Post Market News
Stocks that were in focus in U.S. trading on Friday include: General Motors Company (NYSE:GM), Mosaic Co (NYSE:MOS), Walgreen Company (NYSE:WAG), Eli Lilly & Co. (NYSE:LLY), AutoNation, Inc. (NYSE:AN), A. Schulman Inc (NASDAQ:SHLM), US Airways Group, Inc. (NYSE:LCC), Brunswick Corporation (NYSE:BC), Amicus Therapeutics, Inc. (NASDAQ:FOLD), Silicon Image, Inc. (NASDAQ:SIMG), Harvest Natural Resources, Inc. (NYSE:HNR), Cray Inc. (NASADQ:CRAY) and AngioDynamics, Inc. (NASDAQ:ANGO).
Market Levels
• US: Dow: 13435.20 (0.33%), S&P 500: 1466.47 (0.49%), NASDAQ: 3101.66 (0.04%)
• Europe: CAC: 3730.02 (0.24%), DAX: 7776.37 (0.26%), FTSE: 6089.85 (0.70%)
• Asia-Pacific: Australia: 4723.80 (-0.36%), China: 2276.99 (0.35%), Hong Kong: 23331.09 (-0.29%), India: 6016.15 (0.11%), Japan: 10688.11 (2.74%).
• Metals: Gold: 1648.90 (-1.53%), Silver: 29.95 (-2.52%), Copper: 3.69 (-0.63%)
• Energy: Crude Oil: 93.09 (0.18%), Natural Gas: 3.29 (2.78%)
• Commodities: Corn: 6.80 (-1.31%), Soya Bean: 13.67 (-1.39%), Wheat: 7.47 (-1.09%)
• Currency: Euro (€) / US Dollar ($) (EURUSD): 1.3078 (-0.31%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.6076 (0.03%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 88.1250 (0.80%)
• 10 year US Treasury: 1.901% (-0.010)
Market and Economy News Update
U.S. markets rise: U.S. markets closed higher on Friday, with the S&P 500 (INDEXSP:.INX) posting its highest close since December 2007 after a monthly government jobs report showed the economy is continuing to add jobs at a moderate pace. The services sector grew at its fastest pace in 10 months in December, the Institute for Supply Management said on Friday. In other economic news, factory orders were largely unchanged in November, according to the Commerce Department. The Dow Jones Industrial Average (INDEXDJX:.DJI) gained 43.85 points, or 0.33 percent, to end at 13,435.21, and the S&P 500 (INDEXSP:.INX) added 7.10 points, or 0.49 percent, to finish at 1,466.47. The NASDAQComposite (INDEXNASDAQ:.IXIC) eked out a gain of 1.09 points, or 0.04 percent, to close at 3,101.66. For the week, the Dow jumped 3.84 percent, the S&P 500 rallied 4.57 percent, and the NASDAQ surged 4.66 percent.
Oil prices gain: Oil prices finished marginally higher on Friday after the U.S. Energy Information Administration said crude supplies fell by 11 million barrels last week. Analysts on an average were expecting a 1 million-barrel decline. Crude oil for February delivery added 0.2 percent, to settle at $93.09 a barrel on the New York Mercantile Exchange. Brent oil for February settlement slipped 0.6 percent to $111.46 a barrel on the London-based ICE Futures Europe exchange.
Stocks in Focus
General Motors Company (NYSE:GM)
General Motors Company (NYSE:GM) is recalling 69,000 full-sized vans and trucks in the U.S. from the 2013 model year because of a possible steering column defect. General Motors Company (NYSE:GM) said it is not aware of any crashes or injuries related to the condition. The company said it will send notices to owners to bring their cars, and will inspect the affected vehicles and correct the defect free of charge. Shares of General Motors Company (NYSE:GM) closed flat on Friday.
Mosaic Co (NYSE:MOS)
Fertilizer producer Mosaic Co (NYSE:MOS) gained ground after reporting better-than-expected second quarter earnings. Mosaic Co (NYSE:MOS) reported a net income of $629 million, or $1.47 per share, including tax benefits, for the quarter ended November 30. Excluding items, the company earned $1.02 per share, topping analysts’ estimates of 93 cents per share. Revenue fell 17 percent to $2.5 billion, more than the $2.51 billion that analysts were expecting. Mosaic Co (NYSE:MOS) said it expects potash margins to fall further in the current quarter reflecting its recent low-priced contract with China to sell at about $400 a ton.
Walgreen Company (NYSE:WAG)
Walgreen Company (NYSE:WAG) said December same-store sales fell 6.1 percent as the company continued to cope with lighter customer traffic and new generic drugs. Analysts were expecting a decrease of 5.2 percent. Walgreen Company (NYSE:WAG)’s pharmacy revenue slid 8.9 percent, while revenue from the front end fell 2.3 percent. The drugstore chain opened seven stores in December, including one acquisition and four closures. Shares of Walgreen Company (NYSE:WAG) shed 1.6 percent to $37.18 at close on Friday.
Eli Lilly & Co. (NYSE:LLY)
Eli Lilly & Co. (NYSE:LLY) climbed 3.7 percent after providing a better-than-expected 2013 earnings outlook. Eli Lilly & Co. (NYSE:LLY) said forecast earnings, excluding one-time items, of between $3.75 and $3.90 a share, on $22.6 billion to $23.4 billion in revenue. Analysts are looking for earnings of $3.72 a share on $22.87 billion in revenue. Eli Lilly & Co. (NYSE:LLY) also reiterated its plan to complete a $1.5 billion share buyback program in 2013.
AutoNation, Inc. (NYSE:AN)
AutoNation, Inc. (NYSE:AN) surged 4 percent after the auto retailer said new vehicle sales in December were 15 percent higher than a year ago. AutoNation, Inc. (NYSE:AN) sold almost 28,000 new vehicles last month, of which more than 8,400 were domestic cars, 13,450 were imports and about 6,100 were in the premium luxury category. For the fourth quarter, AutoNation, Inc. (NYSE:AN) said total new units sold rose 16 percent from the same period last year.
A. Schulman Inc (NASDAQ:SHLM)
Shares of A. Schulman Inc (NASDAQ:SHLM) gained in Friday trading after reporting better than expected third quarter earnings and reaffirming its full-year outlook. A. Schulman Inc (NASDAQ:SHLM) posted earnings excluding items of 50 cents per share, compared to analysts’ expectations for 49 cents per share. A. Schulman Inc (NASDAQ:SHLM) reiterated its fiscal-year guidance, and said it expects to earn between $2.14 and $2.19 per share for the year. Analysts on an average are expecting $2.17 per share.
US Airways Group, Inc. (NYSE:LCC)
US Airways Group, Inc. (NYSE:LCC) said consolidated traffic grew 1.8 percent in December from a year earlier, helped by improved performance during the holidays. US Airways Group, Inc. (NYSE:LCC)’s capacity measured in terms of available seat miles increased 0.2 percent to 6.26 billion, while load factor edged higher to 82.7 percent. Shares of US Airways Group, Inc. (NYSE:LCC) jumped 7.8 percent to close at $14.73.
Brunswick Corporation (NYSE:BC)
Boat maker Brunswick Corporation (NYSE:BC) fell in trade after announcing plans to sell its Hatteras and CABO brands. Brunswick Corporation (NYSE:BC) also said it will take a $70 million to $80 million dollar fourth-quarter charge as a result. Brunswick Corporation (NYSE:BC) purchased Hatteras Yachts for $80 million in 2001 and CABO for $60 million in 2006.
Amicus Therapeutics, Inc. (NASDAQ:FOLD)
Amicus Therapeutics, Inc. (NASDAQ:FOLD) soared in trade after reporting positive preliminary results from all four dose cohorts of a Phase 2 study of its Pompe genetic disorder treatment. Amicus Therapeutics, Inc. (NASDAQ:FOLD) said that based on the results, it expects to launch a repeat-dose clinical study in the third quarter of 2013.
Silicon Image, Inc. (NASDAQ:SIMG)
Silicon Image, Inc. (NASDAQ:SIMG) fell 11 percent after lowering its fourth-quarter revenue guidance due to changes in the production schedules by a large customer. Silicon Image, Inc. (NASDAQ:SIMG) said it now expects revenue of between $59 million and $60 million, down from its earlier guidance of $64 million to $67 million. Silicon Image, Inc. (NASDAQ:SIMG) also said it plans to book a fourth quarter charge of 8 cents a share to write down certain defective inventory.
Harvest Natural Resources, Inc. (NYSE:HNR)
Houston-based independent energy company Harvest Natural Resources, Inc. (NYSE:HNR) moved higher after reporting another oil discovery in a well drilled in the Dussafu Marin PSC, off the coast of Gabon in West Africa. Houston-based Harvest Natural Resources, Inc. (NYSE:HNR), which holds a 66.7 percent interest in the well, said additional technical evaluation will be required to appraise this discovery.
Cray Inc. (NASADQ:CRAY)
Supercomputer maker Cray Inc. (NASDAQ:CRAY) lowered its 2012 revenue outlook. Cray Inc. (NASDAQ:CRAY) said it expects full-year revenues of about $420 million, down from its earlier forecast $450 million. Analysts were expecting full-year revenues of $445.67 million. Gross margins for the period will be around 36 percent, while operating expenses are likely to be around $120 million. Cray Inc. (NASDAQ:CRAY) projected better than expected 2013 revenue of $500 million.
AngioDynamics, Inc. (NASDAQ:ANGO)
Medical-device company AngioDynamics, Inc. (NASDAQ:ANGO) said fiscal second-quarter earnings fell 15 percent as higher input costs more than offset strong sales of its vascular products. AngioDynamics, Inc. (NASDAQ:ANGO) reported adjusted earnings of 10 cents a share, topping market expectations by a penny. Sales jumped 50 percent to $87.01 million, compared to estimates of $87.39 million. In addition, AngioDynamics, Inc. (NASDAQ:ANGO) lowered its 2013 revenue forecast. Shares of AngioDynamics, Inc. (NASDAQ:ANGO) fell on Friday.
