Ultimate Market Recap: Apple Takes a Leap, HP on “Hold”

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Early A.M. Radar: Apple Can’t Leap Wireless Stock, Facebook Fades

Despite reaching new lows during regular trading, Facebook (NASDAQ:FB) shares closed 5 percent higher on Thursday. S&P Capital IQ analyst Scott Kessler reiterated his Sell rating on the social-media giant. He also reduced his price target from $30 to $27. In early morning market trading, shares traded down nearly 1 percent.

Leap Wireless International Inc. (NASDAQ:LEAP) fell 1.2 percent after the closing bell. The company will be the first prepaid carrier in the United States to sell the Apple Inc. (NASDAQ:AAPL) iPhone. Leap will sell the iPhone 4S and iPhone 4 starting in late June, but will not offer any subsidies on units. The 16GB 4S model will cost $499, while the 8GB iPhone 4 will be priced at $399, both without any contract. Competitors such as Verizon Communications Inc. (NYSE:VZ) and AT&T Inc. (NYSE:T) edged slightly higher in late trading.

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After surging more than 6 percent on Thursday, shares of Zynga Inc. (NASDAQ:ZNGA) edged slightly lower in extended trading. The social-gaming company received an upgrade from Neutral to Outperform by Baird analyst Colin Sebastian. He explained, “While we recognize that growth has slowed for both Facebook and Zynga, we believe that long-term secular shifts in content consumption, along with significant growth opportunities on smart devices from Apple and Google Inc. (NASDAQ:GOOG) are too compelling to ignore.”

Walt Disney Co. (NYSE:DIS) shares edged slightly higher in late trading after closing 1.13 percent higher on Thursday. The entertainment superstar named Alan Horn as the new head of its movie studio, replacing Rich Ross after the John Carter debacle.

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Bank of America (NYSE:BAC): Sources claim that Chief Equity Strategist Masatoshi Kikuchi, along with four other analysts, has resigned from Bank of America’s equities unit in Japan. The head of Bank of America’s Middle East and North Africa I-bank resigned less than a month ago showing issues in the bank’s upper ranks.

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Apple Inc. (NASDAQ:AAPL): According to Piper Jaffray, Apple should unveil its new TV in late 2012 and launch it within the first half of 2013. Piper believes the Apple TV will sell between $1,500 and $2,000, will have 42″-55″ screens, and that because of the TV, Apple’s 2013 revenue could rise 4%-8%. The firm states that the TV will sell because it revolutionizes the manner in which consumers interact with their living room. Piper maintains its Overweight rating on Apple shares with a $910 price target.

Facebook, Inc. (NASDAQ:FB): Reuters states that following Facebook’s $16B IPO issues on May 18, which lost millions each because of the trading problems, the Nasdaq OMX Group (NASDAQ:NDAQ) has not helped conciliate market making clients.

AT&T, Inc. (NYSE:T): According to Bloomberg, AT&T is considering an upgrade to rural phone lines so they can handle higher-speed internet service, possibly delaying all sales of underperforming assets.

Nokia Corporation (NYSE:NOK): According to the Wall Street Journal, Google (NASDAQ:GOOG) has recently filed an antitrust complaint in Europe against Microsoft (NASDAQ:MSFT) and Nokia (NYSE:NOK). The complaint says that the two companies are utilizing proxy companies in order to brandish patents and damage Google’s prospects of Android mobile-phone software to Microsoft’s advantage. Also, Google plans to share complaints about pantent “trolls” with U.S. competition regulators.

Shares of Nokia Corporation are trading 0.75% lower today.

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PharmAthene Pops 37% to Lead These BUZZING Stocks

PharmAthene, Inc. (NYSEAMEX:PIP) announced that the Delaware Court of Chancery has reached its final judgement in PharmAthene’s litigation against SIGA Technologies (NASDAQ:SIGA). The court upholds its ruling from September 22, 2011 and awarded PharmAthene 50% of the net profits from every SIGA smallpox antiviral therapeutic, ST-246, and other products. This is after SIGA receives its first $40M in net profits, and it will last a period of then years.

Shares of PharmAthene, Inc. are trading 37.7% higher today.

Modine Manufacturing Co. (NYSE:MOD) sees year-over-year sales fall 5%-10%, which includes approximately $80M in planned program reductions, and consensus is at $1.61B. Modine Manufacturing’s FQ4 EPS of $0.34 beats by $0.11, and revenue, down 2% year over year) misses by $18M.

Shares of Modine Manufacturing Co. are trading 4.94% lower today.

Vera Bradley, Inc. (NASDAQ:VRA): Due to Vera Bradley’s slowing sales and lack of margin expansion after Q1 results, Jeffries downgraded Vera Bradly and dropped its price target for shares from $45 to $25. Citigroup also downgraded the company and dropped its price target for shares from $48 to $24 due to little near-term upside for shares.

Shares of Vera Bradley, Inc. are trading 7.45% lower today.

Noon Buzzers: Facebook Falters Hard, H-P Hit By Euro Weakness

Facebook (NASDAQ:FB) shares are trading lower over 5 percent today near its all-time lows. Late Thursday, Morgan Stanley’s (NYSE:MS) CEO James Gorman appeared on CNBC to discuss the troubled debut of the social-media giant. The bank was the lead underwriter in taking Facebook public. Despite Facebook logging a 22 percent decline in May, Gorman said, “The story isn’t over. It’s only been a little bit of time. There was more hype going into this than any security ever traded. We all need to settle down and get back to the fundamentals of what is this great company doing.”

Shares of SAIC Inc. (NYSE:SAI) dropped 2.1 percent in trading, despite reporting a decrease in first-quarter earnings. Net income for the company came in at $117 million (35 cents per share), compared to $131 million (36 cents per share) a year earlier. However, SAIC beat the mean estimate of 33 cents per share and revenue increased 3.5 percent to $2.78 billion.

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Hewlett-Packard Co. (NYSE:HPQ) shares are down 3.79 percent in noon trading. The global PC company received a downgrade from Buy to Hold by Jefferies’ Peter Misek. He says the restructuring efforts will not be enough to offset eurozone weakness and less demand for PCs and printers. Misek also cut his price target on shares from $30 to $23.

Leap Wireless Inc. (NASDAQ:LEAP) shares plunged 9.88 percent Friday. The company will be the first prepaid carrier in the United States to sell the Apple Inc. (NASDAQ:AAPL) iPhone. Leap will sell the iPhone 4S and iPhone 4 starting in late June, but will not offer any subsidies on units. The 16GB 4S model will cost $499, while the 8GB iPhone 4 will be priced at $399, both without any contract.

Groupon Inc. (NASDAQ:GRPN) shares fell more than 9.3 percent by noon. The company’s post-IPO insider lock-up agreement expired today. The expiration of this agreement frees up 93 percent of Groupon’s outstanding shares, essentially doubling the amount of shares available for trading.

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Endeavour International Corporation (NYSE:END): At Pritchard, Endeavour upgraded from Neutral to Buy with a price target of $14.

Shares of Endeavour International Corporation are trading 2.8% lower today.

Joy Global Inc. (NYSE:JOY): As a result of Joy Global’s higher than expected Q2 adjusted EPS, BMO Capital thinks that the outlook for the underground U.S. coal market may stabilize, and key international mining markets are staying strong. Though the firm dropped the target on the stock form $100 to $90, it reiterates an Outperform rating.

Shares of Joy Global Inc. are trading 1.86% lower today.

Piedmont Natural Gas Company Inc. (NYSE:PNY): Piedmont Natural Gas announced that its Wayne County Pipeline Project has been completed. It will provide natural gas to a large, new state-of-the-art natural gas-fueled combined-cycle plant at Progress Energy’s H.F. Lee Energy Complex located by Goldsboro, North Carolina.

Shares of Piedmont Natural Gas Company Inc. are trading 0.03% higher today.

Radar Movers: Stocks Kick Off June With a Bloodbath

On Friday, equities opened June with their worst day of 2012. The Dow Jones Industrial Average (NYSEARCA:DIA) erased all of its gains for the year, while the S&P 500 (NYSEARCA:SPY) broke its 200-day moving average for the first time since December. Both indices retreated as the latest jobs report renewed slowdown fears. In May, the American economy added only 69,000 new jobs and the unemployment rate ticked up to 8.2 percent. It was a huge miss as economists were expecting around 150,000 new jobs for the month.

Here is a look at the biggest movers on the day:

Facebook (NASDAQ:FB) shares closed 6.35 percent lower today, despite Morgan Stanley’s CEO James Gorman appearing on CNBC recently to defend the social-media giant. Gorman said, “The story isn’t over. It’s only been a little bit of time. There was more hype going into this than any security ever traded. We all need to settle down and get back to the fundamentals of what is this great company doing.” Zynga Inc. (NASDAQ:ZNGA), which relies heavily on Facebook users for revenue, also declined 4 percent on the day.

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Groupon Inc. (NASDAQ:GRPN) shares plunged almost 9 percent Friday. The company’s post-IPO insider lock-up agreement expired today. The expiration of this agreement frees up 93 percent of Groupon’s outstanding shares, essentially doubling the amount of shares available for trading.

Despite the broad pullback in the market, the SPDR Gold Trust (NYSEARCA:GLD) closed almost 4 percent higher, while the iShares Silver Trust (NYSEARCA:SLV) gained 2.45 percent. The top performer in the S&P 500 was Newmont Mining (NYSE:NEM), one of the world’s largest gold producers.

Hewlett-Packard Co. (NYSE:HPQ) was the worst performer in the Dow, falling 6.31 percent. On the positive, the company won a $90 million five-year contract for processing health claims with Oklahoma’s State and Education Employees Group Insurance Board. While all 30 Dow components closed lower, Wal-Mart Stores Inc. (NYSE:WMT) performed the best by only falling .41 percent.

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Disclosure: Long EXK, AG, HL, PHYS

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