Ultimate Market Recap: BofA’s Green Goals, EnergySolutions Slides 52%
The Week Ahead on Wall Street: Apple’s First WWDC without Steve Jobs, China Slowing Quickly
After seeing the market’s best week of the year, marketwatchers will face a new one with the bad news from abroad: Spain’s banking crisis and Chinese economic data.
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On Saturday, Spain said it would ask the European Union for up to EUR 100 billion ($125 billion) in loans to assist with its troubled banking sector. Greece could also be part of the conversation this week as it still decides whether or not to leave the euro before the country’s June 17 elections.
In China, the country released a slew of reports on Saturday including PPI, CPI, industrial production, retail sales and fixed-asset investment numbers. Data showed that its economy has slowed quicker than analysts’ estimates.
Back in the U.S., on Monday Apple (NASDAQ:AAPL) will hold its first developers’ conference without former CEO and founder Steve Jobs. The company hasn’t confirmed if CEO Tim Cook will deliver the keynote speech as Jobs usually did but it will give operating system updates for its Mac PC and iOS.
There’s still economic numbers to keep an eye on this week and a few quarter earnings reports.
Tuesday: May NFIB Small Business index, May import prices and May federal budget.
Wednesday: May producer prices, May retail sales and April business inventories.
Thursday: Weekly jobless claims, May consumer prices and first quarter current acct balance.
Friday: June NY Fed Empire State Survey, May industrial production, May Capacity utilization, June Reuters/UMich Consumer Sentiment and first-time jobless claims from the week of June 6 – June 9.
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Apple Inc.’s (NASDAQ:AAPL) Worldwide Developer Conference will kick off today. CEO Tim Cook and company executives will present a slew of news including the unveiling of the next generation iOS operating system for the iPhone and iPad, MacBook updates, and the company’s mobile mapping software intended as a competitor to Google (NASDAQ:GOOG) Maps. The conference is also intended to allure developers to build apps for Apple.
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Volkswagen (VLKAF.PK) may take a stake in Navistar International (NYSE:NAV), taking a possible opportunity to close the gap with its rival, Daimler AG (DDAIF), reported the Financial Times. On Thursday, Navistar’s shares dropped 14 percent after it reported a fiscal quarter two loss.
GE (NYSE:GE) may sell businesses in its GE Capital’s consumer-finance portfolio, reported the Wall Street Journal, and possibly cut the division’s loan portfolio by 16 percent. This could come as an acknowledgement of investor concerns that the company is the owner of basically one of the nation’s biggest banks.
Eastman Kodak (EKDKQ.PK) has been unable to allure a bidder for its portfolio of digital-camera patents, reported The Wall Street Journal. The sale is vital to the company as it exits bankruptcy, but after a recent ITC ruling that saw an important image-preview patent as invalid, it isn’t helping matters.
Johnson & Johnson (NYSE:JNJ) could announce this week that will pay up to $2.2 billion to settle investigations into its marketing for its Risperdal antipsychotic treatment and other drugs. According to Bloomberg, the company claimed it paid Omnicare (NYSE:OCR) kickbacks. J&J is expected to make a misdemeanor plea; it could include a criminal penalty as high as $600 million.
4 Contrarian Stock Climbers in Trading Action as Centene Falls Hard
Micronetics Inc. (NASDAQ:NOIZ): Mercury Computer Systems (NASDAQ:MRCY) has agreed to acquire Micronetics, which makes radio and microwave frequency subsystems and components, for $14.80 per share. The deal is valued at approximately $75.4M. Shares of Micronetics Inc. are trading 94.93% higher today.
IntegraMed America, Incorporation. (NASDAQ:INMD): Affiliates formed by Sagard Capital Partners, both an investment fund and shareholder of IntegraMed, will acquire IntegraMed America for $14.05 per share in cash, totaling $169.5M. Shares of IntegraMed America, Incorporation. are trading 20.72% higher today.
Centene Corp (NYSE:CNC): According to Deutsche Bank, Centene’s guidance reduction on rising costs in Kentucky and Hidalgo is expected, but the size of the cut it a surprise. Following Cantene’s highlight on constant margin pressures in Kentucky, the firm believes the other market participants, Coventry (NYSE:CVH) and WellCare (NYSE:WCG), could possibly feel pressure today. Deutsche Bank maintains a Sell rating on Coventry, but Centene and WellCare both recieve Hold ratings. Amerigroup’s (NYSE:AGP) weakness creates a buy opportunity because the company has no exposure to Kentucky or Hidalgo. Shares of Centene Corp are trading 25.04% lower today.
ZaZa Energy Corp (NASDAQ:ZAZA): The company has announced a Heads of Agreement with Hess Corp. (NYSE:HES) which will effect a transaction expected to lead to the discontinuation or modification of the Parties’ 2010 agreements in Texas and France. ZaZa also amended the existing exploration and development agreements with Hess in Texas, for which ZaZa gained $15M as an immediate cash considerations, and agreed to pay down $100M senior secured notes of which $33M is due by 2017. The company also convinced Jefferies (NYSE:JEF) to head a joint venture process involving ZaZa’s Egle Ford core and Woodbine/Eaglebine assets. Shares of ZaZa Energy Corp are trading 31.09% higher today.
Ampio Pharmaceuticals, Inc. (NASDAQ:AMPE): According to recent announcements, Ampio Pharmaceuticals’ CRO finished analysis of the primary end point for the Optina clincal trial for DME, which took place at St. Michael Diabetes hospital located in Toronto, Canada. Shares of Ampio Pharmaceuticals, Inc. are trading 10% higher today.
Apple’s WWDC and 4 SUPER Hot Stocks
Bank of America (NYSE:BAC): Today, Bank of America announced its new environmental business goal, lasting 10 years and totaling $50B, which should assist in addressing climate change, lower demands for natural resources, and accelerate lower-carbon economic solutions. The company also explained several new goals intended to reduce the environmental effect of its own operations. Beginning January 1, 2013, the goal will follow the completion of BofA’s current business initiative, initially expected to last 10 years and total $20B, which is over four years ahead of schedule. The company also plans to provide $100M worth of grants and other investments to benefit other non-governmental organizations who work to promote low-carbon and research conservation solutions.
Apple Inc. (NASDAQ:AAPL): Apple plans to begin a major conference for technology developers shortly with a keynote presentation that intends to end speculation involving the company’s key hardware and software initiatives. The announcements should also include Apple’s next version of the iPhone and iPad operating systems as well as MacBook updates. CEO Tim Cook, world-wide marketing head Phil Schiller, and Apple’s senior VP for iOS software Scott Forstall are expected to speak at the Worldwide Developer Conference.
Investing Insights: Is This Apple’s Next Big ASSAULT on Competitors?
Facebook, Inc. (NASDAQ:FB): Because its U.S. equity indexes will be fully reconstituted on June 22, Russell Investments posted official lists of companies who plan to join of leave the U.S. Broad-market Russell 3000 Index and Russell Microcap Index. According to the preliminary list, the largest addition to the Russell 3000 by market capitalization is Facebook.
AT&T, Inc. (NYSE:T): Los Angeles Times reports that at hundreds of locations in California and Nevada, AT&T land-line workers walked off their jobs as part of a one-day protest to fight the company’s contract demands.
Nokia Corporation (NYSE:NOK): Following Samsung’s (SSNLF.PK) denial of rumors suggesting its interest in Nokia, Nokia trades lower. Although Nokia’s IP, brand, and manufacturing specialties may be beneficial to Samsung, regulators may not wish to see it happen because there would be a great deal of integration challenges.
Under Armour and Mellanox Shine, While 3 Stocks Are Scorched By Shareholders
Under Armour Inc (NYSE:UA): Under Armor’s board approved a two-for-one stock split of the company’s outstanding common stock. The splint will be effected in a form of a dividend of one share of Class A Common Stock for each outstanding share of Class A Common Stock, and one share of Class B Common Stock for each share of outstanding Class B Common Stock. Any additional shares issued due to the stock split should be distributed around July 9 to stockholders of record as of June 25. Shares of Under Armour Inc are trading 1.44% higher today.
A Closer Look Back: Under Armour Earnings Cheat Sheet>>
Forest Laboratories, Inc. (NYSE:FRX): Shares of Forest Labs have dropped following cuts to its FY 2013 EPS guidance to $0.65-$0.80, which falls below consensus of $1. Due to the expiration of the comany’s Lexapro treatment’s patent in March, Forest Labs shows sharply lower-than-expected sales of the drug. Shares of Forest Laboratories, Inc. are trading 3.45% lower today.
Omnicare, Inc. (NYSE:OCR): Bloomberg reports that J&J (NYSE:JNJ) will possibly announce this week that the company will pay nearly $2.2B to settle investigations linked to the manner in which it marketed Risperdal antipsychotic treatment as well as other drugs, and J&J claims it paid kickbacks to Omnicare. The company will plea for a misdemeanor, and the deal with the addition of a criminal penalty will total as much as $600M. Shares of Omnicare, Inc. are trading 7.37% lower today.
EnergySolutions, Inc. (NYSE:ES): EnergySolutions announced that David Lockwood, an accomplished operating executive and board member, will succeed Val John Christenson as CEO and president of the company. Christenson will remain strategic advisor to the company, and it take immediate effect. Lockwood has served on the Board since November 3, 2010 and will continue to do so. Also, Greg Wood will succeed William R. Benz as EVP and CFO. Shares of EnergySolutions, Inc. are trading 52.79% lower today.
Mellanox Technologies, Ltd. (NASDAQ:MLNX): Mellanox announced that Intel (NASDAQ:INTC) has selected its ConnectX-3 FDR InfiniBand adapter silicon to be used in Intel’s I/O Expansion Modules and half-width server boards, Intel Server Board S2600WP and Intel Server Board S2600JF. Shares of Mellanox Technologies, Ltd. are trading 4.85% higher today.
Mid-Day Lowdown: Apple Wobbles With Anxiety, Facebook Growth WANES
Apple Inc. (NASDAQ:AAPL) shares were up 1% this morning and are since back to flat in afternoon trading. The tech giant is holding its first developers’ conference without former CEO and founder Steve Job right now. The company is unveiling details on all Apple products to come.
Stay in the Know: We’re Live Tweeting Apple’s WWDC!
Shares of NVIDIA Corp. (NASDAQ:NVDA) are up 2.85 percent in afternoon trading. The company received an upgrade from UBS (NYSE:UBS) on Sunday from Neutral to Buy, with a price target of $15.50 over the next 12 months. UBS said the recent pullback in shares made NVIDIA more attractive and cited its strong presence in the non-Apple sector.
Facebook (NASDAQ:FB) shares cannot get over $28, yet are up climbing 1.48% this afternoon. A report by comScore recently showed that Facebook’s growth in the United States came in at 5 percent for April, down from 24 percent in the same period last year. In 2010, the social-media company witnessed 89 percent growth in April. Investors appear to be looking more at April’s growth this morning as the bright spot and the fact that Facebook to will join Russell 3000 index, a catalyst for more funds to seek out the company’s stock for their portfolios.
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Major banks such as Citigroup Inc. (NYSE:C) and Morgan Stanley (NYSE:MS) bounced more than 2 percent in pre-market trading and have since fallen into the red 3.85% and 2% respectively in afternoon trading. Over the weekend, Spain became the latest member in the eurozone to seek a bailout, with a request for as much as 100 billion euros ($125 billion).
Forest Laboratories Inc. (NYSE:FRX) shares fell 3.47 percent in Monday afternoon action. The company lowered its 2013 profit target to 65 cents to 80 cents per share, below expectations of $1 per share. Forest Labs cited issues related to Lexapro expiring, its anxiety drug.
Investor Insight: WWDC Cheat Sheet: iOS 6, Mountain Lion, Maps, and an All-New Mac Lineup