Post Market Update
Stocks that were in focus in U.S. trading on Wednesday include: General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F), Covidien plc (NYSE:COV), Bristol Myers Squibb Co. (NYSE:BMY), Pfizer Inc. (NYSE:PFE), PSS World Medical, Inc. (NASDAQ:PSSI), McKesson Corporation (NYSE:MCK), SBA Communications Corporation (NASDAQ:SBAC), Infinity Pharmaceuticals Inc. (NASDAQ:INFI), MGIC Investment Corp. (NYSE:MTG), Radian Group Inc. (NYSE:RDN), SINA Corp (NASDAQ:SINA), Medifast, Inc. (NYSE:MED) and Acadia Healthcare Company Inc (NASDAQ:ACHC).
Market Levels
• US: Dow: 13114.60 (-0.19%), S&P 500: 1419.93 (-0.47%), NASDAQ: 2990.16 (-0.74%)
• Europe: CAC: 3652.61 (0.00%), DAX: 7636.23 (0.00%), FTSE: 5951.71 (0.00%)
• Asia-Pacific: Australia: 4635.20 (0.00%), China: 2219.13 (0.25%), Hong Kong: 22541.18 (0.00%), India: 5905.60 (0.85%), Japan: 10230.36 (1.47%).
• Metals: Gold: 1660.70 (0.07%), Silver: 30.06 (0.46%), Copper: 3.60 (1.45%)
• Energy: Crude Oil: 90.98 (2.67%), Natural Gas: 3.37 (-3.16%)
• Commodities: Corn: 6.93 (-1.56%), Soya Bean: 14.18 (-1.20%), Wheat: 7.74 (-2.43%)
• Currency: Euro (€) / US Dollar ($) (EURUSD): 1.3227 (-0.34%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.6137 (-0.05%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 85.6150 (0.82%)
• 10 year US Treasury: 1.748% (-0.029)
Market and Economy News Update
U.S. markets end lower: U.S. markets recovered from lows made earlier in the session, but still finished lower on Wednesday amid weakness in the retail sector and ongoing worries that a U.S. budget deal to avert the “fiscal cliff” would not get done. The Dow Jones Industrial Average (INDEXDJX:.DJI) fell for the third consecutive session, declining 24.49 points, or 0.19 percent, to close at 13,114.59, while the S&P 500 (INDEXSP:.INX) dipped 6.83 points, or 0.48 percent, to finish at 1,419.83. The NASDAQComposite (INDEXNASDAQ:.IXIC) slid 22.44 points, or 0.74 percent, to end at 2,990.16.
Oil prices soar: Oil prices rallied on Wednesday amid technical buying at a key support level. Some traders also attributed the gain to possible algorithmic short-covering. Crude oil for February delivery jumped 2.7 percent, to settle at $90.98 a barrel on the New York Mercantile Exchange. Brent oil for February settlement edged 2.4 percent higher to $111.41 a barrel on the London-based ICE Futures Europe exchange.
Stocks in Focus
General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F)
The United Auto Workers has told its members at General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F) to expect big profit-sharing payouts early next year, according to a report in The Wall Street Journal. General Motors Company (NYSE:GM) workers can expect as much as $7,000, while Ford Motor Company (NYSE:F) workers can expect $8,000 each. Last year, General Motors Company (NYSE:GM) workers received around $7,000 each in profit-sharing checks, while Ford Motor Company (NYSE:F) paid-out about $6,200. Shares of General Motors Company (NYSE:GM) ended lower, while Ford Motor Company (NYSE:F) jumped on Wednesday.
Covidien plc (NYSE:COV)
Medical device maker Covidien plc (NYSE:COV) has agreed to acquire privately-held CV Ingenuity for an undisclosed amount. The acquisition is expected to close by March. Fremont, California-based CV Ingenuity is developing a drug coated balloon device for treating peripheral arterial disease. Covidien plc (NYSE:COV) said it does not expect the device to receive U.S. regulatory approval until fiscal 2017. Covidien plc (NYSE:COV) fell 0.7 percent to $56.79.
Bristol Myers Squibb Co. (NYSE:BMY), Pfizer Inc. (NYSE:PFE)
Japanese regulators have approved the sale of an anticlotting drug called Eliquis, developed by Bristol Myers Squibb Co. (NYSE:BMY) and Pfizer Inc. (NYSE:PFE) to prevent stroke in patients with a heart-rhythm disorder called atrial fibrillation. Eliquis has been approved for sale in Canada and the European Union, but has been twice rejected by the U.S. Food and Drug Administration. Shares of Bristol Myers Squibb Co. (NYSE:BMY) were down 11 cents at $32.35, and Pfizer Inc. (NYSE:PFE) shares were up 15 cents at $25.23.
PSS World Medical, Inc. (NASDAQ:PSSI), Inc., McKesson Corporation (NYSE:MCK)
PSS World Medical, Inc. (NASDAQ:PSSI) jumped 1.3 percent to $28.85 following news that McKesson Corporation (NYSE:MCK) has received early termination of waiting period, required under the Hart-Scott-Rodino Antitrust Improvements Act, and could now acquire PSS World Medical, Inc. (NASDAQ:PSSI). A deal is expected in the first quarter of next year. McKesson Corporation (NYSE:MCK) had agreed in October to pay $29 a share, or $1.46 billion, for PSS World Medical, Inc. (NASDAQ:PSSI).
SBA Communications Corporation (NASDAQ:SBAC)
SBA Communications Corporation (NASDAQ:SBAC) has acquired 800 wireless towers in Brazil from Telefonica SA (MCE:TEF) (NYSE:TEF)’s Brazilian subsidiary, Vivo SA, for about $178 million. SBA Communications Corporation (NASDAQ:SBAC) said the assets are expected to generate about 19 million to 23 million reais in annual cash flow. Shares of SBA Communications Corporation (NASDAQ:SBAC) fell 0.5 percent to close at $70.41 on Wednesday.
Infinity Pharmaceuticals Inc. (NASDAQ:INFI)
RBC Capital Markets said its target price on Infinity Pharmaceuticals Inc. (NASDAQ:INFI) to $38 from $32, citing increased earnings visibility. The brokerage said that Infinity Pharmaceuticals Inc. (NASDAQ:INFI)’s new development-and-license agreement with Takeda Pharmaceutical Company Limited (TYO:4502) involving enzymes that could help fight cancer was a positive development. Earlier this month, Infinity Pharmaceuticals Inc. (NASDAQ:INFI) sold some $170 million of stock, which RBC thinks should help reduce any medium-term financing needs. Shares of Infinity Pharmaceuticals Inc. (NASDAQ:INFI) gained 2 percent to $34.77.
MGIC Investment Corp. (NYSE:MTG), Radian Group Inc. (NYSE:RDN)
Mortgage insurers, MGIC Investment Corp. (NYSE:MTG) and Radian Group Inc. (NYSE:RDN), jumped in New York trading on Wednesday after data showed October home prices rose more than forecast, signaling a sustained recovery in the sector. The S&P/Case Shiller home price index of 20 metropolitan areas rose 0.7 percent in October on a seasonally adjusted basis, compared to the 0.5 percent gain forecast by economists. Year over year, prices in the 20 cities jumped 4.3 percent, topping expectations for a rise of 4.0 percent. MGIC Investment Corp. (NYSE:MTG) surged 9.2 percent, while rival Radian Group Inc. (NYSE:RDN) rose 4.4 percent.
SINA Corp (NASDAQ:SINA)
Chinese online media company SINA Corp (NASDAQ:SINA) dismissed rumors that e-commerce giant Alibaba is looking to invest in its micro-blogging service Weibo. Market rumors had surfaced suggesting that Alibaba is looking to buy a 15 to 20 percent stake in Sina Weibo, the most popular micro-blogging service in China, for around $3 billion. SINA Corp (NASDAQ:SINA) told China Daily that the rumor is false, while Alibaba declined to comment.
Medifast, Inc. (NYSE:MED)
Medifast, Inc. (NYSE:MED) said acting chief financial officer and principal accounting officer, Edward Powers, would resign, six weeks after the weight- loss products company’s prior CFO stepped down. Joseph Kelleman, the company’s director of finance-supply chain, will take over as interim CFO, Medifast, Inc. (NYSE:MED) said in a filing. Shares of Medifast, Inc. (NYSE:MED) plunged 13 percent to $25.50.
Acadia Healthcare Company Inc (NASDAQ:ACHC)
Behavioral-health services company Acadia Healthcare Company Inc (NASDAQ:ACHC) raised $173 million after completing a sale of 10.6 million shares. Acadia Healthcare said the underwriters of the sale bought another 1.1 million shares from the company. Shares of Acadia Healthcare Company Inc (NASDAQ:ACHC) fell 30 cents to $22.41.
