Ultimate Market Recap: Staples Shrinking, Sony to Become Olympus’ Largest Shareholder

| + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

Wall Street Brief: Apple’s Supply Shortages, Nasdaq and Amazon Web Services Come Together

Apple’s (NASDAQ:AAPL) utilization of in-cell screen technology for its iPhone 5 may have added to a supply shortage when the phone debuted  this past weekend. In-cell screens are more challenging to produce and Sharp (SHCAY.PK), one of Apple’s screen suppliers, has undergone difficulties with this.

Don’t Miss: AT&T versus Verizon: Who is Winning the iPhone 5 Launch?

AT&T (NYSE:T), Verizon (NYSE:VZ), Comcast (NASDAQ:CMCSA) and Time Warner Cable (NYSE:TWC) are getting ready to push for a video games, including ones from EA (NASDAQ:EA), to TVs via their cable infrastructure, reported Bloomberg. Deployments could begin between the end of 2013 and 2014. This would post a threat to console makers such as Sony (NYSE:SNE) and Microsoft (NASDAQ:MSFT) but first, operators will have to get the technology correct.

Nasdaq (NASDAQ:NDAQ) and Amazon Web Services (NASDAQ:AMZN) have come together and will offer Wall Street firms a service that allowing  them to store vital regulatory data on the latter’s cloud infrastructure. The partnership, which should cut clients’ costs, represents  Amazon’s biggest entry into the financial sector but security concerns could affect its growth.

In 2011, Larry Ellison more than tripled the number of Oracle (NASDAQ:ORCL) shares that he “pledged as collateral to secure certain personal indebtedness, including various lines of credit” reported Bloomberg. Ellison had pledged 139 million shares with a $4.5 billion value as compared to 2010’s  40 million shares and the 1.1 billion shares that he owns.

RBS (NYSE:RBS) managers participated in manipulating global interest rates while traders collaborated with their counterparts at other banks, reported Bloomberg. There was also no Chinese wall at RBS  allowing money-market traders who submitted the bank’s Libor estimates to sit together with the derivatives traders whose profits had depended on the rate; sometimes the latter made their own submissions.

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

Radar Movers: Apple Continues to Fall, Facebook Recovers

Shares of Apple (NASDAQ:AAPL) closed 1.3 percent lower on Monday and continued to edge lower in early trading today. The tech giant announced it sold more than five million iPhone 5 units in the three days since it reached stores. Although it broke the previous record held by the iPhone 4S, analysts were expecting closer to 8 million units. However, Apple faced supply issues and pre-orders that have not been received yet are not accounted for the 5 million figure.

Facebook (NASDAQ:FB) shares are up 1 percent in pre-market after plummeting 9 percent on Monday. The social media company received another round of negative publicity courtesy of Barron’s over the weekend. The firm published a cover story strongly suggesting that Facebook is worth $15 a share at best. Other social media related names such as Zynga (NASDAQ:ZNGA) and Yelp (NYSE:YELP) also closed lower for the day.

Don’t Miss: Here’s a Strange, New Troll Attack on Apple

Caterpillar (NYSE:CAT) shares are down in early trading. The world’s biggest construction and mining company announced a reduction in its forecast for 2015 earnings. Profit is now expected to come in between $12 and $18 per share, with sales of $80 billion to $100 billion.

Shares of Red Hat (NYSE:RHT) are down nearly 4 percent in early trading after reporting financial results for the its second quarter yesterday. Net income fell 12.4 percent to $35 million (18 cents per share), compared to $40 million (20 cents per share) a year earlier. It fell short of the mean analyst estimate of 21 cents per share. On the positive, revenue jumped 14.7 percent to $322.6 million. “Our double-digit growth was driven by demand for Red Hat’s open source technologies that are key to creating innovation, scale and flexibility in our customers’ data centers and their businesses,” stated Jim Whitehurst, president and chief executive officer of Red Hat.

Investor Insight: AT&T versus Verizon: Who is Winning the iPhone 5 Launch?

A.M. Buzzers: Staples Downsizing, Apple Declines

Shares of Walgreen (NYSE:WAG) jumped 1.35 percent today. The healthcare retailer was added to Goldman Sachs’ (NYSE:GS) Conviction-Buy list, with a price target of $43 a share. The investment firm cites, “We expect earnings growth to reaccelerate as Walgreen recaptures lost Express Scripts business and generates some accretion from the recent Alliance Boots deal.”

Don’t Miss: Will it Soon Rain Dividends on Shareholders?

Staples (NASDAQ:SPLS) shares fell more than 5 percent this morning. The office-supply company is planning a restructuring that will close several stores in the United States and Europe. It plans to close 30 stores in the U.S. and 45 stores in Europe. Furthermore, the total store square footage in the U.S. is being reduced by 15 percent.

Apple (NASDAQ:AAPL) shares fell slightly lower this morning. The tech giant recently announced it sold more than five million iPhone 5 units in the three days since it reached stores. Although it broke the previous record held by the iPhone 4S, analysts were expecting closer to 8 million units. However, Apple faced supply issues and pre-orders that have not been received yet are not accounted for the 5 million figure. Reports indicate that the in-cell screen technology used in the iPhone 5, which combines the display and the touch sensor into one part, also contributed to supply issues.

Investor Insight: AT&T versus Verizon: Who is Winning the iPhone 5 Launch?

Shares of Paychex (NASDAQ:PAYX) dropped almost 3 percent Tuesday morning, despite reporting positive earnings for its first quarter. Net income rose 2.8 percent to $153.1 million (42 cents per share), compared to $148.9 million (41 cents per share) a year earlier. Martin Mucci, president and chief executive officer, commented, “The first quarter has fiscal 2013 off to a good start with results meeting our expectations. Our client base continued to improve, checks per payroll continued to increase, and our client retention is near a historic high.”

Apple has been a huge winning stock pick for Wall St. Cheat Sheet Newsletter subscribers. Don’t waste another minute — click here and get more of our CHEAT SHEET stock picks now.

Nokia Unveils Nokia Life+ and 4 Hot Stocks Trending Now

Google (NASDAQ:GOOG) has started to sell its Nexus 7 tablet in Japan, and the company has also begun selling local language movies and books, assisting this in quickly becoming one of Google’s main global markets for digital downloads, according to Reuters.

Don’t Miss: AT&T versus Verizon: Who is Winning the iPhone 5 Launch?

Bank of America (NYSE:BAC) Merrill Lynch is prepared to announce that it will cut as many as 40 jobs at its Asia Pacific global markets division on Thursday, according to two people familiar with the situation, as trading volumes for stocks and bonds keep dropping and initial public offerings have had issues in the region.

Apple Inc. (NASDAQ:AAPL): According to Google (NASDAQ:GOOG) Chairman Schmidt, it would Apple’s decision whether or not it wishes to approve the Google’s map application for the Apple operating system. This comes after Apple’s own new app saw a plethora of criticism, Bloomberg reports.

AT&T, Inc. (NYSE:T): Since modern employees are used to being connected virtually at any place at any time, CIOs should ensure that the confidential data is ensured and the compliance of  government mandates. AT&T announced that it has begun offering AT&T Mobile Security, which is a solution for businesses and organizations strengthening AT&T’s portfolio for mobile security and mobile enterprise management. AT&T Mobile Security is to also include device-level security, application protection, mobile device management capabilities, network-based security controls, and encrypted transport. It will be offered across multiple carriers and for several mobile operating systems.

Nokia Corporation (NYSE:NOK) revealed its Nokia Life+, which is the most recent evolution of its well known Nokia Life service. Nokia Life+ is a free Web application, and it should give millions of those owning Nokia phones valuable information regarding education, health and “infotainment” topics. Nokia Life+ is to be supported by the Nokia Asha 308 and Nokia Asha 309 smartphones with various of Nokia mobile phones.

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

Facebook Users Up in Arms and 4 Hot Stocks Not to Miss

Staples, Inc. (NASDAQ:SPLS) predicts that it will record a pre-tax cash charge ranging from $15 million to $20 million concerning this action during 2012;s Q3. Staples has begun to rebrand its Australian business while it attempts to create one global brand. Staples intends to record a $20 million pre-tax non-cash charge concerning the accelerated tradename amortization by the end of 2012. Staples continues its commitment to returning excess cash to stakeholders and continues its focus on keeping its current investment grade credit rating. Staples believes it will keep repurchasing its common stock via open-market purchases, which should have a total of about $450 million in 2012. Additionally, the company intends to repay its outstanding $325 million Senior Notes that are due in October 2012. Due to this and its continuing cash dividend program, Staples will give back over $1 billion of cash to stakeholders during fiscal year 2012.

Don’t Miss: Oh Facebook, Get It Together!

Key Energy Services Inc. (NYSE:KEG) believes that Q3 of 2012 consolidated results from ongoing operations to be lower than its previous expectations. When being compared to the quarter before, it is predicted that consolidated revenue will fall 4 to 5 percent, and operating income margins will fall 250-350 basis points. The outlook change in relation to Key’s previous expectations is mainly credited to market declines in U.S. drilling and completion related activity.CEO Dick Alario stated: “Our prior expectations were for activity in our core oil markets to be relatively flat in the 2H of 2012. Instead, since the beginning of Q3, drilling rig counts in these markets are down approximately 8%, and indications are that customer demand may decline further through the fourth quarter in addition to typical seasonal declines. We will provide more insights regarding our outlook on our Q3 earnings conference call.” Key sold its Argentina operations which will be effective on Sept. 14, and it believes that it will record a non-cash, pre-tax charge against discontinued operations of nearly $45 million during Q3. Key will report on Oct. 25.

LeapFrog Enterprises Inc. (NYSE:LF) has announced that its LeapPad 2 has been chosen for Wal-Mart top holiday toy list

Facebook, Inc. (NASDAQ:FB): Users are prepared to revolt regarding the social network’s most recent security issue, private messages that were written during 2009 and before are now being displayed on public timelines. The issue was first reported in France on Monday, and it describes the ways in which users feel as if their privacy had been breached. French newspaper, Metro, stated that people’s private messages from 2007, 2008, and 2009 could be seen by any friends on the new Timeline feature that began this year. “A small number of users raised concerns after what they mistakenly believed to be private messages appeared on their Timeline,” Facebook said in a statement, according to Agence France-Press. “Our engineers investigated these reports and found that the messages were older wall posts that had always been visible on the users’ profile pages.”

Riverbed Technology, Inc. (NASDAQ:RVBD), a WAN product maker, climbs following its upgrade to Outperform from Market Perform by William Blair analyst Jason Ader in a note to investors earlier today. The company’s transition from a single product company to a multi-product maker is concluding, and its product diversification may have the ability to give it a boost, according to Ader. Also, Ader’s chanel checks suggest that the Riverbed’s federal sales were strong, and its Granite products for data centers may be a tailwind for the company. In early trading, Riverbed saw an increase of 65c, or 2.87 percent, to $23.32.

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

Sony to Invest in Olympus and 4 Hot Stocks Moving the Market Today

Sony Corp. (NYSE:SNE) is expected to approve a plan this week for an investment of $642 million in Olympus Corp. (OCPNY), making Sony the company’s largest shareholder with nearly 10 percent stake, according to sources, Reuters reports.

Don’t Miss: Google Won’t Clean Up Apple’s Mess.

Tesla Motors, Inc. (NASDAQ:TSLA): Tesla stated: “Based upon our current financial forecast, we currently anticipate that if we do not raise the proceeds anticipated from this offering and do not otherwise adjust our operations accordingly or amend the DOE Loan Facility, we may not be compliant with the current ratio covenant for the quarterly period ending March 31, 2013. For the quarters ending September 30, 2013 and December 31, 2013, we currently anticipate that without taking advantage of additional revenue opportunities or making adjustments to our spending, we expect that we will need to seek an amendment from the DOE to modify the fixed charge coverage ratio covenant. Moreover, we currently anticipate that without raising capital in addition to this offering, we would need to seek an amendment from the DOE to modify the total liabilities to stockholder equity covenant for the quarter ending March 31, 2014 and the two subsequent quarters. We are currently working cooperatively with the DOE to obtain these amendments.”

Las Vegas Sands Corp. (NYSE:LVS): On September 20, the phase two opening of the Sands Cotai Central integrated resort on assisted in Sands China’s total amount of visitors for the weekend of September 21-23 being able to reach an all-time record for 2012, and it is nearly 500,000 higher than the previous record from the weekend of the Chinese New Year, the company stated.

Carnival Corporation (NYSE:CCL): Without including Costa, the company believes that its FY12 net revenue yields, on a constant dollar basis, will be flat or down slightly, which is a small improvement over previous guidance. Including Costa, the company believes that there will be a drop in net revenue yields of 3 percent versus its previous guidance of falling 3 to 4  percent for FY12. For FY12, increased net revenue yield expectations and improvement in costs when compared to June guidance was offset by 13c per share of raised fuel prices and negative changes regarding exchange rates. Because of these various issues, FY12 non-GAAP diluted earnings per share is expected by the company to be in the range of $1.83-$1.87, which continues to be in line with the midpoint of the June guidance range of $1.80-$1.90 per share.

Zillow Inc (NASDAQ:Z) fell about 6.7 percent, or $2.99, to $41.42 this morning.

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

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business