Weekly Market Recap: Barclays Libor SCANDAL, Apple’s NEW Device, Research in Motion CRASHES
Barclays PLC (NYSE:BCS):. The bank’s Chairman Marcus Agius quit on Monday, saying that the recent Libor scandal was “a devastating blow” to Barclays’ reputation and “the buck stops with me.” Last week, Barclays was fined $453 million by regulators for rigging interest rates related to mortgages, credit cards and credit default swaps.
Dell Inc. (NASDAQ:DELL): The computer company announced it will buy enterprise management software maker Quest Software for $2.4 billion in cash, or $28 per share.
Bristol-Myers Squibb Co. (NYSE:BMY): The pharmaceutical giant said it will purchase Amylin Pharmaceuticals Inc. (NASDAQ:AMLN) for about $5.3 billion in cash. The move is to help Bristol-Myers expand its portfolio of diabetes treatments. Shares of Amylin surged more than 8 percent on the news.
Facebook (NASDAQ:FB): A recent report indicates that the social-media company has decided firmly on remaining with the Nasdaq exchange, after the Nasdaq IPO debut debacle in May caused the company to have second thoughts.
In the shortened trading day, Apple Inc. (NASDAQ:AAPL) shares closed 1.16 percent higher at $599.41. Shares hit as high as $600 during intra-day trading, hitting the mark for the first-time since April.
Research in Motion (NASDAQ:RIMM) continues to search for a bottom. Shares closed Tuesday nearly 2 percent lower at $7.35. The company’s CEO Thorsten Heins claims, “There’s nothing wrong with the company as it exists right now.” He recognized that RIM faces obstacles in regaining market share, but said it is not in a “death spiral.” Last week, the BlackBerry maker reported horrendous financial results. Revenue plunged 43 percent to $2.81 billion. For the first-quarter, the company posted an adjusted loss of $192 million (37 cents per share), down sharply from a net gain of $695 million ($1.33 per share) a year earlier. Read More.
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Shares of Barclays PLC (NYSE:BCS) dropped 2.14 percent today. The bank’s CEO Bob Diamond has resigned after the growing Libor scandal. “Bob Diamond was a lightning rod for the industry,” Chris Wheeler, bank analyst at Mediobanca, told CNBC. “I’m surprised at the timing, but I think there has been a discussion with the board about it having a major impact on Barclays and obviously they want to restore its reputation.”
Facebook (NASDAQ:FB) shares closed 1.39 percent higher on Tuesday. The social-media company appears to be back at the bargaining table with General Motors (NYSE:GM) over its advertising efforts. The WSJ reports, “Facebook Chief Operating Officer Sheryl Sandberg spoke with GM Chief Executive Daniel Akerson on the issue, and senior executives from both companies have been in discussions.”
On Wednesday, former Barclays (NYSE:BCS) CEO Bob Diamond testified that he only learned about the Libor accusations recently; this contradicts reports that the bank had been part of a investigation beginning in March 2011, reported the Wall Street Journal. In his testimony to U.K. legislators, Diamond added that he did not think that the Bank of England’s Paul Tucker gave permission to cut rates.
Limited Brands Inc. (NYSE:LTD) reported that June sales in stores open at least a year increased seven percent, exceeding the 2.4 percent estimates by analysts. The company, which operates Victoria’s Secret, Pink, Bath and Body Works, La Senza, C.O. Bigelow, White Barn Candle Co. and Henri Bendel saw its total June sales stay flat at around $1.1 billion, reported MarketWatch.
In June, Asian motor companies saw record-breaking U.S. sales figures. Honda Motor Co.’s (NYSE:HMC) U.S. vehicle sales rose 49 percent thanks to record gains from its Accord, CR-V and Civic models but the numbers came in below estimates from the car-shopping website Edmunds.com. Hyundai Motor Co.’s (HYMLY) saw a 7.8 percent rise last month; this represented a record for June sales record while Nissan Motor Co. (NSANY) reported a 28 percent jump, exceeding estimates with the company’s namesake and Infiniti divisions incurring double-digit sales rises.
A U.K. judge has ruled that HTC phones don’t infringe on four Apple (NASDAQ:AAPL) patents from touchscreen technology but three of them are invalid. The patents in question included a slide-to-unlock feature and functionality to touch the screen in two simultaneous spots. Meanwhile on a positive note for Apple, it gained a pretrial victory against Samsung (SSNLF.PK) on Tuesday as a judge rejected a pre-trial injunction against Galaxy Nexus phone sales.
Best Buy (NYSE:BBY) is turning some of its stores into Apple-inspired (NASDAQ:AAPL) retail outlets as part of its new recovery strategy to increase sales. Concerns are lingering that the change won’t stop shoppers from looking around first in stores but then making purchases online through less expensive e-tailers.
On the commodities front, Oil (NYSE:USO) declined to $86.80 a barrel. Precious metals also declined, with Gold (NYSE:GLD) falling to $1,605 an ounce while Silver (NYSE:SLV) fell 0.57% to settle at $27.67.
Here’s your Cheat Sheet to today’s top stock stories:
It looks as though Apple (NASDAQ:AAPL) finally picked a fight it couldn’t win after the High Court in London ruled in favor of HTC in a patent dispute brought by Apple. The judge ruled Thursday that HTC had not infringed four technologies that Apple had claimed as its own.
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Asure Software Inc.’s (NASDAQ:ASUR) shares jumped 23 percent after the company announced a deal to acquire PeopleCube. With the transaction, the company will become the world’s biggest provider of workplace-management technologies.
Netflix Inc.’s (NASDAQ:NFLX) shares increased 13 percent on gains made from Tuesday’s trading session. After the market’s close on that day, CEO Reed Hastings posted on his Facebook page that the company would see growth in its online streaming service. The company had reported record traffic for June in this area and has forecast continued growth.
RealNetworks Inc.’s (NASDAQ:RNWK) shares dropped almost eight percent after the company said that Thomas Nielsen, president and chief executive had resigned. In the interim, chairman Rob Glaser will take over.
Thanks to the recent heat wave across the United States, James River Coal Co.’s (NASDAQ:JRCC) shares increased 19 percent, while Patriot Coal Corp. (NYSE:PCX) gained 35 percent. Their power plants are trying to keep up with demand and are running overtime.
Investing Insights: Gold and Silver Decline on Stronger U.S. Dollar.
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.”