Ultimate Market Recap: Facebook Courting Hulu CEO, UBS Says “Buy” Apple
Stocks BUZZING Before the Bell: Alcoa ADVANCES, AMD SINKS on Outlook
Shares of Alcoa Inc. (NYSE:AA) traded up .68% in Tuesday’s pre-market trading. The aluminum producer reported a loss of $2 million for the second-quarter, compared to a net income of $322 million in the year-earlier quarter. Revenue declined 8.8 percent to $6.01 billion, but beat the average revenue estimate of $5.81 billion. “Alcoa maintained revenue strength and solid liquidity by driving high profitability in our mid and downstream businesses and by reducing costs and improving performance in our upstream businesses,” said Klaus Kleinfeld, Chairman and CEO.
Advanced Micro Devices Inc. (NYSE:AMD) shares plunged more than 10 percent in early morning trading. The semiconductor expects revenue to decline 11 percent from last quarter, compared to previous estimates of a 3 percent increase. The company blamed weaker-than-expected distributor sales in China and Europe.
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Microsoft Corp. (NASDAQ:MSFT) shares edged slightly higher in morning Tuesday trading. The company announced on Monday it will acquire Perceptive Pixel, who develops large multi-touch display panels. Perceptive tech can detect many contact points, and will probably be used in the PixelSense display tables from Microsoft. It may also possess applications for Windows 8 tablets as well as all-in-one desktops. Also, ZDNet has reported that Windows 8 should be released to OEMs no later than the first week of August (early access should be offered early access), and general availability will arrive in late October.
Despite a weak day for equities across the board Monday, Facebook (NASDAQ:FB) shares closed 1.39 percent higher on Monday. The social-media giant announced it will launch a job board with aggregate listings from BranchOut and other third-party platforms. The move is seen as a direct shot across the bow of LinkedIn Corp. (NYSE:LNKD), which declined more than 5 percent on the news.
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Wall St. Brief: Google FINED $22.5M, Alcoa Ushers in GLOOMY Earnings
Alcoa (NYSE:AA) ushered in the second quarter earnings season on Monday by reporting its earnings per share dropped to $0.06 from $0.32 in the previous year. This came in line with estimates while revenue fell 9.4 percent to $5.96 billion beating expectations. Earnings were hit by declining aluminum prices to almost two-year lows. Alcoa has maintained its global aluminum supply deficit forecast of seven percent for this year.
Google (NASDAQ:GOOG) is close to a FTC settlement, reported the Wall Street Journal. It will supposedly pay $22.5 million from charges that it bypassed the millions of privacy settings for Apple users. The financial hit could represent the biggest one on a company by the FTC and it could dampen trust in Google by users.
Duke Energy’s (NYSE:DUK) CEO Jim Rogers will appear at a North Carolina Utilities Commission hearing regarding the dismissal of former CEO Bill Johnson prior to the closing of Duke’s acquisition of Progress Energy. While unlikely, the commission does have power to overturn its approval. It has already said that had it known about the “management structure” it may have not authorized the deal.
Former Barclays (NYSE:BCS) CEO Bob Diamond has voluntarily forgone any deferred bonuses with an approximate BP20M ($31 million) value reported company Chairman Marcus Agius to a U.K. parliamentary panel; he added that the Bank of England governor Mervyn King had forced Diamond to resign. He also admitted the bank has a “strained relationship” with the Financial Services Authority.
AMD (NYSE:AMD) shares are off 9.25 percent in premarket trading after the company warned on Monday that it expects a 11 percent second quarter revenue decline; this is below the guidance range of plus or minus three percent. AMD attributed weaker-than-expected China and Europe distributor sales and the effect of low consumer spending on sales to OEMs.
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Bank of America (NYSE:BAC): British and American lawmakers are looking into whether regulators permitted banks to report untrue information on interest rates before the 2008 financial crisis, the new York Times reports. Congress requested information yesterday about the Fed’s role in the matter, the Times wrote, citing unnamed sources. Shares of BoA are trading 0.6% higher today.
Apple Inc. (NASDAQ:AAPL): Moody’s Richard Lane has issued a report disclosing that Apple heads a list of U.S. tech companies holding overseas cash, with $74B (up from $64B in December), Barron’s is reporting. Lane writes the stash stored overseas by U.S. tech firms totaled $22.5B at the end of the March quarter, and Microsoft (NASDAQ:MSFT) has $50B abroad. Additionally, Cisco (NASDAQ:CSCO) has $42.3B overseas, Oracle (NASDAQ:ORCL) has $25.1B, and Qualcomm (NASDAQ:QCOM) has $16.5B. Shares of Apple are trading 0.54% higher today.
Facebook, Inc. (NASDAQ:FB): The New York Post is reporting that Facebook’s Mark Zuckerberg is trying to get Hulu (CMSA, NWSA, DIS) CEO Jason Kilar to accept a major post with the social network site. Facebook shares are trading 0.06% lower today.
AT&T, Inc.‘s (NYSE:T) speech recognition software has goals to be complex enough to understand different accents, ways of speaking, dialects, speaker and platform variations, and background noises. Shares of the mobile carrier are trading 0.25% higher today.
Nokia Corporation (NYSE:NOK): Nearly 195M handsets were shipped in the China market in the first half of 2012, Digitimes reports on data from the China Academy of Telecommunication Research. Shares of Nokia are trading 1.9% lower today.
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Under Armour Inc (NYSE:UA) has been a popular performance-wear brand in recent years. It is attempting to make it to $2B in sales by the end of the year, and despite being a tenth the size of Nike, it has made a major impact in the field. Shares of the company are trading 1.29% higher today.
Sunshine Heart Inc (NASDAQ:SSH) shares climbed 55.31% to $7.7499 at 9:45 a.m. The company had no debt for the last quarter and $3.83M in total cash.
WD-40 Corporation (NASDAQ:WDFC) shares were lower by 5% in after hours trading Monday following the company’s report that it plans on full-year European sales to be flat or lower than last year due to persistent volatility in the oil and the European markets. Following the market’s close, WD-40 turned in third-quarter earnings of $9.1 million, or 57 cents a share, in comparison to $8.1 million or 47 cents a share for the same time in 2011.
Advanced Micro Devices (NYSE:AMD): The chip maker is backing off after the company notably reduced its second quarter revenue guidance. AMD now plans for its second quarter revenue to fall 11%, in comparison with the first quarter. It had prior planned for its second quarter revenue to enlarge by 0-6% compared to that time. AMD reports that it lowered its guidance thanks to softer than planned channel sales in China and Europe, plus less demand than hoped from consumers. This morning, Wells Fargo issued a letter to investors responding to AMD’s announcement by lowering its price target range on the stock from $9-11 to $7-9. The firm was let down by AMD’s news, but persists in thinking the company will turn in an operating profit for the June quarter. It also thinks the stock is appealing at present levels. Wells is holding to an Outperform rating on AMD shares, which dropped 47c (8.36%) to $5.15 in early trading.
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Jamba COO and Venus Williams to HOST VIPs and 3 Hot Stocks Trading Today
The Shaw Group Inc. (NYSE:SHAW) currently seeks to redeploy its cash via possible merger and acquisition opportunities, technology acquisitions and/or returning cash to shareholders regularly. If the company does not chase another opportunity, it plans to further its share repurchase program. Shaw’s board of directors authorized a purchase of as much as $500M in outstanding shares of Shaw’s common stock, including $326M staying beneath previous authorization. Shares of The Shaw Group Inc. are trading 5.78% lower today.
Applied Materials, Inc. (NASDAQ:AMAT) lowered its FY12 business outlook this morning due to weak near-term demand in its semiconductor equipment business, mainly foundry customers. In FY12, the company predicts that net sales will be lower than its previous outlook of $9.1B-$9.5B, with non-GAAP earnings per share below the previous range of 85c-95c. the company anticipates Q3 financial results to stay inside the outlook ranges announced during its May 17, Q2 earnings call. Q3 net will most likely be in the lower half of the company’s previous 21c-29c outlook, compared to the 25c consensus. Also, the company has revised the 2012 industry forecast regarding wafer fave equipment spending, lowering it to $30B-$33B from $32B-$35B, in-line with market changes. The news causes Applied Materials shares to fall 5.5%, 61c, to $10.44 pre-market. Shares of Applied Materials, Inc. are trading 1.50% lower today.
James River Coal Company (NASDAQ:JRCC) has fallen 18% premarket after its 19% decline yesterday. Now, focus is directed to what could be the next troubled coal company after Patriot’s recent bankruptcy filing. Although James River is keeping a credit rating near that of its coal competitors, its bonds are currently trading at a much more distressed level. Shares of James River Coal Company are trading 19.16% lower today.
Jamba, Inc. (NASDAQ:JMBA) Company President of Stores and COO Bruce Schroder and Venus Williams will host local and national VIPs at the Dupont Circle store located in Washington, DC. With Senior Obama Administration officials’ assistance, the grand opening events will bring attention to Jamba’s U.S. Labor Department’s Summer Jobs+ Initiatives, commitment to the promotion of healthy and active lifestyles, and Jamba’s anticipated entry to the DC market. Venus Williams will be available to sign autographs and take photography with customers on July 10. Discount cards will be handed out and customers will be greeted by Jamba mascot Bananaman and other team members. Shares of Jamba, Inc. are trading 2.63% lower today.
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Afternoon BUZZERS: Alcoa DROPS After Earnings, Microsoft Aims Low on Surface Tablet
Alcoa Inc. (NYSE:AA) shares fell 2.42 percent this afternoon. The aluminum producer reported a loss of $2 million for the second-quarter, compared to a net income of $322 million in the year-earlier quarter. Revenue declined 8.8 percent to $6.01 billion, but beat the average revenue estimate of $5.81 billion. “Alcoa maintained revenue strength and solid liquidity by driving high profitability in our mid and downstream businesses and by reducing costs and improving performance in our upstream businesses,” said Klaus Kleinfeld, Chairman and CEO.
Microsoft Corp. (NASDAQ:MSFT) shares are down 0.80 percent this afternoon. The company’s CEO Steve Ballmer has a goal to sell a “few million” Surface tablets in the coming year. For comparison, Apple Inc. (NASDAQ:AAPL) sold nearly 12 million iPads in the March quarter.
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Beazer Homes USA Inc. (NYSE:BZH) shares plunged over than 11 percent today. The homebuilder announced it will offer $75 million in common stock and $75 million in tangible equity units. It will use the proceeds for general corporate purposes as well as land investments in Texas, North Carolina, Florida, California and Arizona.
Applied Materials Inc. (NASDAQ:AMAT) shares were down 2.09 percent this afternoon. The company said it expects net sales for the full-year to be below the previous estimate of $9.1 billion to $9.5 billion, citing weaker than expected near-term demand. The chip-fab equipment maker also added that adjusted profit is expected to come in below the previous forecast of 85 cents to 95 cents per share.
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Stocks BUZZING After the Bell: Apple Receives BUY Rating, JC Penney SINKS
Apple Inc. (NASDAQ:AAPL) shares declined nearly 1 percent on Tuesday, but in late afternoon trading, received a Buy rating from UBS (NYSE:UBS). Analyst Steve Milunovich initiated coverage on the tech giant with a price target of $740, citing that “Apple is creating a tech empire that likely has not reached its zenith.”
Shares of Alcoa Inc. (NYSE:AA) fell 4 percent during regular trading and continued to edge lower in late hours. The aluminum producer recently announced second-quarter earnings that were less than stellar. It reported a loss of $2 million in the quarter, compared to a net gain of $322 million a year earlier. Revenue also declined 8.8 percent to $6.01 billion.
Procter & Gamble Co. (NYSE:PG) shares edged slightly lower in late afternoon trading. The consumer goods company declared a quarterly dividend of $0.562 per share, or $2.248 annualized. The company has increased its dividend for the past 56 consecutive years.
JC Penney Co. (NYSE:JCP) shares dropped almost 6 percent on Tuesday and continues to struggle in late trading. The retailer announced it is cutting 350 jobs at its home office in Texas, as part of a restructuring move announced previously. “We have simplified processes, removed unnecessary work and reduced layers to help us make better and faster decisions,” said Chief Executive Ron Johnson in a statement. “While difficult, these decisions are in the long-term interests of [the company] and our stakeholders.”
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