Ultimate Market Recap: Meatless McDonald’s, Piedmont Natural Gas Fuels DNC

Wall Street Morning Brief: McDonald’s Unbelievable New Venture, AIG Gets This Permission

Valeant Pharmaceuticals (NYSE:VRX) will acquire Medicis Pharmaceuticals (NYSE:MRX) for $2.6 billion. The company’s $44 per share offer represents a 39 percent premium to Medicis’ Friday close. The transaction is the latest acquisition for Valeant, which has undertaken in 50 deals since Michael Pearson became its CEO in 2008.

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Branching out in a surprisingly new direction, McDonald’s (NYSE:MCD) will open its first vegetarian restaurants at two locations close to an Indian pilgrimage centers late this year. Growth in India is expected rise again, with the company estimating it will double the number of its 271 stores in the country during the next three years.

Smithfield Foods’ (NYSE:SFD) fiscal quarter one net profit dropped 25 percent to $61.7 million with its $0.40 earnings per share and $3.09 billion revenue missing analyst estimates. Smithfield was affected by ongoing weakness in its fresh pork business and increased costs. This year’s drought will harm hog production but its grain hedges should have rising costs remain below the industry average.

An international research team including university scientists, Nokia (NYSE:NOK), and Toshiba (TOSBF.PK) will introduce a quantum chip at the British Science Festival, which begins today. The chip will provide improved security that’s “guaranteed by the laws of physics” for smartphones and computers and also make them faster. The chip should be available commercially within five years.

AIG (NYSE:AIG) can sell the rest of its 18 percent stake in AIA beginning today as its lock-up agreement expires after two years. AIG CEO Robert Benmosche has suggested the company will sell the holding, but details haven’t been provided. A sale would help AIG continue paying the U.S. government back for its bailout.

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A.M. Buzzers: Medicis Pharma SURGES 40%, Analysts Pick Morgan Stanley Over Goldman

Shares of Medicis Pharmaceutical (NYSE:MRX) jumped nearly 40 percent on heavy volume this morning. The company is being acquired by Valeant Pharma for $2.6 billion in cash. Valeant would pay $44 in cash for each share of Medicis, 39 percent more than the stock’s Aug. 31 closing price, The New York Times reports.

Smithfield Foods (NYSE:SFD) fell 0.10 percent lower this morning. The packaged food company reported that first quarter net income declined 24.8 percent to $61.7 million (40 cents per share), compared to $82.1 million (49 cents per share) a year earlier. Revenue also came in at $3.09 billion, below estimates of $3.26 billion.

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Campbell Soup (NYSE:CPB) shares jumped more than 1 percent Tuesday morning. The company announced that net income for its fourth quarter increased 27 percent to $127 million (40 cents per share), compared to $100 million (31 cents per share) a year earlier. Denise Morrison, Campbell’s CEO and President, said, “In the fourth quarter, we generated organic sales growth, with gains across most of our portfolio, including strong sales in U.S. Soup and U.S. Simple Meals. Retailers continue to respond favorably to our new product development, and we have started shipping new products for fiscal 2013 launches.”

Morgan Stanley (NYSE:MS) shares increased 1.80 percent. Analysts at J.P. Morgan (NYSE:JPM) advised clients that it favored Morgan Stanley over Goldman Sachs (NYSE:GS). The analysts also upgraded Morgan Stanley to Overweight from Neutral and cut Goldman Sachs to Underweight. “The key reason for our preference of Morgan Stanley over Goldman Sachs is the valuation difference with Morgan Stanley trading at 7.5 times price to earnings ratio, compared to Goldman at 8.8 times,” the analysts explained.

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Here Are The Best and Worst Blue-Chips in August

With Labor Day behind us, summer has come to a symbolic end. Despite falling for the second straight week, U.S. stocks logged another month of gains in August. The Dow Jones Industrial Average edged 0.63 percent higher, while the S&P 500 increased nearly 2 percent. The Nasdaq, helped by an 8 percent rise in Apple (NASDAQ:AAPL), jumped more than 4 percent for the month.

All three major averages finished August on a high note and posted their first gains in the month since 2009, as markets enjoyed Ben Bernanke’s Jackson Hole speech. The Fed Chairman did not specifically detail more quantitative easing measures, but reiterated that the central bank “will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.”

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The Dow Jones Industrial Average rose for the third consecutive month. Although the blue-chip index is normally viewed as boring, there were plenty of large movers. Listed below are the best and worst performers in the Dow for August.

Best:

Cisco Systems (NASDAQ:CSCO)  19.62 percent
Bank of America (NYSE:BAC)  8.86 percent
Home Depot (NYSE:HD)  8.76 percent
United Technologies (NYSE:UTX)  7.27 percent
Microsoft (NASDAQ:MSFT)  4.58 percent

Worst:

Hewlett-Packard (NYSE:HPQ)  -7.46 percent
Coca-Cola (NYSE:KO)  -7.43 percent
Verizon Communications (NYSE:VZ)  -4.87 percent
Boeing (NYSE:BA)  -3.40 percent
Intel (NASDAQ:INTC)  -3.39 percent

Interestingly, investors appeared more willing to take on risk as well-known dividend names such as Coca-Cola and Verizon were among the worst performers. In the S&P 500, the divide between companies with and without dividends was even more pronounced. According to Bespoke Investment Group, a market research firm, the highest yielding S&P 500 stocks averaged a gain of only 0.62 percent in August. In comparison, non-dividend S&P 500 companies jumped an average of 5.45 percent.

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Campbell Soup ENJOYS Consumption Increase and 4 Hot Stocks to Note

Valeant Pharmaceuticals Int (NYSE:VRX) has announced that it will acquire Medicis Pharmaceutical for $44.00 per share in cash, or about $2.6 billion. Already, the transaction has been approved by the Boards of Directors of both companies.   The $44.00 per share price is a 39 percent premium to Medicis’ closing share price as of Friday, August 31, 2012. Shares of Valeant Pharmaceuticals Int are trading 15.04% higher today.

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Campbell Soup Company’s (NYSE:CPB) Q4 sales saw an impact due to volume and mix adding 3 percent, Price and sales allowances adding 3 percent, increased promotional spending subtracting 3 percent, and currency subtracting 3 percent. Sales for U.S. Simple Meals totaled $461 million for Q4, which is a rise of 7 percent versus the period the previous year. U.S. Soup sales rose 9 percent compared with the same quarter the previous year. The sales growth was mainly because of condensed soup, which benefited due to movements in retailer inventory levels concerning the timing of promotional activity, as well as consumption increases. Sales for Global Baking and Snacking totaled $556 million during Q4, which is a decline of 1 percent from last year. Organic saw a 2 percent increase. Shares of Campbell Soup Company are trading 0.04% higher today.

StemCells, Inc. (NASDAQ:STEM): Interim results from three patients in an early-stage trial of StemCells Inc’s experimental cell treatment for chronic spinal cord injury indicate that two of them saw improvements in “sensory function,” the company stated on Monday. StemCells uses neural stem cells, technically adult stem cells, that are taken from the partially developed brains of fetuses and which are tested for qualities indicating that they are destined to form particular types of nerve cells. Shares of StemCells, Inc. are trading 7.79% higher today.

Smithfield Foods, Inc. (NYSE:SFD): Despite the negative impact of higher gain prices in the Hog Production segment due to the drought, favorable grain hedges may continue raising costs into the mid $60s per hundredweight throughout fiscal 2013. This is comparable to projected industry raising costs into the mid $70s per hundredweight, state leading industry experts. Smithfield predicts that that global protein production will rationalize in the mid-term judging from the current grain environment to yield higher prices that should partially offset the impact of increasing costs. This, along with healthy exports, will most likely generate hog production segment margins that will range from a marginal loss to marginal profitability for the full fiscal year. Shares of Smithfield Foods, Inc. are trading 0.93% lower today.

TiVo Inc. (NASDAQ:TIVO): TiVo Research and Analytics, which is a wholly-owned subsidiary of TiVo, announced that it has entered into a software licensing agreement with Scripps Networks (NYSE:SNI). As part of the licensing deal, Scripps Networks Interactive is to have access to TRA’s patented Media TRAnalytics TV Auto Ratings platform which will allow a better understanding of the correlation between exposure to ads and actual purchases across its full media portfolio. Shares of TiVo Inc. are trading 2.09% higher today.

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

Piedmont Natural Gas to FUEL the DNC and 4 Hot Stocks to See Now

MannKind Corporation (NASDAQ:MNKD):  After news circulated that the company had filed a $500 million mixed-securities shelf, shares of MannKind Corporation were down by over 12% during Friday’s after-hours trading. Even though ManKind’s share prices rebounded from their sub $2 lows, this cash raising event was expected by many investors. Now that the news is on the street, it is likely that the MNKD share price could take a beating once again, unless a new major partner becomes interested. If this occurs, it could keep investors attentive and lead into the next round of Afrezza testing. Shares of MannKind Corporation are trading at 8.57% lower today.

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STERIS Corp (NYSE:STE):  Tech companies, so far this year, that have been purchased for relatively large amounts of money include U.S. Endoscopy, which was sold to medical equipment maker Steris Corp., their next-door neighbor in Mentor, for $270 million and Rolls-Royce Fuel Cell Systems (U.S.) Inc. of North Canton, sold a 51% stake in itself to Korean conglomerate LG, for $45 million. Shares of STERIS Corp are trading at 0.32% higher today.

Medivation, Inc. (NASDAQ:MDVN):  After the drug maker announced that they received approval from the Food and Drug Administration for Xtandi,  Brean Murray Carret & Co.’s Jonathan Aschoff increased the San Francisco based Medivation, Inc.’s price target from $105 to $125  and kept a “Buy” rating.  Xtandi, expected to launch in the middle of September, is used for treating prostate cancer in patients when other treatments have failed. Shares of Medivation, Inc. are trading at 5.10% higher today.

Piedmont Natural Gas Company Inc. (NYSE:PNY):  Piedmont Natural Gas Co Inc. has teamed with America’s Natural Gas Alliance and is providing the compressed natural gas to fuel twelve buses being used to transport conventioneers during the Democratic National Convention. Shares of Piedmont Natural Gas Company Inc. are trading at 0.06% higher today.

Bank of America Corporation (NYSE:BAC):  Federal Chairman Bernanke said that the United States economy is far from satisfactory, and his colleagues are moving to embrace policies that will stay in place until he’s satisfied. According to Bloomberg, four federal presidents are in favor of an open ended strategy for bond buying, and three would like the  program to begin now. Shares of Bank of America Corporation are trading at 0.13% higher today.

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

Facebook’s CFO BLAMED For IPO Tank and 4 Hot Stocks Trading Today

Facebook, Inc. (NASDAQ:FB): This morning, Andrew Ross Sorkin decided to point his finger and all of the attention at Facebook CFO David Ebersman. Facebook has lost $50 billion since its IPO three months ago.  Sorkin maintains that it is Ebersman ‘s fault. Sorkin begins his column: “It is David Ebersman’s fault. There is just no way around it.” Shares of Facebook, Inc. are trading 1.66% lower today.

Alexandria Real Estate Equities Inc. (NYSE:ARE) announced a lease transaction for nearly 75,000 square feet with the National Institutes of Health’s National Center for Advancing Translational Sciences at Alexandria’s Shady Grove Life Sciences Center located in Rockville, Maryland. The 15-year lease will expand the NIH’s current presence at Alexandria’s translational life science campus to about 135,000 square feet. Shares of Alexandria Real Estate Equities Inc. are trading 0.47% higher today.

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Toyota Motor Corporation (NYSE:TM): Toyota RAV4 EV was described as more electrifying with Tesla motor by the NY Times. Shares of Toyota Motor Corporation are trading 0.89% lower today.

Dell (NASDAQ:DELL): Small TV stations are faced with a tough time with competition with cable and the Web, but a few investors have been snatching them up, believing that there will be a surge in the value of their airwaves. Investors that includes Michael Dell’s MSD Capital LP and Fortress Investment Group (NYSE:FIG) among the buyers, the Wall Street Journal says. Shares of GMAC LLC are trading flat today.

Apple Inc. (NASDAQ:AAPL): Technology firms Amazon.com (NASDAQ:AMZN), Motorola Mobility (NYSE:MMI), and Nokia (NYSE:NOK) are to announce new hand-held devices all this week, ahead of expectations that Apple is to reveal its next iPhone the following week, according to the Wall Street Journal. Shares of Apple Inc. are trading 1.24% higher today.

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

Market Recap: Gold Shines, Facebook’s Slide, and Amazon Steps on Netflix

Markets closed mixed on Wall Street today: Dow -0.36%, S&P -0.07%, Nasdaq +0.30%, Oil +0.84%, Gold +2.55%.

On the commodities front, Oil (NYSE:USO) rose to $95.52 a barrel. Precious metals also increased, with Gold (NYSE:GLD) rising to $1,700 an ounce while Silver (NYSE:SLV) rose 0.20% to settle at $32.30.

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Here’s your Cheat Sheet to today’s top stock stories:

Apple’s (NASDAQ:AAPL) iPhone 4S has fallen from its perch of being the top-selling smartphone in the U.S. for the first time since its launch in October, with Samsung’s Galaxy S III toppling its bitter rival. Samsung’s Google (NASDAQ:GOOG) Android-powered phone took the top spot in the month of August, according to Canaccord Genuity analyst Michael Walkley, as iPhone sales turned soft ahead of the expected launch of the next generation of the device.

Wal-Mart (NYSE:WMT) is said to be testing a new payment system that will allow shoppers to use their Apple (NASDAQ:AAPL) iPhones to scan items while shopping and then pay at a self-checkout counter. Walmart had its employees with participate in a test at a supercenter store near the company’s headquarters in Rogers, Arkansas.

J.P. Morgan delivered some bittersweet news for Facebook (NASDAQ:FB) on Tuesday, cutting its price target on the company’s stock, but still pegging it at about 66 percent higher than what the shares are trading at right now. Analyst Doug Anmuth wrote in a note to investors on Tuesday that Facebook will soon be worth $30 a share, down from the $45 target he made on June 27 while first recommending the stock. However, the social network was trading barely a shade above $18 on Tuesday morning.

Netflix Inc. (NASDAQ:NFLX) shares fell 7 percent on the news that Amazon.com (NASDAQ:AMZN) has a distribution agreement with Viacom Inc.’s (NYSE:VIA) Epix premium cable network. Investors are concerned that without Epix’s exclusivity for streaming on Netflix, Netflix would lose some of its consumer appeal.

First Solar Inc. (NASDAQ:FSLR) shares dropped 5 percent, continuing last week’s losses after reports came out that the company suspended solar-panel deliveries to its Arizona 397 megawatt Agua Caliente power plant.

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Radar Movers: Apple Hints at iPhone 5, Zuckerberg to Keep Facebook Shares for Now

Apple (NASDAQ:AAPL) shares remained steady in late afternoon hours after popping 1.46 percent. The company on Tuesday distributed invitations to an event scheduled for September 12 in San Francisco, dropping a fairly big hint that it was ready to release the next-generation iPhone. The invitation read, “It’s almost here” and featured a large shadow of the number 5, a sign that the conference is most likely the launch of the iPhone 5.

Shares of Facebook (NASDAQ:FB) received a 1.64 percent boost in late trading. According to a filing with the Securities and Exchange Commission,  Chief Executive Officer Mark Zuckerberg has no intention of selling any of his Facebook shares for at least 12 months. Two directors, Marc Andreessen and Donald Graham will both sell shares, but only because of settle tax obligations.

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Medicis Pharmaceutical (NYSE:MRX) shares continued to edge slightly higher in later afternoon hours. On Tuesday, shares surged 38 percent after news broke it was being acquired by Valeant Pharma for $2.6 billion in cash. Valeant would pay $44 in cash for each share of Medicis, 39 percent more than the stock’s Aug. 31 closing price, The New York Times reports.

Eli Lilly (NYSE:LLY) shares increased 0.31 percent in late trading. The pharmaceutical giant recently received an upgrade by Bernstein to Outperform from Market Perform. Competitors such as Pfizer (NYSE:PFE) and Merck (NYSE:MRK) also edged higher.

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