Ultimate Market Recap: Body Central Sinks 47%, Facebook Buys Face.com
Wall St. Brief: Microsoft Announcing a SECRET, KKR Loves Everything Everywhere
Microsoft (NASDAQ:MSFT) and Barnes & Noble (NYSE:BKS) will announce on Monday plans to create a tablet/e-reader emphasizing entertainment, reported TechCrunch. The tablet will be unveiled at a Los Angeles event; it may be the inaugural non-Xbox device to include possible Xbox live streaming. Other stories are swirling that Microsoft will announce plans to make its own Windows 8 tablet.
KKR (NYSE:KKR) is conducting early talks to purchase British mobile operator Everything Everywhere from France Telecom (NYSE:FTE) and Deutsche Telekom (DTEGF.PK) for BP 8 billion. Former Everything Everywhere chief Tom Alexander is leading the private equity team. One banker called this “preposterous,” reported Reuters as Alexander supposedly attempted to get private equity firms interested in the company six months ago but had no luck and now “financing markets are even worse right now.”
British buyout group Melrose is in negotiations to purchase the German company Elster Group (NYSE:ELT) from CVC Capital for $2.3 billion. The potential $20.50 offer per ADS is a 25 percent premium from Elster’s closing price from Friday. In premarket trading, the stock is up 17 percent.
Groupon (NASDAQ:GRPN) received an upgrade from Morgan Stanley analysts to an “Overweight” rating from “Equal Weight.” Shares are up five percent in premarket trading.
DSW (NYSE:DSW) projected weak fiscal second quarter earnings, noting a mix of regular-priced and clearance-priced sales and pre-opening costs connected to its expansion plans. The company also announced a new $100 million stock-repurchase program. Its share price is down 13 percent in premarket trading.
A.M. Buzzers: Barnes & Noble to Team Up with Microsoft? Groupon Jumps 8%
Shares of Barnes & Noble Inc. (NYSE:BKS) are up more than 2% in morning trading. There is speculation and rumors floating around that the company will announce a strategic partnership with Microsoft Corp. (NASDAQ:MSFT) to offer a tablet or e-reader. Microsoft has a special announcement after the close and shares edged slightly lower in pre-market trading.
General Motors Co. (NYSE:GM) fell .87 percent in early trading. The automaker continues to scale back advertising costs. After announcing to pull ads from Facebook (NASDAQ:FB), GM unveiled that it plans to negotiate with TV networks for price cuts as much as 20 percent on this year’s advertising for fall prime-time programs.
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Groupon Inc. (NASDAQ:GRPN) shares bounced 8.4 percent in morning market trading. The online company received an upgrade to Overweight from Morgan Stanley (NYSE:MS). The firm has a price target of $18 on shares and believes competitors such as Google Inc. (NASDAQ:GOOG) and Amazon.com Inc. (NASDAQ:AMZN) have “not gained meaningful traction or deployed new innovations.”
AK Steel Holding Corp. (NYSE:AKS) shares dropped over 6% percent in early trading. The company announced that it expects to earn a second-quarter profit of 4 cents to 6 cents per share, compared to the consensus of 11 cents per share. AK Steel explained, “”Uncertainty and volatility with respect to near-term economic conditions in the United States and in other markets served by the company, including a recent deterioration in spot market pricing.”
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Apple’s ALL-HANDS-ON-DECK and 4 Hot Stocks to Know Now
Bank of America (NYSE:BAC): According to CNBC, Bank of America will probably sell its overseas wealth management unit to Julius Baer for a total of $1.5-2B. Shares of Bank of America are trading 1.01% lower today.
Apple Inc. (NASDAQ:AAPL): Last night, Apple insider cited multiple sources in reporting the U.S. Apple Stores plan “all-hands-on-deck” meetings either around or on the day of June 24. The report adds that at lease one of the sources speculates that these meetings may be held as a way to introduce retail staff to the new head of retail John Browett. Shares of Apple Inc. are trading 1.87% higher today.
Facebook, Inc. (NASDAQ:FB): The Wall Street Journal reports that Michael Grimes of Morgan Stanley tried to convince a senior Facebook executive to make him the “single driver” of Facebook’s IPO, claiming that if the deal soured, it would make it his “throat to choke.” Shares of Facebook, Inc. are trading 6.42% higher today.
AT&T, Inc. (NYSE:T) initiated with a Buy rating at Janco and a price target of $44 on the stock. Shares of AT&T, Inc. are trading 0.22% higher today.
Nokia Corporation (NYSE:NOK): According to sources and Nokia’s Facebook page, the company (NOK +1.2%) will release its PureView 808 phone, which boasts a 41MP camera, today in the U.S. The phone has already been launched overseas. Although the PureView 808 runs on Symbian which curbs consumer interest, Nokia promises to use the imaging technology of this phone to Windows Phone devices. Shares of Nokia Corporation are trading 2.02% higher today.
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Body Central CRASHES 47% and 4 Hot Stocks in the Crosshairs
Body Central Corp (NASDAQ:BODY) expects Q2 EPS to be around $0.19-$0.21, which is short of analysts’ consensus estimate of $0.27. The company notes continues soft comparable store sales and the necessity for an aggressive markdown of slow moving items as factors which sharply reduced guidance. The shares are down 24.9% premarket.
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Infinity Pharmaceuticals Inc. (NASDAQ:INFI) has announced its interim data resulting from a Phase 2, doubl-blind, random, placebo-controlled study of saridegib in patients suffering from metastic or locally advanced, inoperable chondrosarcoma. Progression-free survival was the main endpoint of this Phase 2 study.
Extorre Gold Mines Ltd (NYSEAMEX:XG): According to Yamana gold, it has entered into a definitive agreement with Extorre Gold Mines (XG) in which Yamana should acquire all of Extorre’s issued and outstanding common shares.
Elster Group SE ADR (NYSE:ELT) has entered dicussions with Melrose PLC about a possible agreement in which Melrose would make a cash offer for Elster’s outstanding shares at $20.50 per ADS, totaling nearly $2.3B in aggregate on a fully diluted basis.
China Finance Online Co. (NASDAQ:JRJC) has announced the exclusive partnership between its flagship portal site Stockstar.com and Baidu.com in order to create a mobile web application which should provide financial information services. As a result of the partnership. Stockstar and Baidu have launched a mobile web application which integrates the reliable financial information services of Stockstar with advanced internet technologies.
TrovaGene SOARS 16%, Barnes and Noble REFUTES and 3 Hot Stocks in Action
Barnes & Noble, Inc. (NYSE:BKS) refuted rumors claiming that it and Microsoft (NASDAQ:MSFT) were planning to unveil a co-branded tablet by informing Engadget that it will not be involved in Microsoft’s event this evening. Shares of Barnes & Noble, Inc. are trading flat today.
TrovaGene, Inc. (NASDAQ:TROV): has been recommended by James Altucher. Shares of TrovaGene, Inc. are trading 16.62% higher today.
Cerner Corporation (NASDAQ:CERN): As a result of combining Cerner’s health care technology and data management capabilities with Corniche hospital’s clinical proficiency and safe medication administration policy, Cerner and he hospital have introduced the positive patient identification, PPID, which improves patient health results and safety. This is Cerner’s first client in the United Arab Emirates with a full closed-loop medication administration. Shares of Cerner Corporation are trading 3.59% higher today.
SIRIUS XM Radio Inc. (NASDAQ:SIRI): Because of Mel Karmazin’s anticipated sale of shares within the next two weeks hanging in the balance, Sirius XM has fallen back on above-average volume. The block sales are part of 10b5-1 plan which is unrelated to non-public information, but SIRI has taken hits every time any of Karmazin’s transactions are officially announced. SIRI shares recently traded at $1.85, down $0.02, or 1.07%.
Market Recap: Facebook’s NEW Face, Morgan Stanley SAVES Groupon, Yahoo’s FRESH Talent
Markets closed mixed on Wall Street today: Dow -0.20%, S&P +0.14%, Nasdaq +0.78%, Oil -1.10%, Gold -0.02%.
On the commodities front, Oil (NYSE:USO) declined to $83.11 a barrel. Precious metals also declined, with Gold (NYSE:GLD) falling to $1629 an ounce while Silver (NYSE:SLV) fell 0.02% to settle at $28.72.
Here’s your Cheat Sheet to today’s top stock stories:
Microsoft (NASDAQ:MSFT) had been expected to unveil a new tablet device at an event in Los Angeles on Monday. Citing sources familiar with the matter, TechCrunch earlier reported that the tablet will be an e-reader developed under Microsoft’s recent partnership with Barnes & Noble (NYSE:BKS), while All Things D and The Wrap reported that Microsoft will unveil its own branded tablet. The tablet will likely run Windows RT, a version of Windows 8 approved for ARM-based processors.
Groupon Inc.(NASDAQ:GRPN) saw its shares rally up to 13 percent during the trading day after Morgan Stanley raised its rating on the company to “Overweight” from “Equal weight” before the market opened on Monday. Analysts said throughout the year, the company had made numerous moves to raise its market position.
Facebook’s (NASDAQ:FB) shares rose 5.2 percent just one month after its much-publicized IPO. The company announced on Monday that it acquired Face.com. The companies had been in talks since last month about the deal; the amount of the transaction was undisclosed. This marked Facebook’s fourth acquisition this year.
Yahoo! Inc. (NASDAQ:YHOO) added some senior talent to its ranks by hiring Google’s (NASDAQ:GOOG) Michael Barrett to help with its challenged core advertising business; he is a former colleague of Yahoo’s interim chief executive, reported The Wall Street Journal. The company said Barrett will be Yahoo’s executive vice president and chief revenue officer, who will manage global advertising sales and operations.
Intel Corp. (NASDAQ:INTC) agreed to buy about 1,700 “patents and patent applications” related to key technologies from intellectual property developer InterDigital Communications Corp. (NASDAQ:IDCC). The company will spend about $375 million for the patents and in a joint statement said they are ”related to 3G, LTE and 802.11 technologies.”
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