Ultimate Market Recap: BofA Earnings, University of Phoenix Closings

A.M. Buzzers: Bank of America Edges Higher, Intel and IBM Drop After Earnings

Bank of America (NYSE:BAC) shares edged higher after reporting third quarter financial results. The bank reported earnings of $340 million, a sharp decline from $6.23 billion a year earlier. Revenue also fell 28 percent to $20.43 billion. Although earnings beat expectations, the bank released $2.3 billion from its loan-loss reserves, which gives a boost to the bottom line.

Shares of Intel (NASDAQ:INTC) fell more than 1 percent Wednesday morning. The company announced that third quarter net income fell 14.3 percent to $2.97 billion (58 cents per share), compared to $3.47 billion (65 cents per share) a year earlier. Revenue also declined 5.5 percent to $13.46 billion. “Our third-quarter results reflected a continuing tough economic environment,” said Paul Otellini, Intel president and CEO. “The world of computing is in the midst of a period of breakthrough innovation and creativity.” Shares of Advanced Micro Devices (NYSE:AMD) also traded lower on the results.

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International Business Machines (NYSE:IBM) shares dropped 3.84 percent after reporting financial results for the third quarter. Net income declined to $3.82 billion ($3.33 per share), compared to $3.84 billion ($3.19 per share) a year earlier. Revenue also fell 5.4 percent to $24.75 billion. Last quarter’s profit decrease ends a four-quarter streak of profit increases.

Shares of Apple (NASDAQ:AAPL) slightly fell this morning. Shares received a boost the prior day after sending media invites to an event on October 23 for what is widely expected to be the launch of a new iPad Mini. The invitation, featuring the line “We’ve got a little more to show you”, is at least a little reminiscent of the company’s invites before the announcement of the first iPad in January 2010. The announcement will be held at 10 a.m. Pacific Time at the California Theatre in San Jose, California.

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Apple Named A Respondent in ITC Investigation and 4 Hot Stocks Seeing Action

Apple Inc. (NASDAQ:AAPL): The United States International Trade Commission said, last night, that they have voted to institute an investigation of certain devices with secure communication capabilities. The investigation is based on a complaint filed by VirnetX (AMEX:VHC) and Science Applications International Corporation (NYSE:SAI), on September 14, 2012. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain devices with secure communication capabilities, components thereof, and products containing the same, that infringe a patent asserted by the complainants. The complainants request that the USITC issue an exclusion and a cease and desist order. The ITC said that they have identified Apple Inc., as the respondent in the investigation. Within forty five days after institution of the investigation, the ITC will set a target date for completion.

Facebook, Inc. (NASDAQ:FB): According to TechCrunch, Ari Steinberg will leave Facebook, Inc.  Most recently, Steinberg opened Facebook’s first remote engineering office and built Facebook Messenger for Windows. He now plans to found a travel start up.

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AT&T, Inc. (NYSE:T): In an effort to make caring for patients that are outside of hospital and nursing home walls more accessible, and to improve quality of life for the elderly, AT&T, Inc. and Embedded Wireless are teaming up to wirelessly enable a new remote patient monitoring platform. The companies announced today that AT&T will be the exclusive 4G LTE mobile internet provider for the Zilant Wellness Remote Monitoring Platform and a mobile personal emergency response system.

Nokia Corporation (NYSE:NOK): According to study results from research firm Strategy Analytics, the number of smartphones being used around the world has surpassed 1 billion units for the first time in the third quarter. The study’s findings are consistent with a statement made last week by Eric Schmidt, Google’s (NASDAQ:GOOG) executive chairman.

Sprint Nextel (NYSE:S): According to Bloomberg, Sprint Nextel expects the United States Justice Department to complete a review of the company’s agreement to sell a majority stake to Softbank (SFTBF) within an initial 30-day period and will not warrant an extended investigation.

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IBM Plagued With Double-Digit Percentage Dip and 4 Hot Stocks Demanding Attention

Bank of America Corporation (NYSE:BAC) stated in presentation slides for its third quarter earnings call that, “In the third quarter of 2012, as a result of continued dialogue and discussions with the GSEs, we have obtained additional information from which we are now able to determine a reasonable estimate of a range of possible loss, or RPL, in excess of our recorded representations and warranties liability for the GSEs. The company currently estimates that the RPL for both GSE and non-GSE representations and warranties exposures could be up to $6 billion over accruals at September 30 compared to $5 billion over accruals at June 30 for only non-GSE representations and warranties exposures. The increase in the RPL from June 30 is the net impact of, among other changes, updated assumptions, the inclusion of GSE representations and warranties exposure and other developments.”

International Business Machines Corporation (NYSE:IBM) posted lower third quarter revenue in all of its major segments, among which include a double-digit-percentage slump in hardware sales, which is the most recent sign that firms might be cutting back on tech spending, according to the Wall Street Journal.

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Fortinet (NASDAQ:FTNT), an Internet security product manufacturer, posted lower than anticipated third quarter revenue and gave weaker than expected fourth quarter guidance earlier Wednesday. Shares plunged by 18.10 percent in early trading to $20.31.

Amazon.com (NASDAQ:AMZN) is among online retailers that qualify for Target Corporation’s (NYSE:TGT) offer to guests of the ability to match the prices of select online competitors in its stores between November 1st and December 16th. Other qualifying online companies are Walmart.com (NYSE:WMT), BestBuy.com (NYSE:BBY) and Toysrus.com. In addition, Target has extended the timeframe for its Price Match Policy for the holiday shopping season, and new in 2012, the policy will now include Target.com. Should a guest buy a qualifying item at Target stores between November 1st and December 24th, and subsequently see it for less at Target.com or in a local competitor’s printed advertisement, Target will match that price.

First Solar (NASDAQ:FSLR): The Supreme Council of Energy of Dubai has okayed construction of a 13 megawatt solar photovoltaic power facility as the first phase of the Mohammed bin Rashid Al Maktoum Solar Park, which will link it directly to the Dubai Electricity and Water Authority, or DEWA, grid. In turn, DEWA has awarded the contract to First Solar for the construction of the project’s first phase, which comprises the substation and connection to the grid. The entity received six bids in response to the tender for the establishment of the solar Photovoltaic power plant. The project should be completed by October of 2013 with the total cost of the project estimated at AED 124 million for the installation of the 13 megawatt photovoltaic power, according to DEWA.

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Halliburton’s N.A. Revenue Dips 5% and 4 Hot Stocks Moving Mid-Week

Intel Corporation (NASDAQ:INTC) and Digital Keystone will partner with Zenverge in order to develop a powerful hybrid gateway reference platform which should be able to stream high-quality broadcast TV content to smartphones, smart TVs, tablets and game consoles along with other IP-connected devices.

Apollo Group’s (NASDAQ:APOL) University of Phoenix intends to close 115 of its mostly smaller locations, according to the Associated Press. These closings will impact 13,000 students, including 25 main campuses and 90 smaller satellite learning centers.

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Halliburton Company (NYSE:HAL) says that “In North America, revenue was down 5 percent and operating income was down, driven mainly by pricing pressure in hydraulic fracturing, guar cost inflation and activity disruptions due to Hurricane Isaac. We are also seeing activity reductions by some of our customers as they continue to moderate activity to operate within their stated 2012 budgets.”

Cree (NASDAQ:CREE): Demand for LED backlights should be stronger during October and November and will experience significant growth next year, says DigiTimes. LED makers say that the penetration of backlights in monitors and TVs in the current year is estimated at between 65 and 70 percent and will likely reach more than 80 percent next year.

Check Point Software Technologies (NASDAQ:CHKP), the Internet security major, posted third quarter revenue that is a bit lower than was anticipated, along with a weaker than expected fourth quarter guidance, explaining that its European business is still to be negatively impacted by economic uncertainty. Peer security product producer Fortinet (NASDAQ:FTNT) also reported lower than expected third quarter revenue with weaker than expected fourth quarter guidance earlier Wednesday, which is apparently causing Sourcefire (NASDAQ:FIRE) to pull back as well. In early trading, the latter fell $2.88, or 6.05 percent, to $44.75, while Fortinet plunged by 18.10 percent to $20.31 and Check Point fell 11.81 percent to $41.82.

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