Post Market Update
Vanguard’s move into PE may change the landscape forever
Private equity has been growing in popularity in recent years as more and more big-name funds and institutional investors dive in. Now even indexing giant Vanguard is out to take a piece of the PE pie. During a panel at the Morningstar Investment Conference this year, Fran Kinniry of Vanguard, John Rekenthaler of Morningstar and Read More
• US: Dow: 12756.20 (-0.46%), S&P 500: 1374.53 (-0.40%), NASDAQ: 2883.89 (-0.70%)
• Europe: CAC: 3430.60 (0.55%), DAX: 7169.12 (0.01%), FTSE: 5786.25 (0.33%).
• Asia-Pacific: Australia: 4379.80 (-1.53%), China: 2047.89 (-1.53%), Hong Kong: 21188.65 (-1.14%), India: 5683.70 (0.00%), Japan: 8661.05 (-0.18%).
• Metals: Gold: 1724.80 (-0.35%), Silver: 32.49 (-0.11%), Copper: 3.47 (0.09%)
• Energy: Crude Oil: 85.38 (-0.22%), Natural Gas: 3.74 (4.73%)
• Commodities: Corn: 7.26 (0.55%), Soya Bean: 14.08 (0.21%), Wheat: 8.65 (-0.77%)
• Currency: Euro (€) / US Dollar ($) (EURUSD): 1.2704 (0.05%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.5872 (0.04%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 79.3950 (-0.19%)
• 10 year US Treasury: 1.591% (-0.015)
Market and Economy News Update
U.S. markets end lower: U.S. markets closed near the lows of the day on Tuesday as investors questioned efforts in Washington to resolve the looming fiscal cliff. On the economic front, the budget deficit increased to $120 billion in October from $98 billion in the same period last year. The Dow Jones Industrial Average (INDEXDJX:.DJI) declined 58.90 points, or 0.46 percent, to finish at 12,756.18. The S&P 500 (INDEXSP:.INX) dropped 5.50 points, or 0.40 percent, to end at 1,374.53. The NASDAQComposite (INDEXNASDAQ:.IXIC) fell 20.37 points, or 0.70 percent, to close at 2,883.89.
Oil prices fall: Oil prices declined on Tuesday after the International Energy Agency lowered its outlook for fourth-quarter global oil demand. Crude oil for December delivery lost 0.2 percent, to settle at $85.38 a barrel on the New York Mercantile Exchange. Brent oil for December settlement slid 1 percent to $108.00 a barrel on the London-based ICE Futures Europe exchange.
Stocks in Focus
• Cisco Systems, Inc. (NASDAQ:CSCO) reported first-quarter adjusted profit of 48 cents a share, on revenue of $11.88 billion. Analysts had forecast earnings of 46 cents a share, on revenue of $11.78 billion.
• Office Depot Inc (NYSE:ODP) said it expects sales to decline 3 percent year-on-year in 2013. Analysts currently project a 2013 revenue decline of 1 percent in the office-supply chain.
• Zynga Inc (NASDAQ:ZNGA) said chief financial officer David Wehner will leave the company, and will be replaced by chief accounting officer, Mark Vranesh. The online gaming company also reaffirmed its 2012 financial outlook.
• Barnes & Noble, Inc. (NYSE:BKS) jumped 2.4 percent after chief executive William Lynch said holiday sales for its Nook line should be strong.
• The TJX Companies, Inc. (NYSE:TJX) gained 2.7 percent after reporting better-than-expected third quarter earnings and raising its outlook for the year.
• Merck & Co., Inc. (NYSE:MRK) said it is ending development of a pill that combines its diabetes drug Januvia with a generic version of the widely used cholesterol drug Lipitor.
• Exxon Mobil Corporation (NYSE:XOM) is in advanced talks to sell its stake in the West Qurna 1 oilfield in Iraq, according to a Reuters report.
• The Washington Post Company (NYSE:WPO) has named Marty Baron, editor of The Boston Globe, as its new executive editor. Baron will replace Marcus Brauchli, who will take a vice president job at the parent company.
• Struggling smart phone maker Nokia Corporation (ADR) (NYSE:NOK) has agreed to acquire 3D mapping company Earthmine Inc. as it tries to upgrade its Maps division to win back customers from competitors such as Apple Inc. (NASDAQ:AAPL).
• Medtronic, Inc. (NYSE:MDT) said the U.S. Food and Drug Administration approved its stent graft for aortic transection repair.
• Restaurant and gift-shop operator Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) has entered into a multi-year licensing agreement with Smithfield Foods, Inc. (NYSE:SFD) that will make its products available at a wide range of retail outlets.
• Joe Sexton, the head of global sales at Intel Corporation (NASDAQ:INTC)’s McAfee Security division will leave the company.
• Vehicle auction company Kar Auction Services Inc (NYSE:KAR) tumbled 6.4 percent after ending buyout talks with private equity firm Clayton Dublier & Rice.
• Investment bank Raymond James Financial, Inc. (NYSE:RJF) will close its Brazilian equity research operations due to tax and regulatory hurdles.
• Tesla Motors Inc (NASDAQ:TSLA)’s battery-powered Model S sedan was named the Car of the Year by Motor Trend magazine.
• Diamond Foods, Inc. (NASDAQ:DMND) climbed 14 percent after the snack food company said it would restate its financial results on Wednesday.
• Peet’s Coffee & Tea, Inc. (NASDAQ:PEET) has named former Weight Watchers International, Inc. (NYSE:WTW) executive Dave Burwick as its new president and chief executive officer.
• Health care products company Henry Schein, Inc. (NYSE:HSIC) said its board has increased its share buyback program by $300 million.
• Oxigene, Inc. (NASDAQ:OXGN) soared 19 percent after a clinical study of its experimental eye-disease treatment Zybrestat showed positive outcome.
• Titanium products company Tronox Ltd (NYSE:TROX) plunged 19 percent after posting lower than expected third quarter adjusted earnings and revenue.
• Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) and Tekmira Pharmaceuticals Corp (NASDAQ:TKMR) closed significantly higher on Tuesday, a day after the companies reached a deal for a new licensing agreement.
Hedge Fund News Update
• Railcar maker The Greenbrier Companies (NYSE:GBX) soared 20 percent on news that activist investor Carl Icahn has taken a 9.99 percent stake in the company.
• Hedge Fund manager Mohnish Pabrai acquired positions in Chesapeake Energy Corporation (NYSE:CHK) and General Motors Company (NYSE:GM), and reduced his holdings in Goldman Sachs Group, Inc. (NYSE:GS) during the three-months ended September 30, according to a regulatory filing.
• Investors poured more money into hedge funds than they withdrew over the past month, according to the SS&C GlobeOp Capital Movement Index.
• Dodge & Cox initiated positions in Google Inc (NASDAQ:GOOG) and Liberty Interactive Corp (NASDAQ:LVNTA), and decreased its stake in Comcast Corporation (NASDAQ:CMCSA) and Capital One Financial Corp. (NYSE:COF), according to a 13F filing.
Brokerage Upgrades and Downgrades on Tuesday, November 13, 2012
• Albemarle Corporation (NYSE:ALB) was lifted to “buy” from “neutral” by analysts at Goldman Sachs with a target price of $67.
• Air Products & Chemicals, Inc. (NYSE:APD) was upgraded to “buy” from “neutral” by analysts at Goldman Sachs with a target price of $96.
• Apollo Commercial Real Est. Finance Inc (NYSE:ARI) was raised to an “outperform” rating from a “market perform” rating by analysts at JMP Securities with a target price of $17.50.
• 3D Systems Corporation (NYSE:DDD) was lifted to “overweight” from “neutral” by analysts at Piper Jaffray with a target price of $55.
• Eaton Vance Corp (NYSE:EV) was upgraded to “neutral” from “underperform” by analysts at Bank of America with a target price of $32.
• Kraton Performance Polymers Inc (NYSE:KRA) was raised to “buy” from “neutral” by analysts at Goldman Sachs with a target price of $23.
• Laboratory Corp. of America Holdings (NYSE:LH) was lifted to “buy” from “hold” by analysts at WallachBeth with a target price of $97.
• NuStar Energy L.P. (NYSE:NS) was upgraded to “neutral” from “underperform” by analysts at Credit Suisse with a target price of $44.
• Rockwood Holdings, Inc. (NYSE:ROC) was raised to “buy” from “neutral” by analysts at Goldman Sachs.
• Sherwin Williams Company (NYSE:SHW) was lifted to “outperform” from “underperform” by analysts at Credit Agricole with a target price of $170.
• Stratasys, Inc. (NASDAQ:SSYS) was upgraded to “overweight” from “neutral” by analysts at Piper Jaffray with a target price of $76.
• ValueVision Media, Inc. (NASDAQ:VVTV) was raised to “buy” from “hold” by analysts at Feltl & Co.
• C&J Energy Services Inc (NASDAQ:CJES) was downgraded to “neutral” from “overweight” by analysts at JPMorgan Chase with a target price of $23.
• Callon Petroleum Company (NYSE:CPE) was lowered to “accumulate” from “buy” by analysts at Global Hunter Securities with a target price of $6.
• Crexus Investment Corp (NYSE:CXS) was cut to “neutral” from “overweight” by analysts at JPMorgan Chase.
• IBI Corporation (CVE:IBI) was downgraded to “market perform” from “outperform” by analysts at Raymond James with a target price of $9.
• Jefferies Group, Inc. (NYSE:JEF) was lowered by analysts at JMP Securities from an “outperform” rating to a “market perform” rating.
• Janus Capital Group Inc. (NYSE:JNS) was cut to “underweight” from “equal weight” by analysts at Morgan Stanley.
• Lumber Liquidators Holdings Inc (NYSE:LL) was downgraded to “sell” from “hold” by analysts at Stifel Nicolaus.
• LyondellBasell Industries NV (NYSE:LYB) was lowered by analysts at Goldman Sachs from a “buy” rating to a “neutral” rating.
• Molycorp Inc (NYSE:MCP) was cut to “equal weight” from “overweight” by analysts at Morgan Stanley.
• Pacific Drilling SA (NYSE:PACD) was downgraded to “neutral” from “buy” by analysts at Guggenheim with a target price of $11.
• Pernix Therapeutics Holdings Inc (NYSEAMEX:PTX) was lowered by analysts at Noble Financial from a “buy” rating to a “hold” rating.
• Synutra International, Inc. (NASDAQ:SYUT) was cut to “market perform” from “outperform” by analysts at Oppenheimer.
• Westlake Chemical Corporation (NYSE:WLK) was downgraded to “neutral” from “buy” by analysts at Goldman Sachs with a target price of $85.
• Yanzhou Coal Mining Co. (ADR) (NYSE:YZC) was lowered by analysts at UBS AG from a “buy” rating to a “sell” rating.