between foreign oil majors, Nigeria's state-oil firm and government for years. [Energy, Global & FX] Comment!
-
10:36 AM Preferential treatment from TSMC (TSM) or not, Qualcomm's (QCOM) 28nm baseband chip shortage is leading the likes of Samsung (SSNLF.PK), LG (LGEAF.PK), and HTC to worry they won't be able to meet 4G phone demand. While 4G devices make up only a small percentage of global phone sales, they account for a much larger chunk of high-end sales. And shipments are expected to surge in 2H thanks to the Samsung Galaxy S III and next-gen iPhone. (previous) [Tech] Comment!
-
10:32 AM Humana (HUM +2.4%) gets a boost from an upgrade to Outperform on valuation at Wells Fargo. The firm says the company is well positioned to gain market share from Medicare Advantage, as well as the growing senior demographic. In addition HUM's niche business insulates it from the upcoming Supreme Court ruling on health reform, making it a less risky alternative compared to its peers. [Healthcare, On the Move] Comment!
-
10:26 AM Germany will tomorrow auction bonds with a zero coupon for the first time, underscoring its status as the ultimate safe haven despite the chaos that surrounds it. Germany plans to sell €5B ($6.41B) of two-year notes as investors seek merely "the return of capital rather than the return on capital." [Global & FX] 5 Comments
-
10:22 AM The selloff in Chesapeake Energy (CHK +0.2%) creates a buying opportunity, Oppenheimer says while maintaining its Outperform rating and $28 price target. CHK is accelerating its liquids production growth and asset monetization, and the firm thinks its net asset value after pending asset sales is above its current share price.
[Energy, Quick Ideas] 3 Comments -
10:18 AM More on Existing Home Sales: Seasonal supply at 6.6 months, up from previous level of a 6.2-month supply. The national median existing-home price for all housing types jumped 10.1% Y/Y to $177,400. Foreclosures and short sales sold at deep discounts accounted for 28% of monthly sales, down from 37% a year ago. [U.S. Economy] 3 Comments
-
10:17 AM Microsoft (MSFT) has added facial expression-recognition capabilities to its Kinect motion sensor, courtesy of a software update. The update allows the Kinect to track joints in the upper body, as well as to identify users when sitting. It could prove useful as Microsoft moves forward with its plans to bring the Kinect to PCs. [Tech] 2 Comments
-
10:09 AM Arena Pharmaceuticals (ARNA) +4.7% to $6.24 after it yesterday completed its secondary public offering and underwriters fully exercised their option to purchase additional stock. Arena sold almost 12.65M shares at $5.50 each, raising nearly $70M. [Healthcare, On the Move] Comment!
-
10:09 AM EnerNOC (ENOC +12%) shares surge after Needham raises its rating to Buy from Hold, believing the stock has bottomed and should become more attractive to long-term investors. The firm says ENOC isn't another Comverge (now private), "as the company has far more substantial scale, prior history of profitability, and healthier overall capitalization." [Energy, Quick Ideas, On the Move] Comment!
-
10:08 AM Hard drive kingpins Seagate (STX -6.8%) and Western Digital (WDC -4.8%) trade lower following analyst commentary about high inventory levels. Controller chip suppliers LSI (LSI -6.7%) and Marvell (MRVL -2.3%) are falling in sympathy. (previous) [Tech, On the Move] Comment!
-
10:06 AM The Conference Board's April leading index for China rises 0.8%, matching March, and down from 1% in February. However, Andrew Polk from the Board isn't yet comfortable calling for a pick-up in growth in H2, instead wanting to see if recent easing policies start to filter through to the economy. Isn't that what the leading indicator is supposed to indicate? [Global & FX] 1 Comment
-
10:03 AM April Existing Home Sales: +3.4% to 4.62M vs. 4.66M expected, 4.47M prior (revised from 4.48M). [U.S. Economy] 4 Comments
-
10:00 AM May. Richmond Fed Mfg. Survey: -10, to 4 (above 0 = growth). Shipments -18 to 0, new orders -12 to 1, jobs +6 to 16. [Breaking News, U.S. Economy] 4 Comments
-
10:00 AM On the hour: Dow -0.1%. 10-yr -0.25%. Euro -0.49% vs. dollar. Crude -0.69% to $92.22. Gold -0.54% to $1580.05. Comment!
-
10:00 AM Delta Air Lines (DAL +0.1%) pilots have tentatively approved a new labor agreement which would provide a series of pay hikes from 2013 to 2015, according to union reps. [Consumer] Comment!
-
9:59 AM “LNG holds great potential as a transport fuel,” Shell (RDS.A) believes, and its plan to spend $250M on a liquefied natural gas plant and a string of filling stations in Canada is the biggest single investment yet in making it happen. For now, LNG is mostly suitable for long-haul trucks with large gas tanks, but that's a big business; U.S. truckers spent ~$135B on fuel last year. [Energy] Comment!
-
9:56 AM FDA reviewers recommend rejecting Pfizer's Tafamidis for treating a rare neurodegenerative disease, as the data doesn't prove that the drug works well enough. An advisory panel is set to vote on Tafamidis tomorrow, after which the agency will make a final decision at a later date. [Healthcare] Comment!
-
9:53 AM Cree (CREE -9.3%) plummets after announcing CFO John Kurtzweil has resigned to become the CFO of Extreme Networks (EXTR +4.1%). Corporate controller Michael McDevitt will serve as Cree's interim CFO while a search is conducted for a full-time replacement. At Extreme, Kurtzweil replaces interim CFO Jim Judson. (CREE PR) (EXTR PR) [Tech, On the Move] Comment!
-
9:51 AM It may not work, writes Jeremey Siegel, but the ECB's best hope of saving EMU is to trash the currency upon which it is built. A devalued euro will bring some relief to the periphery by boosting trade, while pumping a bit more inflation into the German economy - a small price to pay to save the union. [Global & FX] Comment!
-
9:51 AM The public launch of CKE Restaurants - owner of burger chains Carl's Jr. and Hardee's - doesn't appear set to pose an imminent threat to McDonald's (MCD +0.1%) due to the pile of challenges at the cash-strapped company. Funds from the IPO are already earmarked for paying off debt, instead of going to upgrade company-owned restaurants in near-desperate need of a facelift. [Consumer] 2 Comments
-
9:46 AM The Hellenic Financial Stability Fund is reportedly scheduled to transfer €18B ($23B) of recapitalization money to Greek banks by Friday as part of the country's bailout. An FT report says the banks are being propped up by Greece's central bank. [Global & FX] Comment!
-
9:43 AM It's happening again. Facebook (FB -7%) dives in early trading to $31.65 - shares are now down 17% from their $38 IPO price, though the company's multiples are still high. If Facebook doesn't soon reverse course, class-action suits over last week's increase in its offering price may just be a matter of time. (also) [Tech, On the Move] 10 Comments
-
9:41 AM American Express (AXP) expands its push into the Social Network, going after the FarmVille crowd by rolling out a line of co-branded prepaid cards with Zynga. Users won't need a credit check, but will need to sign up for a Serve account, which can be funded from existing bank accounts, or debit/credit cards. [Financials] Comment!
-
9:39 AM Half of all S&P 500 stocks now yield more than the 10-year Treasury note's record low 1.74%, according to Bespoke. There are 271 stocks in the S&P 500 with a greater yield than the 10-year Treasury; of the remaining 229 stocks in the index, 126 have a dividend yield less than the 10-year, while 103 pay no dividend at all. [Quick Ideas] Comment!
-
9:31 AM At the open: Dow +0.03% to 12509. S&P +0.16% to 1318. Nasdaq +0.12% to 2851.
Treasurys: 30-year -0.51%. 10-yr -0.19%. 5-yr -0.08%.
Commodities: Crude -0.41% to $92.47. Gold -0.43% to $1581.85.
Currencies: Euro -0.46% vs. dollar. Yen +0.71%. Pound +0.34%. Comment! -
9:29 AM U.S. Energy (USEG) strikes a deal with privately-held Mueller Exploration to participate in the oil-rich Woodbine Sub-Clarksville 7 project located in Texas. USEG will pay $1.7M in cash to earn an initial 26.5% working interest in ~6,766 gross acres. [Energy] Comment!
-
9:26 AM 9to5 Mac provides the latest rumor about the next iPhone sporting a larger display. According to its source, Apple (AAPL) has two iPhone prototypes in testing that sport a 3.95" display with an 1136x640 resolution (the 4S' has a 960x640 resolution), which indicates a wider aspect ratio. It's added Apple is testing versions of iOS 6 that are custom-built for the larger display. If the rumor is true, some developers might not be thrilled about the change in dimensions. (previous) [Tech] 4 Comments
-
9:25 AM Speaking to reporters on the release of an IMF report urging the U.K. to print more money, agency head Lagarde pretty much makes an outright call for eurobonds. Such "fiscal-liability sharing" remains staunchly opposed to by Berlin (with Austria adding support today). [Global & FX] Comment!
-
9:22 AM Tesla Motors (TSLA) announces that it will begin deliveries of its Model S on June 22. The car marks an "all-in" bet by Tesla, with 90% of the company's revenue this year forecast to come from the sedan. Shares +4.3% premarket, helped in part by an initiation from Maxim Group at Buy. [Consumer] 1 Comment
-
9:18 AM Anglo American (AAUKY.PK) and Chilean copper miner Codelco agree to restart settlement talks in hopes of avoiding a long legal battle over the ownership of copper mines in Chile worth as much as $22B, FT reports. The two have been at odds since last fall, when Codelco raised $6.8B to exercise an option to buy a 49% stake in Anglo's Sur mining property. [Commodities] Comment!
-
9:15 AM Market preview: Stock futures are mixed and Europe is all green, with neither seeming to be particularly affected by Fitch's downgrade of Japan. S&P Benchmark +0.1%. Best Buy shot up over 8% following earnings but fell just as rapidly and is now just +0.2%. Facebook's (-3.3%) slide continues, while Express plummets 23% following a profit warning. Later: Richmond Fed Mfg., Existing Home Sales [Top Stories, On the Move] Comment!
-
9:14 AM Next targets for cost-cutting at MetLife (MET) may be its annuities and U.S. retail life insurance businesses, suggests Macquarie's Sean Dargan. "The company can achieve higher returns elsewhere," he says, and indeed the company appears to be focusing more on growth prospects in emerging markets. [Financials] Comment!
-
9:14 AM Shares of Express (EXPR) nosedive 22.1% premarket after the company issues a lackluster Q1 report and strikes a downbeat tone for Q2. Sales growth is slipping at the company, while it also took on extra costs related to changing its mind over the location of its flagship NYC store. [On the Move, Consumer] Comment!
-
9:13 AM EMC has acquired Syncplicity, a provider of enterprise cloud storage services, for an undisclosed sum. Snycplicity, whose services compete with Box (formerly Box.net) and Dropbox, complements EMC's Documentum content management software business, and provides it with another value-added service to sell. The purchase comes shortly after a major product refresh that emphasized the cloud-readiness of EMC's solutions. There's some overlap between Syncplicity and VMware's (VMW) Project Octopus. [Tech, M&A] Comment!
-
9:09 AM Chipotle (CMG) could see legal fines related to a SEC probe on employee work authorizations, according to Miller Tabak's Stephen Anderson. The company disclosed in a SEC filing last week that it had received a broad subpoena for employee documents. [Consumer] Comment!
-
9:07 AM Redbook Chain Store Sales: +2.7% Y/Y vs. +3.7% prior week. The cool and wet weather led to decline in apparel sales, lawn & garden sales, and sales of sporting goods. [Consumer] Comment!
-
9:02 AM Google (GOOG) closes its $12.5B acquisition of Motorola Mobility (MMI), which remains a separate business. Motorola CEO Sanjay Jha has stepped down and been replaced by "long-time Googler" Dennis Woodside, who was President of Google's Americas region and who has already initiated an executive shakeup at Motorola. (PR) [Tech, Consumer, Top Stories] Comment!
-
9:01 AM BlackRock (BLK), along with Waddell & Reed (WDR) and Norway's SWF purchase a 20% stake in Formula One Group from CVC Capital Partners for $1.6B ahead of its Singapore IPO (expected next month). [M&A] Comment!
-
9:01 AM Shares of Benihana (BNHN) come off a trading halt to move up 21.3% premarket after receiving a go-private offer from Angelo, Gordon & Co. Following P.F. Chang's China Bisto own rocket ride after going private earlier this month, a number of other similar-sized restaurant sector names could be on watch. KONA, CHUX, BHRI, TXRH, CASA. [M&A, On the Move, Consumer] Comment!
-
9:00 AM On the hour: S&P +0.02%. 10-yr -0.17%. Euro -0.55% vs. dollar. Crude -0.33% to $92.56. Gold -0.63% to $1578.75. Comment!
-
8:57 AM Royal Dutch Shell (RDS.A) believes rising natural gas demand will underpin its future profits, even though oil pricing still accounts for 80% of its margins, CEO Peter Voser says. The long-term nat gas pricing outlook remains strong despite current low prices, Voser says, as Asian-Pacific customers increasingly switch from powering their industrial plants with oil to gas. [Energy] Comment!
-
8:55 AM No capital has disappeared; JPMorgan's CIO losses just represent a shift in money from one entity to others. Among the those scoring gains either for themselves or clients are Goldman Sachs and Bank of America. Boaz Weinstein's Saba Capital is reportedly +16% in May after publicly recommending buying the security JPM was short. [Financials] 1 Comment
-
8:51 AM Behind the Best Buy (BBY) numbers: The earnings beat knocked out by the retailer was boosted by a favorable tax rate, 30.6% compared to 34.6% previous. In addition, a seemingly strong free cash flow number is blunted by factoring in the large jump in account payable to $1.2B from a $561M a year ago. Shares +0.7% premarket. [Consumer] 2 Comments
-
8:44 AM Glencore (GLCNF.PK) indirectly boosts its stake in Congolese copper and cobalt company Mutanda Mining to 60% through two stake purchases for $340M. The deals move the commodities giant closer to merging its Congo mining operations into a combined entity able to produce 160K tons of copper cathode a year and 23K tons of cobalt in hydroxide by 2013. [Commodities, Global & FX] Comment!
-
8:44 AM Proxy advisors ISS and Glass Lewis & Co. both issue recommendations that shareholders of Wal-Mart (WMT) vote against CEO Michael Duke and other key board nominees due to the lack of judgement shown in the company's affairs in Mexico. The drive to make sweeping changes at Wal-Mart may be facing an uphill climb with shares just etching out their highest mark since 1999. WMT -0.2% premarket. [Consumer] 1 Comment
-
8:41 AM While "re-shoring" may be happening, it's not creating that many jobs. A case in point: Whirlpool returning the production of its KitchenAid hand mixers brought just 25. Harry Moser of the Reshoring Initiative reckons 25K jobs have returned to the U.S. in recent years and thinks that the potential is far greater. [U.S. Economy] 1 Comment
-
8:36 AM Georgia Gulf (GGC) +1.2% premarket after reinstating payment of quarterly dividends for the first time in four years, a reflection of its efforts to pay down debt and generate “substantial free cash flow," CEO Paul Carrico says. The $0.08/share dividend is the same level paid before it was suspended in 2008. [On the Move] Comment!
-
8:32 AM Analysts at Facebook's (FB) lead underwriters cut their revenue estimates ahead of the IPO, reports Reuters, passing the information on to a few of their key clients. "My biggest hedge fund client told me they lowered their numbers right around mid-roadshow," says an IPO researcher. He still bought the issue, he says, but flipped it immediately and went short. Shares -3.8% premarket. [Tech] 15 Comments
-
8:31 AM GameStop (GME) CEO Paul Raines adds another 6,570 shares to his position in the company to take his stake up to 546,012 shares, according to a SEC filing. GME +1.0% premarket. [Consumer] Comment!
-
8:27 AM Benihana (BNHN) will go private, agreeing to be acquired by Angelo, Gordon & Co.'s Private Equity Group for ~$296M; the $16.30/share price represents a premium of 46% over the average closing price for the 30 days ended March 13, 2012, when BNHN announced it was exploring strategic alternatives. Trading halted. [M&A, Consumer] Comment!
-
8:18 AM Shares of Ralph Lauren (RL) move down 2.4% in premarket trading after the company beats the earnings estimates of analysts with its FQ4 report and doubles its quarterly cash dividend to $0.40 a share. Analysts are already using the report as a possible indication that luxury names have been beaten down too much on Europe sales concerns with Ralph Lauren overcoming its exposure to the continent. As for that share movement, the speculative buzz says the company may have lowballed its guidance intentionally to tee up a beat down the road. [On the Move, Consumer] Comment!
-
8:15 AM UN atomic inspectors and Iran reach agreement that will allow the IAEA to inspect suspected nuclear weapons sites, possibly opening the door to a deal to ease sanctions which could push crude oil prices down another $5/bbl or more. Iran's incentive: Its crude shipments are stalled, with ~40M bbls floating around in the Persian Gulf with nowhere to go. [Global & FX, Energy, Commodities] 4 Comments
-
8:12 AM Facebook (FB -2.4%) continues to fall as the blame game starts over responsibility for its 11% slump yesterday. Among the chief names are Morgan Stanley (MS), the lead underwriter; Nasdaq (NDAQ), for the tech problems on Friday; and of course Facebook. Among the criticisms: the price was too high and too many shares were sold. [Tech, Consumer, On the Move] 2 Comments
-
8:10 AM ICSC Retail Store Sales: -1.7% W/W, vs. -0.8% last week. +3.8% Y/Y, vs. +4.5% last week. The report notes little positive effect from favorable weather or from lower gas prices. [U.S. Economy] 1 Comment
-
8:06 AM Late to the mutual fund game, Wells Fargo (WFC) looks to aggressively grow its $444B unit internationally, taking advantage as European firms pull in their horns. Key, says Morningstar, will be overcoming the perception that bank and insurance-run mutual funds are among the most expensive. [Financials] 1 Comment
-
8:06 AM The FTC speeds up its investigation of Google's (GOOG +0.3%) competitive practices, Bloomberg reports, asking for information from rivals about the company's behavior. The requests to the firms, which include eBay (EBAY), were sent prior to the EU saying yesterday that Google has a "matter of weeks" to resolve a probe and avoid possible fines. [Tech, Consumer] Comment!
-
8:03 AM More on Best Buy (BBY): The company plans to keep a $750M-$1B share repurchase plan percolating right along - a move that NBG's Brain Sozzi calls surprising. Retail analyst Rahul Sharma also remains unconvinced about the Q1 report, saying BBY's malaise is spreading to its international segment. Shares +8.5% premarket in bouncy trading. [Consumer, On the Move] Comment!
-
8:00 AM On the hour: S&P +0.3%. 10-yr -0.19%. Euro -0.42% vs. dollar. Crude -0.04% to $92.83. Gold -0.46% to $1581.35. Comment!
-
7:52 AM Cowen upgrades Aeropostale (ARO) to Outperform from Neutral. Analysts with the firm cite the specialty retailer's fashion mix and potential to improve margins in lining up the rating. Just last week, weak margins were the theme at Aeropostale when it reported profits slipped dramatically compared to a year ago. [Consumer] Comment!
-
7:50 AM Medtronic on (MDT) FQ4: Net profit rises to $991M from $776M, benefiting from growth across MDT's businesses and geographies - particularly in emerging markets - and strong product launches. Guidance: FY 2013 revenue growth 2%-4%, EPS of $3.62 to $3.70 vs. consensus of $3.66. Shares +2.65%. [Earnings, Healthcare] Comment!
-
7:50 AM European markets are at session highs, bouncing from an ugly few weeks of trade. Stoxx 50 +1.3%, led by Italy +2.6%. Germany +1%, Spain +1.1%. S&P futures turn back to green, +0.3%. Interestingly, the euro is lower by 0.5%. Could the break in correlation suggest easier monetary policy is about to come to the continent? [Global & FX] 1 Comment
-
7:45 AM More on Best Buy's (BBY) Q1: Comparable-store sales down 5.3%, led lower by 10.5% fall in international sales. Domestic segment online revenue growth +20% Y/Y. Domestic segment mobile phones growth +13% Y/Y. Revenue per square foot flat compared to last year. Maintain FY13 EPS guidance of $3.50-$3.80. Shares +4.6% premarket. (PR) [Earnings, On the Move] Comment!
-
7:43 AM CME Group has been eliminated from the bidding process to purchase the London Metal Exchange (LME), say sources, leaving just the ICE and Hong Kong Exchanges and Clearing as possible suitors. [Financials, M&A] Comment!
-
7:37 AM Financial discipline, not the "nonsense" put forth by France's Hollande will resolve the EU debt crisis, says Austrian finmin Maria Fekter, clearly placing her country in the German camp as a power battle shapes up in the eurozone. "Growth financed by debt? Those are the recipes ... (that) got us into this whole mess." [Global & FX] 1 Comment
-
7:35 AM Best Buy (BBY): Q1 EPS of $0.72 beats by $0.13. Revenue of $11.6B (+2% Y/Y) beats by $110M. Shares +7.9% premarket. (PR) [Breaking News, Earnings, Consumer, On the Move] Comment!
-
7:29 AM As of last Friday, Jeff Saut's key technical indicators were in historic negative territory. In past cases, he says, major market averages were higher a month later 92% of the time. "You can have cheap equity prices, or you can have good news, but you can't have both," says Joe Rosenberg. We currently have "bad news" and "cheap prices." Take advantage. Comment!
-
7:25 AM Las Vegas Sands (LVS) decides to pass on building a casino in Massachusetts, saying the state's plan to allow three casinos in the region will dilute the Boston-area market. The decision comes about a month after Wynn Resorts bailed out of plans to develop in the region after a groundswell of local opposition arose against it. [Consumer] Comment!
-
7:23 AM Medtronic (MDT): Q4 EPS of $0.99 beats by $0.01. Revenue of $4.3B (+3% Y/Y) beats by $70M. (PR) [Earnings, Healthcare] 2 Comments
-
7:16 AM Goldman Sachs reiterates its Sell rating on Campbell Soup (CPB) after the company recorded a "low quality" earnings beat in FQ3. Analysts with the firm see the core U.S. soup segment as a major issue, with price increases at risk of driving down sales. [Consumer] Comment!
-
7:10 AM Comcast (CMCSA) launches Xfinity TV on its X1 next-generation cloud-enabled TV platform. The company says the service - available soon for HD/DVR customers - will use cloud servers to integrate customized apps, social media, and traditional video services - all controlled by an iPhone or iPod touch if desired. [Consumer] 1 Comment
-
7:02 AM United Airlines (UAL) plans to add daily nonstop service to Tokyo from Denver International Airport - the first carrier to fly direct to Asia out of Denver. The move continues an industry trend of unprofitable European routes getting trimmed in favor of new Asian routes. [Consumer] 1 Comment
-
7:00 AM On the hour: S&P -0.12%. 10-yr -0.11%. Euro -0.48% vs. dollar. Crude -0.46% to $92.43. Gold -0.71% to $1577.35. Comment!
-
6:57 AM Guess? (GES) delivers a parting shot against Gucci over a three-year lawsuit that ended up with a small award of $2.5M against it over licensing issues, saying the whole affair could have been settled with a single letter or phone call. The suit asked for damages of over $100M, tripled, on the premise that Gucci's designs were intentionally copied by Guess? to boost sales. [Consumer] Comment!
-
6:45 AM More on Williams-Sonoma's (WSM) Q1: Brand revenue gain of 5.4% led by West Elm brand and Pottery Barn, offsetting declines at PBteen, Williams-Sonoma, and Pottery Barn Kids. Operating margin falls to 6.0% from 6.7% last year. Sees FY12 EPS of $2.42-$2.49, up from prior guidance of $2.37-$2.47. Expects FY12 revenue of $3.95B-$4.02B, just above the prior estimate of $3.93B-$4.02B. (PR) [Earnings] Comment!
-
6:31 AM U.S. stock futures reverse early moderate gains after Fitch cuts Japan's credit rating. S&P -0.2%, Dow -0.2%. [U.S. Economy] 1 Comment
-
6:25 AM Piper backtracks on a recent upgrade of Lowe's (LOW) after yesterday's guidance blunder, shuffling LOW to Neutral from Overweight, and reducing price-target to $28 from $41. "We still expect home remodeling growth to run above GDP growth for 2012-3, but no longer believe LOW is fully participating in the remodeling cycle," firm says. Shares -10% Monday to $25.60. [Consumer, Quick Ideas] 1 Comment
-
6:00 AM Overseas: Japan +1.1%. Hong Kong +0.6%. China +1.1%. India -1.0%. London +0.8%. Paris +0.7%. Frankfurt +0.7%. [Global & FX] Comment!
-
5:51 AM More on Vodafone (VOD) earnings: Takes impairment charge of £4B related to Southern Europe ops vs. £6.15B last year. Forecasts this FY's adjusted op profit at £11.1B-£11.9B vs. £11.5B last FY. Raises dividend 7% to 9.52 pence, excluding Verizon Wireless payout. [Earnings, Tech, Consumer] 1 Comment
-
5:15 AM The IMF says the U.K. should consider cutting interest rates and more quantitative easing. The country should prepare a Plan B for deficit reduction if those measures don't work. [Global & FX, Breaking News, Top Stories] 2 Comments
-
5:06 AM Fitch downgrades Japan to A+, outlook negative. "The country's fiscal consolidation plan looks leisurely relative even to other fiscally-challenged high-income countries, and implementation is subject to political risk." [Breaking News, Global & FX, Top Stories] 1 Comment
-
4:54 AM Bayer (BAYRY.PK) and Onyx Pharmaceuticals (ONXX) announce a Phase 3 trial of Nexavar tablets in patients with certain lung cancers did not meet its primary endpoint of improving overall survival. [Healthcare] Comment!
-
4:33 AM U.K. April CPI comes in at 0.6% M/M, in-line with consensus. Prices +3% Y/Y vs. 3.1% expected. Core CPI of 2.1%, down from 2.5% in March. [Global & FX, Breaking News] Comment!
-
4:30 AM Greece's banking system is being propped up by ~€100B of emergency liquidity provided by the country's central bank and quietly approved by the ECB, according to a report in the Financial Times. An ECB decision to pull the plug could potentially prompt a Greek exit from the eurozone. [Global & FX, Top Stories] 1 Comment
-
4:22 AM Coming from the OECD's live twitter stream, "we need decisive policy action now" but "we're aware of the political economy of some of these problems. The scope for macro-economic policy is virtually exhausted." The OECD released its revised economic outlook just moments ago, warning the recovery is both fragile and uneven. (more) [Global & FX, U.S. Economy, Top Stories] 2 Comments
-
4:15 AM The OECD cuts its 2012 eurozone GDP forecast to -0.1% from +0.2%; U.S. forecast raised to +2.4% from +2%; China to come in at +8.2% this year, +9.3% next year; Greece -5.3% this year, -1.3% next year; Japan +2% this year, +1.5% next year. Joins calls for eurozone bonds. (OECD economic outlook report) [Breaking News, Top Stories, Global & FX, U.S. Economy] Comment!
-
4:08 AM Not so much a Grexit as a Geuro, Deutsche Bank head of research Thomas Mayer says Greece's best chance of survival may be to stay in the eurozone but opt for its own parallel currency. The Geuro would help Greece balance its budget without Troika help, which means Greece could jettison the strict austerity conditions attached to the aid money. [Global & FX] 3 Comments
-
3:29 AM Blackstone (BX) will buy Accor's troubled U.S. budget hotel business for $1.9B. Accor, a French hotel group, is trying to focus on growth outside the U.S., while Blackstone wants to invest "significant capital" in Motel 6 properties to "accelerate the expansion of the franchise base." [M&A, Top Stories] Comment!
-
3:23 AM China plans to fast-track approvals for infrastructure projects to combat an economic slowdown, according to the state-backed China Securities Journal. The government is reportedly asking for project proposals by June 30, even for projects initially earmarked for year-end, and hasn't ruled out bringing forward next year's projects. (previously) [Global & FX] Comment!
-
2:54 AM Asian markets shoot up, following notable U.S. gains yesterday and continued talk of reform in China. Japan +1.1% to 8729. Hong Kong +1.1% to 19123. China +1.0% to 2371. India +0.6% to 16276. [Global & FX] Comment!
-
2:52 AM Conditions are ripe to open up China's capital account, according to a front-page article in the PBOC-backed Financial News, which cited several government officials and scholars. The removal of many of the capital controls keeping the yuan from being fully convertible would mark a major milestone in China's reform program. [Global & FX] Comment!
-
12:00 AM Tuesday's economic calendar:
7:45 ICSC Retail Store Sales
8:55 Redbook Chain Store Sales
10:00 Existing Home Sales
10:00 Richmond Fed Mfg. Comment!
Other date
Latest Articles
