Mid-Day Movers: Citigroup Jumps 3%, Microsoft Moves Into Music
Shares of Sprint Nextel (NYSE:S) edged 0.40 percent higher on Monday. Japan’s Softbank announced it will purchase a 70 percent stake in the mobile carrier for around $20 billion. It is the biggest overseas acquisition by a Japanese firm in history. In a statement, Softbank explained it would buy a majority stake in Sprint by buying $8 billion of shares directly and then buy another $12.1 billion of shares in the market. AT&T (NYSE:T) shares edged slightly lower on the news.
Citigroup (NYSE:C) shares are up over 3 percent after reporting financial results for the second quarter. The bank posted net income of $468 million (15 cents per share), compared to $3.34 billion ($1.09 per share) a year earlier. However, Citigroup reported adjusted earnings of $3.27 billion ($1.06 per share), beating the mean estimate of 97 cents per share). Vikram Pandit, Citi’s Chief Executive Officer, explains, “Our core businesses showed momentum during the quarter as we increased lending and generated higher operating revenues. These earnings highlight the strength of Citicorp and its diversification by product and region. For the third straight quarter, we had positive operating leverage in each of our three core businesses.”
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Microsoft (NASDAQ:MSFT) shares edged slightly higher this morning. The company is launching XBox Music, its biggest move into the music industry to date. The new service is aimed to lure people in with free streaming music across several Microsoft devices, with options to upgrade. Microsoft is also planning a Music store, which will sell single downloads or albums, much like Apple’s (NASDAQ:AAPL) iTunes or Amazon.com (NASDAQ:AMZN).
Shares of Texas Instruments (NYSE:TXN) increased more than 2 percent. Amazon is reportedly in advanced talks to buy Texas Instruments’ smartphone chip business for its Kindle tablet computer. “With the trend towards more vertical integration, led by Apple, speculation that Amazon is interested in TI’s chipset arm is unsurprising,” said Ben Wood, head of research at British wireless consultancy CCS Insight, according to Reuters.
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