Ultimate Market Recap: Facebook Launches Gifts Service, Groupon Moves Around Upper Management

AT&T to be Exclusive MiFi Liberate Carrier and 4 Hot Stocks Trading Today

Bank of America (NYSE:BAC) announced that it, and some of its current and former officers and directors, have agreed to settle a class action lawsuit that began in 2009 on behalf of investors who purchased or held Bank of America securities when the company announced its intentions to acquire Merrill Lynch. Beneath the proposed settlement’s terms, Bank of America is to pay $2.43 billion along with instituting particular corporate governance policies. Plaintiffs claimed that Bank of America and certain officers made false or misleading statements in regards to the financial health of Bank of America and Merrill Lynch. Bank of America claims that the allegations are false and is entering into this settlement as a means to diminish the uncertainties, burden, and expense of further protracted litigation. The proposed settlement is to be reviewed by Judge Kevin Castel in the United States District Court for the Southern District of New York, where the class action is pending. The amount to be paid beneath the proposed settlement will be covered by a combination of Bank of America’s existing litigation reserves and incremental litigation expense which is to be recorded during Q3 of 2012. The company believes that the total litigation expense will total nearly $1.6 billion for the three months, which ends on September 30, 2012, including incremental costs of the related settlement above previous accruals and other litigation-related items.

Apple Inc. (NASDAQ:AAPL): Apple CEO Tim Cook said, “At Apple, we strive to make world-class products that deliver the best experience possible to our customers. With the launch of our new Maps last week, we fell short on this commitment.” Cook stated that customers should try alternatives by downloading map apps from the App Store such as Bing, MapQuest, and Waze, or even use Google (NASDAQ:GOOG) or Nokia (NYSE:NOK) maps, as Apple attempts to improve its service.

Are these stocks a buy or sell? Let us help you decide. Check out our Wall St. Cheat Sheet Stock Picker Newsletter now >>

AT&T, Inc. (NYSE:T) announced today that it is to be the exclusive carrier of the new MiFi® Liberate, which is the first mobile hotspot with a touchscreen display. The device was developed by Novatel Wireless (NASDAQ:NVTL), and is to be powered by the nation’s largest 4G network. The MiFi Liberate has a 2.8″ color touchscreen display, making it far easier to use. Customers are able to easily connect as many as 10 Wi-Fi devices, view data usage, manage connected devices, change network and device settings, etc.

Nokia Corporation (NYSE:NOK) plans to launch the new Lumia 820 and 920 devices during November in particular European markets, according to the Wall Street Journal. The new phones are to run on Microsoft’s (NASDAQ:MSFT) new Windows 8 operating system.

Cisco (NYSE:CSCO) announced that its acquisition of start-up company ThinkSmart Technologies, used to develop location analysis solutions via Wi-Fi technology. The deal’s terms have not been revealed.

Don’t Miss: Sharp: Don’t Blame Us For the iPhone 5 Shortage.

Afternoon Buzzers: Facebook Launches New Platform

Nike (NYSE:NKE) shares are recovering slightly this afternoon after falling sharply in early trading. The company said net income dropped 12.1 percent to $567 million ($1.23 per share) for its first quarter, compared to $645 million ($1.36 per share) a year earlier. It was the fifth straight quarter that the company saw shrinking gross margins, as gross margin fell 0.8 percent to 43.5 percent from the year earlier quarter. In that period, margins have contracted an average of 1.9 percentage points per quarter on a year-over-year basis.

Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.

Research in Motion (NASDAQ:RIMM) shares surged more than 7 percent after reporting a smaller-than-expected quarterly loss. The company posted a loss of 27 cents per share, compared to estimates for a loss of 46 cents per share. RIM also reported revenue of $2.87 billion, beating estimates of $2.5 billion.

Shares of Facebook (NASDAQ:FB) climbed more than 7 percent this afternoon. The social-media giant is launching a new service that allows users to purchase real products for their friends. The move into e-commerce is called Gifts, and will roll out over the coming months. As the name suggests, it enables users to buy, give and ship real gifts to friends directly through Facebook. Gifts can be given from the birthday reminders news feed, or from a person’s timeline.

Investor Insight: Facebook: The Next E-Commerce Giant?

Finish Line Partners With Macy’s and 4 Hot Stocks Attracting Investor Attention

Research In Motion Limited (NASDAQ:RIMM):  According to the Wall Street Journal, Research In Motion Limited’s Chief Executive Officer Thorsten Heins said that he met with CEOs from other companies to discuss the possible licensing of RIM’s BlackBerry10 operating system as part of RIMM’s strategic review, but hasn’t offered specifics nor has he stated when the strategic process will be completed.

Finish Line Inc. (NASDAQ:FINL):  Macy’s (NYSE:M) and Finish Line Inc. announced that Finish Line-branded athletic footwear shops will be opened in more than 450 Macy’s department stores across the United States and online at macys.com. The rollout process for the 450+ locations, which will be operated by Finish Line as a leased department, will begin in the Spring of 2013 and is expected to be completed by Fall 2014. For the remaining approximately 225 Macy’s stores that carry shoes, Finish Line will manage the athletic footwear assortment and inventory beginning in the Spring of 2013 without the staffing or branding provided in the leased departments. Athletic shoe assortments selected by Finish Line will also be available on macys.com beginning in Spring 2013, subject to the signing of a final online agreement. Finish Line will receive sales and corresponding profits less the licensing fee paid to Macy’s. Longer term, this agreement is expected to result in additional sales to Finish Line of $250-$350 million, annually.

Are these stocks a buy or sell? Let us help you decide. Check out our Wall St. Cheat Sheet Stock Picker Newsletter now >>

Walgreen Co. (NYSE:WAG):  Walgreen Co. reports  revenue of $17.07 billion and a consensus of$17.14 billion. This year’s adjusted fourth quarter results exclude the negative impact of 9c per diluted share that is related to the company’s transaction with Alliance Boots GmbH, 10c per diluted share from the quarter’s life in and first out (LIFO) provision and 5c per diluted share in acquisition related amortization costs. The company intends to account for their 45% investment in Alliance Boots using the equity method of accounting on a one-month lag basis.

General Electric Co. (NYSE:GE):  According to Reuters, General Electric Co.’s Chief Financial Officer Keith Sherin told an investor meeting at the company’s Crotonville, NY training center that they expect to stop the purchase of $7 billion bank deposits in a “reasonable time frame,” from MetLife (NYSE:MET).

Facebook, Inc. (NASDAQ:FB):  According to the results of a Global Web Index survey, Facebook, Inc. and Twitter Inc. have millions of users in China where the social networking services are banned.  Bloomberg reported that Facebook grew from 7.9 million in 2009, to 63.5 million in the second quarter, while Twitter users tripled to 35.5 million during the same period.

Don’t Miss: Here’s What the Experts Say About Facebook’s Stock.

Radar Stocks: Facebook and RIM Bounce Higher, Apple Apologizes

Facebook (NASDAQ:FB) shares bounced 6.6 percent on Friday. The social-media giant recently launched a new service called Gifts. As the name suggests, it enables users to buy, give and ship real gifts to friends directly through Facebook. Gifts can be given from the birthday reminders news feed, or from a person’s timeline.

Shares of Apple (NASDAQ:AAPL) closed 2 percent lower on the final trading day of the third quarter. Chief executive officer Time Cook issued an apology for the quality of its new maps app, saying the company “fell short” on its commitment to deliver the best possible experience to its consumers. In a letter posted on the company’s website, Cook said Apple was sorry for the “frustration” the new program had caused customers and added that they were working hard on improving the software. He also suggested alternatives that consumers could use, such as Microsoft’s (NASDAQ:MSFT) Bing.

Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.

Research in Motion (NASDAQ:RIMM) shares jumped 5 percent after reporting a smaller-than-expected quarterly loss. The company posted a loss of 27 cents per share, compared to estimates for a loss of 46 cents per share. RIM also reported revenue of $2.87 billion, beating estimates of $2.5 billion.

Groupon (NASDAQ:GRPN) shares edged lower again on Friday. An internal memo obtained by Reuters shows Groupon to be reshuffling its senior management positions in an effort to stabilize its floundering European business. The changes at the world’s largest online daily deals provider will include the departure of Groupon’s Chief of International Business, Veit Dengler. He will be the latest executive to leave or decide to leave the company in recent months, following the departure of head of national sales Lee Brown in August.

Investor Insight: Revealed: Top Executives Share Outlooks for the U.S. Economy