U.S. stock futures are slightly lower this morning, as investors await data on jobless claims and consumer prices. Futures on the Dow Jones Industrial Average dropped 2 points to 12,250, while S&P 500 futures dropped 0.90 point to 1,332. Nasdaq 100 futures fell 1.50 points to 2,391.
European markets were mixed today. STOXX Europe 600 Index has gained 0.07%, while London's FTSE 100 Index moved down 0.09%.
Asian markets ended higher, with Japan's Nikkei Stock Average gaining 0.26%, Australia's S&P/ASX 200 moving up 0.15% and China's Shanghai Composite gaining 0.11%.
U.S. Futures Down Slightly as Investors Await Jobless Claims
Continue reading U.S. Futures Down Slightly as Investors Await Jobless Claims
Closing Bell: A Double From Lows (CAGC, CMCSA, DELL, DSCO, FDO, GENZ, SNY)
The FOMC Minutes offered a slight economic upgrade today. A large draw in oil inventories and word that Iran was sending two warships through the Suez canal to go to the Mediterranean spooked investors for a bit. The S&P is now up 100% from the lows of March 2009. Here were today's unofficial closing bell levels:
Dow Jones 12,288.17 +61.53 (0.50%)
S&P 500 1,336.32 +8.31 (0.63%)
Nasdaq 2,825.56 +21.21 (0.76%)
Continue reading Closing Bell: A Double From Lows (CAGC, CMCSA, DELL, DSCO, FDO, GENZ, SNY)
U.S. Stock Futures Up After Dell Reports Upbeat Earnings
U.S. stock futures are higher Wednesday morning as Sanofi-Aventis (SNY) agreed to purchase Genzyme (GENZ) and Dell (DELL) reported upbeat quarterly earnings. Futures on the Dow Jones Industrial Average gained 30 points to 12,232 and S&P 500 futures rose 4.20 points to 1,330.50. Nasdaq 100 futures gained 5.50 points to 2,387.
U.S. stocks closed lower Tuesday, with the Dow Jones Industrial Average dropping 0.34% to close at 12,227.
Continue reading U.S. Stock Futures Up After Dell Reports Upbeat Earnings
Lab Corp Buys Genzyme Genetics Unit
LabCorp (LH - option chain) stock is trading lower today after the company announced that it has agreed to purchase Genzyme's (GENZ) Genzyme Genetics unit in a $925 million all-cash deal. The price was higher than some analysts expected and is expected to negatively impact LH's earnings by 0.25 over the next year, which is sending LH stock lower today. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on LH.This morning, LH opened at $75.55 So far today the stock has hit a high of $75.99 and a low of $73.93. As of 12:25, LH is trading at $73.73 down $2.93 (-2.9%). The chart for LH looks bullish and S&P gives LH a positive 4 STARS (out of 5) buy ranking.
Closing Bell: Double Dip Fears Easing Somewhat (MW, GENZ, SKX, USO, TBT, EMMS)
A narrower trade deficit and a lower report of weekly jobless claims did not keep the market endlessly higher again today despite the notion that the markets were at least up. The biggest sector news was an almost endless biotech bonanza of analyst upgrades and a plethora of drug news. Here were today's unofficial closing bell levels:
Dow Jones 10,415.24 +28.23 (0.27%)
S&P 500 1,104.21 +5.34 (0.49%)
Nasdaq 2,236.20 +7.33 (0.33%)
Top Analyst Calls
BioHealth Business Daily
Continue reading Closing Bell: Double Dip Fears Easing Somewhat (MW, GENZ, SKX, USO, TBT, EMMS)
Genzyme Rejects Sanofi-Aventis's Buyout Proposal
Over the weekend, French pharmaceutical firm Sanofi-Aventis (SNY) made its attempt to take over biotech firm Genzyme (GENZ) official. SNY offered $69 per GENZ share, which is slightly more than a dollar higher over GENZ's Friday close. The total value of the offer comes to $18.5 billion.Although the offer isn't much more than Friday's close, it is 38% higher than GENZ's July 1 close. This is when speculation cropped up about a potential buyout offer from SNY. GENZ turned down the offer, noting that SNY was undervaluing the company.
Continue reading Genzyme Rejects Sanofi-Aventis's Buyout Proposal
Analyst Calls: AMGN, CAVM, COCO, GENZ, GILD, ICE, PWRD, SSCC, VMW ...
Analyst Upgrades
- Deutsche Bank upgraded Smurfit-Stone (SSCC) to buy from hold after raising its estimates for containerboard names and upped its target for shares to $28 from $22. The firm also raised its price target for International Paper (IP) to $38 from $32, for Packaging Corp. (PKG) to $33 from $28, for Temple-Inland (TIN) to $31 from $28, for Greif (GEF) to $67 from $65, and for Rock-Tenn (RKT) to $70 from $65. All stocks are buy rated.
- ThinkEquity upgraded VMware (VMW) to buy from hold and has a $90 price target on the stock. The firm expects VMware to benefit from increased virtual infrastructure adoption and improving vSphere solutions.
- Needham upgraded Cavium Networks (CAVM) to strong buy from buy, citing the recent pullback in shares following Cisco's (CSCO) cautious commentary. The firm has a $37 target on the stock.
- Intercontinental Exchange (ICE) was upgraded to outperform from neutral at Credit Suisse.
- MedAssets (MDAS) was upgraded to buy from hold at Auriga.
- Brookfield Properties (BPO) was upgraded to buy from hold at Citigroup.
Continue reading Analyst Calls: AMGN, CAVM, COCO, GENZ, GILD, ICE, PWRD, SSCC, VMW ...
Analyst Calls: ADSK, ATK, BCS, GENZ, H, ROCK, SFD, UL, VIA ...
Analyst Upgrades
- Credit Suisse upgraded Alliant Techsystems (ATK) to outperform from neutral following the company's increased FY11 guidance. The firm has an $85 target on the stock.
- FBR Capital upgraded Hyatt Hotels (H) to market perform from underperform following the company's Q2 results. The firm raised its target for shares to $44 from $38.
- BB&T upgraded to Smithfield Foods (SFD) to buy from hold, citing tighter supplies, strong pork prices and improving export demand. The firm has a $19 target on the stock.
- Holly (HOC) was upgraded to outperform from market perform at BMO Capital.
- Cogent Communications (CCOI) was upgraded to outperform from neutral at Cowen.
- Catalyst Health (CHSI) was upgraded to overweight from equal weight at First Analysis.
Continue reading Analyst Calls: ADSK, ATK, BCS, GENZ, H, ROCK, SFD, UL, VIA ...
Options Update: Priceline.com Volatility Elevated Shares Up in After-Hours Trading on EPS
Priceline.com (PCLN) reported Q2 EPS of $3.09, versus consensus estimates of $2.65. PCLN shares were up over 16% in after-hours trading. August put option implied volatility is at 56, October is at 48, January is at 49, versus its 26-week average of 46, according to Track Data, suggesting larger price movement. Genzyme (GENZ) holders are looking for a bid above $80 a share, Bloomberg reports. Reuters and the Wall Street Journal reported that Sanofi-Aventis (SNY) has entered into friendly acquisition talks with GENZ. Overall option implied volatility of 26 is below its 26-week average of 31, according to Track Data, suggesting decreasing price movement.
Update is by Stock Specialist Paul Foster of theflyonthewall.com.
Analyst Calls: ALU, CHL, EXC, GENZ, KO, NDSN, NSW, SJM, TXN ...
Analyst Upgrades
- JPMorgan upgraded Coca-Cola (KO) to overweight from neutral due to valuation and expectations that developed market volume should improve. The firm raised its target price for shares to $66.
- BB&T upgraded Nordson (NDSN) to buy from hold and has an $82 price target on the stock. The firm believes certain drivers of Nordson's Advanced Tech unit are becoming more secular vs. cyclical and that the company's EBIT margins can go higher.
- Credit Suisse upgraded Embraer (ERJ) to outperform from underperform, citing the positive announcements from the Famborough Air Show. The firm raised its price target to $37 from $21.
- Universal Health (UHS) was upgraded to outperform from sector perform at RBC Capital.
- Mead Johnson (MJN) was upgraded to conviction buy from buy at Goldman.
- Coventry Health (CVH) was upgraded to outperform from market perform at Leerink.
Continue reading Analyst Calls: ALU, CHL, EXC, GENZ, KO, NDSN, NSW, SJM, TXN ...
Genzyme Lifted by Takeover Speculation
Genzyme (GENZ - option chain) shares are rising today on a report in the Wall Street Journal which says that Sanofi-Aventis SA (SNY) could make a formal takeover offer to GENZ's board that could be worth about $20 billion. SNY declined to comment on the report. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on GENZ.GENZ opened this morning at $70.31. So far today the stock has hit a low of $69.97 and a high of $70.97. As of 11:55, GENZ is trading at $70.09 up $2.09 (3.1%). The chart for GENZ looks bullish and S&P gives GENZ a positive 4 STARS (out of 5) buy ranking.
Options Update: BP Overall Volatility Decreases
BP (BP) closed up $1.79 Monday to $38.65. The company reported a $17 billion loss Tuesday morning and announced it has replaced CEO Tony Hayward with Bob Dudley. Overall option implied volatility of 51 is below a level of 78 from June 28, according to Track Data, suggesting decreasing price movement. Genzyme (GENZ) closed up $4.86 to $67.38. Sanofi-Aventis (SNY), GlaxoSmithKline (GSK) and Johnson & Johnson (JNJ) may be interested in making a play for GENZ, reports the Wall Street Journal. Overall option implied volatility of 40 is above GENZ 26-week average of 31, according to Track Data, suggesting larger price movement.
Update is by Stock Specialist Paul Foster of theflyonthewall.com.
Early Financial Fireworks Hit the Markets; Will the U.S. Emerge the Leader in the Second Half of Year?
With all the mixed signals driving uncertainty and worry lately, the consensus has been a foggy windshield with no clear direction. We can't even tell if one of the largest bear market rallies in history is fizzling or pausing.On Wall Street, uncertainty is certainly a buzz killer for the irrationally exuberant. If you need a towel to wipe away the fog, take a look at Your Cheat Sheet to the Psychology of Market Cycles.
While contemplating where we're headed, let's take a look at some data points that indicate the US has the potential to lead the world out of this recession ...
Analyst Calls: AAPL, CP, CSCO, GENZ, HD, KMX, LOW, MSFT, PPL, SI, WTNY, WYNN ...
Analyst Upgrades
- Sterne Agee upgraded Wynn Resorts (WYNN) to buy from neutral and has a $115 price target on the stock. The firm believes Encore Macau will drive further share gains near-term.
- Deutsche Bank upgraded PPL Corp. (PPL) to buy from hold and said the equity offering and the the stipulation reached in the KY utilities' rate cases removes important overhangs. The firm has a $30 price target on the stock.
- UBS upgraded CarMax (KMX) to buy from neutral based on forecasts for higher consumer forecast income and positive used car trends. The firm has a $28 target on the stock.
- Aeropostale (ARO) was upgraded to outperform from underperform at Oppenheimer.
- Cardinal Financial (CFNL) was upgraded to neutral from underperform at Baird.
- Pinnacle West (PNW) was upgraded to overweight from equal weight at Barclays.
Continue reading Analyst Calls: AAPL, CP, CSCO, GENZ, HD, KMX, LOW, MSFT, PPL, SI, WTNY, WYNN ...
Analyst Calls: A, BA, DPS, DVOX, GENZ, GLW, GR, HAL, PCLN, SUSQ, TCRD, TNB ...
Analyst Upgrades
- Bernstein upgraded Boeing (BA) to outperform from market perform, citing valuation. The firm also raised its price target to $81 from $80.
- Wells Fargo upgraded Thomas & Betts (TNB) to outperform from market perform, citing valuation and an expected recovery in North American nonresidential construction.
- RBC Capital upgraded Susquehanna (SUSQ) to outperform from sector perform and has a $14 target on the stock. The firm thinks the stock's valuation is attractive as its decline in response to the European debt crisis and financial regulatory reform has been overdone.
- Priceline.com (PCLN) was upgraded to buy from hold at KeyBanc.
- Genzyme (GENZ) was upgraded to neutral from underweight at JPMorgan.
- RightNow (RNOW) was upgraded to overweight from market weight at Thomas Weisel.
Continue reading Analyst Calls: A, BA, DPS, DVOX, GENZ, GLW, GR, HAL, PCLN, SUSQ, TCRD, TNB ...
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
