Every afternoon we provide an update on global market levels, company news, economic news, and hedge fund news. Stocks in focus today include; DIS, SIRI, ESRX, DF, TAP, OAK, Z, PCLN, PFE, and HD
Exclusive: Canyon makes over $3.5 billion in credit purchases since COVID-19
The Canyon Distressed Opportunity Fund III has been finding more and more opportunities to invest amid the coronavirus pandemic. In their recent letter to investors, which was reviewed by ValueWalk, the Canyon team noted that one of the main features of COVID-19 has been the way it has affected so many aspects of our lives. Read More
Post Market Update
- US: Dow: 13168.60 (0.39%), S&P 500: 1401.35 (0.51%), NASDAQ: 3015.86 (0.87%)
- Europe: CAC: 3453.28 (1.50%), DAX: 6967.95 (0.71%), FTSE: 5841.24 (0.56%).
- Asia-Pacific: Australia: 4291.60 (0.44%), China: 2157.62 (0.13%), Hong Kong: 20072.55 (0.37%), India: 5336.70 (1.03%), Japan: 8803.31 (0.87%).
- Metals: Gold: 1612.80 (-0.21%), Silver: 28.09 (0.80%), Copper: 3.44 (1.52%)
- Energy: Crude Oil: 93.67 (1.59%), Natural Gas: 2.96 (1.93%)
- Commodities: Corn: 8.00 (-0.56%), Soya Bean: 15.65 (-1.17%), Wheat: 9.02 (-0.39%)
- Currency: Euro (€) / US Dollar ($) (EURUSD): 1.2396 (0.01%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.5619 (-0.11%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 78.5750 (0.41%)
- 10 year US Treasury: 1.628% (0.062)
Market and Economy News Update
U.S. markets end higher: U.S. markets rallied to three month highs on Tuesday, with the S&P 500 index finishing above 1,400-mark for the first time since early May, amid investors optimism about more stimulus measures from central banks in the U.S. and Europe to bolster the economy. The Dow Jones Industrial Average (INDEXDJX:.DJI) gained 51.09 points, or 0.39 percent, to close at 13,168.60. The S&P 500 (INDEXSP:.INX) climbed 7.12 points, or 0.51 percent, to end at 1,401.35, while the NASDAQ Composite (INDEXNASDAQ:.IXIC) jumped 25.95 points, or 0.87 percent, to finish at 3,015.86.
Oil prices rally: Oil prices rose for the third consecutive day to end at its highest in more than two months amid falling North Sea output and geo-political tensions in the Middle East. Crude oil for September delivery gained 1.6 percent, to settle at $93.67 a barrel on the New York Mercantile Exchange. Brent oil for September settlement rose 1.9 percent to $111.67 a barrel on the London-based ICE Futures Europe exchange.
Stocks in Focus
- The Walt Disney Company (NYSE:DIS) posted fiscal third-quarter earnings excluding items of $1.01 per share, topping expectations for 93 cents a share. Revenue increased 4 percent to $11.09 billion, missing estimates for $11.31
- Express Scripts Holding Company (NASDAQ:ESRX) reported second quarter adjusted earnings of 88 cents per share, 6 cents above analysts’ estimates. Revenue stood at $27.69 billion, topping estimates of $26.57 billion. The company also raised its full-year earnings forecast.
- Food and beverage company Dean Foods Company (NYSE:DF) reported second quarter earnings excluding one-time items of 36 cents a share, 5 cents above the average analysts’ estimate. Net sales for the quarter declined to $3.13 billion from $3.30 billion in the year-ago period. The company also provided better than expected current quarter and full-year earnings guidance.
- Online travel agent Priceline.com Inc (NASDAQ:PCLN) reported second-quarter earnings that topped expectations, but forecast third-quarter earnings that missed expectations, as consumer in Europe put-off travel amid the region’s economic crisis.
- Molson Coors Brewing Company (NYSE:TAP) posted second quarter earnings excluding one-time items of $1.38 per share, on revenue of $999.4 million that beat the average analysts’ estimate of earnings excluding items of $1.19 a share, on $934.8 million in revenue.
- Real estate website Zillow Inc (NASDAQ:Z) reported second quarter net income of $1.3 million, or 4 cents per share, on revenue of $27.8 million. Analysts were looking for a profit of 4 cents per share on $27.1 million in revenue.
- Logistics company Expeditors International of Washington (NASDAQ:EXPD) reported a 12 percent decline in second-quarter net income to $84 million, or 39 cents per share, from $95 million, or 44 cents per share, a year ago. Revenue decreased 4.8 percent to $1.5 billion from $1.58 billion in the same period last year. Analysts were expecting earnings of 43 cents per share on $1.6 billion in revenue.
- Light-emitting diode technology maker Cree, Inc. (NASDAQ:CREE) posted fourth earnings excluding one-time items of 25 cents a share, on revenue of $307 million that beat expectations for 23 cents a share on $306 million in revenue. The company also provided third-quarter earnings outlook in line with analysts’ estimates.
- The Boeing Company (NYSE:BA) jumped 2.2 percent after it raised the list prices of its commercial aircrafts by 5.5 percent, the first such price hike since August last year.
- US Home Systems Inc (NASDAQ:USHS) ended 38 percent higher after The Home Depot, Inc, (NYSE:HD) the country’s largest home-improvement retailer, agreed to acquire the company for about $93 million.
- Pfizer Inc. (NYSE:PFE) has agreed to pay $60.2 million to settle a federal investigation into the drugmaker’s use of illegal payments to win business in Eastern Europe and China.
- Office-supplies retailer Office Depot Inc (NYSE:ODP) reported second quarter loss excluding items of 14 cents a share that was wider than the loss of 9 cents a share that analysts’ were expecting. Net sales for the quarter declined 7 percent to $2.51 billion, also trailing the analysts’ average estimate of $2.61 billion.
- Sirius XM Radio Inc (NASDAQ:SIRI) posted second quarter earnings excluding items of 2 cents a share, in line with estimates, while revenue stood at $837.5 million that topped expectations of $834.38 million. The satellite radio operator also raised its full year earnings outlook.
- Cablevision Systems Corporation (NYSE:CVC) reported second quarter profit of $63.5 million, or 24 cents per share that beat the average analysts’ estimate of 19 cents a share. Revenue for the quarter was flat at $1.7 billion.
- Luxury luggage maker Tumi Holdings Inc (NYSE:TUMI) posted second-quarter earnings in line with estimates, but revenue beat Street expectations. The company also raised its full-year earnings forecast.
- Specialty retailer Vitamin Shoppe Inc (NYSE:VSI) ended 6.7 percent higher after reporting better than expected second quarter earnings. Comparable store sales were also up more than 8.3 percent during the quarter.
- For-profit education company Bridgepoint Education Inc (NYSE:BPI) reported a better-than-expected second quarter profit, but revenue trailed estimates. New student enrollments increased 1 percent during the quarter. The company, however, suspended its full-year forecast
- Scientific Games Corp (NASDAQ:SGMS) fell 17 percent after swinging to a second quarter loss on the back of weak sales in Italy and China.
Hedge Fund News Update
- Billionaire hedge- fund manager John Paulson’s Advantage Plus Fund recorded a loss of 2 percent last month, and is down 18 percent this year. Paulson’s Gold Fund gained 0.2 percent in July, but is down 23 percent this year.
- Oaktree Capital Group LLC (NYSE:OAK), which went public in April, said second quarter net income came in at $24.7 million, compared with a loss of $20.4 million in the same quarter last year. Assets under management stood at $78.7 billion at the end of the second quarter, up from $77.9 billion in the first quarter.
- London-based hedge fund firm Thames River Capital plans to close the listed fund of hedge funds, Multi Hedge Fund, next month.
- Hedge fund performance trailed the broader market in July, according to industry estimates released by eVestment|HFN. Hedge funds managed a median return of 0.7 percent last month, compared to a 1.5 percent rise in the S&P 500 (INDEXSP:.INX).
- GoldenTree Asset Management LP, the $15.7 billion hedge fund, has hired Deeb Salem, the former head of non-agency mortgage securities trading at Goldman Sachs Group, Inc. (NYSE:GS), as part of a plan to build its mortgage-backed securities trading team.
Brokerage Upgrades and Downgrades on Tuesday, August 07, 2012
- Applied Materials, Inc. (NASDAQ:AMAT) was raised to “buy” from “neutral” by analysts at Goldman Sachs.
- Amgen, Inc. (NASDAQ:AMGN) was lifted to “buy” from “sell” by analysts at Lazard Capital with a target price of $101.
- Arch Coal Inc (NYSE:ACI) was raised to “buy” from “hold” by analysts at Argus with a target price of $10.
- Coach, Inc. (NYSE:COH) was upgraded to “buy” from “hold” by analysts at Canaccord Genuity with a target price of $71.
- Compressco Partners LP (NASDAQ:GSJK) was raised to “outperform” from “market perform” by analysts at Raymond James with a target price of $18.
- Exelon Corporation (NYSE:EXC) was lifted to “neutral” from “underweight” by analysts at JPMorgan Chase with a target price of $40.
- Freescale Semiconductor Ltd (NYSE:FSL) was raised to “buy” from “neutral” by analysts at Goldman Sachs with a target price of $14.50.
- LSI Corporation (NYSE:LSI) was lifted to “buy” from “neutral” by analysts at Goldman Sachs with a price target of $9.
- Southwestern Energy Company (NYSE:SWN) was raised to “add” from “neutral” by analysts at Capital One with a target price of $37.
- Tumi Holdings Inc (NYSE:TUMI) was upgraded to “outperform” from “neutral” by analysts at Credit Suisse with a target price of $25.
- American Tower Corp (NYSE:AMT) was downgraded to “neutral” from “outperform” by analysts at Credit Suisse with a target price of $75.
- Atmel Corporation (NASDAQ:ATML) was lowered to “neutral” from “buy” by analysts at Goldman Sachs with a target price of $6.50.
- Ceragon Networks Ltd. (NASDAQ:CRNT) was cut to “equal weight” from “overweight” by analysts at Barclays Capital with a target price of $9.
- East West Bancorp, Inc. (NASDAQ:EWBC) was downgraded to “equal weight” from “overweight” at Morgan Stanley with a target price of $25.
- Gilead Sciences, Inc. (NASDAQ:GILD) was lowered to “neutral” from “buy” by analysts at Lazard Capital.
- Health Net, Inc. (NYSE:HNT) was cut to “underperform” from “market perform” by analysts at BMO Capital Markets with a target price of $14.
- Kosmos Energy Ltd (NYSE:KOS) was downgraded to “sector perform” from “outperform” by analysts at RBC Capital.
- Leap Wireless International, Inc. (NASDAQ:LEAP) was downgraded by analysts at Robert W. Baird from “neutral” to “underperform” with a target price of $3.
- Sanmina-SCI Corporation (NASDAQ:SANM) was cut by analysts at Goldman Sachs from “neutral” to “sell” with a target price of $8.
- Smithfield Foods, Inc. (NYSE:SFD) was lowered to “underweight” from “equal weight” by analysts at Morgan Stanley.
Earnings Calendar for Wednesday, August 08, 2012
Before market open:
Alpha Natural Resources, Inc. (NYSE:ANR)
Computer Sciences Corporation (NYSE:CSC)
International Flavors & Fragrances Inc. (NYSE:IFF)
Macy’s, Inc. (NYSE:M)
PPL Corporation (NYSE:PPL)
Ralph Lauren Corp (NYSE:RL)
After market close:
CenturyLink, Inc. (NYSE:CTL)
Dun & Bradstreet Corp (NYSE:DNB)
Monster Beverage Corp (NASDAQ:MNST)
News Corp (NASDAQ:NWSA)
Integrys Energy Group, Inc. (NYSE:TEG)
Time not specified:
Molex Incorporated (NASDAQ:MOLX)
NRG Energy Inc (NYSE:NRG)