Post Market News
Stocks that were in focus in U.S. trading on Wednesday include: The Boeing Company (NYSE:BA), Synergy Pharmaceuticals Inc (NASDAQ:SGYP), Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B), SunPower Corporation (NASDAQ:SPWR), Abbott Laboratories (NYSE:ABT), AbbVie Inc. (NYSE:ABBV*), Algonquin Power & Utilities Corp (TSE:AQN), Cablevision Systems Corporation (NYSE:CVC), Viacom, Inc. (NASDAQ:VIAB), AirMedia Group Inc (ADR) (NASDAQ:AMCN), Magnum Hunter Resources Corp (NYSE:MHR), Emergent Biosolutions Inc (NYSE:EBS) and Longwei Petroleum Investment Hold Ltd (NYSEAMEX:LPH).
Market Levels
• US: Dow: 13412.50 (2.35%), S&P 500: 1462.42 (2.54%), NASDAQ: 3112.26 (3.07%)
• Europe: CAC: 3733.93 (2.49%), DAX: 7778.78 (2.14%), FTSE: 6027.37 (2.15%)
• Asia-Pacific: Australia: 4705.90 (1.23%), China: 2269.13 (0.00%), Hong Kong: 23311.98 (2.81%), India: 5993.25 (0.71%), Japan: 10395.18 (0.00%).
• Metals: Gold: 1688.80 (0.78%), Silver: 31.01 (2.58%), Copper: 3.74 (2.29%)
• Energy: Crude Oil: 93.12 (1.42%), Natural Gas: 3.23 (-3.52%)
• Commodities: Corn: 6.90 (-1.07%), Soya Bean: 13.92 (-1.22%), Wheat: 7.55 (-2.92%)
• Currency: Euro (€) / US Dollar ($) (EURUSD): 1.3185 (0.21%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.6255 (0.02%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 87.2550 (0.58%)
• 10 year US Treasury: 1.837% (0.080)
Market and Economy News Update
U.S. markets rally: U.S. markets soared in the first trading day of 2013 after the U.S. House of Representatives voted in favor of legislation to end the “fiscal cliff” crisis. On the economic front, manufacturing activity expanded to 50.7 in December, according to data from ISM, compared to analysts’ expectations for a reading of 50.3. Meanwhile, construction spending dropped 0.3 percent to an annual rate of $866 billion in November, the Commerce Department said today. Analysts were looking for a gain of 0.6 percent. The Dow Jones Industrial Average (INDEXDJX:.DJI) soared 308.41 points, or 2.35 percent, to close at 13,412.55, and the S&P 500 (INDEXSP:.INX) jumped 36.23 points, or 2.54 percent, to finish at 1,462.42. The NASDAQComposite (INDEXNASDAQ:.IXIC) surged 92.75 points, or 3.07 percent, to end at 3,112.26.
Oil prices jump: Oil prices gained on Wednesday as investors cheered the budget deal by U.S. lawmakers to avert tax hikes and spending cuts that threatened economic growth. Crude oil for February delivery added 1.4 percent, to settle at $93.12 a barrel on the New York Mercantile Exchange. Brent oil for February settlement rose 1.1 percent to $112.36 a barrel on the London-based ICE Futures Europe exchange.
Stocks in Focus
The Boeing Company (NYSE:BA)
The Boeing Company (NYSE:BA) has won an order for 737 jets worth $6 billion from leasing company Aviation Capital Group. ACG ordered 60 737 MAX airplanes, bringing total orders for the 737 MAX to 1,029 to date, The Boeing Company (NYSE:BA) said in a statement. The 737 Max is scheduled to enter service in 2017. The Boeing Company (NYSE:BA) shares jumped 2.3 percent to $77.07.
Synergy Pharmaceuticals Inc (NASDAQ:SGYP)
Synergy Pharmaceuticals Inc (NASDAQ:SGYP) said its experimental chronic constipation drug met its primary and key secondary goals in a clinical trial. Shares of Synergy Pharmaceuticals Inc (NASDAQ:SGYP) surged the most in a year following the announcement. Synergy Pharmaceuticals Inc (NASDAQ:SGYP)’s plecanatide helped patients with chronic idiopathic constipation have a complete emptying of bowels, compared with those on a placebo, the company said today in a statement.
Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B), SunPower Corporation (NASDAQ:SPWR)
MidAmerican Energy Holdings Co., owned by Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) has agreed to pay an undisclosed sum to buy the 579-megawatt Antelope Valley Solar Projects in Kern and Los Angeles Counties in California, from SunPower Corporation (NASDAQ:SPWR). Construction for the projects is expected to be completed by the end of 2015, and SunPower Corporation (NASDAQ:SPWR) will operate and maintain the projects under a multi-year agreement with MidAmerican. SunPower Corporation (NASDAQ:SPWR) rose 9.1 percent to $6.13 in New York. Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) rose 4.1 percent to $139.610.
Abbott Laboratories (NYSE:ABT), AbbVie Inc. (NYSE:ABBV*)
Abbott Laboratories (NYSE:ABT) announced the spin-off of its pharmaceutical business on Wednesday, establishing AbbVie Inc. (NYSE:ABBV*) as a separate company focused on biopharmaceuticals and new drug development, with a distinct management structure and business objective. Abbott Laboratories (NYSE:ABT) shares climbed 2.3 percent to $32.05, while AbbVie Inc. (NYSE:ABBV*) shares gained 2.8 percent to $35.12.
Algonquin Power & Utilities Corp (TSE:AQN)
Canadian renewable-energy producer Algonquin Power & Utilities Corp (TSE:AQN) paid $149 million to buy the 110-megawatt Shady Oaks wind farm, located about 50 miles west of Chicago, from Goldwind International. Shady Oaks is selling electricity to Exelon Corporation (NYSE:EXC)’s Commonwealth Edison under a 20-year contract. The China-based Goldwind International will be responsible for operating the plant. Shares of Algonquin Power & Utilities Corp (TSE:AQN) jumped 3.8 percent to $7.10.
Cablevision Systems Corporation (NYSE:CVC), Viacom, Inc. (NASDAQ:VIAB)
Cablevision Systems Corporation (NYSE:CVC) soared in trade after reaching a new contract with Viacom, Inc. (NASDAQ:VIAB), keeping the programmer’s 17 cable networks that include popular channels like MTV, Comedy Central and Nickelodeon on its lineup. “Cablevision and Viacom have reached a long-term agreement that ensures no disruption of Viacom programming for Cablevision customers,” Cablevision Systems Corporation (NYSE:CVC) said in a statement.
AirMedia Group Inc (ADR) (NASDAQ:AMCN)
AirMedia Group Inc (ADR) (NASDAQ:AMCN) raised its revenue forecast for the fourth quarter, as continued growth in advertising spending from non-automobile brands more than offset the loss in business from Japanese companies. AirMedia Group Inc (ADR) (NASDAQ:AMCN) now expects fourth quarter revenue of between $81.0 million and $83.0 million, up from $77.0 million to $80.0 million projected earlier. U.S.-listed shares of AirMedia Group Inc (ADR) (NASDAQ:AMCN) ended at $2.03 on Wednesday.
Magnum Hunter Resources Corp (NYSE:MHR)
Magnum Hunter Resources Corp (NYSE:MHR) has entered into a new joint operating agreement with Eclipse Resources I LP. The contract area covers an existing mineral leasehold position in the Marcellus Shale and Utica Shale formations in Ohio, and each company will own about 47 percent working interest under the new agreement. Shares of Magnum Hunter Resources Corp (NYSE:MHR) gained 16 cents, or 4 percent, to $4.15.
Emergent Biosolutions Inc (NYSE:EBS)
Emergent Biosolutions Inc (NYSE:EBS) said its potential treatment for chronic lymphocytic leukemia, TRU-016, was designated the orphan drug status by the European Commission. Emergent Biosolutions Inc (NYSE:EBS) had received orphan drug designation for TRU-016 from the United States Food and Drug Administration in December 2011. Emergent Biosolutions Inc (NYSE:EBS) closed 5.4 percent higher in Wednesday trading.
Longwei Petroleum Investment Hold Ltd (NYSEAMEX:LPH)
Longwei Petroleum Investment Hold Ltd (NYSEAMEX:LPH) raised its full-year outlook, citing to better-than-expected ramp up of its new Haujie facility. Longwei Petroleum Investment Hold Ltd (NYSEAMEX:LPH) now expects adjusted income of $80.1 million on revenue of $667.3 million, up from its earlier view of income of $77.6 million, on revenue of $646.3 million. Shares of Longwei Petroleum Investment Hold Ltd (NYSEAMEX:LPH) soared 11 percent to $2.34.
