Ultimate Market Recap: Vivus Gets Green Light From FDA, BofA Falls 4%
Wall St. Brief: Intel Profit SINKS, Vivus Wins HUGE Victory
Intel (NASDAQ:INTC) had a disappointing second quarter as its net profit fell four percent to $2.83 billion while revenue increased four percent to $13.5 billion. Its flat $0.54 earnings per share exceeded estimates. The company cut its fiscal year sales growth outlook to three percent to five percent from its previous guidance of “high single-digits” reported the Wall Street Journal. Intel attributed a falling demand for PCs from the slowing economy, while analysts also pointed fingers at tablets as a major factor.
Yahoo’s (NASDAQ:YHOO) second quarter earnings per share increased to $0.27 from $0.18, beating expectations, while revenue missed estimates slightly as it was flat at $1.08 billion. New CEO Marissa Mayer was absent from the company’s earnings call, where it announced that it would give not guidance at this time. Yahoo did say there are “problems” with its Microsoft (NASDAQ:MSFT) search partnership where revenue guarantees only have nine months remaining.
The FDA gave the green light to Vivus’ (NASDAQ:VVUS) Qnexa/Qsymia treatment; this represents the second approval by the agency for a new weight-loss drug in under a month. The prescription medicine will be available later during the year.
Credit Suisse (NYSE:CS) announced plans to increase capital by 8.7 billion Swiss francs ($8.9 billion), with a potential to add 6.6 billion more francs. The bank also increased its cost-savings target to 3 billion francs, up from 2 billion francs. It also released its second quarter results early with news that net income increased to 788 million francs from 768 million francs from the previous year.
On Tuesday, VMware (NYSE:VMW) confirmed the appointment of Pat Gelsinger as its new CEO, replacing Paul Maritz, who is new the Chief Strategist at the parent company EMC (NYSE:EMC). Preliminary second quarter earnings were also reported by the company with revenue increasing 22 percent to $1.12 billion. Meanwhile from EMC, it had earnings per share of $0.39, missing estimates by $0.01, while revenue rose 10 percent to $5.31 billion, beating expectations by $20 million.
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Afternoon BUZZERS: Bank of America FALLS After Earnings, Vivus SURGES 15%
Bank of America (NYSE:BAC) shares fell nearly 2 percent this afternoon following its second-quarter financial results. The bank posted a profit of $2.46 billion (19 cents per share), compared to a net loss of $8.83 billion a year earlier. “In a challenging global economy, we still see opportunities to do more with our customers and clients. Lending to commercial businesses increased for the sixth straight quarter — with small business lending and commitments up 23 percent in a year — and consumer credit is in the best shape in years,” said Brian Moynihan, chief executive officer.
Vivus (NASDAQ:VVUS) shares surged nearly 15 percent in early afternoon trading. Late Tuesday, the U.S. Food and Drug Administration approved the company’s diet drug called Qsymia, formerly known as Qnexa. Based on the trial results, patients taking Qsymia for a year lost 6.7 percent of their body weight in one study and 8.9 percent in another study, the FDA reported. The Qsymia results outperformed two other weight loss pills reviewed by the FDA recently. Arena Pharmaceuticals (NASDAQ:ARNA), which received approval for the first diet drug in 13 years last month, fell 9 percent on the news.
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Despite an overall weak opening, shares of Apple (NASDAQ:AAPL) remain mostly flat today. A recent report by the WSJ claims that Apple will use a new technology that makes the iPhone’s screen thinner. The new technology integrates touch sensors into the LCD, making it unnecessary to have a separate touch-screen layer. The absence of that added layer means the screen is thinner and the quality of displayed images will improve, according to DisplaySearch analyst Hiroshi Hayase.
Honeywell International (NYSE:HON) shares jumped 6.66 percent in early afternoon. The company reported that second-quarter earnings increased to $902 million ($1.14 per share), compared to $810 million ($1.02 per share) a year earlier. Revenue also rose 3.8 percent to $9.44 billion. Revenue has risen the past four quarters. Revenue increased 4.5 percent to $9.31 billion in the first-quarter. The figure rose 4.8 percent in the fourth-quarter of the last fiscal year from the year earlier and climbed 10.8 percent in the third-quarter of the last fiscal year from the year-ago quarter.
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Vivus Shares SURGING and 4 Hot Stocks Making Headlines Now
Rovi Corporation (NASDAQ:ROVI) is a provider of digital entertainment guides and has fallen more since its IPO in 1997 than ever following the cut of its annual sales forecast in the midst of delays in adding new patent licensees. The company fell 38 percent to $11.01 at 9:54 a.m. ET, after falling 42 percent for its biggest drop since its IPO. The shares have fallen 28 percent so far this year as of yesterday. Shares of Rovi Corporation are trading 40.40% lower today.
VIVUS, Inc. (NASDAQ:VVUS) shares rally yet again, which continues their large surge this year, as investors celebrate the FDA approval of the company’s weight-loss drug Qsymia. Shares of VIVUS, Inc. are trading 14.32% higher today.
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Alkermes Plc (NASDAQ:ALKS): Wednesday, Jefferies & Company maintained its Buy rating and $24 price target on the company, according to a report published Wednesday. Shares of Alkermes Plc are trading 3.36% higher today.
Vanguard Large-Cap ETF (NYSEARCA:VV): In order to identify the best and avoid the worst ETFs and mutual funds under the large-cap growth style, investors should gain a predictive rating based on (1) stocks ratings of the holdings and (2) the all-in expenses of each ETF and mutual fund. Investors do not need to rely on backward looking ratings. One of the Attractive-or-better rated ETFs or mutual funds should be bought by investors wanting exposure to the large-cap growth style. Shares of Vanguard Large-Cap ETF are trading 0.85% higher today.
Somaxon Pharmaceuticals, Inc. (NASDAQ:SOMX) protected the market exclusivity for its treatment for insomnia until 2020 by settling patent lawsuits with both Mylan Pharmaceuticals and Par Pharmaceutical Cos Inc. Shares of Somaxon Pharmaceuticals, Inc. are trading 70.0% higher today.
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Bank of America (NYSE:BAC): Bank of America (NYSE:BAC) will pay $375M to settle a suit over toxic mortgage-backed securities with Syncora Guarantee, the bond insurer unit of Syncora Holdings, Reuters reports. BofA was sued by Syncora in 2009, to recover security transaction losses based on home loans made by Countrywide. Shares of Bank of America are trading 2.46% lower today.
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Apple Inc. (NASDAQ:AAPL): According to CNet reports, AT&T (NYSE:T) CEO, Randall Stephenson, has confirmed that the company is negotiating with Apple (NASDAQ:AAPL), to”work out stabilizing,” Facetime. At a Forbes conference, Stephenson said it’s “too early,” to talk about pricing. Shares of Apple Inc. are trading at 0.16% higher today.
Facebook, Inc. (NASDAQ:FB): According to Reuters, Nasdaq’s OMX Group (NASDAQ:NDAQ) and investors, who sued the exchange operator over Facebook’s (NASDAQ:FB) $16B initial public offering, asked a judicial panel to keep their dispute separate from dozens shareholder related lawsuits. Shares of Facebook, Inc. are trading 2.88% higher today.
AT&T, Inc. (NYSE:T): CNet reported, according to Randall Stephenson, CEO of AT&T(NYSE:T) that AT&T (NYSE:T), and Apple (NASDAQ:AAPL) are negotiating about Facetime,. The discussion hopes to “work out stabilizing.” However, Stephenson told Forbes Magazine that it is too early to talk about pricing. Shares of AT&T, Inc. are trading at 0.84% higher today.
Nokia Corporation (NYSE:NOK): According to The Next Web, Nokia (NYSE:NOK) has shifted most of its Lumia 900 production to Argentina. However, it is not clear whether or not the company is lowering production. Shares of Nokia Corporation are trading unchanged today.
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StemCells ANNOUNCES Positive Results and 4 Hot Stocks Turning Heads
StemCells, Inc. (NASDAQ:STEM) shares (STEM -19.4%) will return some of the +100% from yesterday on a spate of profit taking this morning. Yesterday, the stock was boosted higher following the company’s announcement regarding positive results from its Alzheimer’s preclinical trials, showing memory restoration and improved synaptic function after transplanting human neural stem cells into animal models. Shares of StemCells, Inc. are trading 4.44% lower today.
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Odyssey Marine Exploration, Inc. (NASDAQ:OMEX) announced the successful recovery of nearly 48 tons of silver bullion from a three mile depth. This recovery is from the SS Gairsoppa, a 412-foot steel-hulled British cargo ship which sank in February of 1941, and it totals 1,203 silver bars or around 1.4 million troy ounces of silver, which has been transported to a secure facility in the U.K. After the cargo is unloaded, fuel is taken on, and personnel is changed the recovery operations will continue and should be finished by 2012’s Q3. So far, this record-breaking operation has produced the heaviest and deepest shipwreck recovery of precious metals. Shares of Odyssey Marine Exploration, Inc. are trading 8.24% lower today.
The Madison Square Garden Co (NASDAQ:MSG): The company backing the Garden paid $23.5 million for the arena and pledged $50 million for renovations. Shares of The Madison Square Garden Co are trading 0.78% lower today.
New Oriental Education & Tech Grp (NYSE:EDU) U.S. traded shares fell 28 percent to $16.14 Tuesday following its disclosure that the U.S. Securities and Exchange Commission has begun a formal investigation into the accounting practices of the company. According to the company, the probe is focused on the new consolidation of Beijing New Oriental Education & Technology Group Co. Ltd., which is a variable interest entity, as well as its wholly-owned subsidiaries into its consolidated financial statements. The company claims that it intends to fully cooperate with the probe. The company also just released a greatly improved earnings report. Shares of New Oriental Education & Tech Grp are trading 19.29% lower today.
Telefonica Brasil SA (NYSE:VIV) shares trade 0.59% higher today.
Market Mayhem: Investors Avoid BofA, Dow Closes Above 12,900!
Markets closed up on Wall Street today:
Dow +0.81%, S&P +0.67%, Nasdaq +1.12%, Oil +0.75%, Gold -0.85%.
Here’s your Cheat Sheet to today’s top stock stories:
W.W. Grainger’s (NYSE:GWW) shares jumped 11 percent after the company reported a second quarter profit increase of 12 percent to $190.7 million or $2.63 a share. This exceeded analysts’ estimates.
EMC Corp.’s (NYSE:EMC) shares increased 10 percent after Tuesday’s news that the company moved ahead with its succession plans for its Chief Executive Joe Tucci by naming a top executive to oversee VMware Inc. (NYSE:VMW). Both companies presented strong preliminary revenue numbers for the second quarter. VMware’s shares increased 12 percent on Wednesday.
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On the downside, Bank of America, Inc.’s (NYSE:BAC) shares fell 4.2 percent after the the bank reported second-quarter results that exceeded Wall Street estimates. Its profits were amplified by lower provisions for loan losses.
Arena Pharmaceutical Inc. (NASDAQ:ARNA) declined almost eight percent. On Wednesday, Cowen analysts said they believe a new weight-loss drug approved by the FDA for its competitor Vivus will likely outperform a comparable Arena drug.
Rovi Corp.’s (NASDAQ:ROVI) shares dropped 42 percent after the company estimated fiscal second-quarter earnings below analyst estimates thanks to lower revenue from its consumer-electronics business. The company also slashed its full-year picture, noting delays from adding new patent licenses and some product launches.
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