The prominent United States market stock averages ended close to flat-line on this Friday, 26th October 2012 as substandard outcomes from firms, including Apple and increased anxieties on profits predictions outshined a better-than-anticipated read on regional growth of economy.
Apple market shares leant to nearly 0.91-percent on its release this Thursday October 25th of below-consensus three-monthly earnings, but topped revenue anticipations of Wall Street. The Dow Jones Industrial market average has been able to add 4-points or nearly 0.03-percent to attain around 13,107. The well-known blue chip market index started the sit-up a slightly over seven-percent in 2012, but ended 1.777-percent for the entire week.
Breadth was unenthusiastic, with losers outperforming winners 18 to 12. The highest percentage decliners during the recent session consisted of JP Morgan Chase, Bank of America, Procter & Gamble, and Alcoa. Merck market shares edged at around 0.32-percent, after the drug manufacturer registered 3rd quarter profits of 95-cents per share on earnings of around $11.5-billion, against the average expert prediction of around 92-cents per shares on profits of nearly $11.57-billion as fixed cost expenditure reductions assisted counteract weaker sales influenced by generic rivalry for its popular Singulair tablet.
Wal-Mart market shares dropped by nearly 0.29-percent, after the well-known retail legend informed that it strategies to start nearly 100 new outlets in the coming 3-years in China, and offer around 18,000 new job openings. The rate of store launching is a hold back from previous growth paces for Wal-Mart in the extremely competitive retail division in the Chinese market. Microsoft, United Technologies, and Intel were topping the blue chip developers.
The Standard & Poor 500 market index dropped by 1-point, or nearly 0.07-percent at around 1412, and the index dropped by almost 1.48-percent for the whole week. The Nasdaq Composite dropped 2-points or nearly 0.06-percent at 2985. The tech heavy market index ended at around 0.59-percent for the entire week.
Losers were clearly outnumbering improvers by a standard 1.4 to 1 ration on the famous New York market stock exchange, and the NASDAQ composite. Total quantity was nearly at 3.28-billion on the huge board, and 1.79-billion as indicated on the NASDAQ. All divisions in the most recent broad market were actually present in the red, balanced down most greatly by customer financials, cyclicals, capital goods, technology, and basis materials.
The department of economic analysis mentioned that its upgraded prediction on United States total local product displayed progress of around 2-percent during the 3rd quarter.
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.