Post Market Update
Market Levels
• US: Dow: 13245.70 (1.02%), S&P 500: 1427.52 (0.72%), NASDAQ: 3011.93 (0.41%)
• Europe: CAC: 3478.66 (0.87%), DAX: 7377.76 (0.70%), FTSE: 5884.90 (0.78%).
• Asia-Pacific: Australia: 4484.80 (0.24%), China: 2106.00 (-0.38%), Hong Kong: 21944.43 (-0.28%), India: 5724.40 (0.35%), Japan: 8975.15 (-0.36%).
• Metals: Gold: 1715.00 (1.89%), Silver: 32.03 (2.91%), Copper: 3.51 (1.04%)
• Energy: Crude Oil: 88.71 (3.57%), Natural Gas: 3.62 (1.77%)
• Commodities: Corn: 7.41 (0.75%), Soya Bean: 15.15 (0.81%), Wheat: 8.77 (1.27%)
• Currency: Euro (€) / US Dollar ($) (EURUSD): 1.2816 (0.16%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.6003 (0.15%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 80.3500 (0.07%)
• 10 year US Treasury: 1.747% (0.063)
Market and Economy News Update
U.S. markets end higher: U.S. markets closed higher in a low volume session on Tuesday despite continued uncertainty over who would be the next president of the country. The Dow Jones Industrial Average (INDEXDJX:.DJI) climbed 133.24 points, or 1.02 percent, to close at 13,245.68. The S&P 500 (INDEXSP:.INX) jumped 11.13 points, or 0.79 percent, to finish at 1,428.39, while the NASDAQComposite (INDEXNASDAQ:.IXIC) gained 12.27 points, or 0.41 percent, to end at 3,011.93.
Oil prices soar: Crude prices gained for the second straight session on Tuesday as investors awaited U.S. election results. Crude oil for December delivery added 3.6 percent, to settle at $88.71 a barrel on the New York Mercantile Exchange. Brent oil for December settlement jumped 3 percent to $110.96 a barrel on the London-based ICE Futures Europe exchange.
Stocks in Focus
• News Corp (NASDAQ:NWSA) said first-quarter earnings excluding items rose to 43 cents a share from 32 cents a share in the same period last year. Revenue rose 2.2 percent to $8.14 billion. Analysts had projected earnings excluding items of 37 cents a share on $8.16 billion in revenue.
• Satellite TV provider Dish Network Corp. (NASDAQ:DISH) posted a quarterly loss due to high litigation costs. Dish reported third quarter net loss of $158.5 million, or 35 cents per share compared with net income of $319.1 million, or 71 cents per share, in the year-ago period. Excluding one-time charges, earnings stood at 65 cents per share, 9 cents above the average analysts’ estimate. The company lost 19,000 subscribers in the quarter. Analysts were expecting a net loss of 38,600 subscribers.
• Information technology services provider Computer Sciences Corporation (NYSE:CSC) hit a 52-week high after posting better than expected fiscal second quarter profit.
• EOG Resources, Inc. (NYSE:EOG) climbed 4.4 percent after reporting better than expected third quarter profit, and raising its full-year production growth target to 10.6 percent from 9 percent.
• Electricity provider Pepco Holdings, Inc. (NYSE:POM) reported third quarter earnings excluding one-time items of 47 cents a share, 5 cents above the average analysts’ estimate. Revenue fell 10 percent to $1.48 billion, trailing Street expectations for $1.72 billion.
• Online data storage company Carbonite Inc (NASDAQ:CARB) soared to a three month high after J2 Global Inc (NASDAQ:JCOM) revealed in a Securities and Exchange Commission filing that it has acquired a stake of around 9.9 percent.
• Fossil, Inc. (NASDAQ:FOSL) tumbled 10.5 percent after the maker of the namesake watch brand reported third quarter sales that missed analysts’ estimates. The company also slashed its fourth-quarter revenue growth estimate to 12 percent from a previous forecast of 16 percent.
• Oil and natural-gas producer Denbury Resources Inc. (NYSE:DNR) posted third quarter earnings excluding items of 33 cents a share, on revenue of $600.4 million. Analysts were looking for earnings of 33 cents on revenue of $603 million.
• Nationstar Mortgage Holdings Inc (NYSE:NSM) reported third quarter earnings that missed estimates, though the mortgage servicer recorded a surge in revenue.
• Office supply retailer Staples, Inc. (NASDAQ:SPLS) has agreed to install Amazon.com, Inc. (NASDAQ:AMZN) lockers in its U.S. stores, according to a Reuters report.
• Vitamin Shoppe Inc (NYSE:VSI) surged 16 percent after reporting better than expected third-quarter earnings and revenue.
• The U.S. Food and Drug Administration said it was concerned that Novo Nordisk A/S (ADR) (NYSE:NVO)’s long-acting insulin degludec might increase the risks of cardiovascular events like heart attacks and strokes.
• Martin Marietta Materials, Inc. (NYSE:MLM) said third quarter profit jumped 28 percent to $62.9 million, or $1.36 a share, from $49.2 million, or $1.07 a share, in the same period last year. Sales rose 18 percent to $593.9 million. Analysts had projected earnings of $1.26 a share on revenue of $576 million.
• Expeditors International of Washington (NASDAQ:EXPD) reported a 17 percent drop in third quarter profit to $88.5 million, or 42 cents a share, from $106.6 million, or 50 cents a share, a year earlier. Revenue fell 4.7 percent to $1.53 billion. Analysts had forecast the logistics company to earn 43 cents a share on revenue of $1.6 billion.
• Vivus, Inc. (NASDQA:VVUS) plunged 21 percent after reporting a larger than expected third-quarter loss as a lack of insurer reimbursement for its weight-loss pill Qsymia hurt sales. Net loss for the quarter widened to $40.4 million, or 40 cents a share, from $8.6 million, or 10 cents, in the year-ago period. Analysts were expecting a loss of 32 cents a share.
• Towers Watson & Co (NYSE:TW) reported first quarter earnings excluding items of $1.13 a share, 7 cents above the average analysts’ estimate. Revenue increased 3 percent to $834.2 million, also topping estimates of $815.7 million.
• Video games publisher THQ Inc. (NASDAQ:THQI) lost more than half its market value on Tuesday after posting a second-quarter loss. The company also said it has hired New York-based investment bank Centerview Partners LLC to evaluate its options.
• Power company Calpine Corporation (NYSE:CPN) said third-quarter profit more than doubled as expenses declined significantly. Profit came in at $437 million, or 94 cents a share, up from $190 million, or 39 cents a share, in the year-ago period. Revenue fell 10 percent to $2 billion. The company also announced that it has agreed to sell its Broad River Energy Center to a subsidiary of Energy Capital Partners LLC, for $427 million.
Hedge Fund News Update
• Oaktree Capital Group LLC (NYSE:OAK) posted better-than-expected third-quarter economic earnings, and said assets under management rose to $81 billion as of September 30 from $78.7 billion at the end of the second quarter, and $73 billion a year ago. The distressed-debt investor also announced a dividend of 55 cents a unit.
• Eddie Lampert sold over 760,000 shares of automotive retailer AutoNation, Inc. (NYSE:AN), reducing his stake in his second largest holding by 1.6 percent, according to a SEC filing.
• Hedge Fund Research’s HFRX Global Hedge Fund Index dropped 0.52 percent in October, against a decline of almost 2 percent in the S&P 500 (INDEXSP:.INX).
• Carl Icahn increased his stake in video game maker Take-Two Interactive Software, Inc. (NASDAQ:TTWO) from 8.7 percent to almost 10 percent, according to a regulatory filing.
Brokerage Upgrades and Downgrades on Tuesday, November 06, 2012
• Apartment Investment and Management Co. (NYSE:AIV) was lifted to “market perform” from “underperform” by analysts at Wells Fargo & Co.
• Credit Suisse Group AG (ADR) (NYSE:CS) was upgraded to “equal weight” from “underweight” by analysts at Barclays Capital.
• Fabrinet (NYSE:FN) was raised to a “buy” rating from a “hold” rating by analysts at Needham & Company with a target price of $14.
• Golar LNG Partners LP (NASDAQ:GMLP) was lifted to “outperform” from “market perform” by analysts at Clarkson Capital.
• Home Properties, Inc. (NYSE:HME) was upgraded to “buy” from “neutral” by analysts at Compass Point with a target price of $72.
• Lam Research Corporation (NASDAQ:LRCX) was raised to “positive” from “neutral” by analysts at Susquehanna with a target price of $48.
• Post Properties Inc (NYSE:PPS) was lifted from “neutral” to “sell” by analysts at Compass Point with a target price of $46.
• Penn Virginia Corporation (NYSE:PVA) was upgraded to “buy” from “hold” by analysts at Stifel Nicolaus with a target price of $6.50.
• Republic Airways Holdings Inc. (NASDAQ:RJET) was raised to “neutral” from “underperform” by analysts at Bank of America.
• Sigma-Aldrich Corporation (NASDAQ:SIAL) was lifted to “buy” from “hold” by analysts at KeyBanc with a target price of $88.
• Tesco Corporation (USA) (NASDAQ:TESO) was upgraded to “outperform” from “market perform” by analysts at FBR Capital with a target price of $12.
• Tree.com Inc (NASDAQ:TREE) was raised to “overweight” from “equal weight” by analysts at Stephens with a target price of $17.
• United States Cellular Corporation (NYSE:USM) was lifted to “neutral” from “underweight” by analysts at JPMorgan Chase with a target price of $38.
• American Science & Engineering, Inc. (NASDAQ:ASEI) was downgraded to “hold” from “buy” by analysts at Benchmark Co. with a target price of $67.
• BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) was lowered to “hold” from “buy” by analysts at Brean Murray.
• CA, Inc. (NASDAQ:CA) was cut to “underperform” from “market perform” by analysts at Sanford C. Bernstein.
• Energizer Holdings, Inc. (NYSE:ENR) was downgraded to “market perform” from “outperform” by analysts at Sanford C. Bernstein.
• Home Properties, Inc. (NYSE:HME) was lowered by analysts at RBC Capital Markets from a “sector perform” rating to an “underperform” rating.
• KBW, Inc. (NYSE:KBW) was cut to “market perform” from “outperform” by analysts at JMP Securities.
• Responsys Inc (NASDAQ:MKTG) was downgraded to “neutral” from “outperform” by analysts at Credit Suisse.
• Precision Drilling Corp (USA) (NYSE:PDS) was lowered by analysts at Jefferies Group from a “buy” rating to a “hold” rating.
• Servicesource International Inc (NASDAQ:SREV) was cut to “equal weight” from “overweight” by analysts at Morgan Stanley.
• TW Telecom Inc (NASDAQ:TWTC) was downgraded to “underperform” from “market perform” by analysts at FBR Capital with a target price of $20.
• Teradata Corporation (NYSE:TDC) was lowered by analysts at FBN Securities from an “outperform” rating to a “sector perform” rating.
• UDR, Inc. (NYSE:UDR) was cut to “sector perform” from “outperform” by analysts at RBC Capital Markets.
