Global stocks were recorded increasing for third day and euro touched 1 month high on Wednesday, motivated mostly by better prospects for fixing debt woes in Spain, while much better than anticipated gains and housing data among financials elevated most equities in US. Debt prices of German and US government decreased after Spain managed to avoid damaging ratings from Moody’s, plus the better that expected housing data from US indicated about a recovering economy and reducing demand of safe-haven.
Increasing speculations about Spain asking for bailout in the coming month increased the euro. A probable credit line to Spain along with easing of opposition in Germany to help Spain and Greece might also help euro in the coming term. Wall Street was seen ending higher, with 3 major indices touching a straight three day gains, but discouraging results from IBM (IBM.N) and Intel (INTC.O) weighed a bit on Dow, and to a smaller extent Nasdaq, for most of the concerned session.
Intel plunged 2.51% to reach $21.79 and IBM shed 4.9% to touch $200.63. Both were the biggest declines on Nasdaq 100. NDX and Dow. M&T Bank (MTB.N) increased 5.8% to touch $103.07 after it posted 3rd quarter results, aiding to increase KBW Bank index . BKX by 1.55%, and S&P financial services index .GSPF increased 1.2%, which made it the biggest one to gain out of the ten S&P 500 sectors.
The President at Liberty View Capital Management,Jersey City,New Jersey, Rick Meckler said that it appeared like it was a classic period reaction of earnings. He said that either people have high expectations to outsmart when actual figures come out or they are very pessimistic and the recorded earnings are as low enough as expected.
The Dow Jones industrial average (DJI) was seen closing at 5.22 points or 0.44% reaching 13,557.00. The Standard & Poor’s 500 Index (SPX) increased 5.99 points or 0.41% reaching 1,460.91. The Nasdaq Composite Index (IXIC) increased 2.95 points or 0.10% reaching 3,104.12. Shares in Europe increased for 3rd consecutive session, mainly because Spain remained at its best credit rating, infusing expectations that the debt crisis in euro zone is containable.
Top 3 Gainers: Zynga (NASDAQ:ZNGA), Eros International (NYSE:EROS), Borqs Technologies’ (BRQS)
Zynga (NASDAQ:ZNGA) is up 2.5% after Benchmark reiterated its Buy rating in a look-ahead at Q2 earnings. The firm’s expecting a beat and solid guidance for Q3, and it’s raising its guidance for the fiscal year.
Tailwinds from the pandemic won’t dissipate easily, Benchmark suggests, and the videogame maker’s acquisition of Peak (and with it new “forever franchises” in Toon Blast and Toy Blast) will drive audience, bookings, margins and free cash flow, it says. The firm has an $11 price target, now implying 14% upside.
Eros International (NYSE:EROS) is up 5.8% today, making up the last week’s lost ground, after news that its streaming service Eros Now is partnering with Sony India (SNE +2.3%).
That will mean Eros Now’s app is pre-installed on selected Sony smart televisions in India, along with availability on a large base of existing models (Bravia E series and newer).
The country over the past year has seen a 25% growth in demand for smart TVs, fueled by overall industry growth of 15%, to a record 15M units/year.
Borqs Technologies’ (BRQS) personal safety tracker sees strong market with increased orders from the electronics retail chain in the US.
The boost in product demand comes ahead coronavirus pandemic that provides company to expect delivery of 250K units this year. It reflects over 3x the volume delivered in 2019, the year of its launch.
Borqs’ mobile personal safety devices designed particularly for senior citizens come with panic button, location tracking, and fall detection.
Biotech movers: Pfizer Inc. (PFE), Celgene Corporation (CELG)
Pfizer Inc. (PFE) said on Thursday it received a request for documents as part of a U.S. investigation related to quality issues involving the manufacture of auto-injectors at its Meridian Medical Technologies site.
Pfizer, in a regulatory filing, said it would be producing records in response to the civil investigative demand from the U.S. Attorney’s office for the Southern District of New York.
Meridian, a unit of Pfizer that manufactures EpiPen injectors used to deliver an emergency allergy antidote, has been hit by a series of manufacturing problems in recent years. Mylan NV, which markets EpiPens, has recalled tens of thousands of the devices after complaints that some had failed to activate.
Bristol-Myers Squibb has been meeting with shareholders in Boston and New York over the last two weeks to try to salvage its $74 billion purchase of cancer drugmaker Celgene Corporation (CELG), the biggest acquisition announced so far this year.
The deal, announced in January, was hard sell to Bristol shareholders from the start. The acquisition adds about $32 billion in fresh debt to Bristol’s balance sheet while assuming $20 billion in Celgene’s debt, the companies said at the time. After factoring in debt, the acquisition was the largest health-care deal on record, according to data compiled by Refinitiv.
Now, hedge funds Wellington Management and Starboard Value say the deal doesn’t sit well with them. Bristol has sent executives to New York to meet with institutional investors several times over the last two weeks and met with investors in Boston on Wednesday and Thursday, according to a person who briefed on the meetings.
Bristol-Myers declined to comment.
Big Losers: Corbus Pharmaceuticals Holdings, Inc. (CRBP), Petróleo Brasileiro S.A. – Petrobras (PBR)
Corbus Pharmaceuticals Holdings, Inc. (CRBP)’s shares slumped as much as 16% to $6.94 on huge volume. The stock has been showing intense sell off suddenly after a bearish article on seekingalph.com by Alpha Exposure.
The article stated that Corbus has ties to investors convicted of or alleged to have committed securities fraud. We believe lenabasum has failed its major trials in SSc and CF. Lenabasum was also denied Breakthrough Therapy Designation in SSc. We believe lenabasum will fail in its pivotal SSc and Phase 2b CF trials. We are short Corbus with a price target of $0.50.
Petróleo Brasileiro S.A. – Petrobras (PBR) is expanding its ambitious divestment program and has “bold” plans for sales, the Brazilian state-run oil company’s chief executive said after the firm posted its first annual profit in five years.
On a conference call with analysts to discuss fourth-quarter results, CEO Roberto Castello Branco said selling non-core assets will be key to deleveraging.
Petrobras, as the company is known, can reduce its ratio of net debt to earnings before interest, taxes, depreciation and amortization, or EBITDA, to 1.5 or even to 1, he added.
The University of Chicago-educated CEO, who took the reins in early January, has long been vocal about the need to slim down the sprawling firm and focus on core activities such as exploration and production. Thursday’s comments were some of his most assertive on the matter.