- US: Dow: 13557.00 (0.04%), S&P 500: 1460.91 (0.41%), NASDAQ: 3104.12 (0.10%)
- Europe: CAC: 3527.50 (0.75%), DAX: 7394.55 (0.25%), FTSE: 5910.91 (0.68%).
- Asia-Pacific: Australia: 4528.20 (0.82%), China: 2105.62 (0.32%), Hong Kong: 21416.64 (0.98%), India: 5660.25 (0.22%), Japan: 8806.55 (1.20%).
- Metals: Gold: 1751.20 (0.28%), Silver: 33.23 (0.82%), Copper: 3.71 (0.26%)
- Energy: Crude Oil: 92.03 (-0.07%), Natural Gas: 3.48 (1.25%)
- Commodities: Corn: 7.45 (0.98%), Soya Bean: 15.09 (1.04%), Wheat: 8.56 (1.00%)
- Currency: Euro (€) / US Dollar ($) (EURUSD): 1.3119 (0.01%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.6148 (-0.01%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 78.9400 (-0.04%)
- 10 year US Treasury: 1.818% (0.100)
Market and Economy News Update
U.S. markets end flat: U.S. markets closed largely unchanged on Wednesday as a strong housing report was offset by some tepid earnings reports from technology bellwethers. The Dow Jones Industrial Average (INDEXDJX:.DJI) eked out a gain of 5.22 points, or 0.04 percent, to close at 13,557.00. The S&P 500 (INDEXSP:.INX) gained 5.99 points, or 0.41 percent, to finish at 1,460.91, while the NASDAQComposite (INDEXNASDAQ:.IXIC) rose 2.95 points, or 0.10 percent, to end at 3,104.12.
Oil holds above $92: U.S. crude prices were little changed for the session but managed to stay above the $92-mark on Wednesday. Energy Information Administration’s weekly report showed crude stocks rose 2.86 million barrels last week, more than consensus expectations for a rise of 1.7 million barrels. Crude oil for November delivery added 0.1 percent, to settle at $92.03 a barrel on the New York Mercantile Exchange. Brent oil for December settlement fell 0.7 percent to $113.16 a barrel on the London-based ICE Futures Europe exchange.
Stocks in Focus
- American Express Company (NYSE:AXP) said third quarter earnings rose to $1.09 a share from $1.03 per share in the year-ago period. Revenue for the period increased 4 percent to $7.86 billion from $7.57 billion a year ago. Analysts were expecting earnings of $1.09 a share on $7.90 billion in revenue.
- eBay Inc (NASDAQ:EBAY) reported third-quarter earnings excluding items of 55 cents per share, one cent above the average analysts’ estimate. Revenue came in at $3.40 billion, trailing Street expectations of $3.41 billion. The company provided fourth-quarter guidance that was in-line with estimates.
- Student lender SLM Corp (NASDAQ:SLM) posted third quarter adjusted profit of 58 cents per share, 4 cents above Street estimates. Net-interest income for the period fell to $819 million from $885 million, a year earlier.
- Tech company Xilinx, Inc. (NASDAQ:XLNX) posted second quarter net income of $123.4 million, or 46 cents a share, down from $126.3 million, or 47 cents per share, in the same period last year. Revenue for the period stood at $543.9 million. Analysts had projected earnings of 41 cents a share on revenue of $547.7 million
- Medical device firm Stryker Corporation (NYSE:SYK) reported third quarter adjusted earnings of 97 cents a share, on revenue of $2.1 billion. Analysts had forecast earnings of 98 cents a share on revenue of $2.1 billion.
- Semiconductor equipment maker Lam Research Corporation (NASDAQ:LRCX) reported first quarter adjusted earnings of 53 cents a share that easily beat estimates of 41 cents a share. Revenue increased to $906.89 million, from $680.44 million, a year earlier, also topping expectations for $902.88 million.
- Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) jumped 6.3 percent after the coffee retailer disclosed that it has hired Gerard Geoffrion, currently head of its business in Canada, to lead the international development of its business.
- Homebuilders, Lennar Corporation (NYSE:LEN), PulteGroup, Inc. (NYSE:PHM), D.R. Horton, Inc. (NYSE:DHI), PulteGroup, Inc. (NYSE:PHM), Toll Brothers Inc (NYSE:TOL) and KB Home (NYSE:KBH) closed significantly higher after a strong September housing starts report.
- Vitamin retailers Vitamin Shoppe Inc (NYSE:VSI) and GNC Holdings Inc (NYSE:GNC) rose in trade today after a new study said multivitamins modestly lowered the risk of cancer in Men.
- Piper Jaffray Companies (NYSE:PJC) ended 7.3 percent higher after the asset manager swung to a third-quarter profit from a loss in the year-ago period.
- Health insurer Centene Corp (NYSE:CNC) soared 11 percent after it said it will end an unprofitable Medicaid contract in Kentucky.
- CME Group Inc (NASDAQ:CME), the world’s largest futures exchange agreed to buy the Kansas City Board of Trade for $126 million in cash.
- BP plc (NYSE:BP) (LON:BP) closed 2.9 percent higher after the oil giant said it’s nearing a deal to sell its stake in TNK-BP to a Russian state oil company Rosneft.
- Cree, Inc. (NASDAQ:CREE) climbed 10 percent after reporting fiscal first quarter earnings excluding one-time items of 27 cents a share that topped estimates of 26 cents a share.
- Equipment rental company United Rentals, Inc. (NYSE:URI) soared 15 percent after reporting third-quarter adjusted earnings of $1.35 a share, well above the average analysts’ estimate of $1.13 a share.
Hedge Fund News Update
- The Securities and Exchange Commission has sued New Jersey-based hedge fund Yorkville Advisors LLC and two of its executives over an alleged scheme to overvalue assets under management and exaggerate the firm’s reported returns.
- Greg Coffey, co-chief investment officer of Moore Capital Management LLC’s European business, is leaving the $15 billion hedge fund run by Louis Moore Bacon and plans to retire from the industry, according to a Reuters report.
- New York-based SkyBridge Capital LLC is planning to increase investments in Asia, Anthony Scaramucci, managing partner of the hedge fund of funds, told Bloomberg News.
- Bob Jolly, Schroders’ head of global macro, has acquired short positions across a range of German government bonds because he believes yields could rise irrespective of whether the euro zone resolves its debt crisis or not, according to a Reuters report.
Brokerage Upgrades and Downgrades on Wednesday, October 17, 2012
- Annaly Capital Management, Inc. (NYSE:NLY) was lifted to “buy” from “neutral” by analysts at Compass Point with a target price of $17.
- ADTRAN, Inc. (NASDAQ:ADTN) was upgraded to “neutral” from “sell” by analysts at Goldman Sachs.
- BancFirst Corporation (NASDAQ:BANF) was raised to “outperform” from “market perform” by analysts at Raymond James.
- Brown & Brown, Inc. (NYSE:BRO) was lifted to “outperform” from “market perform” by analysts at Keefe, Bruyette & Woods.
- Citigroup Inc. (NYSE:C) was upgraded to “outperform” from “underperform” by analysts at Credit Agricole with a target price of $43.
- Camden Property Trust (NYSE:CPT) was raised to “buy” from “hold” by analysts at Stifel Nicolaus with a target price of $76.
- C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) was lifted to “outperform” from “market perform” by analysts at FBR Capital with a target price of $69.
- Equity Residential (NYSE:EQR) was upgraded to “outperform” from “market perform” by analysts at Raymond James.
- Essex Property Trust Inc (NYSE:ESS) was raised to “strong buy” from “outperform” by analysts at Raymond James.
- Fortinet, Inc. (NASDAQ:FTNT) was lifted to “buy” from “hold” by analysts at Wunderlich with a target price of $28.
- Mid America Apartment Communities Inc (NYSE:MAA) was upgraded to “strong buy” from “outperform” by analysts at Raymond James.
- Old Republic International Corporation (NYSE:ORI) was raised to “outperform” from “market perform” by analysts at Raymond James.
- Pinnacle Financial Partners (NASDAQ:PNFP) was lifted to “outperform” from “market perform” by analysts at Raymond James.
- Sprint Nextel Corporation (NYSE:S) was upgraded to “buy” from “hold” by analysts at Argus with a target price of $7.50.
- American Tower Corp (NYSE:AMT) was lowered to “equal weight” from “overweight” by analysts at Barclays Capital.
- Apollo Group Inc (NASDAQ:APOL) was cut to “neutral” from “buy” by analysts at Bank of America.
- Diebold Incorporated (NYSE:DBD) was downgraded to “underweight” from “neutral” by analysts at JPMorgan Chase.
- ExlService Holdings, Inc. (NASDAQ:EXLS) was lowered to “neutral” from “outperform” by analysts at Robert W. Baird with a target price of $33.
- International Business Machines Corp. (NYSE:IBM) was cut to “sell” from “hold” by analysts at Societe Generale.
- Imax Corporation (USA) (NASDAQ:IMAX) was downgraded to “neutral” from “positive” by analysts at Susquehanna.
- M.D.C. Holdings, Inc. (NYSE:MDC) was lowered by analysts at Raymond James from an “outperform” rating to a “market perform” rating.
- Packaging Corp of America (NYSE:PKG) was cut to “market perform” from “outperform” by analysts at BMO Capital Markets.
- PNC Financial Services (NYSE:PNC) was downgraded to “hold” from “buy” by analysts at Stifel Nicolaus.
- The Ryland Group, Inc. (NYSE:RYL) was lowered by analysts at Raymond James from an “outperform” rating to a “market perform” rating.
- Texas Instruments Incorporated (NASDAQ:TXN) was cut to “underperform” from “neutral” by analysts at Longbow Research.
- VistaPrint Limited (NASDAQ:VPRT) was downgraded to “underweight” from “equal weight” by analysts at Morgan Stanley.
- The Wet Seal, Inc. (NASDAQ:WTSLA) was lowered by analysts at B. Riley from a “buy” rating to a “neutral” rating.
Earnings Calendar for Thursday, October 18, 2012
Before Market Open:
- Baxter International Inc. (NYSE:BAX)
- BB&T Corporation (NYSE:BBT)
- Boston Scientific Corporation (NYSE:BSX)
- Diamond Offshore Drilling, Inc. (NYSE:DO)
- Fifth Third Bancorp (NASDAQ:FITB)
- Genuine Parts Company (NYSE:GPC)
- Huntington Bancshares Incorporated (NASDAQ:HBAN)
- KeyCorp (NYSE:KEY)
- Laboratory Corp. of America Holdings (MYSE:LH)
- PPG Industries, Inc. (NYSE:PPG)
- Snap-on Incorporated (NYSE:SNA)
- The Travelers Companies, Inc. (NYSE:TRV)
- Union Pacific Corporation (NYSE:UNP)
- Danaher Corporation (NYSE:DHR)
- Morgan Stanley (NYSE:MS)
- Nucor Corporation (NYSE:NUE)
- Philip Morris International Inc. (NYSE:PM)
- Verizon Communications Inc. (NYSE:VZ)
After Market Close:
- Advanced Micro Devices, Inc. (NYSE:AMD)
- Chipotle Mexican Grill, Inc. (NYSE:CMG)
- Capital One Financial Corp. (NYSE:COF)
- E TRADE Financial Corporation (NYSE:ETFC)
- Google Inc (NASDAQ:GOOG)
- Microsoft Corporation (NASDAQ:MSFT)
- People’s United Financial, Inc. (NASDAQ:PBCT)
- SanDisk Corporation (NASDAQ:SNDK)