Ultimate Market Recap: Google Makes Major Cuts at Motorola, Sneak Peak at Next Gen IPhone

Apple JUICY Above $624 in Monday Morning Market Mayhem

Apple (NASDAQ:AAPL) shares finished last week slightly higher and are ticking higher another half percent Monday morning as detailed sales numbers became available due to the ongoing legal battle with Samsung. Samsung sold 1.4 million Galaxy Tabs between June 2010 and June 2012, generating revenue of $644 million. In contrast, Apple sold 34 million iPads in the same time frame, generating $19 billion in revenue. Apple (NASDAQ:AAPL) also managed to sell 85 million iPhones and 46 million iPod touches for combined revenue of $60.3 billion.

Shares of J.C. Penney (NYSE:JCP) are down almost 2 percent this morning after a weak second quarter earnings report. The company announced a loss of $147 million, compared to a net gain of $14 million a year earlier. Revenue also declined by 22.6 percent to $3.02 billion. “We have now completed the first six months of our transformation and while business continues to be softer than anticipated, we are confident the transformation of J.C. Penney is on track. The transition from a highly promotional business model to one based on everyday value will take time and we will stay the course,” said Ron Johnson, chief executive officer.

Manchester United (NYSE:MANU) shares are down 1 cent in pre-market trading, falling below its $14 initial public offering price. The English soccer club, with a record 19 championships, sold 16.7 million shares in a deal that valued the organization at $2.3 billion. However, the IPO priced below its initial $16-$20 range and underwriters had to support the stock price during its trading debut on the New York Stock Exchange.

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Netflix (NASDAQ:NFLX) and Facebook (NASDAQ:FB) shares attract attention in early morning trading. The WSJ reported that Reed Hastings, chief executive of Netflix, purchased roughly $1 million in Facebook stock. “In a filing with the U.S. Securities and Exchange Commission, Mr. Hastings disclosed buying 47,846 Facebook Class A shares on Wednesday at a weighted average price of $21.03 each.”

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Fusion-IO Sees ABNORMAL Trading Volume and 4 Hot Stocks Turning Heads

The Coca-Cola Company (NYSE:KO): A Goldman Sachs analyst lowered her rating on The Coca-Cola Co. to “Neutral” from “Buy,” due to factors including slowing growth and rising pressure from competitors like PepsiCo Inc. at home and abroad. Shares of The Coca-Cola Company are trading 0.37% lower today.

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Fusion-IO, Inc. (NYSE:FIO): For fiscal year 2012, the company had a revenue of US$359.3 million, versus revenue of $197.2 million during fiscal year 2011, an increase of 82 percent. Net loss for fiscal year 2012 totaled $5.6 million, or US$0.06 per diluted share, versus net income of $4.6 million, or $0.06 per diluted share, the previous year. In the latest trading session, Fusion-IO shares soared 27.78 percent higher, rising $5.84 to $26.86 per share. Abnormal trading volume of Fusion-IO reached 17.80 million shares, which is 8 times heavier than usual day trading. Shares of Fusion-IO, Inc. are trading 3.50% lower today.

Sears Holdings Corporation (NASDAQ:SHLD) prepares to spin off its Hometown and Outlet stores as well as a few hardware stores into a separate publicly traded company. Shares of Sears Holdings Corporation are trading 3.47% higher today.

SYSCO Corporation (NYSE:SYY) CEO Bill DeLaney stated: “Market conditions remained challenging throughout the year due to increasing product costs and an uneven economic recovery. Nevertheless, we successfully supported our customers and grew our share of market. We are making meaningful progress on our business transformation initiatives and believe the benefits will both improve our financial performance over time and further enhance our leadership position in the industry.” Shares of SYSCO Corporation are trading 3.61% higher today.

Ubiquiti Networks Inc (NASDAQ:UBNT) shares plunged on Friday, with a 42 percent low at midday. Ubiquiti was a $35 stock only months earlier but now trades for lower than $9, after UBS AG (NYSE:USA) (NYSE:UBS), Deutsche Bank AG (NYSE:USA) (NYSE:DB), Wedbush Securities, Capstone, and Pacific Crest Securities all reduced the stock rating. Shares of Ubiquiti Networks Inc are trading 0.23% lower today.

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Morning BUZZERS: Coke Downgraded, Sysco and Groupon Jump Higher

Shares of The Coca-Cola Co. (NYSE:KO) fell 0.39 percent this morning. The Dow component received a downgrade to Neutral from Conviction Buy at Goldman Sachs (NYSE:GS). The bank cited macro headwinds and foreign exchange concerns.

Sysco (NYSE:SYY) shares jumped more than 3 percent this morning. The company reported financial results for the fourth quarter that missed on the bottom line, but beat the top line estimates. Net income came in at $309.3 million (53 cents per share), compared to $336.3 million (57 cents per share) a year earlier. Revenue increased 5.9 percent to $11.05 billion in the same time period. “Market conditions remained challenging throughout the year due to increasing product costs and an uneven economic recovery. Nevertheless, we successfully supported our customers and grew our share of market,” said Bill DeLaney, Sysco’s president and chief executive officer.

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Netflix (NASDAQ:NFLX) has declined 1.52 percent while Facebook (NASDAQ:FB) shares fell 0.87 percent this morning. The WSJ reported that Reed Hastings, chief executive of Netflix, purchased roughly $1 million in Facebook stock. “In a filing with the U.S. Securities and Exchange Commission, Mr. Hastings disclosed buying 47,846 Facebook Class A shares on Wednesday at a weighted average price of $21.03 each.”

Groupon (NASDAQ:GRPN) shares surged 3.03 percent this morning. The daily deal company is set to release its latest earnings on Monday. The average estimate of analysts is for net loss of 2 cents per share, a narrower loss from the year-earlier quarter net loss of 35 cents. During the past three months, the average estimate has moved up from a loss of 3 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at a loss of 2 cents during the last month.

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Motorola Solutions INVESTS in Fixmo and 4 Hot Stocks to Consider

Monster Beverage Corp (NASDAQ:MNST): As energy drinks continue to surge in popularity, the disclosure by Monster Beverage Corp. that it’s being investigated is the latest signal that the high-octane industry is coming under sharper scrutiny. The California-based company said in a filing with the U.S. Securities and Exchange Commission Thursday that it received a subpoena last month from an unidentified state attorney general’s office concerning the advertising and ingredients of its energy drinks.

Shares of Monster Beverage Corp are trading 1.11% lower today.

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Eagle Rock Energy Partners, L.P. (NASDAQ:EROC): BP America Production Company (NYSE:BP) announced that it has agreed to sell its Sunray and Hemphill gas processing plants in Texas, together with their associated gas gathering system, to Eagle Rock Energy Partners (NASDAQ:EROC) for $227.5M in cash.The Sunray plant, in Moore County, and the Hemphill plant, in Hemphill County, have combined processing capacity of approximately 220 million cubic feet of gas a day and an associated gathering system of around 2,500 miles of pipelines. The transaction is expected to close in 4Q12, subject to regulatory approvals and customary closing conditions.

Shares of Eagle Rock Energy Partners, L.P. are trading 2.79% lower today.

Motorola Solutions Inc (NYSE:MSI): Mobile security firm Fixmo added even more capital to its coffers last week following an investment from Motorola Solutions Venture Capital, the investment arm of the wireless company’s corporate and government business. As more employees use their personal mobile devices in the workplace, Fixmo helps corporate IT departments ensure that information on the gadgets is kept private and meets government security requirements. Fixmo said in a news release that the investment, worth between $1 million and $5 million, will be used to support research and development, as well as its expansion into global markets. The company also raised $23 million from investors last November.

Shares of Motorola Solutions Inc are trading 1.60% lower today.

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Focus Media Holding (NASDAQ:FMCN): Chinese display-advertising provider Focus Media Holding Ltd said it received a bid to go private from a consortium that includes its Chief Executive Jason Nanchun Jiang and private equity firms Carlyle Group and CITIC Capital Partners.

Groupon (NYSE:GRPN): With Groupon (NASDAQ:GRPN) shares languishing below $7, the chorus of critics’ longtime complaints about the company are growing louder. Groupon’s second-quarter financial report needs to prove that it’s a grownup company with a real business plan. Among the litany of concerns: Critics say Groupon, and perhaps the entire daily-deals market, has no viable long-term model. Small businesses frequently report that signing on with Groupon cost them loads of money, with some even claiming that the deal forced them to close up shop for good.

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Wall St. Brief: Apple and Microsoft Are HOLDING OUT on Kodak, Google CUTS Motorola Workforce

Google (NASDAQ:GOOG) is cutting 20 percent or 4,000 U.S. workers from Motorola Mobility’s workforce after previously shedding 40 percent of Motorola’s vice presidents; it had also already replaced the CEO. The cuts come in an effort to have Motorola focus on smartphone and R&D projects. According to the New York Times, Motorola’s cable hardware unit is next up on the block.

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Bank of America (NYSE:BAC) will sell Merrill Lynch’s private bank outside the U.S. to the Swiss company, Julius Baer, for around $1 billion. The deal is the latest one by the bank to increase its cash position for Basel III requirements and payment toward its legal liabilities.

JPMorgan (NYSE:JPM) is looking for an annual pretax profit of $1 billion increase within five years thanks to a plan merging its corporate and investment banks, and its treasury and securities services business. In 2011, JPMorgan’s pretax profit was $10.4 billion but it will get rid of its return-on-equity goal of 17 percent a result of greater regulation.

Standard Chartered (SCBFF.PK) is supposedly conducting talks with numerous authorities for a settlement; this could take place this week as its settles the review into its Iran dealings. The bank is holding discussions with New York’s Department of Financial Services and the federal agencies, noting a divide between the two. On Wednesday, Standard Charter will meet with DFS and ask to have its license to work in the state, reported Bloomberg.

Eastman Kodak’s (EKDKQ.PK)’s auction of 1,100 digital-camera patents has become complex but the bids to-date are under $500 million, reported the Wall Street Journal. Without the high offers, it could affect Kodak’s ability to exit from bankruptcy protection. The participating groups include Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT), and a second one with Google (NASDAQ:GOOG) and Samsung (SSNLF.PK).

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Nokia SELLS Apps Unit to Digia and 4 Hot Stocks Trading Today

Nokia (NYSE:NOK):  Nokia has abandoned their homegrown software efforts and has agreed to sell their Qt app-tools unit to Digia Oyj (DIG1V). The company bought the Qt technology in 2008 to give developers tools to write applications for Symbian and MeeGo devices, these two operating systems were cast aside in favor of Microsoft’s Windows Phone. According  to a statement from the Finnish software firm, as many as 125 employees will move to Digia as part of the deal. No terms have been disclosed.

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Bank of America Corporation (NYSE:BAC):  Bank of America Corporation announced that they have agreed to sell their international wealth management businesses, based outside of the United States, for an estimated 1.2% of client assets, to Julius Baer Group, the leading Swiss private banking organization. Payment received will be comprised of up to $250 million in new Julius Baer shares, and the remainder in cash.  The transaction, expected to close in stages, is subject to regulatory approval. Internationally, Bank of America will focus their management and financial resources by continuing to build their leading Global Banking and Markets business. Related to this, Julius Baer and Bank of America, Merrill Lynch, have agreed to enter into an agreement whereby Bank of America, Merrill Lynch will provide certain products and services to Julius Baer, including the provision for global equity research, product offerings, as well as structured and advisory products. The final purchase price will depend on assets under management at the completion of the sale. Shares of Bank of America Corporation are trading at  0.45% higher today.

Alexandria Real Estate Equities Inc. (NYSE:ARE):  Alexandria Real Estate Equities of California has reduced their option to develop their site on the southeastern outskirts of Edinburgh from 924,000 square feet to 636,000 square feet. Coming after Alexandria’s decision to suspend their commitment to the park due to the economic crisis, this appears to further undermine former Scottish Enterprise chief executive Jack Perry’s vision for a £250 million development creating 6500 high-end jobs. The Sunday Herald understands that after Alexandria’s suspension decision, some of the land covered by Alexandria’s option was re-allocated to the so called bio-incubator consisting of  a £24 million office block for life science firms that are funded by Scottish Enterprise and the UK Government. The remainder was taken up by NHS Lothian for a parking lot to be used by Sick Children’s Hospital which will be built in 2015. Shares of Alexandria Real Estate Equities Inc. are trading at 0.44% higher today.

Toyota Motor Corporation (NYSE:TM): The Washington Post reported that Japanese companies are complaining about severe restrictions on their use of electricity. This is hurting their productivity and profits. Shares of Toyota Motor Corporation are trading at 0.63% lower today.

GMAC LLC (NYSE:GOM): “GMAC LLC Mortgage is committed to preserving home ownership whenever possible,” said Dana Dillard, the company’s Senior Vice President. “In that spirit, we’re proud to support this initiative with Hope LoanPort, which will provide useful tools and education for borrowers.” Homeowner Connect was created in response to the National Mortgage Settlement, that called for a consumer-centric web portal. Additionally, Homeowner Connect aligns with requirements found in the OCC Consent Orders, the joint-GSE Servicing Alignment Initiative, as well as many new state policies symbolized by the recent passage of the California Borrowers’ Bill of Rights. After the initial roll out to GMAC customers, HLP will be actively working with other mortgage services who are with Homeowner Connect. Participation is open to both servicers already using the HLP Housing Counselor Portal, and new participants with HLP. Shares of GMAC LLC are trading at 0.04% higher today.

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Market Recap: Gold Falls, Apple’s Big Announcement, Google Slashes Jobs

Markets closed mixed on Wall Street today: Dow -0.29%, S&P -0.13%, Nasdaq +0.06%, Oil -0.08%, Gold -0.71%.

On the commodities front, Oil (NYSE:USO) declined to $92.81 a barrel. Precious metals also declined, with Gold (NYSE:GLD) falling to $1,611.00 an ounce while Silver (NYSE:SLV) fell 0.30% to settle at $27.77.

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New images of what is purportedly the logic board of Apple’s (NASDAQ:AAPL) next generation iPhone hit the web on Sunday. If legitimate, they are some of the first images of functional circuity for the much-rumored handset. Posted on the Chinese language forum WeiPhone.com, the images appear to show a never-before-seen iPhone logic board with EMI shielding covering most of the internal components.

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Google’s (NASDAQ:GOOG) Motorola Mobility will cut 20 percent of its workforce and close nearly a third of its offices worldwide, a spokesman said on Monday. “Motorola is committed to helping them (the employees) through this difficult transition and will be providing generous severance packages, as well as outplacement services to help people find new jobs,” the Google spokeswoman said.

Sears Holdings Corp. (NASDAQ:SHLD) shares jumped 5.7 percent. Over the weekend, Barron’s gave a positive shout out to the company. With its 59 percent stock rise through Aug. 9, it now sits as the eighth-top S&P 500 performer and year-to-date, the No. 2 performer in retail stocks.

Pervasive Software Inc. (NASDAQ:PVSW) shares increased 23 percent after Actian Corp. presented an offer to purchase the company for $154 million cash or for $8.50 a share. The deal comes in 30 percent higher than the company’s closing price on Friday.

On the down side, Arrowhead Research Corp. (NASDAQ:ARWR) shares dropped 14 percent after the company announced it raised $6.2 million from 2.3 million shares of common stock from a public offering and warrants to buy 1.7 million shares.

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