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Stock Market & Financial Investment News

News Breaks
May 15, 2014
12:34 EDTGM, WMT, ACXM, KND, CSCO, NQ, GTIVOn The Fly: Midday Wrap
Stocks on Wall Street began the session in negative territory, extending yesterday's slide, and have remained there throughout the morning. The Dow is down about 1%, though that decline is less than either the S&P 500 or Nasdaq have experienced. The blue chip index is being weighed on by a post-earnings slide in shares of Wal-Mart (WMT), but that decline has been somewhat offset by the advance of fellow component Cisco (CSCO) after its own strong report. ECONOMIC EVENTS: In the U.S., initial claims fell to a new cycle-low 297K in the second week of May, which was below the expectation for 315K initial claims. The Consumer Price Index rose 0.3% in April compared to the prior month, as expected. The NY Fed's Empire State survey has a reading of 19.01, which was a four-year high and well above the forecast for a reading of 5.0. Industrial production fell 0.6% in April, which was worse than the expected decline of 0.1%. Capacity utilization fell to 78.6% in the month, which was also worse than expected. The Philadelphia Federal Reserve index fell to 15.4 in May from its prior reading of 16.6, which was a smaller decline than anticipated. The NAHB housing market index fell to 45 in May, undershooting the consensus estimate of 48. COMPANY NEWS: Two blue chip names were moving in different directions following their earnings reports, as tech giant Cisco lead all advancers on the Dow and the world's largest retailer, Wal-Mart, was the laggard on the index. Cisco shares gained almost 7% near noon after the company's Q3 results beat expectations and analysts at Cantor called the company's tone on its conference call "the most upbeat in over a year." Conversely, Wal-Mart fell 2.5% at midday after the company's earnings for the just ended quarter and its guidance for current quarter profits both trailed analysts' consensus forecast... General Motors (GM) shares are down nearly 3% after the company announced five new safety recalls covering about 2.7M vehicles in the United States. MAJOR MOVERS: Among the notable gainers was Gentiva Health (GTIV), which jumped 61% and was upgraded to Market Perform from Underperform at Raymond James after Kindred Healthcare (KND) made public its proposal to acquire Gentiva for a combination of $7.00 per share in cash and $7.00 of Kindred common stock. Shares of Kindred, which said that Gentiva has not been willing to discuss a transaction, also rose 6% after the announcement. Among the noteworthy losers was NetQin Mobile (NQ), which plunged 25% after the Chinese company, which has previously been accused of fraud by short-seller Muddy Waters, said it was unable to file its annual report on time because it needs additional time to complete it. Also lower was Acxiom (ACXM), which dropped 22% after the company gave a lower than expected FY15 outlook and announced a deal to acquire LiveRamp for $310M in cash. INDEXES: Near midday, the Dow was down 195.53, or 1.18%, to 16,418.44, the Nasdaq was down 60.36, or 1.47%, to 4,040.26, and the S&P 500 was down 25.16, or 1.33%, to 1,863.37.
News For CSCO;WMT;GTIV;KND;GM;NQ;ACXM From The Last 14 Days
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December 8, 2014
12:40 EDTCSCOUS Supreme Court to hear appeal in patent fight with Cisco
The U.S. Supreme Court has agreed to hear an appeal of a controversial appeals court decision that set aside a $63.8M patent infringement verdict won by The Woodlands, Texas-based Commil USA LLC against Cisco
11:10 EDTGMVolkswagen sees challenging developments continuing for rest of year
Volkswagen (VLKAY) said, “The challenging developments on markets worldwide – above all in Eastern Europe and South America – will continue for the remainder of this year. The Volkswagen Passenger Cars brand handled these challenges successfully during the course of the year, but was not entirely immune to their impact.” Other publicly traded companies in the passenger automotive space include Fiat Chrysler (FCAU), Ford (F), General Motors (GM), Honda (HMC), Nissan (NSANY), and Toyota (TM).
10:49 EDTWMTLiquidity Services plunges after Wal-Mart seeks to end supply deal
Shares of Liquidity Services (LQDT) are tumbling after the company disclosed that Wal-Mart (WMT) had terminated a deal to provide it with merchandise. Liquidity Services operates an auction marketplace that features surplus and salvaged items. WHAT'S NEW: Liquidity Services reported after Friday's market close in a regulatory filing that Wal-Mart had decided to stop supplying products to Liquidity Services.The auction company noted that it had previously had the right to purchase certain consumer items that have been removed from Wal-Mart's shelves. However, Wal-Mart, on December 1, reported to the company that it would terminate the deal, effective today. Wal-Mart is alleging that Liquidity Services violated certain requirements of the agreement between the companies, Liquidity Services stated. However, the auction company disputed Wal-Mart's assertions and said it was "evaluating all its options" before determining how to proceed. Liquidity Services indicated that it still expects to meet its guidance for its December quarter results. ANALYST REACTION: In a note to investors today, Colin Sebastian, an analyst at research firm Robert W. Baird, predicted that the loss of the contract would have a significant impact on Liquidity Services' results starting in 2015. However, he believes that the extent of the impact on the company's earnings before interest taxes depreciation and amortization will depend on its ability to manage its expenses. The analyst cut his price target on the name to $9 from $12 and kept a Neutral rating on the shares. Meanwhile, Janney Capital analyst Shawn Milne wrote that Liquidity Services had previously disclosed that Wal-Mart accounted for 11% of its gross merchandise volume in fiscal 2014. Milne predicted that the termination of the deal would reduce Liquidity Services' annual EBITDA by less than $10M. He also kept a Neutral rating on the stock. PRICE ACTION: In early trading, Liquidity Services sank 25% to $7.70.
10:03 EDTWMTLiquidity Services price target lowered to $9 from $12 at RW Baird
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09:20 EDTWMTLiquidity Services estimate cuts possible on Wal-Mart fight, says Janney Capital
After Liquidity Services (LQDT) disclosed that Wal-Mart (WMT) terminated its return agreement and that the two are now in dispute over the deal, Janney Capital noted Liquidity 's recent 10K filing indicated that Wal-Mart accounted for 11% of FY14 gross merchandise volume, including Commercial Capital assets. Janney estimates the full year EBITDA impact from the contract to be somewhere below $10M, but said there is a potential for further estimate cuts given the dispute. The firm maintains its Neutral rating on Liquidity Services shares.
09:13 EDTWMTLiquidity Services reports Walmart terminates return agreement
Liquidity Services (LQDT) had previously acquired from ILJ Enterprises its business of purchasing closeouts, excess merchandise and customer returns for resale to retailers, wholesalers, and other third parties and consumers. In connection with the acquisition, the company, through one of its subsidiaries, assumed ILJ’s rights and obligations with Wal-Mart Stores (WMT). Under the Wal-Mart agreement, Liquidity Services has the exclusive right to purchase certain consumer products from Wal-Mart that have been removed from the sales stream of Wal-Mart’s retail operations. On December 1, Wal-Mart provided Liquidity Services written notice terminating the Wal-Mart Agreement, effective December 8. The termination notice alleges that the company failed to comply with certain provisions under the Wal-Mart agreement with respect to service level requirements and restrictions on the disposition of merchandise, Liquidity disclosed in a regulatory filing late Friday. The company disputes these allegations and is contesting the termination of the agreement with Wal-Mart. The company had been in negotiations with Wal-Mart to address Wal-Mart’s failure to honor the company’s exclusive right to purchase selected merchandise from Wal-Mart but was unable to reach a satisfactory resolution. The company is currently evaluating all of its options, reserves all rights with respect to this matter and will continue to seek appropriate relief from Wal-Mart for its failure to honor the company’s exclusive rights to purchase selected merchandise and any related actual damages the company has incurred. The company does not believe that the purported termination of the Wal-Mart Agreement will result in the company being unable to meet its financial guidance for its first fiscal quarter ending December 31, 2014, Liquidity Services stated.
08:40 EDTCSCODeutsche Bank and Cisco to host a conference call
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08:02 EDTCSCOAruba says NHS replaces Cisco network with Aruba wireless infrastructure
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07:49 EDTCSCOArista Networks lawsuit not as threatening as believed, says SunTrust
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07:32 EDTCSCORaymond James to hold a conference
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07:03 EDTCSCOArista Networks patent resolution likely 2-3 years away, says Citigroup
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December 5, 2014
15:12 EDTWMTBarnes & Noble NOOK said to be potential target for Wal-Mart, Bloomberg reports
Wal-Mart (WMT) is interested in e-books and could target Barnes & Noble's (BKS) NOOK Media, said TheDeal, according to Bloomberg.
14:06 EDTGMGeneral Motors ticks key resistance at the $34 area
The $34 level played a role as major support through the year until the breakdown in share price in September. Today the stock is ticking that level once again. Powering through this level would be bullish, while a failure at $34 would be bearish. Resistance is at $35.14. Support is at $33.24.
10:49 EDTCSCOCisco confirms two patent suits filed against Arista Networks
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10:45 EDTCSCOCisco files patent infringement complaints against Arista Networks
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10:33 EDTGMGeneral Motors recalls 2015 Chevrolet Colorado, GMC Canyon pickups, WSJ reports
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09:42 EDTACXMDatalogix sale would be positive for Acxiom, says Stephens
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09:19 EDTWMTDollar General says remains committed to purchase of Family Dollar
Dollar General Corporation (DG) issued the following statement in response to comments made by Dollar Tree (DLTR) regarding its view of potential store divestitures that may be required by the FTC in either a Dollar Tree/Family Dollar Stores (FDO) or a Dollar General/Family Dollar combination. Dollar General’s documents and data tell a very different story from that contained in the press release issued today by Dollar Tree. As Dollar General previously has stated, Walmart (WMT), not Family Dollar, is the primary driver regarding Dollar General’s strategic pricing decisions, and more than 90% of Dollar General’s SKUs are nationally priced. Dollar General is confident that its approach to strategic and pricing decisions is both correct and superior to that of Family Dollar and Dollar General has no intention of adopting a flawed strategy -- either now or after an acquisition of Family Dollar -- that it believes would impair its ability to compete with Walmart and lead to inferior financial performance. Dollar General is actively engaged in discussions with the FTC regarding the extent of potential divestitures that would be required in connection with an acquisition of Family Dollar and has been making good progress. Over the past few weeks, Dollar General has provided the FTC with tens of thousands of documents supporting the above facts and its broad view of competition. There is no reason to believe that the FTC would take into account only Family Dollar’s documents and data or afford them greater significance than Dollar General's own evidence. As stated in Dollar General's press release of December 4, Dollar General will continue to work with the FTC and expects to provide an update in sufficient time to allow Family Dollar shareholders to review such information prior to the Family Dollar shareholders’ meeting now scheduled for December 23.
06:27 EDTGMGM looking to sell 500K Cadillacs annually by 2020, Reuters reports
GM plans to increase global annual sales of its Cadillac brand to over 500,000 cars by 2020, Reuters quoted Cadillac President Johan de Nysschen as saying. Reference Link
06:18 EDTNQStocks with implied volatility above IV index mean; NQ EBAY
Stocks with implied volatility above IV index mean; NQ Mobile (NQ) 144, eBay (EBAY) 20 according to iVolatility.
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