Post Market News: Citigroup, Boeing, Procter & Gamble, Sprint, Elan

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Post Market News: Citigroup, Boeing, Procter & Gamble, Sprint, Elan

Post Market News

Stocks that were in focus in U.S. trading on Monday include: Citigroup Inc (NYSE:C), Barrick Gold Corporation (USA) (NYSE:ABX), Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX), Kinross Gold Corporation (USA) (NYSE:KGC), PulteGroup, Inc. (NYSE:PHM), Lennar Corporation (NYSE:LEN), Theravance Inc (NASDAQ:THRX), The Procter & Gamble Company (NYSE:PG), Sprint Nextel Corporation (NYSE:S), DISH Network Corp (NASDAQ:DISH), The Boeing Company (NYSE:BA), Life Technologies Corp. (NASDAQ:LIFE), Thermo Fisher Scientific Inc. (NYSE:TMO), Elan Corporation, plc (ADR) (NYSE:ELN), Charles Schwab Corp (NYSE:SCHW), Suncor Energy Inc. (USA) (NYSE:SU) and Webster Financial Corporation (NYSE:WBS).

Market Levels

•    US:  Dow: 14599.20 (-1.79%), S&P 500: 1552.36 (-2.30%), NASDAQ: 3216.49 (-2.38%)
•    Europe: CAC: 3710.48 (-0.51%), DAX: 7712.63 (-0.42%), FTSE: 6343.37 (-0.65%)
•    Asia-Pacific: Australia: 4967.90 (-0.91%), China: 2181.94 (-0.00%), Hong Kong: 21772.60 (-1.45%), India: 5568.40 (0.72%), Japan: 13275.66 (-1.58%).
•    Metals: Gold: 1361.10 (-9.34%), Silver: 23.36 (-11.28%), Copper: 3.27 (-2.30%)
•    Energy: Crude Oil: 88.71 (-2.83%), Natural Gas: 4.14 (-2.01%)
•    Commodities: Corn: 6.28 (-2.07%), Soya Bean: 13.56 (-1.69%), Wheat: 6.99 (-2.81%)
•    Currency: Euro (€) / US Dollar ($) (EURUSD): 1.3039 (0.47%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.5281 (0.39%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 96.9150 (-1.49%)
•    10 year US Treasury: 1.690% (-0.032)


Market and Economy News Update

U.S. markets tumble: U.S. markets finished at the lows of the session amid disappointing economic data from China. News of two explosions at the Boston Marathon finish line around 3pm ET accelerated the sell-off. China’s gross domestic product grew 7.7 percent in the first quarter, down from 7.9 percent in the previous quarter, and below the expected 8 percent level. The Dow Jones Industrial Average (INDEXDJX:.DJI) dropped 265.86 points, or 1.79 percent, to finish at 14,599.20, and the S&P 500 (INDEXSP:.INX) fell 36.49 points, or 2.30 percent, to close at 1,552.36. The NASDAQComposite (INDEXNASDAQ:.IXIC) dipped 78.46 points, or 2.38 percent, to finish at 3,216.49.

Oil prices decline: Oil prices fell on Monday after weak Chinese and U.S. economic data revived worries of a slowdown in economic growth in the world’s top oil consumers. Crude oil for May delivery lost $2.58, or 2.8 percent, to settle at $88.71 a barrel on the New York Mercantile Exchange. Brent oil for May settlement sank below $101 a barrel on Monday.

Stocks in Focus

Citigroup Inc (NYSE:C)

Citigroup Inc (NYSE:C) closed in the green despite the overall negative market sentiment after first-quarter profit jumped a better-than-expected 30 percent, as the banking giant continued to reduce costs and shed troubled assets. Excluding items, earnings came in at $4.01 billion, or $1.29 a share, up from $3.42 billion, or $1.11 a share, in the year-ago period. Revenue increased 6 percent to $20.49 billion. Analysts were expecting Citigroup Inc (NYSE:C) to earn $1.17 a share on revenue of $20.16 billion. Net interest margin came in at 2.94 percent, up from 2.93 percent in the fourth quarter.

Barrick Gold Corporation (USA) (NYSE:ABX), Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX), Kinross Gold Corporation (USA) (NYSE:KGC)

Gold stocks ended deep in the red as gold prices slumped to a 2-year low below $1,400 per ounce. Barrick Gold Corporation (USA) (NYSE:ABX), and Kinross Gold Corporation (USA) (NYSE:KGC) plunged more than 10 percent each, while Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) fell 8 percent. In the last two trading sessions, gold has tumbled more than 12 percent, making for the worst two days since February 1983.

PulteGroup, Inc. (NYSE:PHM), Lennar Corporation (NYSE:LEN)

PulteGroup, Inc. (NYSE:PHM), Lennar Corporation (NYSE:LEN), Hovnanian Enterprises, Inc. (NYSE:HOV), Toll Brothers Inc (NYSE:TOL) and D.R. Horton, Inc. (NYSE:DHI), all tumbled in trade today after homebuilder sentiment slipped for the third consecutive month in April. The NAHB/Wells Fargo Housing Market index fell to 42 from 44 in March. Economists were expecting a pick up to 45. Builders cited concerns about their ability to get construction loans and increasing materials costs for the drop in sentiment.

Theravance Inc (NASDAQ:THRX)

Theravance Inc (NASDAQ:THRX) rose the most in a year after the U.S. Food and Drug Administration said that overall safety for its once-daily lung disease treatment Breo appeared consistent with similar drugs. Theravance Inc (NASDAQ:THRX) is jointly developing the drug with GlaxoSmithKline plc (ADR) (NYSE:GSK). The regulator is expected to decide whether to approve the product by May 12. GlaxoSmithKline plc (ADR) (NYSE:GSK) owns 27 percent of Theravance Inc (NASDAQ:THRX) and market speculation has grown that GlaxoSmithKline plc (ADR) (NYSE:GSK) might buy the remaining 73 percent to gain full control of their portfolio of jointly developed drugs.

The Procter & Gamble Company (NYSE:PG)

The Procter & Gamble Company (NYSE:PG) increased its quarterly dividend by 7 percent to 60.15 cents per share, marking the 57th consecutive year that the consumer-products behemoth has increased its quarterly payout. The dividend is payable on or after May 15 to common shareholders of record as of April 26, and will cost The Procter & Gamble Company (NYSE:PG) about an extra $430 million annually. Shares of The Procter & Gamble Company (NYSE:PG) edged down 43 cents to $79.65.

Sprint Nextel Corporation (NYSE:S), DISH Network Corp (NASDAQ:DISH)

Satellite-television provider DISH Network Corp (NASDAQ:DISH) has made a $25.5 billion cash-and-stock offer for Sprint Nextel Corporation (NYSE:S). DISH Network Corp (NASDAQ:DISH) said the offer represents a 13 percent premium to the takeover deal for Sprint already in place with Japanese phone company SoftBank. Sprint Nextel Corporation (NYSE:S) said its board will evaluate the proposal before making any comment. Sprint Nextel Corporation (NYSE:S) shares surged 13.5 percent and DISH Network Corp (NASDAQ:DISH) shares tumbled 2.3 percent in New York trade.

The Boeing Company (NYSE:BA)

The Boeing Company (NYSE:BA) will have more than 1,000 of its 737 jets inspected by the US Federal Aviation Agency for a potentially faulty part in the tail fin. The federal aviation authority said the problem could cause pilots to lose control of an aircraft. The inspections are not expected to affect airline schedules, The Boeing Company (NYSE:BA) said today in a statement. Shares of The Boeing Company (NYSE:BA) closed down 2.4 percent at $86.77.

Life Technologies Corp. (NASDAQ:LIFE), Thermo Fisher Scientific Inc. (NYSE:TMO)

Scientific equipment maker Thermo Fisher Scientific Inc. (NYSE:TMO) has agreed to buy Life Technologies Corp. (NASDAQ:LIFE) for $13.6 billion in cash in one of the biggest corporate takeovers of the year. The acquisition values the biotech firm at $76 per share, and also includes Thermo Fisher Scientific Inc. (NYSE:TMO) assuming $2.2 billion in Life Technologies Corp. (NASDAQ:LIFE) debt. Thermo Fisher Scientific Inc. (NYSE:TMO) shares fell 1.3 percent to $78.58, while Life Technologies Corp. (NASDAQ:LIFE) shares jumped 7.5 percent to $73.1.

Elan Corporation, plc (ADR) (NYSE:ELN)

Royalty Pharma Management LLC has raised its bid for Irish drugmaker Elan Corporation, plc (ADR) (NYSE:ELN) to $12 per share from $11 per share. Elan Corporation, plc (ADR) (NYSE:ELN), which had rejected the earlier bid, said it will evaluate the new bid and make a recommendation to shareholders. Shares of Elan Corporation, plc (ADR) (NYSE:ELN) dropped close to 2 percent to $11.78 in New York trading.

Charles Schwab Corp (NYSE:SCHW)

Charles Schwab Corp (NYSE:SCHW)’s first-quarter earnings rose 6 percent as the discount brokerage clocked strong revenue growth, while expenses rose and client trading activity remained weak. Net income rose to $206 million, or 15 cents a share, from $195 million, or 15 cents a share, in the year-ago period. Quarterly revenue increased 8 percent to $1.29 billion. Analysts were expecting Charles Schwab Corp (NYSE:SCHW) to report earnings of 16 cents a share on revenue of $1.27 billion. Trading revenue dropped 8 percent to $223 million, while revenue from asset management and administration jumped 14 percent to $552 million.

Suncor Energy Inc. (USA) (NYSE:SU)

Suncor Energy Inc. (USA) (NYSE:SU), Canada’s largest oil and gas company, has agreed to sell a piece of its natural-gas business in Western Canada to U.K. energy provider Centrica PLC (LON:CNA) and the international arm of state-owned Qatar Petroleum for $986 million. The assets, in Alberta, British Columbia and Saskatchewan, will be operated by Centrica PLC (LON:CNA), and produce about 250 million cubic feet of gas per day. The deal is expected to close in the third quarter of this year. Suncor Energy Inc. (USA) (NYSE:SU) shares fell 5.6 percent to $26.84 in New York.

Webster Financial Corporation (NYSE:WBS)

Webster Financial Corporation (NYSE:WBS) said first-quarter earnings rose 8.2 percent amid better credit quality and strong growth in its commercial-loan portfolio. Per-share earnings increased to 44 cents from 42 cents, a year earlier. Revenue gained 1.7 percent to $145.8 million. Analysts were expecting Webster Financial Corporation (NYSE:WBS) to post earnings of 46 cents a share on revenue of $148 million. Shares closed Monday at $22.51, down 5 percent.

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