Ultimate Market Recap: Samsung on an Earnings Streak, More iPad Mini Evidence
Pre-Market BUZZERS: Apple Above $600, Seagate Drops 3%
Apple Inc. (NASDAQ:AAPL) shares gained 1.76 percent on Thursday and continue to attract attention in pre-market trading on Friday. Speculation continues to build about the tech giant making a smaller iPad device to better compete with Amazon.com Inc. (NASDAQ:AMZN) and Google Inc. (NASDAQ:GOOG). The WSJ reports that, “Component suppliers in Asia are preparing for mass production in September of a tablet computer with a smaller screen than the iPad, people familiar with the situation said, suggesting a launch for the device is near. Two of the people said that the tablet’s screen will likely be smaller than eight inches. The iPad’s screen measures 9.7 inches, unchanged since the first model was released in 2010.”
Seagate Technology PLC (NASDAQ:STX) shares dropped late Thursday and continued their descent in early trading today, falling 2.71 percent. The company expects to report revenue of $4.5 billion for its fourth fiscal quarter of 2012, compared to previous estimates of at least $5 billion. Steve Luczo, chief executive officer, said, “Seagate expects to report another record quarter of revenue in the June quarter, however we did not meet our expected revenue and margin plan.”
Research in Motion (NASDAQ:RIMM) shares popped more than 4 percent on Thursday. In an effort to prevent any more delays with BlackBerry 10, the Ottawa Citizen reports that RIM is limiting summer vacations and implementing six-day work weeks for much of its Ottawa staff.
Netflix Inc. (NASDAQ:NFLX) shares surged more than 13 percent on Thursday and are continuing the rally today after CEO Reed Hastings announced on Facebook (NASDAQ:FB) that the company’s monthly viewing exceeded 1 billion hours for the first time in history during June.
Investor Insight: RIM Status: DEFCON DENIAL
Wall St. Brief: Samsung Prepares for RECORD Profit, Seagate Issues Revenue WARNING
Samsung estimates that its second-quarter operating profit will see a new record between 6.5 trillion won ($5.7 billion) and 6.9 trillion won vs. the previous year’s 3.75 trillion. Revenue will increase between 46 trillion to 48 trillion won from 39.44 trillion won. Earnings increased from rising Galaxy sales but one executive said, “that’s distorting the overall trading outlook.” Samsung has dealt with concerns on Europe and weak chip and consumer electronic prices.
Don’t Miss: RIM Has Reached DEFCON Denial.
Speculation is swirling for the Yahoo (NASDAQ:YHOO) CEO search. All Things D has reported interim chief Ross Levinsohn and Hulu boss Jason Kilar sit on the short list while Reuters has added News Corp. (NASDAQ:NWS) digital media chief Jonathan Miller to the mix.
Visa (NYSE:V) and MasterCard (NYSE:MA) are nearing a settlement to end their seven-year lawsuit over allegations by retailers that the credit-card companies fixed swipe fees, according to Bloomberg. There’s no details on the agreement terms but Visa has put aside $4.28 billion for litigation while MasterCard took a fourth quarter charge of $495 million.
On Thursday, Seagate (NASDAQ:STX) warned that its fourth quarter revenue could hit $4.5 billion; this comes in below the $4.9 billion estimate. Gross margin could come in at 33.6 percent, also lower than the previous 34.5 percent guidance. The company attributed the failure to raise market share on a faster-than-expected industry recovery from the Thai floods and “supplier quality issue” that hit enterprise hard drive shipments by 1.5 million.
Investors will keep their eyes open for news from Navistar (NYSE:NAV) as the company will give an operational update this morning. Analysts are unsure what the company will say but there’s been speculation that it will end its plans to create develop pollution-reducing engines after encountering habitual problems.
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Navistar ANNOUNCED Next Gen Clean Engine and 2 Hot Stocks Not to Miss
Navistar International Corp (NYSE:NAV) announced the introduction of its next generation clean engine solution In-Cylinder Technology Plus which should meet 2010 U.S. Environmental Protection Agency emissions regulations and put the company in the position to meet greenhouse gas rules before 2014 and 2017 requirements. The ICT+ technology brings together Navistar’s sophisticated in-cylinder engine expertise with urea-based aftertreatment and shoule be available by early 2013. By using an already proven and certified aftertreatment system, the company intends to offer production-ready vehicles early next year. This approach is also expected to offer an easy path to quick achievement of 2017 GHG standards. The company plans to keep building and shipping current model EPA-compliant trucks in all vehicle classes which use appropriate combinations of earned emissions credits and/or non-compliance penalties during the transition to ICT+. “We’ve shared our new technology path with the EPA and California Air Resources Board, or CARB, and both agencies are encouraged by our plans,” the company cliamed. “We will continue to work with the agencies to ensure that our customers receive uninterrupted deliveries in all 50 states during this transition.” Shares of Navistar International Corp are trading 15.56% lower today.
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Chelsea Therapeutics International Ltd. (NASDAQ:CHTP) target was reduced by Roth Capital due to the firms beliefs that recent FDA correspondence decreases the probability of approval for its Northera treatment. The firm keeps a Buy rating on the stock. Shares of Chelsea Therapeutics International Ltd. are trading 31.01% higher today.
LeapFrog Enterprises, Inc. (NYSE:LF): Following the resignations of Leapfrog CFO, Roth capital does not predict any negative effects to the company by the resignations. The firm keeps a Buy rating and a $15 price target on shares. Shares of LeapFrog Enterprises, Inc. are trading 3.87% lower today.
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Afternoon BUZZERS: After Jobs Report, Investors Hitting SELL on These Stocks
Shares of Acme Packet Inc. (NASDAQ:APKT) have plummeted more than 14 percent today. The company expects second-quarter to come in at $66-$68 million, below estimates of $73.9 million. Earnings per share is also expected to be a disappointment.
Navistar International Corp. (NYSE:NAV) shares fell more than 15 percent in the first half of the day. The truck and engine maker announced it will introduce an advanced clean engine technology to meet Environmental Protection Agency emissions regulations. Reuters reports, “The technology, known as In-Cylinder Technology Plus, will also position the company to meet greenhouse gas rules in advance of 2014 and 2017 requirements, Navistar said in a regulatory filing.”
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Apple Inc. (NASDAQ:AAPL) shares edged nearly 1 percent lower today, but are still managing to hang above $600. Recent reports have that the tech giant is gearing up for an iPad Mini has renewed interest in shares. Apple component suppliers in Asia are, according to the WSJ, preparing for mass production in September of a tablet computer with a smaller screen than the iPad, suggesting that the launch date isn’t far off. Two of the people said the tablet’s screen will likely be smaller than eight inches — all iPad models to date have measured 9.7 inches.
Bank of New York Mellon Corp. (NYSE:BK) shares dropped nearly 1 percent this morning. The custodian bank announced it will take a $210 million second-quarter after-tax hit related to settlement costs for a federal lawsuit.
Shares of Caterpillar Inc. (NYSE:CAT) fell 2.71 percent today as of 1 p.m.. The company will pay a fine of $510,000 to Air Resources Board for shipping almost 600,000 on-road and off-road engines that did not come with the legally required emissions controls installed. Construction Equipment reports, “CARB says the settlement calls for Caterpillar to pay a total of $2.55 million in penalties nationwide for violations of the Clean Air Act, and California’s $510,000 portion is based on its share of the engines sold.”
Investor Insight: RIM Has Reached DEFCON Denial
Boston Beer Co. INTRODUCES New Summer Lager and 4 End-of-Week Hot Stocks
Medgenics Inc (NYSE:MDGN) chief executive Dr. Andrew Pearlman claims its Biopump technology could possibly “start a whole new pharmaceutical industry. Our technology has promise to provide a major change in medicine. It is not just a product that we have, it’s an industry.” The technology manipulates the tissue of the patients themselves in order to produce proteins which fight diseases. This will eliminate the necessity for hundreds of vaccines. Shares of Medgenics Inc are trading 6.67% lower today.
Netflix, Inc. (NASDAQ:NFLX): The rally in Netflix (NFLX +2.9%) shares continues to trek on even against a weak tape. The buying frenzy began when CEO Reed Hastings made a Facebook post concerning the company’s tally of streaming hours by customer’s, but there are concerns that Hastings could have skirted SEC Regulations FD. Shares of Netflix, Inc. are trading 0.44% higher today.
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Xyratex Ltd. (NASDAQ:XRTX) price target was decreased by Brean Murray after Q2 results indicating margin pressures and a weak guidance for Q3, mainly in the storage area. Shares keep a Buy rating. Shares of Xyratex Ltd. are trading 19.64% higher today.
Boston Beer Co Inc (NYSE:SAM) pushes a new product based on a German radle, spritzy mixes of light lager and lemon soda. Porch Rocker has tastes of lemon tea as well as a hint of pine. It does not possess the tartness of Leinenkugel’s quaff, but it is a light beer, 4.4% alcohol by volume, and it finishes with a slight crispness. Shares of Boston Beer Co Inc are trading 2.25% lower today.
Rexahn Pharmaceuticals, Inc. (NYSE:RNN): The Rockville, MD biopharmaceutical company’s shares increased 25% Thursday on 10 times the average volume. Monday, the company announced its submission for a investigational new drug applications to the FDA for a first-in-human study of RX-5902 which will treat advanced and metastatic solid tumors. RX-5902 is a first-in-class small molecule which inhibits the phosphorylated p68 RNA helicase, a protein which plays a main role in cancer growth, progression, and metastasis. The phosphorylated form of p68 RNA helicase is only in cancer cells and is absent in normal cells.
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Facebook takes STAKE in South Asian Undersea Cable and 4 Hot Stocks Driving the Market Now
Bank of America (NYSE:BAC): Shares of the major banks fell Thursday as concerns regarding the London interbank offered rate (LIBOR) scandal spread. “The two-year investigation into banks rigging Libor, which has taken a toll on Barclays, has the potential to hurt Citigroup, JPMorgan and Bank of America,” Mike Mayo, an analyst at CLSA Ltd., wrote in a recent research note. Five Star Equities examines the outlook for companies in the Banking Industry and provides equity research on Bank of America Corp. BAC -0.83% and Citigroup Inc. C -1.05%.
Shares of Bank of America are trading 2.05% lower today.
Apple Inc. (NASDAQ:AAPL): Apple (NASDAQ:AAPL) said an error in the code that prevents apps from being stolen was responsible for a number of malfunctioning app updates in the past day, solving a mystery that has troubled developers for the past 24 hours, reports the Wall Street Journal.
Shares of Apple Inc. are trading 1.10% lower today.
Facebook, Inc. (NASDAQ:FB): Facebook has taken a stake in a US$450 million project to link South Asian countries with an undersea cable, a company spokeswoman said Friday. The project is expected to be ready some time in 2014.
Shares of Facebook, Inc. are trading 0.03% lower today.
AT&T, Inc. (NYSE:T): The Samsung Galaxy S3 has finally arrived in AT&T stores, although store managers are warning customers about limited availability. The Times Square and Penn Station AT&T stores in New York are allowing customers to call to reserve their phones for same-day pick-up. Other stores are reporting limited stock. The initial release date for the Galaxy S3 was June 21 on AT&T, but the carrier has faced an epic backlog on orders due to high demand for the phone.
Shares of AT&T, Inc. are trading 0.34% higher today.
Nokia Corporation (NYSE:NOK): Nokia released its new, cheaper smartphone, the Nokia Lumia 610, using Microsoft’s Windows Phone OS in India, in an attempt to thwart increasing competition from competitively priced Android-powered phones.
Shares of Nokia Corporation are trading 4.95% lower today.
Market Wrap: iPad Mini ANTICIPATION, Jamba Shares Juice UP
Markets closed down on Wall Street today:
Dow -0.96%, S&P -0.94%, Nasdaq -1.30%, Oil -3.50%, Gold -1.57%.
On the commodities front, Oil (NYSE:USO) declined to $84.17 a barrel. Precious metals also declined, with Gold (NYSE:GLD) falling to $1,584 an ounce while Silver (NYSE:SLV) fell 0.55% to settle at $27.08.
Here’s your Cheat Sheet to today’s top stock stories:
The Wall Street Journal seems to have unearthed the most significant evidence that a much-rumored iPad Mini is on the way, just one day after Bloomberg published an article citing anonymous sources who said Apple (NASDAQ:AAPL) plans to debut a cheaper, smaller iPad by year’s end. Apple component suppliers in Asia are, according to the WSJ, preparing for mass production in September of a tablet computer with a smaller screen than the iPad, suggesting that the launch date isn’t far off.
Research in Motion’s (NASDAQ:RIMM) shares rose 5% as its tech brethren fell. The BlackBerry manufacturer incurred trading losses in the last week after announcing a fiscal first quarter loss and delays in the launch for its operating system BlackBerry 10. The jump also came on news from its rivals Sprint (NYSE:S) and Apple (NASDAQ:AAPL)’s new Mozilla operating system and new iPhone model rumors.
Jamba Inc.’s (NASDAQ:JMBA) shares increased 10 percent on possible expectations for a rise in heat wave-related sales for the company’s Jamba Juice smoothie retail chain, reported MarketWatch. It also recently announced a U.S. Olympic water polo team partnership and new menu with healthier options.
Informatica Corp.’s (NASDAQ:INFA) shares declined 29 percent after the company dropped its second-quarter earnings forecast. It cited the evolving global economic conditions, notably in Europe as a reason.
Christopher & Banks Corp.’s shares (NYSE:CBK) dropped around five percent after the company said its board of directors had rejected an unsolicited acquisition proposal from Aria Partners for $1.75 per share, reported MarketWatch. It said that its “new management team’s strategic plan … has already begun to demonstrate signs of progress.”
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Stocks BUZZING After the Bell: Best Buy SLASHES 2,400 Jobs, Facebook and Yahoo FRIEND
Best Buy Inc. (NYSE:BBY) shares edged slightly higher in late afternoon trading. The big box electronics retailer announced plans to cut around 2,400 jobs, representing 1.4 percent of the its workforce. The Geek Squad division will suffer a quarter of those cuts. Reuters reports, “The layoffs come as the world’s largest electronics chain is trying to figure out how to stem nearly two years of quarterly declines in sales at stores open at least a year — a key measure for retailers.”
Facebook (NASDAQ:FB) shares gained 0.41 percent in late trading. The social-media giant reached an agreement with Yahoo! Inc. (NASDAQ:YHOO) over their patent dispute and dropped lawsuits against each other. The lawsuit began when Yahoo claimed that Facebook infringed on its patents involving Internet portal technology. I’m pleased that we were able to resolve this in a positive manner,” said Facebook Chief Operating Officer Sheryl Sandberg said in a statement.
Shares of Apple Inc. (NASDAQ:AAPL) bounced higher after closing lower on Friday. The company suffered a setback in its patent battle against HTC after a judge in the U.K. ruled against the iPhone maker. Apple will now not be allowed to ask for a ban on imports of the Taiwanese handset maker’s smartphones in the U.K. London High Court judge Christopher Floyd ruled that three of the four patents being contested by Apple were invalid.
Seagate Technology PLC (NASDAQ:STX) shares received selling pressure on Friday. The company expects to report revenue of $4.5 billion for its fourth fiscal quarter of 2012, compared to previous estimates of at least $5 billion. Steve Luczo, chief executive officer, said, “Seagate expects to report another record quarter of revenue in the June quarter, however we did not meet our expected revenue and margin plan.”
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