Weekly Market Wrap: RIM Looking Grim, News Corp. Cuts the Cake

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Research in Motion (NASDAQ:RIMM) is considering splitting its handset manufacturing division, responsible for the once-popular BlackBerry smartphone, from its messaging network, according to a Sunday Times report. The British newspaper said RIM, which last month hired JPMorgan (NYSE:JPM) and RBC Capital to look at its strategic options, could break off its handset division into a separately listed company, or sell it.

Facebook (NASDAQ:FB) has begun displaying ads on Zynga’s (NASDAQ:ZNGA) website, the first time the company has gone outside the borders of its own site. The move increases the likelihood that some time down the road Facebook could have its own online advertising network, according to a Reuters report.

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Apple (NASDAQ:AAPL) may have another public relations nightmare on its hands after The New York Times profiled the company and took a closer look at its popular retail stores, where employees have “enjoyed little” of the company’s great financial success. Roughly 30,000 of Apple’s 43,000 employes in the U.S. work at the company’s retail stores, according to the report, which was published this weekend.

Chesapeake Energy Corp.’s (NYSE:CHK) shares fell almost 8 percent after a Reuters story said the company conspired with a Canadian competitor to keep land prices stable in areas perceived to have a wealth of oil and natural gas.

Citigroup’s (NYSE:C) shares dragged the financial sector down, falling 5 percent, on news that the Spanish government made a request for aid. This came through a letter sent by Finance Minister Luis de Guindos to Eurogroup President Jean-Claude Juncker.

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News Corp.’s (NASDAQ:NWS)(NASDAQ:NWSA) board has reportedly approved the split of the $60 billion media group, which will likely result in the separation of its publishing and entertainment arms. Both the Wall Street Journal and Reuters reported that the separation could be announced later on Thursday.

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As the 40-day quiet period following Facebook’s (NASDAQ:FB) IPO came to an end on Wednesday, analysts were quick to throw in their two cents on the stock, which has been on a rollercoaster ride since its May debut. BMO Capital Markets predicted that the stock, which hit a low of $25.61 on June 6 but has since rallied to $32.23, will sink again to $25. JPMorgan (NYSE:JPM) is much more optimistic, predicting it will rise to $45 — $7 above its IPO price — in the next 18 months.

J.P. Morgan Chase & Co. (NYSE:JPM) shares declined 2.45 percent after a New York Times report said that the banks’ trading loss could now reach $9 billion–an amount considerably higher than its initial $2 to $3 billion estimate. The paper cited unnamed sources for the growing amount, which had been based on an internal April report that reflected this number.

Research in Motion (NASDAQ:RIMM) met the low expectations for its first quarter earnings report. The company reported $2.8 billion in revenue, down 33 percent from the fourth quarter’s $4.2 billion; it came in below analysts’ $3.11 billion consensus. RIM also saw an adjusted $192 million loss ($0.37 per share); the Street had the company losing $0.01 per share. Additional bad news included a shipment delay of its BlackBerry OS 10 device until 2013′s first quarter.

Energy Transfer Partners (NYSE:ETP) dropped five percent after the company raised about $600 million through the offering of 13.5 million shares; they had a $44.57 per share price.

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Anheuser-Busch InBev (NYSE:BUD) announced it would purchase its remaining share in Grupo Modelo (MX:GMODELOC) that it previously  did not own. The deal has a $20.1 billion value or $9.15 per share. AB InBev shares jumped 7.9 percent on Friday.

Constellation Brands Inc.’s (NYSE:STZ) shares rose after the company reported its earnings came in a penny higher than analysts’ estimates. On a separate note, Grupo Modelo SAB said it would sell its 50 percent existing stake in Crown Imports LLC. It has a joint venture that imports and markets Grupo Modelo’s U.S. brands to Constellation Brands for $1.85 billion; this allows Constellation Brands to have 100 percent ownership and control, reported MarketWatch.

ServiceNow Inc. (NYSE:NOW) had its initial public offering on Friday and joined in on the tech rally, closing up 36.67 percent.It represented one of the first tech IPOs since the Facebook (NASDAQ:FB) debacle and added hopes for a revival in the tech market. Morgan Stanley (NYSE:MS) underwrote the offering.

Research In Motion Ltd.’s (NASDAQ:RIMM) shares tanked 19 percent after the company reported dismal quarterly financial results on Thursday. It said it will layoff about 5,000 employees and delay the rollout of its new device. Numerous analysts downgraded the company’s shares on Friday.

Nike Inc. (NYSE:NKE) shares dropped more than 9 percent after the company reported on Thursday that its fiscal fourth quarter profit declined 8 percent. The news spurred several downgrades by analysts.

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