Post Market News: Clearwire, Yahoo, CVS, SolarCity, Metlife, And Adobe

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Post Market News for December 13th, 2012, stocks in focus include, Clearwire Corporation (NASDAQ:CLWR), Yahoo! Inc. (NASDAQ:YHOO), CVS Caremark Corporation (NYSE:CVS), SolarCity Corporation (NASDAQ:SCTY), Metlife Inc (NYSE:MET), And Adobe Systems Incorporated (NASDAQ:ADBE).

Post Market Update

Market Levels

•    US:  Dow: 13170.70 (-0.56%), S&P 500: 1419.45 (-0.63%), NASDAQ: 2992.16 (-0.72%)
•    Europe: CAC: 3643.13 (-0.10%), DAX: 7581.98 (-0.43%), FTSE: 5929.61 (-0.27%)
•    Asia-Pacific: Australia: 4582.80 (-0.02%), China: 2061.48 (-1.03%), Hong Kong: 22445.58 (-0.26%), India: 5851.50 (-0.62%), Japan: 9742.73 (1.66%).
•    Metals: Gold: 1696.80 (-1.23%), Silver: 32.36 (-4.22%), Copper: 3.66 (-1.51%)
•    Energy: Crude Oil: 86.25 (-0.60%), Natural Gas: 3.34 (-1.27%)
•    Commodities: Corn: 7.20 (-0.72%), Soya Bean: 14.72 (0.14%), Wheat: 8.08 (-0.43%)
•    Currency: Euro (€) / US Dollar ($) (EURUSD): 1.3077 (-0.05%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.6114 (0.18%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 83.5750 (0.48%)
•    10 year US Treasury: 1.725% (0.027)


Market and Economy News Update

U.S. markets end lower: The S&P 500 (INDEXSP:.INX) snapped a six-day winning streak amid concerns about the ongoing “fiscal cliff” negotiations. Budget negotiations continued as politicians publicly bickered over the difficulties in reaching a deal. The Dow Jones Industrial Average (INDEXDJX:.DJI) fell 74.73 points, or 0.56 percent, to close at 13,170.72 and the S&P 500 (INDEXSP:.INX) declined 9.03 points, or 0.63 percent, to end at 1,419.45, while the NASDAQComposite (INDEXNASDAQ:.IXIC) gave up 21.65 points, or 0.72 percent, to finish at 2,992.16.

Oil prices fall: Oil prices declined on Thursday as investor worries about the debt woes in the U.S. and U.K. outweighed improvements in U.S. jobs data and retail sales. Crude oil for January delivery lost 0.6 percent, to settle at $86.25 a barrel on the New York Mercantile Exchange. Brent oil for January settlement shed 1.2 percent to $108.20 a barrel on the London-based ICE Futures Europe exchange.


Stocks in Focus

Adobe Systems Incorporated (NASDAQ:ADBE)

Adobe Systems Incorporated (NASDAQ:ADBE) posted fiscal fourth-quarter profit of $222.33 million, or 44 cents a share, compared with a profit of $173.72 million, or 35 cents a share, in the same period last year. Excluding certain items, Adobe Systems Incorporated (NASDAQ:ADBE) earnings stood at 61 cents per share, 5 cents above the consensus estimate. Revenue increased to $1.153 billion, from $1.152 billion a year earlier, also topping estimates of $1.1 billion. Shares of Adobe Systems Incorporated (NASDAQ:ADBE) surged 5 percent in extended hours trading.


Clearwire Corporation (NASDAQ:CLWR)

Clearwire Corporation (NASDAQ:CLWR) climbed 15 percent after biggest shareholder Sprint Nextel Corporation (NYSE:S) disclosed that it offered $2.90 per share for the remaining stake in the wireless broadband services provider it does not already own. Sprint Nextel Corporation (NYSE:S), which already owns more than 50 percent of Clearwire Corporation (NASDAQ:CLWR), will also provide interim financing of up to $800 million to Clearwire Corporation (NASDAQ:CLWR) after the execution of the deal, according to a regulatory filing today. Clearwire Corporation (NASDAQ:CLWR)’s board hasn’t approved the sale, but said it continues to be in talks with Sprint Nextel Corporation (NYSE:S). More information.

Yahoo! Inc. (NASDAQ:YHOO)

Yahoo! Inc. (NASDAQ:YHOO) has named PayPal co-founder and former Google Inc (NASDAQ:GOOG) executive Max Levchin to its board of directors, and said Intuit Inc CEO Brad Smith and the Weather Channel’s CEO, David Kenny, have both decided to step down from the Internet company’s board effective immediately. This is the latest shake-up of Yahoo! Inc. (NASDAQ:YHOO)’s hierarchy under new chief executive Marissa Mayer. Yahoo! Inc. (NASDAQ:YHOO) had hired former Google Inc (NASDAQ:GOOG) executive Marissa Mayer in July to orchestrate a turnaround in the struggling company and reverse years of declining revenue. Shares of Yahoo! Inc. (NASDAQ:YHOO) closed 0.2 percent lower. Dan Loeb is believed to be pushing for the changes.


CVS Caremark Corporation (NYSE:CVS)

CVS Caremark Corporation (NYSE:CVS) jumped to hit an all-time high after the pharmacy chain offered a better-than-expected 2013 earnings outlook and declared a 38 percent dividend increase. CVS Caremark Corporation (NYSE:CVS) expects adjusted profit next year to be between $3.84 a share to $3.98 a share. Analysts were expecting $3.81 a share. The company also raised its quarterly dividend to 22.5 cents a share and disclosed plans to complete $4 billion in share repurchases next year. CVS Caremark Corporation (NYSE:CVS) said it should benefit as major provisions of President Obama’s health-care reform bill, or “Obamacare,” starts to take effect next year. CVS Caremark Corporation (NYSE:CVS)’s third-quarter profit came in a penny ahead of analysts’ expectations, while same-store sales increased 4.3 percent. Further information can be found here.


SolarCity Corporation (NASDAQ:SCTY)

SolarCity Corporation (NASDAQ:SCTY) jumped 47 percent in its market debut on the NASDAQ after raising $92 million in its initial public offering, selling 11.5 million shares at $8 apiece. SolarCity Corporation (NASDAQ:SCTY) had initially planned to sell 10.1 million shares between $13 and $15 per share. But due to lack of investor demand amid concerns that the company’s original $1 billion valuation was too high, the deal was delayed by one day and its price was cut. This, despite the fact that SolarCity Corporation (NASDAQ:SCTY), led by billionaire Elon Musk, is one of Silicon Valley’s hottest clean technology companies and has grown rapidly. Analysts expect SolarCity Corporation (NASDAQ:SCTY) to this year double its revenue to a projected $124.1 million from $59.6 million a year earlier. The CEO talked about the IPO today.


Hovnanian Enterprises, Inc. (NYSE:HOV)

Hovnanian Enterprises, Inc. (NYSE:HOV) dropped 5.3 percent or 29 cents to $5.20 after the construction services provider declared fourth quarter results earlier in the day. Hovnanian Enterprises, Inc. (NYSE:HOV) said net loss for the three months ended October 31 came in at $84.4 million, or 59 cents a share, compared with a year-earlier loss of $98.3 million, or 90 cents a share. The latest period included an $87 million in costs tied to the repurchase of debt and land-related charges of $5.3 million. Revenue jumped 43 percent to $487 million. Analysts had expected Hovnanian Enterprises, Inc. (NYSE:HOV) to report a loss of six cents on revenue of $462 million. Net contracts increased 23 percent in the quarter as the company benefited from rising demand for new homes and low borrowing costs.

EnCana Corporation (TSE:ECA) (NYSE:ECA)

U.S.-listed shares of EnCana Corporation (TSE:ECA) (NYSE:ECA) moved higher after the Canadian company announced a joint venture with China’s state-controlled oil firm PetroChina Company Limited (HKG:0857) (NYSE:PTR). EnCana Corporation (TSE:ECA) (NYSE:ECA) sold a 49.9 stake in its 445,000 acres Duvernay shale formation in Canada’s Alberta province to Phoenix Duvernay Gas, a subsidiary of Chinese state-owned PetroChina Company Limited (HKG:0857) (NYSE:PTR) for C$2.2 billion ($2.2 billion). The joint venture partners are expected to invest a total of $4 billion in drilling and processing facilities over the next four years. EnCana Corporation (TSE:ECA) (NYSE:ECA) has already drilled nine wells in Duvernay and estimates the land to contain 9 billion barrels of oil equivalent. EnCana Corporation (TSE:ECA) (NYSE:ECA) announced the deal days after Ottawa approved two major takeovers of Canadian energy firms by China’s CNOOC Limited (HKG:0883) (NYSE:CEO) and Malaysia’s national oil company Petronas.

Metlife Inc (NYSE:MET)

Metlife Inc (NYSE:MET) gave a weak outlook for 2013 and said it is not planning to buy back any shares next year. Metlife Inc (NYSE:MET), the largest life insurer in the United States, estimated per-share operating earnings of between $4.95 and $5.35 a share next year. Analysts forecast $5.51 per share for Metlife Inc (NYSE:MET) in 2013. For the current quarter, the company expects per-share operating earnings of between $1.12 and $1.22, compared to analysts’ expectations for $1.22. Shares of Metlife Inc (NYSE:MET) fell 78 cents to $32.83.

Phillips 66 (NYSE:PSX)
Phillips 66 (NYSE:PSX), the crude refiner that was spun off from ConocoPhillips (NYSE:COP) in May, said it is planning to form a master limited partnership for its oil and gas transportation assets, and is looking to raise as much as $400 million in cash by selling a minority interest in the master limited partnership in an initial public offering next year. Greg Garland, CEO of Phillips 66 (NYSE:PSX) said that the MLP would be “a very efficient vehicle” to accelerate the company’s infrastructure growth. Houston-based Phillips 66 (NYSE:PSX) will become the fourth refiner since 2011 to create or announce plans for a pipeline-related master limited partnership. Phillips 66 (NYSE:PSX) shares were down 1.6 percent to $52.21.

Restoration Hardware Holdings Inc (NYSE:RH)

Upscale home furnishings retailer Restoration Hardware Holdings Inc (NYSE:RH) fell 5 percent despite swinging to a third-quarter profit of $1.7 million from a loss of $4.8 million in the year-ago period. Restoration Hardware Holdings Inc (NYSE:RH), which went public last month, reported earnings excluding items of 7 cents a share, 3 cents above the average analysts’ estimate. Revenue increased to $284.2 million from $232.5 million, also topping Street expectations for $282.4 million. Same store sales were up 29 percent. Shares of Restoration Hardware Holdings Inc (NYSE:RH) have risen about 53 percent since its IPO.

International Paper Company (NYSE:IP)

International Paper Company (NYSE:IP) has agreed to sell its Temple-Inland Building Products division for $750 million to Georgia-Pacific LLC, the tissue-maker owned by Koch Industries Inc. The deal includes 16 manufacturing facilities located primarily in southeastern and eastern United States and is expected to close in the first quarter of next year. International Paper Company (NYSE:IP) had acquired Temple-Inland Inc. in February for $4.3 billion, but has decided to sell the building-products unit because it isn’t “core” to its strategy. International Paper Company (NYSE:IP) said proceeds from the sale will be used to pay down debt. Shares of International Paper Company (NYSE:IP) climbed 0.7 percent to $37.64.

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