Ultimate Market Recap: Fossil Soars 32%, Best Buy Off the Market?
Tyson Aims to REDUCE Share Repurchases and 3 Hot Stocks Active Now
Kellogg Company (NYSE:K): Olympic gymnastics star Gabrielle “Gabby” Douglas won the coveted all-around gold, leading to Battle Creek-based Kellogg Co. signing a deal for her to appear on special-edition boxes of Corn Flakes. Shares of Kellogg Company are trading 0.22% lower today.
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Youku Inc (NYSE:YOKU) CEO Victor Koo stated: “Despite challenging macroeconomic conditions, we recorded another quarter of strong revenue growth. We are pleased to see the continued rationalization of the online video sector and improving content and bandwidth cost structure. The planned integration with Tudou is proceeding smoothly and we are on track to realize the potential of the combination of No.1 and No.2 online video platforms in China.” Shares of Youku Inc are trading 7.58% higher today.
ProShares UltraShort 7-10 Year Trea (NYSEARCA:PST): Shares of ProShares UltraShort 7-10 Year Trea are trading 0.4% lower today.
Tyson Foods, Inc. (NYSE:TSN) currently expect to lower repurchases beneath the company’s share repurchase program due to an anticipated increase in working capital needs. Once the company generates more visibility into their working capital needs, or should forecasted conditions change, the company could raise its share repurchases. As of June 30, 38.4 million shares were still available for repurchase under the program. The timing and extent to which Tyson repurchases shares is to depend upon, among other things, markets, industry conditions, liquidity targets, their debt obligations and regulatory requirements. Shares of Tyson Foods, Inc. are trading 5.91% lower today.
Market Recap: Tech POPS, Best Buy’s SURPRISE Friend, Knight Capital JOUSTED Again
Markets closed up on Wall Street today: Dow +0.16%, S&P +0.23%, Nasdaq +0.74%, Oil +0.73%, Gold +0.29%.
On the commodities front, Oil (NYSE:USO) rose to $92.09 a barrel. Precious metals also increased, with Gold (NYSE:GLD) rising to $1,614 an ounce while Silver (NYSE:SLV) rose 0.88% to settle at $27.87.
Here’s your Cheat Sheet to today’s top stock stories:
As Apple (NASDAQ:AAPL) and Samsung met in court last week, an internal email was released revealing that Apple executives have been interested for some time in the possibility of a smaller tablet device comparable in size to either Amazon’s (NASDAQ:AMZN) Kindle Fire or Google’s (NASDAQ:GOOG) Nexus 7. The email would seem to confirm rumors that Apple has a 7-inch “iPad Mini” in the works, but further demonstrates that Apple keeps an eye on products other companies are releasing, even if they are in a sector in which it doesn’t compete.
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Best Buy Co. shares (NYSE:BBY) jumped 11 percent. Company founder Richard Schulze offered to take the company private with a premium of up to 47 percent over Friday’s closing share price. Schulze resigned from the company in June and said he would explore options for his 20.1 percent ownership share. His deal places a $8.84 billion value on Best Buy.
First Solar Inc. (NASDAQ:FSLR) shares rose 10 percent. The company reported better-than-expected quarterly earnings on Wednesday with its $1.27 a share for the quarter, up from $0.70 in the previous year. It also increased its full-year earnings and revenue outlook.
On the down side, Knight Capital Group (NYSE:KCG) shares tanked 24 percent after last week’s $400 million–plus trading error. Early on Monday, the NYSE said it would move the firm’s custodial role for numerous stocks to Getco LLC. The market maker also lined up a $400 million equity package involving convertible preferred stock.
Tyson Foods (NYSE:TSN) shares fell 7 percent after the company reported its third quarter profit fell 61 percent. The company slashed its revenue forecast and said it is facing challenges in its beef and pork businesses along with increasing grain prices.
BUZZ Before the Bell: LEAP Crashes 19%, Chesapeake Catapults Up
Shares of Leap Wireless International (NASDAQ:LEAP) are crashing 18 percent in early morning hours. The company reported a loss of $41.6 million for the second quarter, compared to a loss of $65.2 million a year earlier. Revenue grew only 3.5 percent to $786.8 million, falling well short of the $831.9 million estimate. “Second quarter customer results, however, were softer than anticipated. The Company’s plan for the balance of 2012 is designed to position us to capture customer growth and improve operational performance,” explained Doug Hutcheson, president and chief executive officer.
Chesapeake Energy (NYSE:CHK) shares jumped 4.52 percent in pre-market trading. The natural gas giant announced that net income in the second quarter surged 90.6 percent to $972 million ($1.29 per share), compared to $510 million (68 cents per share) a year earlier. Aubrey K. McClendon, Chesapeake’s Chief Executive Officer, said, “We are taking aggressive and focused actions to increase cash flow and net asset value per share while also reducing long-term debt as we continue our ongoing transformation to a more balanced asset base between higher-margin liquids and lower-margin natural gas. We are prudently deploying our capital as we focus on developing and harvesting the 10 core plays in which Chesapeake has built a number one or two position.”
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After closing 1 percent higher during regular trading Monday, Apple (NASDAQ:AAPL) shares edged slightly higher in pre-market trading Tuesday. Shares of the iGadget maker have rally over the past two weeks as more evidence builds for an iPad Mini and a new iPhone. As Apple and Samsung met in court last week, an internal email was released revealing that Apple executives have been interested for some time in the possibility of a smaller tablet device comparable in size to Amazon’s (NASDAQ:AMZN) Kindle Fire or Google’s (NASDAQ:GOOG) Nexus 7.
After closing 24.2 percent in the red on Monday, shares of Knight Capital Group (NYSE:KCG) bounced more than 3 percent in pre-market Tuesday trading. The trading firm announced a $400 million deal to save the company, but it is highly diluted to shareholders. The firms involved in the rescue will buy convertible preferred stock to save Knight, which are convertible into about 270 million shares of common stock.
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Wall Street Early Trading: Kodak EMBARRASSING Bids, GM Cries FOUL
In a trial set to begin today, GM (NYSE:GM) has alleged in a $3 billion lawsuit between creditors from the bankrupt portion of the company, known as Motors Liquidation, and hedge funds including Fortress Investment Group (NYSE:FIG) a “threaten to disturb” transaction over inter-company loans had helped save the company. The deal avoided a bankruptcy for GM Canada and a subsequent liquidation for the group.
Standard Chartered (SCBFF) has denied the State of New York accusations that it concealed more than 60,000 illegal Iranian transactions valued at $250 billion from a 10-year period. The bank, which was been called “rogue institution,” may be deprived of its license for operation in New York; it has also said the transaction value violating U.S. regulation came in under $14 million. The U.K-listed company saw its shares tank 24 percent in London.
Chesapeake Energy (NYSE:CHK) should finish its $7 billion in asset sales in the third quarter after divesting $4.7 billion in the first half as it attempts to fix a $10 billion funding gap and regain its reputation after negative corporate-governance allegations. In the second quarter, Chesapeake’s net profit almost doubled to $929 million, assisted by the Chesapeake Midstream Partners divestiture. Revenue rose 2.1 percent to $3.39 billion, beating estimates while its $0.06 adjusted earnings missed forecasts.
DreamWorks Animation (NASDAQ:DWA) and its Chinese JV partners will build a YUAN 20 billion ($3.14 billion) theme park in Shanghai, which has a 2016 open date, and a $350 million movie studio. DreamWorks is looking to build on the success found from its Kung Fu Panda series and the growing Chinese film market. For China, it has hopes the deal will promote additional consumer activity.
Eastman Kodak’s (EKDKQ.PK) patent portfolio opening bids were between $150-250 million, lower than the bankrupt company’s $2.6 billion possible value, reported the Wall Street Journal. The bids came from two groups: one included Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT), and the second one comprised Google (NASDAQ:GOOG) and Samsung. The auction is set for Wednesday and is vital in helping Kodak exit bankruptcy.
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Leap Wireless International, Inc. (NASDAQ:LEAP) has been downgraded by Baird due to disappointing Q2 results, free cash flow losses, and a leveraged balance sheet, among other reasons. The price target was reduced to $3 from $6. Shares of Leap Wireless International, Inc. are trading 20.83% lower today.
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CVS Caremark Corporation (NYSE:CVS) estimates an additional benefit of about 5c per share during Q3 and Q4. The company states that it expects to retain a minimum of 50 percent of prescription volume gained from the impasse during Q4. These comments are from slides that will be presented on the Q2 earnings conference call. Shares of CVS Caremark Corporation are trading 1.47% lower today.
NII Holdings, Inc. (NASDAQ:NIHD): According to Wells Fargo, it would describe the tone of NII Holdings’ earnings conference call as one of a company in a serious transition. Wells claims that the biggest news on the call was that NII suggests it would consider selling its 7K towers, which Wells sees as positive. The firm maintains a Market Perform rating on the stock. Shares of NII Holdings, Inc. are trading 25.37% lower today.
Fossil, Inc. (NASDAQ:FOSL) sees its Q3 sales up 16 percent, or 18 percent on constant dollar basis. Consensus is $741.53 million. Shares of Fossil, Inc. are trading 31.9% higher today.
HCA Holdings Inc (NYSE:HCA): Hospital chain HCA (NYSE:HCA) discovered that, between 2002-2010, a number of its hospitals in Florida were performing heart procedures that their doctors were not able to justify, The New York Times reported yesterday. The newspaper described the cases of a number of HCA patients on whom complicated heart procedures were allegedly unnecessarily performed. Yesterday morning, prior to the article being published, HCA announced that the U.S. Attorney’s Office in Miami had requested information concerning the medical necessity of cardiac procedures performed at the company’s hospitals. Yesterday, the company also warned that The Times was intending to publish a possibly unflattering story. Shares of HCA Holdings Inc are trading 4.54% higher today.
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Top Buzzing Stocks: Sirius XM Radio and MGM Climb Higher, Fossil SURGES 30%
Shares of Sirius XM Radio (NASDAQ:SIRI) jumped 4 percent this morning. The company reported net income of $3.13 billion (48 cents per share) for the second quarter, compared to $173.3 million (3 cents per share) a year earlier. Revenue also increased 12.5 percent to $837.5 million. “Sirius XM continued its exceptional performance in the second quarter, adding over 600,000 subscribers, which represents a post-merger record, despite the mixed macroeconomic trends. We also attained a record-level free cash flow of $230 million – the highest single quarterly free cash flow figure in Sirius XM’s history,” explained Mel Karmazin, chief executive officer. Pandora (NYSE:P) shares also increased more than 4.3 percent.
MGM Resorts International (NYSE:MGM) popped more than 6 percent this morning, despite reporting a loss for the second quarter. The casino holding company announced a loss of $145.5 million, compared to a net gain of $3.44 billion a year earlier. However, revenue surged 28.7 percent to $2.32 billion and MGM expects to refinance debt at lower rates.
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Fossil (NASDAQ:FOSL) shares surged 31.85 percent this morning after announcing better-than-expected financial results for the second quarter. Net income increased 11.6 percent to $57.3 million (92 cents per share), compared to $51.4 million (80 cents per share) a year earlier. Fossil reported adjusted net income of 93 cents per share. By that measure, the company beat the mean estimate of 79 cents per share. “Our better-than-expected Second Quarter performance resulted in double-digit increases in sales and earnings, representing another record performance for the Company and highlighted several noteworthy accomplishments toward our near and long term goals,” stated Mike Kovar, executive vice president and chief financial officer.
Chesapeake Energy (NYSE:CHK) shares gained 10.29 percent this morning. The natural gas giant announced that net income in the second quarter surged 90.6 percent to $972 million ($1.29 per share), compared to $510 million (68 cents per share) a year earlier. Aubrey K. McClendon, Chesapeake’s Chief Executive Officer, said, “We are taking aggressive and focused actions to increase cash flow and net asset value per share while also reducing long-term debt as we continue our ongoing transformation to a more balanced asset base between higher-margin liquids and lower-margin natural gas. We are prudently deploying our capital as we focus on developing and harvesting the 10 core plays in which Chesapeake has built a number one or two position.”
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GMAC PARTNERS with Hope LoanPort and 2 Hot Stocks Making the Rounds
Bank of America Corporation (NYSE:BAC): MetLife is one of the companies that are being scrutinized for abusive foreclosure practices stemming from the collapse of the housing bubble. While reviews continued for smaller backers, five larger home lenders, including Bank of America Corp., reached a $25 billion deal this year to end a probe. Shares of Bank of America Corporation are trading at 2.49% higher today.
Toyota Motor Corporation (NYSE:TM): Ford Motor (NYSE:F) once again raised the hybrid fuel economy bar with the all-new Ford C-MAX Hybrid, which is now officially EPA certified at 47 mpg city, 47 mpg highway and 47 mpg combined. This beats the Toyota Motor Corporation’s (NYSE:TM) Prius V by up to 7 mpg. The certification is significant because it makes C-MAX Hybrid the first hybrid vehicle to offer 47 mpg across the board. C-MAX Hybrid launches this fall as part of Ford’s power of choice strategy which is to deliver leading fuel economy while tripling their electric vehicle production by 2013. Shares of Toyota are trading 1.35% higher today.
GMAC LLC (NYSE:GOM): Hope LoanPort (HLP) announced today that they have partnered with GMAC LLC Mortgage, to launch Homeowner ConnectTM (homeownerconnect.org). HLP is the national, non-profit, web-based mortgage solution tool, for streamlining loss mitigation applications. As a consumer direct web portal, Homeowner Connect will standardize the entire communication life-cycle of loss mitigation activities between mortgage servicers and borrowers. Homeowners who may be struggling with their mortgage will have the ability to connect with valuable free resources all in one place and from any computer with internet access. Shares of GMAC LLC are trading flat today.
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Sirius Reports 463K NEW Subscribers in Q2 and 2 Hot Stocks Trading Today
FocusShares Trust (NYSEARCA:FOS): After consulting with the Advisor, FocusShares LLC announced today that their Board of Trustees, in consultation with the Advisor, have decided to discontinue and liquidate the FocusShares family of exchange traded funds as of August 30, 2012. Shares of FocusShares Trust are trading at 0.83% higher today.
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Best Buy Co., Inc. (NYSE:BBY): Jefferies believes Best Buy Co. Inc’s board will likely show no interest in Dick Shulze’s potential acquisition range of $24-$26 per share. The firm thinks that an ultimate takeout bid would have to be in the high $20s to low $30s per share. A Hold rating is kept on shares of Best Buy. The company’s stocks are trading at 1.05% lower today.
Sirius XM Radio Inc (NASDAQ:SIRI): At the end of the second quarter, Sirius XM Radio Inc. has reported 18.7 million self-pay subscribers, which is a net of an additional 463,000. Shares of Sirius XM are trading at 5.91% higher today.
Market Recap: Oil SPIKES, Gold DIPS, Sirius EARNINGS
Markets closed up on Wall Street today: Dow +0.39%, S&P +0.51%, Nasdaq +0.87%, Oil +1.31%, Gold -0.51%.
On the commodities front, Oil (NYSE:USO) rose to $93.44 a barrel. Precious metals were mixed, with Gold (NYSE:GLD) falling to $1614.00 an ounce while Silver (NYSE:SLV) increased 0.22% to settle at $28.08.
Here’s your Cheat Sheet to today’s top stock stories:
Sirius XM Radio Inc. (NASDAQ:SIRI) reported net income above Wall Street’s expectations for the second quarter. The stock rallied over 2 percent on the news. Net income rose to $3.13 billion (48 cents per share) vs. $173.3 million (3 cents per share) in the same quarter a year earlier. This marked a substantial increase from the year-earlier quarter. Revenue also increased 12.5 percent to $837.5 million from the previous year’s quarter.
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Fossil Inc.’s (NASDAQ:FOSL) shares jumped 32 percent after the company reported a second-quarter earnings increase of 12 percent. It incurred broad-based sales growth in its wholesale segment while a stronger U.S. dollar slightly pared down global sales.
MGM Resorts’ (NYSE:MGM) shares increased 9 percent after the company noted in its second quarter earnings report on Tuesday that it will refinance some of its long-term debt at “progressively lower rates.” It did report a loss for the quarter but saw a jump in revenue to $2.3 billion from $1.8 billion.
On the down side, Leap Wireless International’s (NASDAQ:LEAP) shares fell 21 percent. The company’s second-quarter loss tightened thanks to bringing in additional revenue per user. Results did come in lower than Wall Street expectations; the quarter also saw customers exiting.
Heckmann Corp.’s (NYSE:HEK) shares also tanked 21 percent. On Monday after the bell, the company reported a higher second-quarter profit and revenue but saw a slowdown in the Haynesville Shale region for natural-gas drilling.
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Radar Movers: Priceline and Zillow Investors Flee the Scene
Priceline.com (NASDAQ:PCLN) shares crashed more than 15 percent in late afternoon hours. The company reported impressive quarterly earnings, but provided a weaker-than-expected outlook. Net income in the second quarter increased 37.6 percent to $352.7 million ($6.88 per share), compared to $256.4 million ($5.02 per share) a year earlier. For the third quarter, the company expects to earn $11.10 to $12.10 per share, below the average estimate of $12.82. Expedia (NASDAQ:EXPE) shares also declined 4 percent on the news.
Shares of Walt Disney (NYSE:DIS) fell 2 percent in late afternoon trading. The entertainment company announced that third quarter net income rose 24.1 percent to $1.83 billion ($1.01 per share), compared to $1.48 billion (77 cents per share) a year earlier. However, revenue of $11.09 billion missed estimates of $11.31 billion.
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Express Scripts (NASDAQ:ESRX) shares surged 7 percent in late afternoon hours. The company said second quarter earnings fell to $170.9 million, but revenue more than doubled to $27.69 billion, easily beating expectations of $11.47 billion. “Our strong second quarter results, the first as a combined organization, demonstrate the continued execution of our business model of alignment,” stated George Paz, chairman and chief executive officer. “We are fully underway with the integration process and will continue to focus on lowering healthcare costs while improving health outcomes. As a result of our steadfast commitment to providing exemplary service and innovative offerings to clients and patients, we are experiencing strong retention rates.”
Zillow (NASDAQ:Z) shares dropped 9 percent after announcing disappointing second quarter financial results. Net income fell 15.5 percent to $1.3 million (4 cents per share), compared to $1.6 million in the same period last year. Zillow remained upbeat about the quarter. “Zillow had an excellent second quarter as record usage and effective monetization on mobile and Web propelled revenue and adjusted EBITDA ahead of our outlook,” said Spencer Rascoff, chief executive officer of Zillow. “We continue to extend our leadership and expand our three core marketplaces in real estate, mortgages and rentals with products and services that delight consumers and help local professionals better manage and market their businesses.”
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