Ultimate Market Recap: Barclays Chairman Bows Out, ATPG Looking Slick
Apple Rides New iPad Rumors and 4 Spotlight Stocks in Play
Bank of America (NYSE:BAC): Trimming the first S&P 500 Index decline since September, U.S. stocks joined a global rally following the beginning of an agreement that alleviated concerns regarding bank failure. After a European lender surge, Bank of America along with Citigroup rallied 4.1 percent at least. Shares of Bank of America closed 5.68 percent higher Friday.
Apple Inc. (NASDAQ:AAPL) could possibly release a 9.7-inch iPad this summer, and predictions show device shipment volumes increases beginning in September, Digitimes reports citing a Chinese Apple Data report. Rumors state that the upgraded iPad features indium gallium zinc oxide panel technology as well as panel supply which an be shifted to Samsung’s Sharp. Shares of Apple Inc. closed 2.63 percent higher Friday.
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AT&T, Inc. (NYSE:T): On Dish Network (NASDAQ:DISH) and AT&T’s TV service, the AMC (AMCX) channel may go dark Saturday night as a result of a dispute between the TV channel and the pay TV distributors, according to the Wall Street Journal. The Sundance channel has already been dropped by Dish. Shares of AT&T, Inc. closed 0.76 percent higher Friday.
Nokia Corporation (NYSE:NOK) chairman Risto Siilasmaa defended chief executive Stephen Elop following the company’s announcement concerning new job cuts and a warning about weak profits earlier this month. According to Finnish daily Helsingin Sanomat, Siilasmaa claims Elop has the board’s total confidence. Shares of Nokia Corporation closed 1.9 percent lower Friday.
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Wall St. Brief: Barclays Chairman RESIGNS, Bristol-Myers Makes HUGE Acquisition
Barclays (NYSE:BCS) Chairman Marcus Agius has resigned in light of the Libor scandal; upon exiting, he said, “the buck stops with me.” But the pressure continues for the bank’s CEO, Bob Diamond, to also resign. Britain’s prime minister David Cameron has referred to the scandal as “extremely serious” and said management had “some big questions to answer.”
Bristol-Myers Squibb (NYSE:BMY) and AstraZeneca (NYSE:AZN) have agreed to purchase the diabetes drug maker Amylin (NASDAQ:AMLN) for $31 per share; this equals a 10 percent premium to Friday’s close. The deal’s size is $7 billion and $3.4 billion will come from AstraZeneca as it broadens its diabetes collaboration with Bristol-Myers. In premarket trading, Amylin shares were up 8.5 percent.
Micron Technology (NASDAQ:MU) will acquire Elpida Memory for about $750 million. Under the deal’s terms, Micron will also pay the creditors of the bankrupt Japanese company $1.75 billion in annual payments until 2019.
Dell (NASDAQ:DELL) could announce on Monday that it will buy Quest Software (NASDAQ:QSFT), reported the Wall Street Journal. The deal’s final price hasn’t been disclosed but Dell had reportedly offered $2.3 billion or $27.50 per share last week.
Amazon Web Services (NASDAQ:AMZN) underwent a large outage over the weekend thanks to storms on the East Coast. It affected Netflix (NASDAQ:NFLX), Instagram, Pinterest, and other clients. This was the second time in June that AWS went down and combined with Salesforce.com (NYSE:CRM)’s Thurday outage, it brings to light enterprises’ concerns with cloud services.
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The Week Ahead on Wall Street: Short Holiday Week, BLS Unemployment
In this shortened trading week, investors will keep their eyes on news from Europe. Positive announcements from the European Union including the establishment of a single supervisor for the region’s banks and efforts to bring down Italy and Spain’s costs could be at the forefront of this week’s news.
Also from across the pond is Thursday’s rate cut by the ECB.
Back in the U.S., it should be a quiet week but there’s some economic numbers early on with June’s employment numbers on Friday. The week will not have any earnings reports and investors will have to wait until July 9th with Alcoa Inc.’s (NYSE:AA) quarterly numbers.
Let’s take a look.
Monday: ISM June manufacturing PMIand May Construction Spending.
Tuesday: May factory orders and June Vehicle Sales.
Wednesday: Happy Fourth of July.
Thursday: June ADP Jobs Survey, Weekly Jobless Claims and June ISM non-manufacturing.
Friday: June nonfarm payrolls, June unemployment rate and June average hourly wages.
Monday: Fed’s Williams: ‘Monetary Policy Since the Financial Crisis’.
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Bank of America (NYSE:BAC)-Merrill Lynch, Goldman Sachs and J.P. Morgan are making gains from the swell in deal-making, when fees are a bit rare. The former is getting payoffs from their several business relationships, and Goldman’s expanded business and J.P. Morgan’s operation in Malaysia have been accretive for them. Usually quiet Kuala Lumpur is becoming a very active deal center, and an additional $5 billion to $7 billion of Malaysian stock offerings are expected during the 2013.
Shares of Bank of America are trading 2.44% lower today.
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Apple Inc.’s (NASDAQ:AAPL) iOS platform commanded 65.27 percent of the mobile browser market share in June, up from 62.65 percent in May, AppleInsider reports, and Google’s (NASDAQ:GOOG) Android took 19.73% in June, according to a Net Applications report.
Shares of Apple Inc. are trading 0.93% higher today.
Facebook, Inc. (NASDAQ:FB) has decided that it will continue to list on the Nasdaq (NASDAQ:NDAQ), says the Wall Street Journal. Although FB’s executives privately blamed the index for the IPO, they figure that moving would further drain shares of value.
Shares of Facebook, Inc. are trading 0.13% lower today.
AT&T, Inc. (NYSE:T) and AMC have reached a new carriage agreement, through which the latter keeps its shows on AT&T’s U-verse pay-TV system. More than 4 million viewers will be able to use the service, which includes the option to watch Mad Men and The Walking Dead, but rival Dish’s 14 million users will not be able to view any of AMC’s popular television shows.
Shares of AT&T, Inc. are trading 0.81% higher today.
Nokia Corporation’s (NYSE:NOK) Air Cloud is only a concept, says Intomobile, so Nokia fans shouldn’t bank on ever seeing Nokia Air become a reality. Intomobile adds that all Nokia Air is, is a ‘glorified syncing engine,’ which is the same sort of engine that Android users would have if they install Chrome on their Android Ice Cream Sandwich smartphone and their desktop.
Shares of Nokia Corporation are trading 2.42% higher today.
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Arena Pharma FADES Below $10 and 4 High Demand Stocks ATTRACTING Eyes
Bristol Myers Squibb Co. (NYSE:BMY) and Astra-Zeneca (NYSE:AZN) are the most logical suitors for Amylin, thinks Tim Anderson at Bernstein, but he does not expect that such a purchase would significantly change the financial outlook for either firm. Shares of Bristol Myers Squibb Co. are trading 0.17% lower today.
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Ampio Pharmaceuticals, Inc. (NASDAQ:AMPE) reports that it is going forward with a development plan for a combination medication for the treatment of both premature ejaculation, or PE, and erectile dysfunction. The firm received clear guidance at the positive pre-IND meeting in June with the FDA, for the two concurrent pivotal trials required for approval of Zertane to treat PE in the U.S. Shares of Ampio Pharmaceuticals, Inc. are trading 13.78% higher today.
Amarin Corporation plc (NASDAQ:AMRN) says that the United States Patent and Trademark Office has published its notification of a Notice of Allowance for U.S. Patent Application Serial Number 12/769,885 titled “Highly Stable EPA in a Capsule”, which would cover a stable pharmaceutical composition of AMR101 that comprises at minimum 95 percent EPA and would also have a patent term with expiration no earlier than 2030. Shares of Amarin Corporation plc are trading 3.46% higher today.
ATP Oil & Gas Corporation (NASDAQ:ATPG) reports that the Shimson well in the Mediterranean off the coast of Israel hit more than 62 feet of natural gas pay. The bore is at a water depth of 3,622 feet and was drilled to a subsea depth of 14,445 feet. ATPG owns 40 percent of the discovery, and expects to provide additional information about the discovery during the third quarter. Shares of ATP Oil & Gas Corporation are trading 18.45% higher today.
Arena Pharmaceuticals (NASDAQ:ARNA) pushed through the first new diet drug in 13 years when it received the FDA’s approval of Lorcaserin, but investors have since taken a second look and have sold many shares they bought during the euphoria last week. Monday, shares are once again below the $10 mark. Shares of Arena Pharmaceuticals are trading 3.26% lower today.
Afternoon BUZZERS: Dell and Bristol Play Dealmakers, Facebook’s FIRM Decision
Shares of Barclays PLC (NYSE:BCS) have gained 4.17 percent as of this afternoon. The bank’s Chairman Marcus Agius quit on Monday, saying that the recent Libor scandal was “a devastating blow” to Barclays’ reputation and “the buck stops with me.” Last week, Barclays was fined $453 million by regulators for rigging interest rates related to mortgages, credit cards and credit default swaps.
Dell Inc. (NASDAQ:DELL) shares have declined 0.92 percent in Monday trading. The computer company announced it will buy enterprise management software maker Quest Software for $2.4 billion in cash, or $28 per share.
Bristol-Myers Squibb Co. (NYSE:BMY) shares have edged lower .06 percent Monday afternoon. The pharmaceutical giant said it will purchase Amylin Pharmaceuticals Inc. (NASDAQ:AMLN) for about $5.3 billion in cash. The move is to help Bristol-Myers expand its portfolio of diabetes treatments. Shares of Amylin surged more than 8 percent on the news.
Facebook (NASDAQ:FB) shares faded 0.95 percent as of Monday afternoon. A recent report indicates that the social-media company has decided firmly on remaining with the Nasdaq exchange, after the Nasdaq IPO debut debacle in May caused the company to have second thoughts.
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Astra-Zeneca Builds Appetite After Amylin Buy and 4 Stocks Sizzle Now
Amylin Pharmaceuticals, Inc.’s (NASDAQ:AMLN) joint acquisition by AstraZeneca (NYSE:AZN) and Bristol-Myers Squibb (NYSE:BMY), has whetted AZN’s appetite for new purchases, reports its interim CEO Simon Lowth, who adds that the move reduces capital costs and also creates more flexibility for pipeline development and to seek out new products. Shares of Amylin Pharmaceuticals, Inc. are trading 8.87% higher today.
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Lincoln National Corporation (NYSE:LNC) has chosen Ellen Cooper to become its Chief Investment Officer, having served as managing director and global head of the insurance strategy at Goldman Sachs Asset Management (NYSE:GS). In her new capacity, she will be responsible for setting, implementing and providing strategic oversight and management of the firm’s investment strategy. Shares of Lincoln National Corporation are trading 2.61% lower today.
Barclays PLC (NYSE:BCS) traders (14 of them) are under investigation by the FBI, subsequent to the Libor-fixing scandal, says The Daily Mail. In addition, individuals in the United Kingdom could face criminal charges, according to the chairman of the Treasury Select Committee. Shares of Barclays PLC are trading 4.37% higher today.
NIKE, Inc. (NYSE:NKE) is downgraded by Argus, because of its worries about slowing revenue growth, foreign exchange difficulties, and a near-term slowdown in China, combined with the company’s expected fourth quarter earnings per share. Nike was also removed from Argus’ Focus List. Shares of NIKE, Inc. are trading 1.23% higher today.
Lincare Holdings (NASDAQ:LNCR) overall option implied volatility of 51 exceeds its 26-week average of 31, according to Track Data, which implies a larger price movement into Linde (LNAGF), which is signing a merger agreement in order to acquire all outstanding shares of Lincare Holdings at $41.50 per common share.