Every afternoon we provide an update on global market levels, company news, economic news, and hedge fund news. Stocks in focus today, include – Updates on CI, DF, CAT, LO, BMY, PEP, BA, SO, F, COP
David Einhorn Buys Three New Stocks: These Are The Names And Theses (Q3 Letter)
David Einhorn's Greenlight Capital funds returned 5.9% in the third quarter of 2020, compared to a gain of 8.9% for the S&P 500 in the same period. This year has been particularly challenging for value investors. Growth stocks have surged as value has struggled. For Greenlight, one of Wall Street's most established value-focused investment funds, Read More
Post Market Update
- US: Dow: 12617.30 (-0.82%), S&P 500: 1338.31 (-0.90%), NASDAQ: 2862.99 (-0.94%)
- Europe: CAC: 3074.68 (-0.87%), DAX: 6390.41 (-0.45%), FTSE: 5499.23 (-0.63%).
- Asia-Pacific: Australia: 4133.20 (0.10%), China: 2146.59 (0.24%), Hong Kong: 18903.20 (-0.79%), India: 5128.20 (0.20%), Japan: 8488.09 (-0.24%).
- Metals: Gold: 1576.20 (-0.08%), Silver: 26.81 (-0.85%), Copper: 3.35 (-0.80%)
- Energy: Crude Oil: 88.50 (0.41%), Natural Gas: 3.19 (2.25%)
- Commodities: Corn: 7.78 (-0.92%), Soya Bean: 15.69 (-3.25%), Wheat: 8.88 (-3.35%)
- Currency: Euro (€) / US Dollar ($) (EURUSD): 1.2064 (0.40%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.5506 (-0.02%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 78.1750 (-0.18%)
- 10 year US Treasury: 1.387% (-0.039)
Market and Economy News Update
U.S. markets end lower: U.S. markets managed to recover in the final hour of trading but still closed in the red for the third straight day amid concern about Europe’s debt crisis, and lower than expected corporate earnings. Stocks managed to claw back before the closing bell after a report in the Wall Street Journal suggested the Federal Reserve may be close to adopting simulative monetary policies. The Dow Jones Industrial Average (INDEXDJX:.DJI) tumbled 104.14 points, or 0.82 percent, to close at 12617.32. The S&P 500 (INDEXSP:.INX) dropped 12.21 points, or 0.90 percent, to end at 1,338.31, while the NASDAQ Composite (INDEXNASDAQ:.IXIC) slumped 27.16 points, or 0.94 percent, to finish at 2,862.99.
Oil prices increase: Oil prices rose for the first time in three days as unrest in Syria raised tension in the Middle East, and Chinese manufacturing output this month grew at its fastest pace this year. Crude oil for August delivery gained 0.4 percent, to settle at $88.50 a barrel on the New York Mercantile Exchange. Brent oil for September settlement increased 16 cents to $103.40 a barrel on the London-based ICE Futures Europe exchange.
Stocks in Focus
Apple Inc. (NASDAQ:AAPL) reported posted fiscal third-quarter earnings excluding items of $9.32 per share, on revenue of $35 billion that missed the average analysts’ estimate of earnings excluding items of $10.37 a share on $37.22 billion in revenue. The company also provided fourth-quarter guidance that was below Street expectations. ·
Netflix, Inc. (NASDAQ:NFLX) posted second-quarter earnings excluding items of 11 cents per share, that easily beat analysts’ expectations of earnings excluding items of 5 cents per share. Revenue came in at $889 million, in line with estimates. Despite the better than expected results, shares plummeted in after hours trading. ·
Semiconductor company, Broadcom Corporation (NASDAQ:BRCM) posted second quarter earnings excluding one-time items of 72 cents a share, on revenue of $1.97 billion that beat estimates for 67 cents a share on revenue of $1.95 billion. ·
Edwards Lifesciences Corp (NYSE:EW) reported second-quarter earnings excluding special items of 67 cents a share that beat the average analysts’ estimate of 65 cents a share. Net sales increased 11.8 percent to $482 million, driven by strong demand for its new artificial heart valve. ·
Networking equipment vendor Juniper Networks, Inc. (NYSE:JNPR) posted second quarter adjusted net income of 19 cents a share, on revenue of $1.07 billion that topped estimates of earnings of 16 cents a share on $1.05 billion in revenue. The company forecast current quarter earnings and revenue that was below Street expectations.
Restaurant chain Panera Bread Co (NASDAQ:PNRA) posted second quarter earnings of $1.50 a share, on revenue of $531 million that topped the average analysts’ estimate of earnings of $1.43 a share on revenue of $518 million. The company also provided a better than expected current-quarter earnings guidance. ·
Aflac Incorporated (NYSE:AFL) posted second quarter earnings of $1.61 a share, in line with estimates. But revenue for the quarter stood at $5.9 billion, much below estimates for $6.28 billion. ·
Railroad company Norfolk Southern Corp. (NYSE:NSC) posted second quarter earnings of $1.60 a share that beat expectations for $1.53 a share. Revenue came in at $2.87 billion, trailing estimates for $2.93 billion. ·
EMC Corporation (NYSE:EMC) said second quarter earnings per share stood at 39 cents, in line with estimates, while revenue was up 10 percent to $5.31 billion, topping expectations of $5.29 billion. ·
C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) said second quarter net income rose to $114.6 million, or 71 cents per share, from $111 million, or 67 cents per share in the same quarter a year earlier. Revenue increased 9.2 percent to $2.96 billion from the year-earlier period. Analysts were expecting income of 71 cents per share on revenue of $2.9 billion.
- Daniel Loeb’s Third Point LLC has acquired an additional 2.5 million shares of Yahoo! Inc. (NASDAQ:YHOO) for about $39.5 million, according to a Securities and Exchange Commission filing.
- David Einhorn’s Greenlight Capital bought shares in health insurers, Cigna Corporation (NYSE:CI) and Coventry Health Care, Inc. (NYSE:CVH), and sold his positions in Dell Inc. (NASDAQ:DELL) and Best Buy Co., Inc. (NYSE:BBY)
- Domino’s Pizza, Inc. (NYSE:DPZ), the country’s second largest pizza chain, reported second quarter earnings per share of 47 cents that topped the average analysts’ estimate of 46 cents a share. Revenue fell to $376.1 million from $384.9 million, trailing expectations of $387.9 million.
- Regions Financial Corporation (NYSE:RF) ended 4 percent higher after reporting second-quarter net income that beat analysts’ estimates amid reduced provisions for bad loans. Net income increased more than five times to $284 million, or 20 cents per share, from $55 million, or 4 cents per share, a year earlier.
- Online medical information provider, WebMD Health Corp. (NASDAQ:WBMD) lowered its full-year earnings and revenue guidance, and said that it expects to post a second quarter loss of about 12 cents a share on revenue of about $112 million.
- Casino operator Boyd Gaming Corporation (NYSE:BYD) slumped 18 percent after fiscal second quarter earnings and revenues fell short of Street expectations.
- For-profit education company, DeVry Inc. (NYSE:DV), plunged to a six-year low after forecasting fourth-quarter profit that fell short of analysts’ target. The company is also planning to cut 570 jobs, or 5.5 percent of its total workforce, amid declining student enrollment.
Hedge Fund News Update
- British hedge fund manager Man Group PLC (LON:EMG) will lay off employees as part of an effort to reduce $100 million in costs, following a difficult first half in which managed assets fell 10 percent to $52.7 billion.
- Fairfield Joint Retirement Investment Board, a Connecticut pension fund has hired hedge fund of funds, Diversified Global Asset Management to manage $15 million, or about 5 percent of its assets.
- A U.S. Bankruptcy judge has approved a bankruptcy exit plan that will hand Chicago-based newspaper publisher and broadcaster, Tribune Co., to a group of lenders led by hedge funds Oaktree Capital Management and Angelo Gordon & Co.
- Justin Fredericks, the head of Bank of America Merrill Lynch’s U.S. Capital Strategy team, which is a part of its prime-brokerage business, will leave the bank in the next couple of weeks.
- New York-based hedge fund Phoenix Investment Adviser has received a $40 million seed investment from an unnamed large European institutional investor, bringing the fund’s total assets under management to about $55 million.
Brokerage Upgrades and Downgrades on Tuesday, July 24, 2012
- Aastrom Biosciences, Inc. (NASDAQ:ASTM) was raised to “strong buy” from “buy” by analysts at WBB Securities with a target price of $3.
- Bank of Hawaii Corporation (NYSE:BOH) was raised to “buy” from “neutral” by analysts at B. Riley.
- Genesee & Wyoming Inc. (NYSE:GWR) was lifted to “overweight” from “equal weight” by analysts at Morgan Stanley.
- GeoEye Inc. (NASDAQ:GEOY) was upgraded to “market perform” from “underperform” by analysts at Raymond James.
- Mid America Apartment Communities Inc (NYSE:MAA) was lifted to “market outperform” from “market perform” by analysts at JMP Securities.
- Manpower Inc (NYSE:MAN) was raised to “strong buy” from “neutral” by analysts at CL King.
- The Wet Seal, Inc. (NASDAQ:WTSLA) was upgraded to “buy” from “neutral” by analysts at B. Riley.
- Parkway Prop (NYSE:PKY) was lifted to “market outperform” from “market perform” by analysts at JMP Securities.
- Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) was raised to “outperform” from “neutral” by analysts at Zacks with a target price of $62.
- Sonoco Products Company (NYSE:SON) was upgraded to “neutral” from “sell” by analysts at Goldman Sachs.
- AptarGroup, Inc. (NYSE:ATR) was downgraded to “sell” from “neutral” by analysts at Goldman Sachs.
- Berry Petroleum Company (NYSE:BRY) was cut to “hold” from “buy” by analysts at Stifel Nicolaus.
- Chipotle Mexican Grill, Inc. (NYSE:CMG) was downgraded to “hold” from “buy” at Argus.
- DeVry Inc. (NYSE:DV) was lowered to “underweight” from “neutral” by analysts at JPMorgan Chase.
- ITT Educational Services, Inc. (NYSE:ESI) was cut to “underweight” from “neutral” by analysts at JPMorgan Chase.
- HollyFrontier Corp (NYSE:HFC) was downgraded to “neutral” from “buy” by analysts at Bank of America.
- RailAmerica, Inc. (NYSE:RA) was downgraded by analysts at Morgan Stanley from “equal weight” to “underweight.”
- RadioShack Corporation (NYSE:RSH) was cut by analysts at UBS AG from “neutral” to “sell.”
- Wisconsin Energy Corporation (NYSE:WEC) was lowered to “sell” from “neutral” by analysts at Goldman Sachs.
Earnings Calendar for Wednesday, July 25, 2012 Before market open:Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) Airgas, Inc. (NYSE:ARG) Allegheny Technologies Incorporated (NYSE:ATI) Bristol-Myers Squibb Co. (NYSE:BMY) Caterpillar Inc. (NYSE:CAT) General Dynamics Corporation (NYSE:GD) Corning Incorporated (NYSE:GLW) Eli Lilly & Co. (NYSE:LLY) Lorillard Inc. (NYSE:LO) Motorola Solutions Inc (NYSE:MSI) MeadWestvaco Corp. (NYSE:MWV) NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) Newfield Exploration Co. (NYSE:NFX) Northrop Grumman Corporation (NYSE:NOC) PepsiCo, Inc. (NYSE:PEP) Praxair, Inc. (NYSE:PX) Rockwell Automation (NYSE:ROK) TE Connectivity Ltd. (NYSE:TEL) Thermo Fisher Scientific Inc. (NYSE:TMO) T. Rowe Price Group, Inc. (NASDAQ:TROW) Wyndham Worldwide Corporation (NYSE:WYN)
During market hours:
The Boeing Company (NYSE:BA)
Ford Motor Company (NYSE:F)
The Southern Company (NYSE:SO)
WellPoint, Inc. (NYSE:WLP)
After market close:
Assurant, Inc. (NYSE:AIZ) Akamai Technologies, Inc. (NASDAQ:AKAM) Ameriprise Financial, Inc. (NYSE:AMP) AvalonBay Communities, Inc. (NYSE:AVB) C. R. Bard, Inc. (NYSE:BCR) Crown Castle International Corp. (NYSE:CCI) Cliffs Natural Resources Inc (NYSE:CLF) Citrix Systems, Inc. (NASDAQ:CTXS) Equifax Inc. (NYSE:EFX) Equity Residential (NYSE:EQR) Hudson City Bancorp, Inc. (NASDAQ:HCBK) LSI Corporation (NYSE:LSI) O`Reilly Automotive Inc (NASDAQ:ORLY) Stericycle Inc (NASDAQ:SRCL) Symantec Corporation (NASDAQ:SYMC) Teradyne, Inc. (NYSE:TER) Torchmark Corporation (NYSE:TMK) Visa Inc (NYSE:V) Varian Medical Systems, Inc. (NYSE:VAR) Western Digital Corp. (NASDAQ:WDC) Whole Foods Market, Inc. (NASDAQ:WFM)
Time not specified:
Hess Corp. (NYSE:HES)
Lam Research Corporation (NASDAQ:LRCX)