DJIA Week in Review: FLURRY of Action at Exxon, GE, Cisco and More
Boeing Co. (NYSE:BA): Airbus (EADSY) is readying an investment of approximately $600 million to establish and equip a new assembly line in Alabama, says an inside source to the Wall Street Journal. The firm expects to assemble planes from its A320 line in Mobile, beginning in 2015.
Bank of America Corporation (NYSE:BAC): New derivatives regulations were unanimously passed by the Commodity Futures Trading Commission on Friday, that will impact the foreign operations of American banks, according to The New York Times on Friday night. Overseas banks that carry out significant derivatives trading in the U.S., would also be affected by the rules that, among other measures, would introduce new standards for capital.
Chevron Corp. (NYSE:CVX): An Iranian parliament member warns that his government will move to close the Hormuz Strait if the economic sanctions against it are allowed to take effect, says Trend, which cites the Fars News Agency.
General Electric Company’s (NYSE:GE) GE Capital Corporation and EverBank Financial Corp’s (EVER) EverBank subsidiary announced that they reached a definitive agreement under which the latter will purchase Business Property Lending, a business division of GE Capital Real Estate, North America. Under the terms of the agreement which has been okayed by the boards of both firms, EverBank will buy the stock of Business Property Lending, Inc., which at the deal’s close will hold the origination and servicing platform for Business Property The transaction’s price will be $2.51 billion, and paid in cash; no debt will be assumed in the purchase. The agreement includes around $2.44 billion of performing commercial loans, the origination and servicing platforms, 108 employees, along with servicing rights on $3.1 billion of loans securitized by GE Capital. The acquisition should close in the fourth quarter, subject to the usual approvals and closing conditions.
Hewlett-Packard Company (NYSE:HPQ) now says that it will not offer a Windows RT tablet in 2012, due to problems with Microsoft’s (NASDAQ:MSFT) Windows 8 RT. The difficulties first arose in May, and it’s possible that more might lie in waiting for the operating system, according to CNET.
Microsoft Corporation (NASDAQ:MSFT) revealed Monday that it will have to write off nearly the total cost of its $6.3 billion purchase of aQuantive in 2007, through which it expected to become an instant mover in the profitable business of serving up display ads for millions of websites. Five years on, those hopes have vanished, hence the write off.
Wal-Mart Stores Inc. (NYSE:WMT) and Target (NYSE:TGT) project the hiring of tens of thousands of employees in Canada during the next couple of years, says the Financial Post. Target will be the big employers of the two, as it plans to hire as many as 27,000 people for its debut stores in Canada, while Wal-Mart expects to add 4,000 employees in 2012.
Alcoa’s (NYSE:AA) second quarter report and business developments will be the subjects of a conference call on Monday, July 9, 2012 starting at 5:00 p.m.. The call will be webcast live on Alcoa’s website, with presentation materials available on-line.
ExxonMobil’s (NYSE:XOM) CEO defended oil and gas drilling, remarking that climate change is something to which humans may adapt.
Boeing Co. (NYSE:BA) raises its projections for commercial-jet sales in a span of the next 20 years, from the prior calculation of nearlt $4 trillion, to $4.5 trillion. The aircraft builder also predicts that 34,000 planes will be sold, which is up from the 33,500 prior estimate. At the same time, Boeing moderates its outlook for cargo-traffic growth.
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The Home Depot, Inc. (NYSE:HD) is initiating the sale of Electrolux major appliances in the United States. The company is presently the world’s largest home improvement specialty retailer.
International Business Machines Corp. (NYSE:IBM) and The National Environment Agency are partnering under a three-year research collaboration, and have inked a Joint Development Agreement under which IBM researchers will cooperate with the NEA in the production of advanced modeling and predictive capabilities, to meet key environmental demands in Singapore such as air quality, extreme weather events, dengue outbreaks and food poisoning incidents. The joint efforts will enable researchers from NEA and IBM’s mathematical experts team to exploit the wide capabilities of advanced analytics, which include the ability to capture data in real time and turn it into intelligence, or perhaps predictive insight that enables smarter decisions.
Johnson & Johnson (NYSE:JNJ): The FDA has proposed that most medical devices distributed in the United States should carry a unique device identifier, or UDI. This is in response to broad bipartisan legislation that has passed Congress; a UDI system could improve the quality of information in medical device adverse events reports, which would speed identification of product problems more quickly, producing better target recalls, and also enhance patient safety, reports the FDA, which wants comment on the proposal for 120 day period.
JPMorgan Chase & Co. (NYSE:JPM) has been subpoenaed twice in the past three months by the Federal Energy Regulatory Commission, reports the Financial Times, in its inquiry into energy prices and possible market manipulation in the MidWest and in California. The regulatory body says that JPM’s bidding strategies might have inflated electricity costs by at least $73 million.
General Electric Co. (NYSE:GE) steam turbine technology has been named by Mass Global Investment Company to improve the efficiency and output of the Erbil Power Plant in Iraq’s Kurdistan region. The deal’s terms direct GE to provide two steam turbines which will be used to convert the Erbil plant from a simple to a combined-cycle operation, increasing plant output by 500 megawatts, which is enough additional electricity to serve 100,000 Iraqi households.
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Hewlett-Packard Company (NYSE:HPQ): Tablet PC shipments should exceed shipments of notebooks in the year 2016, says the Boy Genius Report, citing NPD numbers. The firm expects that mobile PC shipments will jump from 347 million in the current year, to more than 809 million by 2017. In addition, NPD predicts that notebook PC shipments will grow from 208 million in 2012 to 393 million by 2017, with tablet shipments from 121 million to 416 million.
International Business Machines Corp. (NYSE:IBM) shares are falling back, following BMO Capital reducing its 2012 revenue estimate, blaming macro economic and foreign exchange difficulties. The analyst projects IBM’s 2012 revenue to post below consensus, as the company is negatively impacted by macro economic conditions in Europe, and it now believes that foreign exchange trends could shrink the IBM’s 2012 revenues by 3 year-to-year, compared to its previous estimate of a 2 percent reduction. However, BMO predicts that IBM will post in-line earnings per share for 2012, thanks in part to higher than expected operating margins and a lower tax rate. The firm’s shares are forecast to be constrained by revenue, and BMO keeps a price target of $200, and a Market Perform. At the same time, BMO used the weak macro landscapes in Asia and in Europe, plus the adverse foreign exchange situation as reason for reducing price targets on such enterprise hardware companies EMC (NYSE:EMC), VMWare (NYSE:VMW), Seagate (NASDAQ:STX), Western Digital (NYSE:WDC), Elex (NYSE:ELX), and QLogic (NASDAQ:QLGC).
Intel Corporation (NASDAQ:INTC) is moving to have a $1.4 billion antitrust fine imposed by European Union regulators in 2009 overturned, says a Reuters report. The fine was imposed to begin with due to anti-competitive tactics employed against Advanced Micro Devices (NYSE:AMD).
JPMorgan Chase & Co. (NYSE:JPM) has been named by Hutchison Whampoa to oversee its return to the market. The former was the world’s largest corporate bonds underwriter, and now moves to number two in Asia following its choice by Hutchison. Additionally, JPM will now challenge HSBC Holdings (NYSE:HBC) which sits at the top of Asia’s dollar, euro and yen league table.
Boeing Co. (NYSE:BA) should unveil next week several experimental technologies which are designed to make airliners more fuel-efficient and environmentally friendly than the current models, that include potential changes in engine design and wing tech, says the Wall Street Journal.
Bank of America Corporation (NYSE:BAC): Growing private consumption numbers and also spending on rebuilding from last year’s earthquake, prompted The Bank of Japan on Thursday to upgrade its assessment for all nine regions of the economy, according to Reuters. This is the first such move in around three years; the Bank is expected to leave monetary settings unchanged next week.
Cisco Systems, Inc. (NASDAQ:CSCO): Tablet PC shipments will exceed notebook shipments in 2016, says Boy Genius Reports from NPD numbers. Mobile PC shipments should grow from the current year 347 million shipments to more than 809 million by 2017, and NPD projects that notebook PC shipments will grow from 208 million units in 2012 to 393 million by 2017. Additionally, tablet PC shipments are expected to jump from 121 million units to 416 in this period.
Walt Disney Co. (NYSE:DIS): The venue for Dish Network’s (NASDAQ:DISH) legal battle with major TV broadcasters will be decided in Manhattan by a federal judge. The Wall Street Journal reports that the case, which centers around the ability to skip ads, will be heard in either New York or Los Angeles and that the location is likely to influence which side wins, as Dish’s defense is partly based upon a 2008 legal precedent set in federal court in New York.
McDonald’s Corp. (NYSE:MCD): The Chinese economy appears to have strengthened during the last quarter, says Bloomberg, citing independent research firm data. Some 2,000 interviews of company executives and banks have indicated to CBB International that Chinese retailers think that sales should rebound in six months, and that banks expect to make more loans in the second quarter.
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Microsoft Corporation (NASDAQ:MSFT) has reached an asset purchase agreement with Edgewater Technology’s (NASDAQ:EDGW) wholly-owned subsidiary Edgewater Fullscope, under which the former will acquire the latter’s Process Industries 2 software and intellectual property for a total price of $3.25 million. As part of the terms, Microsoft will engage Edgewater Fullscope in added development and training services during the joining of the module into Microsoft Dynamics AX, which is Microsoft’s ERP solution for enterprises. Hal Howard, corporate VP for Microsoft Dynamics Research and Development, commented that, “Including these capabilities will enable our partners worldwide to deliver standardized industry solutions faster, while giving our customers a packaged solution to meet specific needs of the process manufacturing industry.”
Pfizer Inc. (NYSE:PFE) is granting exclusive development and marketing rights to SatRx for their DPP-IVi compound, PF-00734200, for type 2 diabetes, according to ChemRar Hi-Tech Centre. The license was signed June 23rd during the St. Petersburg Economic Forum, and under its terms Pfizer granted exclusive worldwide rights (ex-China) for development and commercialization of PF-00734200 as monotherapy or in combination with certain others. In addition, Pfizer will receive royalties and milestone payments based on commercialization activities.
Verizon Communications Inc. (NYSE:VZ) and top aluminum supplier Hydro, have reached an arrangement through which Verizon will deliver a managed worldwide area network with integrated security and remote access solutions, an integrated partner firewall which allows third-party access to select business solutions, plus full professional service support. Network and security monitoring is currently offered on an east-to-west schedule from Verizon’s global network and security operations centers in Dortmund; Singapore; Ashburn, Va.; and Sao Paolo. Also, the agreement covers the transition of services from the existing provider as well as three years of operation.
Exxon Mobil Corp. (NYSE:XOM) is considering a bid on a modest oil concession in the Northern Afghanistan.
Merck & Co. Inc. (NYSE:MRK): Unidentified officials in India have told the New York Times that their government is thinking about providing a number of essential medications for free at state-run clinics and hospitals. The program, which might be approved next month, will supply hundreds of the drugs, and is projected to cost $5 billion over five years.
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Microsoft Corporation (NASDAQ:MSFT): Hewlett-Packard (NYSE:HPQ) will introduce a 10-inch Windows RT tablet with processors from Texas Instruments (NYSE:TXN) processors in the fourth quarter of 2012, and in the same period Dell (NASDAQ:DELL) will launch a tablet that will be powered by Qualcomm (NASDAQ:QCOM), according to supply chain sources to DigiTimes.
Pfizer Inc. (NYSE:PFE): Unidentified officials in India have told the New York Times that their government is thinking about providing a number of essential medications for free at state-run clinics and hospitals. The program, which might be approved next month, will supply hundreds of the drugs, and is projected to cost $5 billion over five years.
United Technologies Corporation’s (NYSE:UTX) $16.5 billion acquisition of Goodrich (NYSE:GR) is expected to be okayed by the European Commission, following UTX’s divestiture of assets in the United Kingdom and in the United States, say sources to Reuters.
Bank of America Corporation (NYSE:BAC) and J.P.Morgan Chase (NYSE:JPM) shares both declined more than 3 percent on Thursday, as measures by central bankers to prime the world economy didn’t quite take with investors. Financial stocks were at the bottom of the S&P 500’s ten sectors, as hopes for the U.S. jobs report were also insufficient to prop up the shares.
Caterpillar Inc. (NYSE:CAT) saw its stock removed from Wells Fargo’s Priority Stock list early Friday, and its shares are reacting as one would expect. The reasons for Wells’ downgrade were that it’s dubious about Caterpillar’s growth subsequent to channel checks, and also the fact that the analyst does not anticipate any upsurge in demand for the company’s products either domestically or in Europe before 2013. Wells decreased its price target range on CAT from $127 to $130, to $99 to $102, and its outlook for the firm’s second quarter and 2013 profit to below consensus. On the upside, Wells keeps its Outperform on Caterpillar because the likely earnings reduction is already embedded in the shares.
EI DuPont de Nemours & Company’s (NYSE:DD) subsidiary Danisco has won a ruling with the Technical Board of Appeal at the European Patent Office through which Novozymes’ animal feed enzyme patent (European Patent 1,804,592) was revoked in its entirety throughout Europe. The now-revoked patent involved a process of producing an animal feed composition by steam pelleting which contains salt-coated enzyme granules. This move by the Board restores the ability of Danisco to interact in commercial activities in Europe and to supply customers with innovative procedures in the animal feed business.
Walt Disney Co. (NYSE:DIS)-ABC and Hearst Corporation each own a 42.5 percent investment in A&E Television Networks, and are reportedly ready to purchase Comcast’s (NASDAQ:CMCSA) NBC Universal’s 15 percent ownership in A&E. The New York Post reports that talks are in progress to set up the transaction, which is said to be worth $2.8 billion. The two buyers will likely split their acquisition equally.
Hewlett-Packard Company (NYSE:HPQ) will introduce a 10-inch Windows (NASDAQ:MSFT) RT tablet with processors from Texas Instruments (NYSE:TXN) processors in the fourth quarter of 2012, and in the same period Dell (NASDAQ:DELL) will launch a tablet that will be powered by Qualcomm (NASDAQ:QCOM), according to supply chain sources to DigiTimes.
Exxon Mobil Corp. (NYSE:XOM) the world’s biggest energy company by market value, is currently weighing a sale of its German Esso gas station chain, claim individuals familiar with the situations. The unit, including over 1,100 German gas stations could fetch over 1B euro ($1.3B), two unidentified sources claimed. Currently, Exxon is in talks with several parties, tow or three could be from Russia or eastern Europe, say sources. There has been no final decision on a sale.
JPMorgan Chase & Co. (NYSE:JPM) has been ordered by a U.S. judge to explain why the court shouldn’t force the bank to turn over 25 internal emails which are demanded as part of an investigation concerning if it manipulated electricity markets located in California and the Midwest. Monday in Washington, The Federal Energy Regulatory Commission (FERC) filed a petition in Washington’s federal court requesting that the court order the bank to show why it refused to comply with a subpoena the commission issued as part of its bank’s power trading investigation.
General Electric (NYSE:GE) did not infringe upon a Mitsubishi Heavy Industries Ltd. patent over a manner in which to control the angle of wind-turbine blades which should reduce wear and tear, according to a federal judge. U.S. District Judge John Antoon’s decision diminishes any need for a trial scheduled to begin later in the month. According to Antoon, GE’s turbines blade angle is adjusted differently than that covered by Mitsubishi Heavy’s patent.
Proctor & Gamble’s (NYSE:PG) My Black is Beautiful (MBIB) announced today a new initiative created to make a positive impact on one million black girls’ lives within the next three years. Imagine a Future will work in collaboration with UNCF (United Negro College Fund) and Black Girls Rock! (BGR!), and it will document black beauty’s current state with a deep look at influences– people, fashion, music, education, pop culture — as well as offer tools and resources which should foster a better sense of self and confidence within the next generation’s young black girls.
Cisco Systems (NASDAQ:CSCO) “forced” its cloud service, “Cisco Connect Cloud,” on its LinkSys device users earlier in the week. The update was essential, meaning the customer either had to download it and install it, or be the owner of a non-functioning device. Now, Cisco has retracted a bit of the essential and annoying features involved with its cloud service, and it is no longer the default management tool. Now, the customers can opt out of the service and continue to use the company’s periodic firmware updates.
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