Weekly Market Recap: Windows 8 Sticker Shock, GM Backs Out of Isuzu Bid
ViroPharma Inc. (NASDAQ:VPHM): The milder 2012 flu season has led to first quarter net sales of Vancocin falling 4 percent to $66.2 million, when contrasted year-to-year with $69.3 million in 2011.
Bank of America Corporation (NYSE:BAC) said the only investment that yielded positive results last month was bonds, according to a Bloomberg report. This is the first time such a situation has occurred since 2008. More specifically, Bank of America Merrill Lynch index data indicates that fixed-income assets gained 0.7 percent, including reinvested interest, The MSCI All-Country World Index of stocks decreased by 1.1 percent, including dividends, and the Standard & Poor’s GSCI Total Return Index of metals, fuels and agricultural products fell by 0.5 percent. Meanwhile, the U.S. Dollar Index decreased 0.3 percent.
SIRIUS XM Radio Inc. (NASDAQ:SIRI) is bringing its app for Google’s (NASDAQ:GOOG) Android operating system, up to speed, says The Verge. Following the update, up to five hours of satellite radio station programming could be replayed, as well as accessing SiriusXM’s program guide.
Chesapeake Energy Corporation (NYSE:CHK) says that its Board of Directors has renegotiated the terms of its Founder Well Participation Program with Chairman and CEO Aubrey K. McClendon. The Program will be terminated on June 30, 2014, which represents an 18-month pull back of its current term ending date of December 31, 2015. Further, this early termination will yield no compensation of any sort to Mr. McClendon, as he agrees to forego such benefits. The FWPP had been approved by shareholders in 2005, for a term of ten years, and Mr. McClendon had been provided at that time with a contractual right to participate and invest as a working interest owner in new wells drilled on the company’s leasehold. He will give up his position as Non-Executive Chairman, following the appointment of a new holder, but will continue as CEO.
Google (NASDAQ:GOOG) Android garnered 51 percent market share of smartphone platforms, as Apple’s share rose by increased 1.1 percent to 30.7 percent. RIM (NASDAQ:RIMM) came it third with a 12.3 percent share, followed by Microsoft(NASDAQ:MSFT) at 3.9 percent and Symbian at 1.4 percent.
Microsoft Corporation (NASDAQ:MSFT): Notebook and PC vendors fear the cost of touch screens and the new Windows 8 software may be high enough to deter customers from replacing their hardware. Secondly, with ultrabook prices still prohibitive for the average buyer, vendors are now having second thoughts about the demand that may actually emerge.
Sprint Nextel Corp. (NYSE:S) gets sued by a Louisiana pension following its after tax suit in New York, according to Bloomberg.
PulteGroup, Inc. (NYSE:PHM): A cancelled pilot program of Fannie Mae, which would have cost only $1.7 million but might have provided more than $410 million in benefits to homeowners, was the subject of a letter sent by two House Democrats to the acting director of the Federal Housing Finance Agency. The Los Angeles Times reports that the letter questions the testimony of Edward DeMarco, in which he stated that the program in question was more expensive than others which would do the same service. Ideological conflicts in the matter are suspected.
American Eagle Outfitters, Inc. (NYSE:AEO) earnings per share consensus is 10 cents, and its first quarter net sales rose 18 percent to $719 million vs. estimates of $653.89 million. Sales at comparable stores rose by 17 percent, including those from AEO direct.
Bank of America Corporation (NYSE:BAC): Goldman Sachs (NYSE:GS), according to an inside source, will lead the initial public offering of digital media firm Glam Media, says Business Insider. Co-leading will be Bank of America Merrill Lynch, with Allen & Company co-managing. It is further reported that Goldman competed assertively with Morgan Stanley (NYSE:MS) for the lead role.
Nokia Corporation (NYSE:NOK) files patent infringement claims in both the United States and in Germany, against products of HTC, RIM (NASDAQ:RIMM) and Viewsonic. Chief legal officer Louise Pentland commented that “Nokia is a leader in many technologies needed for great mobile products. We have already licensed our standards essential patents to more than 40 companies. Though we’d prefer to avoid litigation, Nokia had to file these actions to end the unauthorized use of our proprietary innovations and technologies, which have not been widely licensed.”. Among Nokia’s actions is a complaint to the U.S. International Trade Commission against HTC, suits against HTC and Viewsonic in the Federal District Court of Delaware, suits against HTC and RIM in the Regional Court in Dusseldorf, and against all three companies in the Regional Courts in Mannheim and in Munich. The total number of Nokia patents involved in the suits is 45.
Citigroup, Inc. (NYSE:C) names Freddie Mac (FMCC) executive Anthony Renzi as chief operating officer of its North American mortgage business, replacing Harold Lewis, according to a Wall Street Journal report.
Microsoft Corporation (NASDAQ:MSFT): Some major advertisers in Facebook (FB) are wondering if they are getting the biggest bang for their bucks, says the Wall Street Journal. The crux of FB’s $3 billion a year ad unit is persuading marketers to go with new forms of advertising that will create chatter and buzz about their brands.
GM (NYSE:GM) changes its mind on its prior bid for more than one-third of Isuzu, which would have totaled approximately $3 billion, and now is going for a smaller stake following word that the latter wishes to remain independent, says a Reuters report.
Goldman Sachs (NYSE:GS) calculates that a proposed new Fed rule that would restrict intercourse between banks, could decrease domestic economic growth by as much as 0.4 percent, and kill more than 300,000 jobs, says a Bloomberg report.
OpenTable, Inc.’s (NASDAQ:OPEN) price targets slip post-earnings, due to the firm’s weak revenue guidance, international sales, and restaurants additions. Bank of America opines that spending on improvements is insufficient, but that a near term re-intro of OpenTable in the United Kingdom could help. Benchmark retains its Buy and comments that management has mostly been conservative with its outlook.
Chesapeake Energy Corporation (NYSE:CHK) CEO Aubrey McClendon is being accused of running a $200 million hedge fund that traded in the same commodities that the company produces, according to a Reuters report that uses its own inquiry. It’s further claimed that the CEO engaged in “near daily” communications to help direct the fund’s trading, says a veteran trader who helped run the private hedge fund from at least four years from 2004 to 2008.
Silicon Image, Inc. (NASDAQ:SIMG) plummets despite unobjectionable second quarter guidance of $60 million to $62 million, vs. consensus of $60.1 million, and an in-line first quarter statement. A decline in margins against an expected revenue increase could be the problem, however Needham retains its Buy. The analyst is buoyed by SIMG’s mobile chip business post, which now comprises 52 percent of sales.
Cavium Networks, Inc. (NASDAQ:CAVM) shares are down around 6.7 percent after its first quarter report. Earnings per share slightly beat consensus, but the network processor supplier has put out several warnings lately. Second quarter guidance for revenue of between $54 million and $56 million misses estimates of $56.6 million; and earnings per share of 1 cent to 3 cents misses by 3 cents. However, Needham remains confident with a Buy, citing new products and a rebounding second half demand.
General Motors Corporation (NYSE:GM) posted more first quarter results, the following being related to financial figures. Loan originations were $1.4 billion, compared quarter-to-quarter to $1.2 billion, and year-to-year to $1.1 billion. The outstanding balance of finance receivables totaled $10 billion at the end of the first quarter, with annualized net charge-offs at 2.5 percent of average finance receivables for the same quarter, compared to 4.0 percent year-to-year. Finance receivables 31-to-60 days delinquent were 3.2 percent of the portfolio at the quarter’s end, compared to year-to-year at 3.8 percent. Accounts more than 60 days delinquent comprised 1.2 percent of the portfolio at the end of the first quarter, compared to 1.5 percent at the same point in 2011.
Sara Lee Corp. (NYSE:SLE) released some statistics and comments that will be made during its third quarter conference call. It’s believed that stabilization of commodity costs in its Meat division, and falling costs in its Coffee and Tea unit will come to fruition in the fourth quarter. Fiscal year significant items are currently projected at around $550 million, which is a reversal of the $700 million of deferred tax liabilities expected at that time. Also the fiscal year tax rate is expected to be approximately 33 percent, and net expenses at near $65 million.
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