Market Levels
* US: Dow: 13328.80 (0.02%), S&P 500: 1428.59 (-0.30%), NASDAQ: 3044.11 (-0.17%)
* Europe: CAC: 3389.08 (-0.73%), DAX: 7232.49 (-0.68%), FTSE: 5793.32 (-0.63%).
* Asia-Pacific: Australia: 4486.60 (0.07%), China: 2104.93 (0.10%), Hong Kong: 21136.43 (0.65%), India: 5676.05 (-0.56%), Japan: 8534.12 (-0.15%).
* Metals: Gold: 1759.70 (-0.62%), Silver: 33.67 (-1.21%), Copper: 3.70 (-1.29%)
* Energy: Crude Oil: 91.86 (-0.23%), Natural Gas: 3.61 (0.19%)
* Commodities: Corn: 7.50 (-2.91%), Soya Bean: 15.22 (-1.68%), Wheat: 8.56 (-3.30%)
* Currency: Euro (€) / US Dollar ($) (EURUSD): 1.2955 (-0.20%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.6074 (-0.16%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 78.3850 (-0.01%)
* 10 year US Treasury: 1.659% (-0.012)
Market and Economy News Update
U.S. markets end largely unchanged: U.S. markets closed flat on Friday, but all three major indexes posted their biggest weekly drop since the first week of June, amid ongoing worries over a slowdown in global growth. The Dow Jones Industrial Average (INDEXDJX:.DJI) eked out a tiny gain of 2.46 points, or 0.02 percent. The S&P 500 (INDEXSP:.INX) slipped 4.25 points, or 0.30 percent, to end at 1,428.59, while the NASDAQComposite (INDEXNASDAQ:.IXIC) dipped 5.30 points, or 0.17 percent, to finish at 3,044.11. For the week, the Dow dropped 2.7 percent, the S&P slumped 2.21 percent, and the Nasdaq lost 2.94 percent.
Oil prices fall: Oil prices declined on Friday after the International Energy Agency lowered its demand growth outlook amid further decline in oil consumption and higher supplies. Crude oil for November delivery fell 0.2 percent, to settle at $91.86 a barrel on
the New York Mercantile Exchange. Brent oil for November settlement slid 1 percent to $114.60 a barrel on the London-based ICE Futures Europe exchange.
Stocks in Focus
* Apple Inc. (NASDAQ:AAPL) is likely to unveil its highly anticipated iPad mini at an invitation-only event to be held on October 23, according to AllThingsD.
* Celgene Corporation (NASDAQ:CELG) moved 0.9 percent higher after the U.S. Food and Drug Administration approved its breast cancer drug Abraxane to include treatment for non-small cell lung cancer.
* Property and casualty insurer The Progressive Corporation (NYSE:PGR) ended 0.6 percent higher after declaring a special dividend of $1 a share.
* Micron Technology, Inc. (NASDAQ:MU) chief executive Mark Durcan said that he expects to complete the acquisition of Japanese memory chipmaker Elpida Memory Inc (TYO:6665) by the first half of next year.
* Online travel company Travelzoo Inc. (NASDAQ:TZOO) tumbled 15 percent after warning that its third-quarter profit would shrink from a year ago. The company expects third-quarter profit of 20 cents to 22 cents per share on revenue of $35 million to $35.5 million. Analysts were expecting a profit of 27 cents on revenue of $38.9 million.
* Coal producer Peabody Energy Corporation (NYSE:BTU) fell 1.8 percent after analysts at Nomura cut the company’s earnings estimates for 2013 and 2014 and lowered the share price target to $22 from $25.
* Electrical products manufacturer Cooper Industries plc (NYSE:CBE) slashed its dividend by 32 percent to 21 cents a share from 31 cents a share, ahead of Eaton Corporation (NYSE:ETN)’s planned $11.8 billion acquisition of the company.
* Genworth Financial Inc (NYSE:GNW) is looking to sell its California-based wealth asset management business, in an effort to raise capital, according to a Reuters report.
* Webster Financial Corporation (NYSE:WBS) reported third quarter earnings of $44.4 million, or 48 cents per share, up from $41.4 million, or 45 cents per share, a year ago. Analysts were expecting earnings of 46 cents per share.
* NPS Pharmaceuticals, Inc. (NASDAQ:NPSP) rose 19 percent after the U.S. Food and Drug Administration said its experimental drug for short bowel syndrome didn’t need to be restricted for safety reasons.
* Home-improvement retailer Lowe’s Companies, Inc. (NYSE:LOW) gained 1.3 percent after UBS AG raised its target price to $36 from $32.
* Forest Oil Corporation (NYSE:FST) has agreed to sell all its properties in south Louisiana to an undisclosed buyer for about $220 million, as the energy producer looks to shed some non-core assets to help repay its debt.
* Real-estate investment trust DiamondRock Hospitality Company (NYSE:DRH) reported third quarter net loss of $44.8 million, or 24 cents per
share, wider than a loss of $1 million, or 1 cent per share, in the year ago quarter. Revenue, however, increased 17 percent to $183.9 million from $156.8 million, a year earlier.
* Aerospace and defense component maker Curtiss-Wright Corp. (NYSE:CW) has named David C. Adams as its new president and chief operating officer.
* Pfizer Inc. (NYSE:PFE) appealed a district judge’s order that Chief Executive Officer Ian Read testify in person at a federal trial over alleged dangerous side effects of smoking cessation drug Chantix.
* Metals distributor A M Castle and Co (NYSE:CAS) has named United Airlines veteran, Scott Dolan as its new president and chief executive, effective Monday.
* Mobile games publisher Glu Mobile Inc. (NASDAQ:GLUU) soared 17 percent following news that a venture capital firm, GGV Capital, run by one of the company’s directors made a substantial purchase of its shares.
* Oil and gas company Mcmoran Exploration Co (NYSE:MMR) climbed 4.7 percent after declaring cash dividends on its preferred stocks.
Hedge Fund News Update
* U.K. hedge fund, The Children’s Investment Fund Management LLP, has filed a lawsuit against the directors of the Indian mining company, Coal India Limited (NSE:COALINDIA) for failing to protect the interest of its shareholders. TCI held a 1.01 percent stake in Coal India as of September 30.
* Hong Kong-based GLG Partners has launched a new long/short Asian stock fund with $150 million in seed capital from its parent, Man Group Plc (LON:EMG).
* New York-based hedge fund Golden Tree has converted debt into equity of Austrian lender BAWAG PSK, according to a Reuters report.
* Senrigan Capital, backed by The Blackstone Group L.P. (NYSE:BX), has removed five underperforming holdings and placed them into a separate vehicle.
Brokerage Upgrades and Downgrades on Friday, October 12, 2012
* Aon PLC (NYSE:AON) was upgraded to “buy” from “neutral” by analysts at Goldman Sachs with a target price of $62.
* BorgWarner Inc. (NYSE:BWA) was raised to “buy” from “neutral” by analysts at Citigroup with a target price of $79.
* Coca-Cola HBC S.A. (ADR) (NYSE:CCH) was lifted to “overweight” from “neutral” by analysts at JPMorgan Chase.
* Continental Resources, Inc. (NYSE:CLR) was upgraded to “outperform” from “market perform” by analysts at Howard Weil with a target price of $99.
* Credit Acceptance Corp. (NASDAQ:CACC) was raised to “buy” from “neutral” by analysts at Sidoti with a target price of $106.
* 3D Systems Corporation (NYSE:DDD) was lifted to “neutral” from “underweight” by analysts at Piper Jaffray with a target price of $35.
* Dean Foods Company (NYSE:DF) was upgraded to “buy” from “hold” by analysts at Stifel Nicolaus with a target price of $18.
* OGE Energy Corp. (NYSE:OGE) was raised to “buy” from “hold” by analysts at Jefferies Group with a target price of $63.50.
* Stryker Corporation (NYSE:SYK) was lifted to “buy” from “neutral” by analysts at Bank of America with a target price of $39.
* Avnet, Inc. (NYSE:AVT) was cut to “market perform” from “outperform” by analysts at Raymond James.
* CONSOL Energy Inc. (NYSE:CNX) was lowered to “sell” from “outperform” by analysts at Credit Agricole.
* Dollar Tree, Inc. (NASDAQ:DLTR) was downgraded to “hold” from “buy” by analysts at Jefferies Group with a target price of $41.
* FleetCor Technologies, Inc. (NYSE:FLT) was cut to “market perform” from “outperform” by analysts at Wells Fargo & Co.
* Jive Software Inc (NASDAQ:JIVE) was downgraded to “market perform” from “outperform” by analysts at BMO Capital Markets.
* Eli Lilly & Co. (NYSE:LLY) was lowered to “underperform” from “neutral” by analysts at Cowen.
* Liquidity Services, Inc. (NASDAQ:LQDT) was cut by analysts at Bank of America from a “buy” rating to a “neutral” rating.
* Pengrowth Energy Corp (USA) (NYSE:PGH) was downgraded to “underperform” from “neutral” by analysts at Credit Suisse.
* RealD (NYSE:RLD) was lowered to “neutral” from “overweight” by analysts at JPMorgan Chase with a target price of $10.
* Titanium Metals Corp (NYSE:TIE) was cut by analysts at Citigroup from a “buy” rating to a “neutral” rating with a target price of $13.
* The Wendy’s Company (NASDAQ:WEN) was downgraded to “neutral” from “outperform” by analysts at Cowen.
* Walter Energy, Inc. (NYSE:WLT) was lowered to “sell” from “outperform” by analysts at Credit Agricole with a target price of $30.
* XenoPort, Inc. (NASDAQ:XNPT) was cut by analysts at Piper Jaffray from an “overweight” rating to a “neutral” rating with a target price of $12.
