A.M. Movers: HP Downgraded, UBS Lowers iPhone 5 Sales Outlook

Shares of Hewlett-Packard (NYSE:HPQ) climbed higher Thursday morning, despite receiving a downgrade from Jefferies. The investment firm cut HP to Underperform from Hold with a price target of $14 a share, previously at $17. Jefferies explains, “We continue to see cyclical and secular headwinds for HP’s PC services and printer businesses.”

Discover Financial Services (NYSE:DFS) shares jumped more than 4 percent this morning. The company reported that net income fell to $627 million ($1.21 per share) in the third quarter, compared to $649 million ($1.18 per share) a year earlier. However, the results beat the average analyst estimate of $1.03 per share. Visa (NYSE:V) traded lower on the news.

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Facebook (NASDAQ:FB) shares climbed 0.34 percent higher after AllThingsDigital reports that Instagram attracted more smartphone users to its website on a daily basis in August than Twitter. It is the first time that the photo sharing service has been more popular than Twitter in the mobile app daily rankings.

Shares of Apple (NASDAQ:AAPL) declined as more analysts become worried about iPhone 5 supply issues. UBS analyst Steve Milunovich cut his iPhone sales estimate for the December quarter to 38 million units, previously at 44 million. In a research note, he explains, “This shortfall mostly appears to be a timing issue, though we assume some lost sales in an effort to be conservative.”

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