Wall Street Breakfast: Must-Know News
Top StoriesGreen Mountain crumbles to the sea. Green Mountain (GMCR) shares were -39% premarket after the company issued a profit warning and CEO Larry Blanford admitted on its FQ2 earnings call that it expects more moderate growth for sales of its Keurig brewers and K-Cup packs, or, in other words, Green Mountain's growth story is dead. In FQ2, adjusted EPS rose to $0.64 from $0.48 and sales rose 37% to $885.1M, although inventory skyrocketed 100%. Discussion: Does its lower valuation make GMCR a buy?
Carlyle raises $671M at $6.7B valuation. Carlyle (CG) is set to debut on Nasdaq today after it raised $671M in its IPO, making it the biggest U.S. IPO of the year despite investor skepticism towards P-E firms. Carlyle priced its shares at $22 - below its initial range - giving it a market cap of $6.7B. Opinion: Tread carefully with limited partnership IPOs.
Top Stock News
Judge OKs BP's $7.8B gulf settlement. BP (BP) has won preliminary court approval for a $7.8B deal to resolve over 100,000 claims connected to the Gulf oil spill. The judge found the settlement "fair, reasonable, and adequate," and will issue a final ruling after a Nov. 8 hearing to address objections. Opinion: BP's a solid risk-reward trade.
Top Stock News
Judge OKs BP's $7.8B gulf settlement. BP (BP) has won preliminary court approval for a $7.8B deal to resolve over 100,000 claims connected to the Gulf oil spill. The judge found the settlement "fair, reasonable, and adequate," and will issue a final ruling after a Nov. 8 hearing to address objections. Opinion: BP's a solid risk-reward trade.
Novartis to buy dermatology firm for $1.525B. Novartis (NVS) has agreed to acquire privately-held Fougera Pharmaceuticals for $1.525B in cash. Novartis said the acquisition will make Sandoz, the generics division of Novartis, the no. 1 company globally and in the U.S for generic dermatology medicines. Opinion: Execution blurring Novartis's potential.
PC makers shift to Windows 8 from Android for tablets. Unhappy with weak demand for high-end Android tablets, PC manufacturers such as Dell (DELL), H-P (HPQ) and Acer are focusing their R&D resources on developing Windows 8 (MSFT) products, reports Digitimes. The same goes for leading contract manufacturer Compal. The first ARM-based (ARMH) tablets running Windows 8, which has received good early reviews, are due in October. Opinion: Technology patent wars.
Oracle, HP Itanium divorce to end in court. A settlement between H-P (HPQ) and Oracle (ORCL) in their dispute over H-P's itanium chip "isn't going to happen," an Oracle lawyer said. H-P is seeking around $4B in lost profit from Oracle, which stopped developing software for the component last year. On Tuesday, a judge refused to rule for either side ahead of a trial, comparing the case to divorce. Opinion: The market values H-P less than the sum of its parts.
Traders may "Scream" for Sotheby's after record auction. Sotheby's (BID) may see some early action this morning after "The Scream," Edvard Munch's famous painting, sold for $119.9M last night, the most ever paid for a work of art at auction. Sotheby's share is $12.9M. Overall, Sotheby's sale generated $330.5M, the second-highest in the company's history. Opinion: Sotheby's: Bid with caution.
Top Economic & Other News
U.K. holds firm over Basel III. U.K. resistance has derailed efforts by EU finance ministers to reach a deal on how they'll implement the tougher new regulations in Basel III, with Britain's George Osborne saying that agreeing to what he sees as the EU's weaker measures would make him look like an idiot. Ministers will try to bridge their differences during the next two weeks. Opinion: It's time to cut your European exposure.
Top Economic & Other News
U.K. holds firm over Basel III. U.K. resistance has derailed efforts by EU finance ministers to reach a deal on how they'll implement the tougher new regulations in Basel III, with Britain's George Osborne saying that agreeing to what he sees as the EU's weaker measures would make him look like an idiot. Ministers will try to bridge their differences during the next two weeks. Opinion: It's time to cut your European exposure.
Investors all ears for Draghi's "growth compact." The ECB is holding its monetary policy meeting in Barcelona today. While no changes are expected to the 1% benchmark interest rate, ears will be trained on Mario Draghi's 8:30 ET press conference to hear him talk more about his call for an EU "growth compact" to complement the "fiscal compact."Opinion: A barrage of Keynesian advice for Europe.
Mervyn King's royal mea culpa. Bank of England governor Mervyn King yesterday acknowledged he should have done more to prevent the financial crisis, but he has yet to set up a review. "We should have shouted from the rooftops that a system had been built in which banks were too important to fail, that banks had grown too quickly and borrowed too much," King said. Opinion: U.K. ETF shakes off recession fears.
Feds bust mental-health scams. Authorities have indicted 107 doctors, nurses and social workers with Medicare fraud in a nationwide crackdown on mental-health scams that have already bilked the program of nearly $452M. In dollar terms, the take-down is the largest Medicare bust in U.S. history. Opinion: Making money on healthcare reform.
States hit by rock-bottom natural gas prices. Energy producing states are bracing for smaller tax revenues due to the low price of natural gas, which is just above half of what some states forecast in their budgets for 2013 and beyond. USA Today provides a case in point: New Mexico, which gets one of every $6 from oil and gas taxes, loses $82M annually for every $1 drop in price. Opinion: Natgas to spike sooner than expected.
U.S. obsession over yuan value questioned. Timothy Geithner has again called for additional appreciation of the yuan, although Yale's Stephen Roach tells CNBC that the issue reflects China as a "powerful export machine" and the U.S. as a consumer. This is no longer the case, though, and it's high time the debate moved on to more important issues like trade and market access, says Roach. Opinion: Chinese currency manipulation?
Today's Markets:
In Asia, Japan +0.3%. Hong Kong -0.3% . China +0.1%. India -0.9%.
In Europe, at midday, London +0.5%. Paris +1.3%. Frankfurt +1.2%.
Futures at 7:00: Dow +0.2%. S&P +0.2%. Nasdaq +0.3%. Crude -0.4%to $104.81. Gold -0.6% to $1644.80.
Today's economic calendar:
Chain Store Sales
7:30 Challenger Job-Cut Report
8:30 Initial Jobless Claims
8:30 Productivity and Costs
9:00 Ceridian-UCLA Pulse of Commerce Index
10:00 ISM Non-Manufacturing Index
11:00 Fed's Plosser: 'Economic Forecast Project 2012'
10:30 EIA Natural Gas Inventory
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
Notable earnings before today's open: AEE, AMT, ANR, ANSS, APA,ARG, BBG, BCE, BEAM, CAH, CHSI, CI, CNP, CVC, CXW, DNR, EP, EPB,ESV, GM, GOLD, HCA, LEA, LPS, LVLT, LXP, MDC, MFA, MFC, MGM, NRG,OGE, PGN, PWR, PXP, SBH, SEE, SLE, SNI, SRE, SXCI, TDC, TIE, UPL,VIAB, VRX, WNR
Today's Markets:
In Asia, Japan +0.3%. Hong Kong -0.3% . China +0.1%. India -0.9%.
In Europe, at midday, London +0.5%. Paris +1.3%. Frankfurt +1.2%.
Futures at 7:00: Dow +0.2%. S&P +0.2%. Nasdaq +0.3%. Crude -0.4%to $104.81. Gold -0.6% to $1644.80.
Today's economic calendar:
Chain Store Sales
7:30 Challenger Job-Cut Report
8:30 Initial Jobless Claims
8:30 Productivity and Costs
9:00 Ceridian-UCLA Pulse of Commerce Index
10:00 ISM Non-Manufacturing Index
11:00 Fed's Plosser: 'Economic Forecast Project 2012'
10:30 EIA Natural Gas Inventory
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
Notable earnings before today's open: AEE, AMT, ANR, ANSS, APA,ARG, BBG, BCE, BEAM, CAH, CHSI, CI, CNP, CVC, CXW, DNR, EP, EPB,ESV, GM, GOLD, HCA, LEA, LPS, LVLT, LXP, MDC, MFA, MFC, MGM, NRG,OGE, PGN, PWR, PXP, SBH, SEE, SLE, SNI, SRE, SXCI, TDC, TIE, UPL,VIAB, VRX, WNR
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