Post Market Update
Market Levels
• US: Dow: 12878.10 (-0.69%), S&P 500: 1398.24 (-0.57%), NASDAQ: 2967.79 (-0.30%)
• Europe: CAC: 3502.13 (0.03%), DAX: 7332.33 (0.55%), FTSE: 5799.71 (0.22%).
• Asia-Pacific: Australia: 4456.80 (0.74%), China: 1991.17 (-1.32%), Hong Kong: 21844.03 (-0.08%), India: 5727.45 (1.62%), Japan: 9423.30 (0.36%).
• Metals: Gold: 1742.30 (-0.42%), Silver: 33.98 (-0.46%), Copper: 3.54 (0.00%)
• Energy: Crude Oil: 87.18 (-0.64%), Natural Gas: 3.77 (1.05%)
• Commodities: Corn: 7.64 (1.70%), Soya Bean: 14.49 (1.72%), Wheat: 8.88 (2.87%)
• Currency: Euro (€) / US Dollar ($) (EURUSD): 1.2933 (0.46%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.6014 (0.14%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 82.1550 (0.13%)
• 10 year US Treasury: 1.637% (-0.026)
Market and Economy News Update
U.S. markets end lower: U.S. markets closed lower on Tuesday, as investor concerns about whether Congress can adequately and swiftly address the so-called fiscal cliff outweighed a batch of positive economic reports. On the economic front, home prices rose for the sixth-consecutive month in September, according to the S&P/Case-Shiller home price index, while consumer confidence jumped to its highest level in four and half years in November, according to the Conference Board. The Dow Jones Industrial Average (INDEXDJX:.DJI) declined 89.24 points, or 0.69 percent, to end at 12,878.13. The S&P 500 (INDEXSP:.INX) slid 7.35 points, or 0.52 percent, to finish at 1,398.94. The NASDAQComposite (INDEXNASDAQ:.IXIC) dropped 8.99 points, or 0.30 percent, to close at 2,967.79.
Oil prices fall: Oil prices declined on Tuesday as the Organization for Economic Cooperation and Development said it expects an uneven recovery in the global economy over the next two years. Crude oil for January delivery dropped 0.6 percent, to settle at $87.18 a barrel on the New York Mercantile Exchange. Brent oil for January settlement lost 0.9 percent to $109.94 a barrel on the London-based ICE Futures Europe exchange.
Stocks in Focus
• Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) reported fourth quarter earnings excluding items of 64 cents a share that easily beat the average analysts’ estimate of 45 cents a share. Sales jumped 33 percent to $946.7 million from $711.9 million a year earlier, topping estimates of $902.7 million.
• Facebook Inc (NASDAQ:FB) hit a four-month high to close 0.9 percent higher after Nomura raised its price target on the social-networking giant to $32 from $27 a share.
• Hewlett-Packard Company (NYSE:HPQ) slid 3 percent after former Autonomy Corp chief executive Mike Lynch rejected Hewlett’s claim of financial impropriety at the software company.
• Analog Devices, Inc. (NASDAQ:ADI) reported fourth quarter earnings of 58 cents a share, on revenue of $694.96 million. Analysts had projected earnings of 57 cents a share on revenue of $696.98 million.
• Amazon.com, Inc. (NASDAQ:AMZN) said sales of its Kindle devices more than doubled over the Black Friday weekend compared to same period last year.
• Immersion Corporation (NASDAQ:IMMR) surged 35 percent after reaching a settlement of its patent infringement allegations with Google Inc (NASDAQ:GOOG) and Motorola Mobility LLC. https://www.valuewalk.com/2012/11/google-motorola-make-a-deal-with-immersion-on-licensing/
• Merck & Co. Inc. (NYSE:MRK) raised its quarterly dividend by 2.4 percent to 43 cents a share from 42 cents a share.
• Viacom, Inc. (NASDAQ:VIAB)(NASDAQ:VIB) has named Wade Davis as its chief financial officer. Davis will replace Jimmy Barge, who will stay on for a transition period.
• Crocs, Inc. (NASDAQ:CROX) and Foot Locker, Inc. (NYSE:FL) closed higher in trade today after analysts at Goldman Sachs initiated coverage of both companies with a “buy” rating.
• Corning Incorporated (NYSE:GLW) rallied 7 percent after the LCD-glass maker forecast stronger than expected current quarter retail demand for consumer electronics.
• Salt Lake City-based Zions Bancorporation (NASDAQ:ZION) slid 3.6 percent after the U.S. federal government announced plans to sell its holdings in the bank.
• Packaged-gases company Airgas, Inc. (NYSE:ARG) fell 2.7 percent after executive chairman Peter McCausland sold 1.2 million shares in a privately negotiated block trade.
• Bay Ridge Inc., a subsidiary of Peabody Energy Corporation (NYSE:BTU), said it will permanently close an Illinois mine after it failed to meet acceptable standards for safety and performance.
• International Game Technology (NYSE:IGT) raised its quarterly dividend by 17 percent to 7 cents a share from 6 cents a share, payable December 31 to shareholders of record as of December 19.
• Regeneron Pharmaceuticals Inc (NASDAQ:REGN) gained 0.2 percent as European Union regulators approved its eye drug Eylea.
• Clean Diesel Technologies, Inc. (NASDAQ:CDTI) soared 13 percent after receiving verification from the U.S. Environmental Protection Agency for its Puri-filter EGR emission reduction system for diesel engines.
Hedge Fund News Update
• Hedge funds like London-based Adelante Asset Management, Daniel Loeb’s Third Point LLC and Toronto-based Dromeus Capital, which spent months building up positions in Greek bonds, are sitting on big profits after the risk of Greece exiting from the euro zone significantly decreased, according to a Reuters report.
• Emerging-markets specialist Gramercy Advisors LLC has launched a distressed credit fund, the Gramercy Distressed Opportunity Fund II, with $200 million in commitments, Bloomberg reported.
• Steven A. Cohen’s SAC Capital Advisors, facing allegations that a former portfolio manager, Mathew Martoma, was involved in illegal insider trading, is planning to hold a conference call on Wednesday, according to a Reuters report.
Brokerage Upgrades and Downgrades on Tuesday, November 27, 2012
• The AES Corporation (NYSE:AES) was lifted to “outperform” from “neutral” by analysts at Macquarie.
• Eaton Vance Corp (NYSE:EV) was upgraded to “outperform” from “sector perform” by RBC Capital with a target price of $36.
• Exelon Corporation (NYSE:EXC) was raised to a “buy” rating from a “neutral” rating by analysts at ISI Group.
• Corning Incorporated (NYSE:GLW) was lifted to “buy” from “hold” by analysts at Topeka Capital.
• Genuine Parts Company (NYSE:GPC) was upgraded to “buy” from “neutral” by analysts at SunTrust with a target price of $75.
• Genesee & Wyoming Inc. (NYSE:GWR) was raised to “outperform” from “sector perform” by analysts at RBC Capital Markets with a target price of $90.
• OceanFirst Financial Corp. (NASDAQ:OCFC) was lifted to “outperform” from “market perform” by analysts at Keefe, Bruyette & Woods with a target price of $15.
• Open Text Corporation (USA) (NASDAQ:OTEX) was upgraded to “outperform” from “market perform” by analysts at RBC Capital Markets with a target price of $70.
• PPL Corporation (NYSE:PPL) was raised to “outperform” from “neutral” by analysts at Macquarie.
• Regal-Beloit Corporation (NYSE:RBC) was lifted to “outperform” from “market perform” by analysts at RBC Capital Markets.
• Viropharma Inc (NASDAQ:VPHM) was upgraded to “outperform” from “market perform” by analysts at Leerink Swann with a target price of $30.
• ViaSat, Inc. (NASDAQ:VSAT) was raised to “neutral” from “underperform” by analysts at Macquarie with a target price of $32.
• Yelp Inc (NYSE:YELP) was lifted to “buy” from “hold” by analysts at Cantor Fitzgerald with a target price of $24.
• Atlas Air Worldwide Holdings, Inc. (NASDAQ:AAWW) was downgraded to “sector perform” from “outperform” by analysts at RBC Capital Markets with a target price of $45.
• Ancestry.com Inc (NASDAQ:ACOM) was lowered to “hold” from “buy” by analysts at Cantor Fitzgerald.
• Alexandria Real Estate Equities Inc (NYSE:ARE) was cut to “market perform” from “outperform” by analysts at RBC Capital Markets with a target price of $68.
• Baxter International Inc. (NYSE:BAX) was downgraded to “neutral” from “buy” by analysts at Mizuho with a target price of $72.
• BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) was lowered by analysts at JMP Securities from an “outperform” rating to a “market perform” rating.
• Boston Scientific Corporation (NYSE:BSX) was cut to “market perform” from “outperform” by analysts at Sanford C. Bernstein with a target price of $6.
• Cablevision Systems Corporation (NYSE:CVC) was downgraded to “hold” from “buy” by analysts at Canaccord Genuity with a target price of $15.
• General Moly, Inc. (NYSEAMEX:GMO) was lowered by analysts at Bank of America from a “neutral” rating to an “underperform” rating.
• Kenexa Corporation (NYSE:KNXA) was cut to “neutral” from “overweight” by analysts at Piper Jaffray.
• Mcmoran Exploration Co (NYSE:MMR) was downgraded to “sector perform” from “outperform” by analysts at RBC Capital Markets with a target price of $10.
• National-Oilwell Varco, Inc. (NYSE:NOV) was lowered to “equal weight” from “overweight” by analysts at Morgan Stanley with a target price of $95.
• PacificNet Inc. (NASDAQ:PACT) was cut to “neutral” from “outperform” by analysts at Cowen.
• Pfizer Inc. (NYSE:PFE) was downgraded to “neutral” from “buy” by analysts at MKM Partners with a target price of $25.
• Pall Corporation (NYSE:PLL) was lowered to “hold” from “buy” by analysts at BB&T Capital Markets.
• Solar Power Inc (OTC:SOPW) was cut to “neutral” from “buy” by analysts at Roth Capital.
