Ultimate Market Recap: Alcoa Kicks Off Earnings, Thomas Reuters To Take Over FXall

Wall St. Brief: Sirius XM Subscriber UPDATE, Alcoa to Kick Off Earnings Season

Sirius XM Radio (NASDAQ:SIRI) announced in a press release that it added 622,042 net subscribers in the second quarter, a 38 percent increase from the 452,147 net subscribers added in last year’s second quarter. The company also added over 1 million net subscribers in the year’s first half . It also raised its full year 2012 subscriber and revenue guidance with an expected net new subscriber growth to reach 1.6 million and revenue to hit $3.4 billion this year.

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Alcoa (NYSE:AA) kicks off earnings season today and already it may not include good news. Analysts have cut their earnings per share estimates to $0.05 vs. $0.32 from the previous year. Revenues are projected to drop 11.8 percent to $5.81 billion. Producing aluminum isn’t a great business as its faces increasing input costs and falling completed product prices. Year-to-date, Alcoa’s stock is flat.

WellPoint (NYSE:WLP) agreed to acquire Amerigroup (NYSE:AGP) for $92 per share in a cash deal. This is valued at almost $4.9 billion. The offer is a 43 percent premium from Amerigroup’s closing share price on Friday. In premarket trading, shares were up 40 percent.

Barclays (NYSE:BCS) is reviewing its options to spin off its investment-banking unit after the Libor scandal, reported Britain’s Sunday Times.  The division may float in New York as the U.K.-based retail and commercial bank keeps its London address. However, a MarketWatch story said the news report wasn’t true.

General Motors (NYSE:GM) believes that quick growth in Russia will help offset its slowing sales in China, said senior executive Tim Lee. In this year’s first half, the company’s Russian sales rose 21 percent to 136,400 vehicles, thanks to strong numbers from the Chevrolet Niva.

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Nokia Lumia Heads to Verizon and 4 Hot Stocks To Keep an Eye On

Bank of America (NYSE:BAC): rather than selling their U.S. bonds to the Fed, banks on Wall Street are hoarding them more than ever, while speculations concerning a slowing economy and global financial turmoil will increase their importance, Bloomberg reports. In June, the world’s largest bond dealers offeren $7.2B on average in Treasuries a day to the central bank, this is down 40.5% from October’s $12.1B, Bloomberg data reports. Shares of Bank of America are trading 0.72% lower today.

Apple Inc. (NASDAQ:AAPL): Several states, including Virginia and Texas, recently passed laws requiring customers to pay sales tax on purchases made on the Internet, The Washington Post reports. The newspaper adds that there is also increasing support among Congressional members for a bill making it easy for more states to earn sales taxes on Internet purchases. Shares of Apple Inc. are trading 0.85% higher today.

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Facebook, Inc. (NASDAQ:FB): A minimum of 160 U.S.-based mutual funds and exchange-traded funds, which includes those managed by Fidelity Investments, Morgan Stanley Investment Management (NYSE:MS) and OppenheimerFunds Inc., purchases shares in May, the Wall Street Journal reports citing monthly disclosures made in June and July  and compiled by Morningstar Inc. for the WSJ. Shares of Facebook, Inc. are trading 3.31% higher today.

AT&T, Inc. (NYSE:T): Nokia (NYSE:NOK) and Genius Brands International (GNUS), a developer and marketer of entertainment and education-based products including the award winning Baby Genius line, have partnered together to develop unique and exclusive mobile apps which will run on  Microsoft’s (NASDAQ:MSFT) Windows Phone platform to the award-winning Nokia Lumia device range, which includes the Lumia 900 on AT&T (NYSE:T). Shares of AT&T, Inc. are trading 0.14% lower today.

Nokia Corporation (NYSE:NOK): Soon, Verizon customers who wish to purchase a Nokia Lumia Windows Phone could have it granted. According to Nokia vice president of Worldwide Developer Relations Richard Kerris, the Lumia lineup is heading to Verizon. Kerris stated, in his interview with Neowin, that “it won’t be long” before Lumia phones will be available for Verizon customers, but he did not specify a timeframe or what models would be available. Shares of Nokia Corporation are trading 3.39% lower today.

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Thomson Reuters Makes ACQUISITION and 1 Hot Stock on the Move

Duke Energy Corp (NYSE:DUK) CEO Jim Rogers is scheduled to testify in front of North Carolina regulators regarding the issues last week at the utility’s executive suite. Shares of Duke Energy Corp are trading 1.30% lower today.

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FX Alliance Inc (NYSE:FX): Thomson Reuters (NYSE:TRI) has entered into a definitive agreement under which it will acquire all FXall shares in cash for $22 per share. FXall is the head independent global provider of electronic foreign exchange trading solutions for corporations as well as asset managers. Beneath this agreement, Thomson Reuters will indicate a tender offer, subject to normal regulatory approvals, for the acquisition within the next few days. Unanimously, the FXall Board decided to recommend all shareholders tender their shares into the offer, and Thomson Reuters believes all acquisitions should close in Q3. FXall is still completely committed to providing a seamless transition and constant service quality for its customers. Shares of FX Alliance Inc are trading 40.06% higher today.

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Afternoon BUZZERS: Radio Gets SIRIUS About Subs, WellPoint and Facebook FLY

Shares of Sirius XM Radio Inc. (NASDAQ:SIRI) are up 0.73 percent this afternoon. The company announced it added 622,042 net subscribers in the second-quarter, an increase of 38 percent from the same period a year earlier. “SiriusXM continues to demonstrate robust growth and strong operating execution despite a challenging economy.  Our second quarter subscriber gains mark a record quarter of net additions since the merger of SIRIUS and XM in July 2008,” said Mel Karmazin, Chief Executive Officer.

Alcoa Inc. (NYSE:AA) shares dipped 1.20 percent today. The aluminum giant is set to kick off earnings season late Monday. The average estimate of analysts is for net income of 7 cents per share, a decline of 78.1 percent from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 12 cents.

WellPoint Inc. (NYSE:WLP) shares surged 3.24 percent this afternoon. The health insurer is purchasing managed care provider Amerigroup for nearly $4.46 billion in cash. The deal is expected to help WellPoint better serve Medicaid users. “We believe that this combination will create an industry leader in the government sector serving Medicaid and Medicare enrollees,” WellPoint Chair, President and CEO Angela Braly said in a statement.

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Apple Inc. (NASDAQ:AAPL) has gained 0.99 percent today. Brian Blair of Wedge Partners expects the next iPhone to drive a strong December quarter, but believes that only 28 million to 30 million iPhones were sold in the June quarter, which would be markedly down from the 35.1 million in the March quarter. With smartphone growth predictions falling all over the place, he suggests a cautious approach to Apple near-term if consensus forecasts top 31 million.

Facebook (NASDAQ:FB) shares gained 2.87 percent on Monday afternoon. The social-media company’s initial public offering was purchased by several mutual funds. The WSJ reports, “At least 160 U.S.-based mutual funds and exchange-traded funds, including those run by Fidelity Investments, Morgan Stanley Investment Management Inc. and OppenheimerFunds Inc., bought shares of Facebook in May, according to monthly disclosures made in June and July compiled by investment-research firm Morningstar Inc. for The Wall Street Journal.”

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Market Recap: Oil SPIKES, Stocks SINK, Alcoa INITIATES Earnings

Markets closed down on Wall Street today: Dow -0.28%, S&P -0.16%, Nasdaq -0.19%, Oil +1.53%, Gold +0.57%.

On the commodities front, Oil (NYSE:USO) rose to $85.77 a barrel. Precious metals also rose, with Gold (NYSE:GLD) increasing to $1,588 an ounce while Silver (NYSE:SLV) rose 0.45 to settle at $27.34.

Here’s your Cheat Sheet to today’s top stock stories:

The plethora of rumors revolving around the premise that Apple (NASDAQ:AAPL) is quietly developing a smaller iPad can’t help but leave the impression that it must be true. After all, while Apple may try to remain secretive about upcoming products and software until revealing them at major events with that distinct Steve Jobs flare, this company doesn’t just have leaks to content with, but floods.

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In a large gainer today, FX Alliance Inc.’s (FX) shares increased 40 percent after the company announced it will be bought for $616 million by Thomson Reuters (NYSE:TRI).

Another large rise was Amerigroup Corp.’s (NYSE:AGP) shares, jumping 38 percent after WellPoint Inc. (NYSE:WLP) agreed to acquire the company in a $4.46 billion cash transaction. This will broaden its Medicaid presence.

On the losing end was Luminex Corp. (NASDAQ:LMNX). Its shares fell 17 percent after the company said it would acquire GenturaDx for $50 million in cash. But it is “subject to working capital reconciliation and potential additional contingent consideration for achievement of future milestones and/or product revenue performance” reported MarketWatch.

FTI Consulting Inc.’s (NYSE:FCN) shares dropped 5 percent. Late on Friday, the company said that it lay offs were coming and would affect three percent of its employees. It will also consolidate office space, which will result in second quarter $28 million pretax charge.

BONUS: Alcoa (NYSE:AA) today reported $0.00 earnings per share, based on a loss from continuing operations of $2 million, which includes special items of $63 million. Excluding the impact of special items, income from continuing operations was $61 million, or $0.06 per share.

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RADAR Movers: Alcoa Starts Earnings Season with Whimper, AMD Plunges on Outlook

Shares of Alcoa Inc. (NYSE:AA) edged 0.23 percent higher in late afternoon trading. The aluminum producer reported a loss of $2 million for the second-quarter, compared to a net income of $322 million in the year-earlier quarter. Revenue declined 8.8 percent to $6.01 billion, but beat the average revenue estimate of $5.81 billion. “Alcoa maintained revenue strength and solid liquidity by driving high profitability in our mid and downstream businesses and by reducing costs and improving performance in our upstream businesses,” said Klaus Kleinfeld, Chairman and CEO.

Advanced Micro Devices Inc. (NYSE:AMD) shares plunged more than 7 percent. The semiconductor expects revenue to decline 11 percent from last quarter, compared to previous estimates of a 3 percent increase. The company blamed weaker-than-expected distributor sales in China and Europe.

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Microsoft Corp. (NASDAQ:MSFT) shares declined slightly in late Monday trading. The company announced on Monday it will acquire Perceptive Pixel, who develops large multi-touch display panels. Perceptive tech can detect many contact points, and will probably be used in the PixelSense display tables from Microsoft. It may also possess applications for Windows 8 tablets as well as all-in-one desktops. Also, ZDNet has reported that Windows 8 should be released to OEMs no later than the first week of August (early access should be offered early access), and general availability will arrive in late October.

Despite a weak day for equities across the board, Facebook (NASDAQ:FB) shares closed 1.39 percent higher on Monday. The social-media giant announced it will launch a job board with aggregate listings from BranchOut and other third-party platforms. The move is seen as a direct shot across the bow of LinkedIn Corp. (NYSE:LNKD), which declined more than 5 percent on the news.

Investor Insight: Alcoa Earnings ANXIETY Kicks Off a New Summer Season