Ultimate Market Recap: Samsung Suffers Huge Loss, Apple Shines

 

Wall St. Brief: Samsung Hurting After HUGE Loss, GM DENIES Job Cuts

Samsung Electronics Co. (SSNLF.PK) shares fell on Monday morning after analysts said the company’s large loss from its court battle against Apple (NASDAQ:AAPL) raised uncertainty for the company’s products. HI Investment & Securities analyst Song Myung-sup said to the Wall Street Journal, “The context of the loss in this case is a lot worse than had been expected,” including the amount of damages Samsung is now facing.”

Earlier, the company’s top executives from its telecom division gathered for an emergency meeting on Sunday.

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Caltex Australia Ltd. reported a 74 percent rise in its first-half net profit thanks to a strong Australian demand for transport fuels and improved performance seen in its two oil refineries. Chevron Corp. (NYSE:CVX) owns a 50 percent share in the company. Caltex said its net profit in the first half increased to A$197 million ($205.2 million), up from  from A$113 million from the previous year from a replacement-cost-of-sales basis, reported MarketWatch.

 Tiffany (NYSE:TIF) will report its fiscal-fourth-quarter report prior to the opening bell on Monday. The company is estimated to earn 74 cents a share on $891.1 million revenues. Same-store sales have been forecast to fall 0.4 percent.

Unicredit, Italy’s biggest bank, has been added to the list of financial institutions under U.S. investigation for breaking sanctions on specific countries. One includes Iran, reported the Financial Times.

GM’s (NYSE:GM) European unit, Opel, denied a Bild newspaper story on Saturday that it would cut a third of the company’s jobs in Germany. The cuts would supposedly come from a strategy that also includes slashing working hours. Opel announced this last week.

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Bank of America Corporation (NYSE:BAC): Banks that are being investigated for interest-rate manipulation face possibly tens of billions of dollars in claims from numerous lawsuits in the U.S. from cities, insurers, investors, and lenders who state that they were harmed by the allegedly fudged rates, according to the Wall Street Journal. Shares of Bank of America Corporation are trading 0.37% lower today.

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Sprint Nextel Corp. (NYSE:S): Tropical Storm Isaac moves towards the Florida’s coast and is predicted to become a Category 1 hurricane. Anticipating Isaac, communications companies prepare their networks for disruption. Sprint Nextel is preparing for impact, having set a network disaster recovery team and emergency response team in place, along with the fortification of its Florida network.

Toyota Motor Corporation (NYSE:TM): Toyota Motor Manufacturing, Indiana intends to have nearly 240 new production team members by November’s end to support next year’s raised Highlander sport utility vehicle production.

Hertz Global Holdings (NYSE:HTZ) stated on late Sunday that it had signed a deal for the purchase rival Dollar Thrifty Automotive Group Inc. (US:DTG) for about $2.3 billion in cash or $87.50 a share. The deal reflects a premium over Dollar Thrifty’s $81 closing price on Friday.

Facebook, Inc. (NASDAQ:FB): The SEC has begun to review whether or not to ease limits on what companies can say ahead of IPOs, following lawmakers complaints that small investors were kept during the dark during the year’s botched stock sale by Facebook, according to the Wall Street Journal.

Investing Insights: Wall St. Brief: Samsung Hurting After HUGE Loss to Apple, GM DENIES Job Cuts.

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Alcoa Inc. (NYSE:AA): Only five months following a category F4 tornado’s direct hit to the Henryville Schools in Indiana, students have returned to a newly rebuilt facility. Entrances and windows from Kawneer Company, Inc. and Traco, both top Alcoa Building and Construction Systems’ brands, were used to assist in the rebuilding of schools. Shares of Alcoa Inc. are trading 0.58% lower today.

Investing Insights: Wall St. Brief: Samsung Hurting After HUGE Loss to Apple, GM DENIES Job Cuts.

Big Lots, Inc. (NYSE:BIG) reported Q2 revenues totalling $1.22 billion, up 4.4 percent on the year. Analysts were expecting the company to report revenues with an average of $1.24 billion. Sales increased because of new store openings, totaling 18 during the quarter. Shares of Big Lots, Inc. are trading 1.45% higher today.

Seadrill Ltd (NYSE:SDRL): To reflect its strong operational performance, record high orderbacklog, and the strong market outlook, Seadrill increased its quarterly cash dividend to 84c. Shares of Seadrill Ltd are trading 0.56% higher today.

Donaldson Company, Inc. (NYSE:DCI) sees its FY13 revenue at $2.62 billion to $2.72 billion, consensus $2.71 billion. Shares of Donaldson Company, Inc. are trading 6.02% higher today.

Research in Motion (NYSE:RIMM) shares increased over 4 percent early on Monday following iPhone maker Apple Inc’s winning of a crucial victory in a patent dispute against Samsung which may disrupt the balance of power within the ultra-competitive smartphone sector.

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The Week Ahead: Home Prices, Jobless Claims, Ben Bernanke, and Pandora Earnings

For the upcoming week, investors will look over some economic data and earnings but they’ll really be waiting for news from the Fed’s Jackson Hole retreat. They will have to wait until Friday when Federal Reserve Chief Ben Bernanke delivers a morning speech.

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Also giving remarks at week’s end is European Central Bank president Mario Draghi. He’ll give a speech on Saturday. In his remarks from earlier this month, they gave markets a little jump after declaring the ECB would do what it could to save the euro but investors want something more concrete this time.

Overall, the week could be a quiet one with light volume as the week edges closer to the Labor Day holiday weekend.

Let’s take a look at the week.

Economic Data

Monday: Dallas Fed August manufacturing survey

Tuesday: S&P/Case-Shiller June home prices index, Consumer Confidence and Richmond Fed August manufacturing survey

Wednesday: Second-quarter real GDP and July pending home sales

Thursday: Weekly jobless claims, July personal income, July consumer spending and Kansas City Fed August manufacturing survey

Friday: August Chicago PMI, Reuters/UMich August consumer sentiment (final) and July factory orders

Fed Speak

Friday: Ben Bernanke speech, “Monetary Policy Since the Crisis” at 10 a.m. EDT.

Earnings

Monday: Tiffany (NYSE:TIF), Donaldson (NYSE:DCI), Seadrill (NYSE:SDRL)

Tuesday: Movado (NYSE:MOV), Sanderson Farms (NASDAQ:SAFM), Brown Shoe (NYSE:BWS), Ship Finance (NYSE:SFL)

Wednesday: Zale (NYSE:ZLC), H.J. Heinz (NYSE:HNZ), J.Crew, Tivo (NASDAQ:TIVO), Pandora Media (NYSE:P), Genesco (NYSE:GCO), Flow International (NASDAQ:FLOW),Coldwater Creek (NASDAQ:CWTR)

Thursday: Ciena (NASDAQ:CIEN), Zumiez (NASDAQ:ZUMZ), Splunk (NASDAQ:SPLK), Esterline Tech (NYSE:ESL)

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Afternoon BUZZERS: Apple Hits NEW HIGH, Tiffany and Best Buy POP

Shares of Apple (NASDAQ:AAPL) jumped 2.08 percent this afternoon. The tech giant won more than $1 billion from Samsung after a jury concluded Samsung infringed on Apple’s patents. The judge could double or even triple the award amount. Microsoft (NASDAQ:MSFT) and Nokia (NYSE:NOK) also rallied on the verdict.

Tiffany & Co (NYSE:TIF) shares popped 7.46 percent this afternoon. The world’s second largest luxury jewelry retailer reported that sales at stores open at least a year dropped 1 percent, better than expected. Tiffany’s comparable-store sales decline was “not as bad as feared,” Brian Nagel, an analyst at Oppenheimer & Co. in New York, explained in a note, according to Bloomberg.

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Best Buy (NYSE:BBY) shares jumped 5.05 percent after the big box retailer and founder Richard Schulze announced the two have reached an agreement to allow Schulze to perform due diligence on the company. Business Wire reports, “Best Buy stated that the agreement establishes a non-exclusive, orderly process which satisfies the requests made by Mr. Schulze, while at the same time protecting the interests of all shareholders. Mr. Schulze stated that he was pleased that an agreement was reached which will allow him to conduct the due diligence he had sought.”

Shares of IBM (NYSE:IBM) fell 0.68 percent Monday. The software giant announced it agreed to purchase Kenexa Corp., a company that makes human resource management software, for around $1.3 billion.

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Radar Movers: Apple Remains Hot, Molycorp Jumps 5.5%

Shares of Molycorp (NYSE:MCP) popped 5.5 percent in late afternoon trading. The company announced it is starting up operations at its Project Phoenix facilities in Mountain Pass, California. Molycorp’s on-site Combined Heat and Power plant will also begin supplying cheap and high efficient electrical power to its Mountain Pass facilities.

Apple (NASDAQ:AAPL) shares continued to attract attention in late afternoon hours after posting a near 2 percent gain on Monday. A long-running patent case between Apple and Samsung finally had its first moment of clarity over the weekend. Nine jurors delivered a huge win for Apple, awarding the company $1.05 billion in damages due to Samsung copying critical and patented features of the iPhone and iPad. Furthermore, the jury found that Apple did not violate any of Samsung’s patents. Apple sought $2.5 billion to $2.75 billion in damages, but the judge could still decide to triple the amount decided by the jurors. Nokia (NYSE:NOK) shares also rallied on the news, as it looks to gain ground on Samsung.

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Tiffany & Co (NYSE:TIF) shares continued to edge higher late Monday after gaining 7.2 percent during regular trading hours. The world’s second largest luxury jewelry retailer reported that sales at stores open at least a year dropped 1 percent, better than expected. Tiffany’s comparable-store sales decline was “not as bad as feared,” Brian Nagel, an analyst at Oppenheimer & Co. in New York, explained in a note, according to Bloomberg.

Shares of Best Buy (NYSE:BBY) showed signs of life on Monday. The big box retailer and founder Richard Schulze announced the two have reached an agreement to allow Schulze to perform due diligence on the company. Business Wire reports, “Best Buy stated that the agreement establishes a non-exclusive, orderly process which satisfies the requests made by Mr. Schulze, while at the same time protecting the interests of all shareholders. Mr. Schulze stated that he was pleased that an agreement was reached which will allow him to conduct the due diligence he had sought.” Shares closed more than 3 percent higher during regular trading, and continued to tick higher in late afternoon hours.

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