Ultimate Market Recap: Yahoo Down on Mayer’s First Day, Mattel Makes Out Well for Q2

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Wall St. Brief: Goldman Sachs BLOWS Earnings, Yahoo POACHES CEO from Google

Goldman Sachs Group Inc. (NYSE:GS) reported second quarter earnings at $962 million ($1.78 per share). This 11 percent decline compares to a $1.05 billion profit ($1.85 per share) from 2011. Revenue was $6.63 billion as compared to $7.28 billion in the previous year. Analysts’ estimates had the company earning $1.17  per share on $6.22 billion revenues.

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CEO Lloyd Blankfein said in a press release, “During the second quarter, market conditions deteriorated and activity levels for both corporate and investing clients were lower given continued instability in Europe and concerns about global growth.”

Yahoo (NASDAQ:YHOO) poached Marissa Mayer from Google Inc. (NASDAQ:GOOG) as its new CEO; she oversaw Google Maps, Earth and Places. With her engineering background, Mayer is expected to bring a product focus, reported the New York Times. Mayer will hit the ground running as she starts her new role today with Yahoo announcing its second quarter results. Earnings per share is expected to increase to $0.23 from $0.18 and revenues will rise 1.8 percent to $1.1 billion.

In another management change, VMware (NYSE:VMW) got rid of its CEO Paul Maritz and replaced him with EMC’s (NYSE:EMC) COO Pat Gelsinger, reported CRN. It’s uncertain whether Maritz will take another job at EMC, which is an 80 percent owner of VMware – Maritz. In addition, another VMware/EMC story floating around is that the company will spin off their cloud services and analytics software ops.

GM (NYSE:GM) is expected to select today at is board meeting, former restructuring consultant Thomas Sedran as the interim CEO of its Opel unit reported Reuters; he will replace Karl-Friedrich Stracke, who was fired by the company last Thursday. Sedran will face challenges including overcapacity and restoring Opel’s bruised image in Germany.

According to a report released by Senate investigators, HSBC (NYSE:HBC) conducted business with firms associated with terrorism, failed to watch over Mexico money-laundering violations and avoided U.S. sanctions against Iran. HSBC will get an opportunity to defend itself as executives will appear at a hearing today.

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Gilead Sciences RECEIVES FDA Approval and 4 Hot Stocks Driving the Market Today

Yahoo! Inc. (NASDAQ:YHOO) has selected Marissa Mayer as the new CEO for the company because she is “product-focused” and “focused on the user-experience,” and the company believes that she will have the ability to re-stock the company with talent, Business Insider reports citing sources close to Yahoo!’s board. Shares of Yahoo! Inc. are trading 0.29% lower today.

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Gilead Sciences, Inc. (NASDAQ:GILD): On Monday, the Food and Drug Administration approved the first drug showing a reduced risk of HIV infection, this is the latest news in the 30 year battle against the deadly virus. The agency approved the drug, Gilead Sciences’ pill Truvada, as a measure to prevent healthy individuals with a high risk of getting HIV via sexual activity, such as those with HIV-positive partners. This is only two weeks after the approval of the first over-the-c0unter HIV test which Americans are able to use in their own homes. Shares of Gilead Sciences, Inc. are trading 1.60% higher today.

Anthera Pharmaceuticals Inc (NASDAQ:ANTH): According to Summer Street, predefined subset analysis of Anthera’s PEARL-SC has met its main endpoint. Shares have a Buy rating and a $5 price target. Shares of Anthera Pharmaceuticals Inc are trading 30.08% higher today.

Goldman Sachs Group, Inc. (NYSE:GS) has begun building an in-house bank intended to lend money to wealthy people and companies, in a large shift underlining the tough business climate Wall Street faces since the financial crisis has begun, the Wall Street Journal reports. Shares of Goldman Sachs Group, Inc. are trading 0.48% higher today.

State Street Corporation (NYSE:STT) agreed to acquire Goldman Sachs Administration Services from The Goldman Sachs Group (NYSE:GS) in a transaction totalling $550 million cash, subject to specific adjustments. Due to pending regulatory approvals as well as customary closing conditions, this transaction should be completed by early 4Q12. State Street predicts that the transaction will be accretive on a cash basis during the first complete year of operation. Shares of State Street Corporation are trading 5.37% lower today.

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Bank of America (NYSE:BAC): Tim Rocks, a Bank of America Merill Lynch managing director and equity strategist out of Sydney, is moving to Nomura (NYSE:NMR) as managing director, according to the Wall Street Journal. Rocks’ position will be filled at BofA Merrill by Joshua Kirkwood. Shares of the bank are trading higher by 0.70 percent today.

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Apple Inc.‘s (NASDAQ:AAPL) next iPhone, currently being made by component manufacturers in Asia, will utilize a new technology that allows for a thinner screen, according to sources, as the company betters technological features in the face of enhanced competition from Samsung Electronics (SSNLF) and others, the Wall Street Journal writes. Shares of Apple are trading higher by 0.18 percent today.

Facebook, Inc. (NASDAQ:FB) users were asked last weekend by Citigroup (NYSE:C) whether Web surfers would want to use the social networking site for banking, according to Bloomberg. Shares of Facebook are trading 3.24 percent lower today.

AT&T, Inc. (NYSE:T): According to Wells Fargo, Dish’s stock is now at an appealing entry point due to the firm’s opinion that a number of bear theories about Dish are wrong. Wells Fargo does not see proof that Dish Chairman Charlie Ergan will construct wireless spectrum solo, and thinks that AT&T might acquire Dish’s spectrum. Wells Fargo is sticking to an Outperform rating on the stock. Shares of AT&T are trading higher by 0.96 percent today.

Nokia Corporation (NYSE:NOK) has sunk to new lows following being downgraded to Underperform by Jeffries, which cited Microsoft’s work on hardware development (despite no immediate smartphone plans), the inability to get presen t Lumia phones to Windows Phone 8, the stressing of competitive hardware by carriers, and expectations of more losses. Alcatel-Lucent’s cautioning most likely isn’t a help either. Nokia shares are trading 4.72 percent lower today.

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Vivus SWEATS for FDA Decision and 3 Stocks Demanding Attention

VIVUS, Inc. (NASDAQ:VVUS) is awaiting the FDA’s decision concerning the approval of the company’s diet drug Qnexa. Following its 5.7 percent increase yesterday, shares have fell over 8 percent this morning probably due to anxiety about the decision.  SA author Qineqt advises buying the stock since an approval is probable. Of all of Vivus’ rivals, Orexigen (NASDAQ:OREX) is down 3.11 percent and Arena (NASDAQ:ARNA) is down 2.52 percent. Shares of VIVUS, Inc. are trading 2.6% lower today.

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New Oriental Education & Tech Grp (NYSE:EDU) was told that the U.S. SEC has issued a formal order of investigation captioned “In the Matter of New Oriental Education & Technology Group Inc.” According to the company’s beliefs, the investigation is concerned with whether or not there is a sufficient basis for the consolidation of  Beijing New Oriental Education & Technology Co., Ltd., which is a variable interest entity of the company, and its wholly-owned subsidiaries, into the consolidated financial statements of the company. The company plans to cooperate with the SEC investigation completely. Shares of New Oriental Education & Tech Grp are trading 32.68% lower today.

Vanguard Large-Cap ETF (NYSEARCA:VV): Mega fund managers, like Fidelity Investments, Goldman Sachs, BlackRock Inc., Vanguard Group, and 22 others, each manage between $100 billion and $1 trillion each, together controlling nearly 40 percent of all assets invested in the U.S. equity markets. These mega fund managers remain bullish on the biotech group, which adds a net $4.2 billion in Q1 to their already $117.4 billion before the quarter position within the group. Also, they are all overweight in the group by a 1.2 factor; meaning that, taken together, the company’s have invested 2.0% of all assets in the group, totaling a bit more than the 1.7 percent weighting of the biotech group withing the full market. Shares of Vanguard Large-Cap ETF are trading 0.71% higher today.

Mattel, Inc. (NASDAQ:MAT) reports a 5 percent increase in the Barbie brand for Q2, Fisher-Price Brands is up 2 percent to $407.3 million, and American Girl Brands is up 3 percent to $68.7 million. Shares of Mattel, Inc. are trading 10.66% higher today.

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