Market Recap: FedEx Down, UPS Up, Motorola’s New Phone, AIG in Court, and Alibaba’s Deal With Yahoo!
Markets were mixed today on Wall Street: S&P -0.13%, Nasdaq -0.03%, Dow +0.09%, Oil -1.18%, Gold +0.18%.
On the commodities front, Oil (NYSE:USO) drops to $95.44 a barrel. Precious metals were mixed as well, with Gold (NYSE:GLD) climbing ever higher to $1,773.70 per ounce, and Silver (NYSEARCA:SLV) ticking down 0.58% to $34.19.
Here’s your Cheat Sheet to today’s top stock stories:
FedEx (NYSE:FDX) is down over 1.5 percent so far today because of cuts to its 2013 profit target. The company has said that earnings could drop up to 6 percent, expecting earnings per share for the fiscal year between $6.20 and $6.60. This is well below its previous projection of $6.90 to $7.40 per share.
Don’t Miss: FedEx Takes a Hit, and UPS Makes Waves.
United Parcel Service (NYSE:UPS) has announced that European regulatory officials are moving along in their review of the company’s $6.8 billion acquisition of TNT Express. Standard & Poor’s CreditWatch maintains concern over the company’s multi-employer pension plan, citing potential liability in the face of low interest rates and sub-par asset returns, and warned that it may lower its UPS rating a notch if the merger proceeds. UPS has also claimed the #51 spot in the S&P 500 from Boeing (NYSE:BA) as its market capitalization ticked up to $55.52 billion over Boeing’s meager $55.51 billion.
Motorola has introduced the “powerful Motorola RAZR i with Intel inside.” The phone will ship with Google’s (NASDAQ:GOOG) Ice Cream Sandwich to select European and Latin American markets. The phone boasts a 4.3-inch display and a whopping 2.0 GHz Intel Atom processor.
Judge Thomas Wheeler of the U.S. Court of Federal Claims ruled that the former CEO of American International Group (NYSE:AIG), Hank Greenberg, may pursue his claim that the Federal Reserve Bank of New York’s purchase of AIG preferred shares in exchange for the insurer’s bailout was illegal.
Back in 2005, Yahoo! (NASDAQ:YHOO) sold its China business to the Alibaba Group and picked up a 40 percent stake in the company for $1 billion. Today, Yahoo has announced the completion of the first stage of a $7.6 billion repurchase agreement. Alibaba has repurchased about half of Yahoo’s stake for $6.3 billion cash and $800 million in preferred shares. The arrangement also includes a $550 million technology and intellectual property license. Yahoo will return about $3.65 billion of the proceeds to shareholders.
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