Wall Street Breakfast: Must-Know News
March 20, 2012 | includes: AAPL, ADBE, CVI, DB, DIS, GLD, KORS, MSFT, NWS, ORCL, QQQ, SPY, TWC,USO, WPZ
Apple sells 3M iPads in a weekend. After announcing a goody bag of a buyback and dividends early yesterday, Apple (AAPL) later disclosed that it has sold 3M new iPads since the device was launched on Friday. Felix Salmon wonders whether the market had prior knowledge about the announcement to return money to shareholders, noting with suspicion that shares added $70B in market cap during the eight sessions before yesterday. It's not like it was a big secret, though.
Investors, authorities pile in on Deutsche Bank over Libor. Deutsche Bank (DB) is facing a number of civil suits in the U.S. over alleged Libor manipulation, and it has received subpoenas and information requests from the Justice Department, the SEC, the CFTC and the European Commission.
Adobe's profit plunges 21%. Adobe's (ADBE) FQ1 net profit dropped 21% to $185.2M while revenue rose 1.7% to $1.05B, with the company's performance hurt by lower-than-expected sales from its legacy desktop software due to customers waiting for the launch of the company's Creative Suite 6 software and subscription services. Adobe provided FQ2 and FY 2012 forecasts generally in line with, or above, forecasts, although the stock dropped 3.9% after hours, having risen 22% so far this year.
Michael Kors launches $1B+ secondary offering. Michael Kors (KORS) insiders plan to sell over $1B worth of stock in a secondary offering, with founder Michael Kors due to offload 3M shares and CEO John Idol 1.7M. The company has also raised its FY 2012 EPS outlook to $0.79-$0.81, above consensus of $0.67, while it has forecast revenue at $1.27B-$1.28B vs. Street predictions of $1.28B.
Dodgers aim for home run over TV rights. Time Warner Cable (TWC) and News Corp's (NWS) Fox sports unit are heading for a potential multi-billion dollar showdown over the rights to telecast the L.A. Dodgers' baseball games. Blackstone, the firm advising the Dodgers on the sale, has encouraged media companies to get involved in the bidding to boost the price.
Williams to buy Caiman Eastern for $2.5B. Williams Partners (WPZ) has agreed to buy Caiman Energy’s wholly owned subsidiary, Caiman Eastern Midstream, for approximately $2.5B. The acquisition will provide Williams Partners with a significant footprint and growth potential in the natural gas liquids-rich portion of the Marcellus Shale.
Oracle profit seen rising but analysts wary. Oracle (ORCL) is due to report its FQ3 results after the bell today, with analysts expecting that EPS rose to $0.56 from $0.54 a year ago and that revenue edged up just 2.5% to $9.02B. With the stock receiving downgrades over the past two months, analysts are concerned over Oracle's ability to stop competition from cloud providers Salesforce.com and Workday from eating into its traditional business, as well as the deadweight that the Sun Microsystems purchase has so far proved to be.
Disney takes $200M hit on massive flop. Disney (DIS) will take a $200M write-down related to the mega-flop "John Carter," worse than the $120M-$160M forecast by analysts. The loss will result in Disney's studio division reporting an operating loss of $80M-$120M in the March quarter compared with a $77M operating profit in the December quarter. Disney hopes The "Avengers" and Pixar's "Brave" will give its studio ops a lift later this year.
CVR continues to fight off Icahn. CVR Energy (CVI) has rejected Carl Icahn's extended $30 a share tender offer, and asked shareholders not to participate. Said CVR Energy chief Jack Lipinski: "Mr. Icahn has again gone back on his word by extending his distracting and detrimental campaign."
Windows 8 tablets to arrive in the autumn. While Apple (AAPL) toasts selling 3M iPads, Microsoft (MSFT) continues to work on Windows 8, with Bloomberg reporting that the first PCs and tablets based on the OS will arrive in October. The initial hardware will include systems featuring ARM-based (ARMH) processors to go with x86 Intel (INTC) gear.
Oil prices to continue to hurt airlines. The IATA has cut its industry outlook on the back of high oil prices, and expects airlines to turn a $3B profit in 2012 for a 0.5% margin vs. earlier forecasts of $3.5B. The expected average price of oil is pegged at $115 a barrel, up from $99.
Ben Bernanke to give history lessons. Ben Bernanke will today deliver the first of four hour-long lectures on the history of the Fed as part of what is essentially a PR blitz to set the narrative of the bank's role during and after the financial crisis. You can watch it here, if you like, or just wait for the CliffsNotes.
Feedback or story tip? Please direct message WSB editor Yigal Grayeff »
Today's Markets:
In Asia, Japan closed. Hong Kong -1.1% to 20888. China -1.4% to 2377. India +0.3% to 17316.
In Europe, at midday, London -1.1%. Paris -1.3%. Frankfurt -1.4%.
Futures at 7:00: Dow -0.5%. S&P -0.6%. Nasdaq -0.5%. Crude -0.8%to $107.21. Gold -1.1% to $1648.60.
Tuesday's economic calendar:
7:45 ICSC Retail Store Sales
8:30 Housing Starts
8:55 Redbook Chain Store Sales
12:45 PM Bernanke: 'Origins and Mission of the Federal Reserve'
5:45 PM Fed's Kocherlakota: 'On the Limits to Monetary Policy'
Feedback or story tip? Please direct message WSB editor Yigal Grayeff »
Today's Markets:
In Asia, Japan closed. Hong Kong -1.1% to 20888. China -1.4% to 2377. India +0.3% to 17316.
In Europe, at midday, London -1.1%. Paris -1.3%. Frankfurt -1.4%.
Futures at 7:00: Dow -0.5%. S&P -0.6%. Nasdaq -0.5%. Crude -0.8%to $107.21. Gold -1.1% to $1648.60.
Tuesday's economic calendar:
7:45 ICSC Retail Store Sales
8:30 Housing Starts
8:55 Redbook Chain Store Sales
12:45 PM Bernanke: 'Origins and Mission of the Federal Reserve'
5:45 PM Fed's Kocherlakota: 'On the Limits to Monetary Policy'
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