Ultimate Market Recap: LinkedIn Leaps After Strong Report, Knight Capital Crashes
Apple SAVES Some Cash and 2 HOT Stock Stories to Note
Bank of America Corporation (NYSE:BAC) is in talks to settle a multibillion-dollar claim from government-backed mortgage company, Fannie Mae, although individuals close to the discussions stated that the sides were still distant, and the case could still need to be decided in court, reports the Financial Times. Shares of Bank of America Corporation are trading 3.13% higher today.
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Toyota Motor Corporation (NYSE:TM) increased its global sales plan for the year to 9.76 million vehicles from 9.58 million, according to the Associated Press. Shares of Toyota Motor Corporation are trading 5.04% higher today.
Apple Inc. (NASDAQ:AAPL): Economic troubles cause unseasonably large price declines for a large range of electronic parts, which creates a near-term buying opportunity for purchasers, reports IHS iSuppli. Pricing for widely used components such as capacitors, crystals, filters, magnetics, oscillators and printed circuit boards (NASDAQ:PCBS) all are positioned to fall at above-average rates during Q3 and Q4, the firm predicted. Shares of Apple Inc. are trading 1.51% higher today.
Market Recap: Stocks ROCKET, LinkedIn POPS 15%, Activision DISAPPOINTS
On Friday, Markets closed up: Dow +1.69%, S&P +1.90%, Nasdaq +2.00%, Oil +4.89%, Gold +1.02%.
On the commodities front, Oil (NYSE:USO) rose to $91.39 a barrel. Precious metals also increased, with Gold (NYSE:GLD) rising to $1,607.00 an ounce while Silver (NYSE:SLV) rose 0.73% to settle at $27.73.
Here’s your Cheat Sheet to Friday’s stock stories:
Research in Motion (NASDAQ:RIMM) has chosen its home country of Canada to launch a new PlayBook tablet with built-in support for cellular networks, a feature that is becoming an industry standard and yet was absent from its earlier tablets. The BlackBerry maker said on Thursday it would launch the new PlayBooks in Canada next week and roll them out in the United States, Europe, South Africa, Latin America, and the Caribbean in the coming months.
Apple (NASDAQ:AAPL) is working on a Smart Cover for its iPad with a flexible secondary display, according to a patent application first filed in August of last year with the U.S. Patent and Trademark Office. The flexible display technology, Apple says, can be integrated into the flexible cover without changing the overall form factor of the device. And adding the flexible display into the cover “greatly enhances the overall functionality of the tablet device.”
LinkedIn Corp.’s (NYSE:LNKD) shares jumped almost 15 percent after the company announced a strong second quarter earnings report after the bell on Thursday. It announced better than expected revenue numbers and increased its full-year outlook.
On the down side, Activision Blizzard’s (NASDAQ:ATVI) shares dropped nearly 6 percent as its second quarter results included decreases in its top and bottom line results. The company did beat revenue and earnings per share expectations.
ComScore’s (NASDAQ:SCOR) shares fell 20 percent after the company announced a second quarter loss. In the short-term, things don’t look much better as it sees more red for the third quarter.
Wall Street Brief: Knight Capital Gets BAILED OUT, Six Big IPOs ON DECK
Knight Capital (NYSE:KCG) will receive $400 million from a group comprised of Blackstone (NYSE:BX), TD Ameritrade (NASDAQ:AMTD), Stifel Nicolaus (NYSE:SF) and Jefferies Group (NYSE:JEF). Investors will receive convertible preferred stock for 70 percent-75 percent of Knight Capital. In addition, the Securities and Exchange Commission has rejected Knight Capital’s request to cancel numerous trades that had erroneously been executed after last week’s software glitch, reported the Wall Street Journal.
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ING (NYSE:ING) will break up its Asian life-insurance operations into parts and sell them after a bid for entire unit didn’t come through, reported the Wall Street Journal. With the independent deals it could bring more than $7 billion. Companies interested in the units includes KB Financial (NYSE:KB), Manulife (NYSE:MFC), and Blackstone (NYSE:BX).
It’s a big week for IPOs as six companies will collectively raise $1.1 billion. This comes as the IPO market is still in recovery mode after Facebook’s (NASDAQ:FB) debacle. Stocks to debut includes Manchester United and Bloomin’ Brands, both set to each raise $300 million, along with CKE at $200 million.
Taiwan Semiconductor Mfg Co. (NYSE:TSM) will invest $1.4 billion into ASML (NASDAQ:ASML), similar to a deal that came from Intel (NASDAQ:INTC) valued at $4.1 billion. Like Intel, Taiwan Semiconductor Mfg will receive a 5 percent equity stake at EUR 838 million; it will also commit EUR 276 million for research and development.
eBay (NASDAQ:EBAY) is now offering same-day delivery for purchases by San Francisco residents who place $25 and more orders with specific stores. This is available via eBay’s Now iOS app. Overtime, additional cities and platforms will be added. The change comes in an effort by eBay’s to take on Amazon (NASDAQ:AMZN), who doesn’t believe same-day delivery is economical “on a broad scale,” as well as Groupon (NASDAQ:GRPN).
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A.M. Movers: Knight Capital Plunges 27%, Best Buy SURGES 18%
Knight Capital Group (NYSE:KCG) shares plummeted more than 27 percent in this morning. The trading firm announced a $400 million deal to save the company, but it is highly diluted to shareholders. The firms involved in the rescue will buy convertible preferred stock to save Knight, which are convertible into about 270 million shares of common stock.
Shares of Best Buy (NYSE:BBY) surged 18.54 percent this morning. Founder and former chairman Richard Schulze made an offer to take the retailer private for $24-$26 per share in cash, making the deal worth around $8.6 billion. In a statement, Schulze explained, “There is no question that now is the moment of truth for Best Buy and that immediate and substantial changes are needed for the company to return to its market-leading ways. After assessing all of my options, it is my strong belief that Best Buy’s best chance for renewed success is to implement with urgency the necessary changes as a private company.” RadioShack (NYSE:RSH) shares also jumped 6.9 percent on the news.
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Tyson Foods (NYSE:TSN) shares fell 3.14 percent after reporting financial results for the third quarter. Net income fell 61.2 percent to $76 million (21 cents per share), compared to $196 million (51 cents per share) a year earlier. “We produced solid results in our fiscal third quarter despite softer than expected domestic demand for protein,” said Donnie Smith, president and chief executive officer. “I am especially pleased with the performance of our Chicken and Prepared Foods segments. Our Beef and Pork segments have been operating in very difficult market conditions that will result in our earnings for fiscal 2012 coming in lower than we previously projected.”
Chesapeake Energy (NYSE:CHK) shares dropped 1.57 percent Monday morning. The natural gas giant was downgraded to Market Perform by BMO Capital. The firm place a target of $25 on shares and explained that “these moves are prompted by what we see to be a story still chock-full of operating and financial risk.” Chesapeake reports financial results after today’s closing bell.
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Cognizant Tech BENEFITTING From Global Macro Economy and 3 to Stocks to See Now
Cognizant Technology Solutions Corp (NASDAQ:CTSH) advances after the company reported higher than expected Q2 revenue and EPS this morning. The company explained that that it has benefited from the rough global macro economy. Because of the downturn, more businesses are using Cognizan’t services, according to Cognizant President Gordon Coburn. Another trend assisting Cognizant is a wave of IT industry changes, including new mobile, analytics, and cloud tools, the company’s CEO, Francisco d’Souza stated. Companies turn to Cognizant for assistance with dealing with those changes, d’Souza added. Furthermore, the IT outsourcer claimed that it continues to gain market share, while its pipeline stays strong. Cognizant reported a 2012 EPS guidance of $3.64, in comparison to analysts’ consensus estimate of $3.37. The company expected that its 2012 revenue would total nearly $7.34 billion, in comparison to the consensus estimate of $7.34 billion. In early trading, Cognizant was boosted $6.74, or 11.65 percent, to $64.60. Other India-based IT outsourcing companies also saw advancement, with Infosys (NASDAQ:INFY) adding 1.85 percent to $40.79 and Wipro (NYSE:WIT) increasing 2.16 percent to $8.04. Shares of Cognizant Technology Solutions Corp are trading 11.87% higher today.
Changyou.com Limited (NASDAQ:CYOU): The company’s special one-time cash dividend amounts to $3.8 per American Depositary Share. The special cash dividend totals about $201 million. Shares of Changyou.com Limited are trading 14.20% higher today.
Sohu.com Inc. (NASDAQ:SOHU): Includes revenues from 17173 of $11 million to $12 million, implying a sequential increase of 21 percent 32 percent as well as an annual increase of 14 percent 24 percent. Shares of Sohu.com Inc. are trading 13.60% higher today.
Knight Capital Group Inc. (NYSE:KCG) officials attempted to negotiate a deal to save the brokerage firm over the weekend while new details surfaced revealing that the SEC rebuffed the company’s pleas to be released from errant trades it had booked, according to the Wall Street Journal reports. Shares of Knight Capital Group Inc. are trading 22.72% lower today.
Mid Day Movers: Berkshire Hathaway UP, Knight Capital CRASHES AGAIN
Shares of Warren Buffett’s Berkshire Hathaway (NYSE:BRKA) is selling off after a morning rally. The company announced that net income fell to $3.11 billion ($1,882 per share) in the second quarter, compared to $3.42 billion ($2,072) a year earlier. However, operating net income, which excludes sour derivative bets, were $2,252 a share, beating estimates of $1,777, according to Bloomberg.
After crashing for two days, shares of Knight Capital Group (NYSE:KCG) closed 57 percent higher on Friday, but has crashed 21 percent in trading today. The company is looking for funding after experiencing a $440 million loss due to a computer trading program and failure in oversight. The WSJ reported that Knight it telling brokers it has secured a line of credit. TD Ameritrade (NASDAQ:AMTD) and Scottrade also announced they resumed routing through Knight.
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OpenTable (NASDAQ:OPEN) shares closed up 15.81 percent on Friday and continued higher over 2.5% today. The company announced revenue of $39.6 million for the second quarter, topping estimates of $39.4 million. OpenTable also raised its revenue outlook for the third quarter to $39.1 million to $40.2 million, the consensus had been $39.8 million. “We’re pleased with the progress we’re making across a variety of areas that support future growth in both our North America and International businesses,” Matt Roberts, chief executive officer, said in a statement.
Despite falling to new record lows for three consecutive trading sessions, Facebook (NASDAQ:FB) shares logged a 5 percent gain on Friday, and are up another 2.4 percent today. However, the move could be a dead cat bounce. A recent report indicates that more than 83 million accounts on the site are fake.
Apple (NASDAQ:AAPL) shares jumped 1.30 percent Friday and are up 1.25 percent in a strong uptrend today. The tech giant is working on a Smart Cover for its iPad with a flexible secondary display, according to a patent application first filed in August of last year with the U.S. Patent and Trademark Office. The flexible display technology, Apple claims, can be integrated into the flexible cover without changing the overall form factor of the device. Furthermore, adding the flexible display into the cover “greatly enhances the overall functionality of the tablet device.”
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Toyota SHATTERS Estimates and 3 Hot Stocks Attracting Attention Now
Bank of America Corporation (NYSE:BAC): Marks & Spencer Group (MAKSY) is being seen as a possible GBP6B bid target falling a 50 percent fall in shares since 2007, according to the Telegraph. Bankers such as Bank of America Merrill Lynch recently assessed the possibility of offering debt finance for a speculative bid, and a minimum of one private equity firm is considering a public-to-private takeover of M&S. Shares of Bank of America Corporation are trading 2.42% higher today.
Toyota Motor Corporation (NYSE:TM) increased to its highest in a month in Tokyo trading as its profit beat analysts’ estimates and it increases its sales target. Asia’s largest automaker rose 2.5 percent to 3,140 yen, its highest since July 9, at the close of Tokyo trading. The shares were the biggest contributor to the 2 percent gain on the benchmark Nikkei 225 (NKY) Stock Average today. Shares of Toyota Motor Corporation are trading 0.57% lower today.
GMAC LLC (NYSE:GOM): Citi, Chase, Bank of America, Wells Fargo, and GMAC/Ally Bank settled a large national case regarding mortgage fraud in foreclosures. In Colorado, 22,000 people wronged by these lenders are able apply for a share in $200 million, and could lose out if they choose not apply. These financial institutions currently allow refinancing to homeowners owing more than their homes are worth. Shares of GMAC LLC are trading 0.04% lower today.
Apple Inc. (NASDAQ:AAPL): In Australia, where Apple and Samsung Electronics Co. (SSNLF) are in one of a number of patent battles the two have worldwide, they are “hot tubbing,” as expert witnesses provide evidence in court together instead ofone by one in the witness box, according to Reuters. This “concurrent evidence” practice is more common in Australia in complex, technical trials. Some claims that it saves time, resources, and restrains experts hired by litigants from overstating their case. Shares of Apple Inc. are trading 1.04% higher today.
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Tyson Aims to REDUCE Share Repurchases and 3 Hot Stocks Active Now
Kellogg Company (NYSE:K): Olympic gymnastics star Gabrielle “Gabby” Douglas won the coveted all-around gold, leading to Battle Creek-based Kellogg Co. signing a deal for her to appear on special-edition boxes of Corn Flakes. Shares of Kellogg Company are trading 0.22% lower today.
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Youku Inc (NYSE:YOKU) CEO Victor Koo stated: “Despite challenging macroeconomic conditions, we recorded another quarter of strong revenue growth. We are pleased to see the continued rationalization of the online video sector and improving content and bandwidth cost structure. The planned integration with Tudou is proceeding smoothly and we are on track to realize the potential of the combination of No.1 and No.2 online video platforms in China.” Shares of Youku Inc are trading 7.58% higher today.
ProShares UltraShort 7-10 Year Trea (NYSEARCA:PST): Shares of ProShares UltraShort 7-10 Year Trea are trading 0.4% lower today.
Tyson Foods, Inc. (NYSE:TSN) currently expect to lower repurchases beneath the company’s share repurchase program due to an anticipated increase in working capital needs. Once the company generates more visibility into their working capital needs, or should forecasted conditions change, the company could raise its share repurchases. As of June 30, 38.4 million shares were still available for repurchase under the program. The timing and extent to which Tyson repurchases shares is to depend upon, among other things, markets, industry conditions, liquidity targets, their debt obligations and regulatory requirements. Shares of Tyson Foods, Inc. are trading 5.91% lower today.
Market Recap: Tech POPS, Best Buy’s SURPRISE, Knight Capital JOUSTED Again
Markets closed up on Wall Street today: Dow +0.16%, S&P +0.23%, Nasdaq +0.74%, Oil +0.73%, Gold +0.29%.
On the commodities front, Oil (NYSE:USO) rose to $92.09 a barrel. Precious metals also increased, with Gold (NYSE:GLD) rising to $1,614 an ounce while Silver (NYSE:SLV) rose 0.88% to settle at $27.87.
Here’s your Cheat Sheet to today’s top stock stories:
As Apple (NASDAQ:AAPL) and Samsung met in court last week, an internal email was released revealing that Apple executives have been interested for some time in the possibility of a smaller tablet device comparable in size to either Amazon’s (NASDAQ:AMZN) Kindle Fire or Google’s (NASDAQ:GOOG) Nexus 7. The email would seem to confirm rumors that Apple has a 7-inch “iPad Mini” in the works, but further demonstrates that Apple keeps an eye on products other companies are releasing, even if they are in a sector in which it doesn’t compete.
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Best Buy Co. shares (NYSE:BBY) jumped 11 percent. Company founder Richard Schulze offered to take the company private with a premium of up to 47 percent over Friday’s closing share price. Schulze resigned from the company in June and said he would explore options for his 20.1 percent ownership share. His deal places a $8.84 billion value on Best Buy.
First Solar Inc. (NASDAQ:FSLR) shares rose 10 percent. The company reported better-than-expected quarterly earnings on Wednesday with its $1.27 a share for the quarter, up from $0.70 in the previous year. It also increased its full-year earnings and revenue outlook.
On the down side, Knight Capital Group (NYSE:KCG) shares tanked 24 percent after last week’s $400 million–plus trading error. Early on Monday, the NYSE said it would move the firm’s custodial role for numerous stocks to Getco LLC. The market maker also lined up a $400 million equity package involving convertible preferred stock.
Tyson Foods (NYSE:TSN) shares fell 7 percent after the company reported its third quarter profit fell 61 percent. The company slashed its revenue forecast and said it is facing challenges in its beef and pork businesses along with increasing grain prices.
Late Movers: LEAP Crashes 10%, Chesapeake Climbes Higher
Shares of Leap Wireless International (NASDAQ:LEAP) crashed 10 percent in late afternoon hours. The company reported a loss of $41.6 million for the second quarter, compared to a loss of $65.2 million a year earlier. Revenue grew only 3.5 percent to $786.8 million, falling well short of the $831.9 million estimate. “Second quarter customer results, however, were softer than anticipated. The Company’s plan for the balance of 2012 is designed to position us to capture customer growth and improve operational performance,” explained Doug Hutcheson, president and chief executive officer.
Chesapeake Energy (NYSE:CHK) shares jumped 3.6 percent in late afternoon trading. The natural gas giant announced that net income in the second quarter surged 90.6 percent to $972 million ($1.29 per share), compared to $510 million (68 cents per share) a year earlier. Aubrey K. McClendon, Chesapeake’s Chief Executive Officer, said, “We are taking aggressive and focused actions to increase cash flow and net asset value per share while also reducing long-term debt as we continue our ongoing transformation to a more balanced asset base between higher-margin liquids and lower-margin natural gas. We are prudently deploying our capital as we focus on developing and harvesting the 10 core plays in which Chesapeake has built a number one or two position.”
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Despite closing 1 percent higher during regular trading, Apple (NASDAQ:AAPL) shares edged slightly lower late Monday. Shares of the iGadget maker have rally over the past two weeks as more evidence builds for an iPad Mini and a new iPhone. As Apple and Samsung met in court last week, an internal email was released revealing that Apple executives have been interested for some time in the possibility of a smaller tablet device comparable in size to Amazon’s (NASDAQ:AMZN) Kindle Fire or Google’s (NASDAQ:GOOG) Nexus 7.
After closing 24.2 percent in the red on Monday, shares of Knight Capital Group (NYSE:KCG) continued to decline more than 2 percent in late afternoon trading. The trading firm announced a $400 million deal to save the company, but it is highly diluted to shareholders. The firms involved in the rescue will buy convertible preferred stock to save Knight, which are convertible into about 270 million shares of common stock.
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