24/7 Wall St. » DFS

Top Analyst Upgrades and Stocks to Buy: AMC Networks, BlackBerry, Boeing and More

Jon C. Ogg — Thu, 13 Jun 2013 12:20:39 +0000

Investors and traders seem to be constantly looking for fresh research ideas that will lead to higher income or more profits. 24/7 Wall St. reviews many fresh research calls each morning to find great ideas from value stocks to growth stocks to dividend stocks. We are breaking out the positive analyst calls as far as stocks to buy and positive research calls and these are some of this Thursday’s top analyst upgrades, initiations and positive analyst research calls seen from Wall Street today.

AMC Networks Inc. (NASDAQ: AMCX) was started as Buy with a $74 price target at Sterne Agee.

BlackBerry (NASDAQ: BBRY) was upgraded to Buy from Sell at Societe Generale.

Boeing Co. (NYSE: BA) was started as Overweight at Morgan Stanley.

Discovery Communications Inc. (NASDAQ: DISCA) was started as Buy with an $87 price target at Sterne Agee.

Discover Financial Services (NYSE: DFS) was started as Outperform at Oppenheimer.

Hercules Offshore Inc. (NASDAQ: HERO) was upgraded to Outperform from Market Perform at Wells Fargo.

International Paper Co. (NYSE: IP) was upgraded to the prized Conviction Buy List from a prior Neutral rating at Goldman Sachs.

Ross Stores Inc. (NASDAQ: ROST) was raised to Buy and given a $75 price target at Sterne Agee.

Starz (NASDAQ: STRZA) was started as Buy with a $26.50 price target at Stern Agee.

Time Warner Inc. (NYSE: TWX) was started as Buy with a $73 price target at Sterne Agee.

Merrill Lynch has released its list of top biotech stocks to buy for big upside.

Filed under: Investing Tagged: AMCX, BA, BBRY, DFS, DISCA, HERO, IP, ROST, STRZA, TWX

Top Wall Street Analyst Downgrades Include Apple, Amgen, Banks

Jon C. Ogg — Wed, 24 Apr 2013 12:25:35 +0000

Investors frequently get to see the analyst upgrades and Buy ratings from Wall St. firms. They often do not get to see or they overlook the analyst downgrades and lists of stocks to sell or to avoid. We review many fresh research calls each and every day to find great ideas from value stocks to growth stocks to dividend stocks, and we have broken out the negative analyst calls today.

These are this Wednesday’s top analyst downgrades and cautious research notes from Wall St.

Amgen Inc. (NASDAQ: AMGN) was downgraded to Neutral from Overweight at Piper Jaffray after sales were light.

Apple Inc. (NASDAQ: AAPL) was downgraded to Market Perform from Outperform with a $435 upside price target at BMO Capital Markets after the earnings, dividend and buyback news. Other forms have lowered their price targets and will be updated later. We also pointed out this morning that Apple’s woes have a ripple effect on other companies.

AT&T Inc. (NYSE: T) was downgraded to Equal Weight at Morgan Stanley and downgraded to Neutral at Citigroup. We also labeled this report as the death of growth.

DeVry Inc. (NYSE: DV) was downgraded to Hold from Buy at Deutsche Bank.

Discover Financial Services (NYSE: DFS) was downgraded to Hold from Buy at Jefferies.

Edwards Lifesciences Corp. (NYSE: EW) had disappointing sales and guidance and shares are indicated down about 15% at a new 52-week low. We have seen so far that Lazard downgraded the drug company to Neutral from Buy and that RBC Capital Markets downgraded it to Sector Perform from Outperform.

Randgold Resources Ltd. (NASDAQ: GOLD) was given the dubious call of the “Bear of the Day” at Zacks Investment Research. The firm rates it a Strong Sell that faced sharp downward revisions of its numbers.

Vocus Inc. (NASDAQ: VOCS) is the leader of the pack on what is now Sell stocks after missing earnings and guiding lower for the coming quarter and full year. Shares are down more than 30%, under $10 to a new 52-week low. Raymond James and FBR Capital Markets both cut the ratings to Market Perform. Stifel Nicolaus cut its rating to Hold.

We want to point out one key report that may put a drag on banking earnings and stocks ahead. Late on Tuesday came a report from Fitch and the gut check shows that the best may have already been seen from the banking stocks in 2013 for J.P. Morgan Chase & Co. (NYSE: JPM) and other major banks.

Filed under: Investing Tagged: AAPL, AMGN, DFS, DV, EW, gold, JPM, T, VOCS

Top Analyst Upgrades and Downgrades (BA, COST, CVRR, DFS, EPB, EQM, FIG, FCX, ORCL, SYMC, SYRG, TLLP, TXN, VZ, WAG, WMT, YUM, ZTS, AMD)

Jon C. Ogg — Wed, 13 Mar 2013 12:40:58 +0000

These are some of the top analyst upgrades, downgrades and reiterations seen by 24/7 Wall St. from the key Wall St. research calls this Wednesday.

Boeing Co. (NYSE: BA) reiterated Buy with $100 price target at BofA/Merrill Lynch.

Costco Wholesale Corp. (NASDAQ: COST) reiterated Buy and target raised by $2 to $115 at Argus.

CVR Refining L.P. (NYSE: CVRR) raised to Outperform and target raised to $34 from $32 at Credit Suisse.

Discover Financial Services (NYSE: DFS) reiterated Buy with $47 target at BofA/Merrill Lynch.

El Paso Pipeline Partners L.P. (NYSE: EPB) cut to Neutral but raised target by $1 to $44 at Credit Suisse.

EQT Midstream Partners L.P. (NYSE: EQM) cut to Neutral at Credit Suisse.

Fortress Investment Group LLC (NYSE: FIG) raised to Buy and target raised to $8.50 from $6 at Goldman Sachs.

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) named Bear of the Day as copper and gold are weighing down lots of miners at Zacks Investment Research.

Oracle Corp. (NASDAQ: ORCL) raised to Buy from Hold at Canaccord Genuity.

Symantec Corp. (NASDAQ: SYMC) named Bull of the Day as cyber security threats are on the rise at Zacks Investment Research.

Synergy Resources Corp. (NYSEMKT: SYRG) started as Buy at KeyBanc.

Tesoro Logistics L.P. (NYSE: TLLP) cut to Neutral at Credit Suisse; cut to Neutral at BofA/Merrill Lynch.

Texas Instruments Inc. (NASDAQ: TXN) cut to Market Perform at Bernstein.

Verizon Communications Inc. (NYSE: VZ) reiterated Buy and raised target $6 to $54 at Argus.

Walgreen Co. (NYSE: WAG) raised to Buy at UBS.

Wal-Mart Stores Inc. (NYSE: WMT) reiterated Buy with $85 price target at BofA/Merrill Lynch.

Yum! Brands Inc. (NYSE: YUM) maintained Outperform and raised target by $3 to $70 at Credit SUisse.

Zoetis (NYSE: ZTS) started as Neutral at BofA/Merrill Lynch, started as Neutral at Goldman Sachs, started as Buy at Jefferies, started as Overweight at J.P. Morgan and started as Buy at Deutsche Bank.

Advanced Micro Devices Inc. (NYSE: AMD) was shown with a $5 to $7 valuation and was maintained as outperform at Wells Fargo on Tuesday, implying a stock that will double. Here were some of our issues with the call.

BofA/Merrill Lynch’s prized RIC Report looked great for stocks, but not for gold and bonds.

Here are 11 stocks which analysts expect to rise 50% to 100% (or more) over the next year.

Here is a list of eight companies that will benefit from the Keystone pipeline if approved.

Filed under: Investing Tagged: AMD, BA, COST, CVRR, DFS, EPB, EQM, FCX, FIG, ORCL, SYMC, SYRG, TLLP, TXN, VZ, WAG, WMT, YUM, ZTS

Media Digest (3/13/2013) Reuters, WSJ, NY Times, Bloomberg

Douglas A. McIntyre — Wed, 13 Mar 2013 10:20:34 +0000

Boeing Co. (NYSE: BA) gets permission from the FAA to test fly its troubled 787. (Reuters)

Job openings rose in January, according to the Labor Department. (Reuters)

President Obama will meet with CEOs on the subject of cyber security. (Reuters)

IDC expects sales of Google Inc. (NASDAQ: GOOG) Android-powered tablets to pass the Apple Inc. (NASDAQ: AAPL) iPad this year. (Reuters)

Dean Metropoulos and Apollo Global Management LLC (NYSE: APO) will buy some of the Hostess brands. (Reuters)

The FTC wants standards for traditional ads to apply to those on Twitter and Facebook Inc. (NASDAQ: FB) sites so that certain disclosures about the marketers are clear. (WSJ)

Samsung spent more than Apple to market smartphones in 2012. (WSJ)

Audi’s sales pace may allow it to challenge BMW and Mercedes for market share. (WSJ)

Regulators approve a deal for T-Mobile to combine with MetroPCS Communications Inc. (NYSE: PCS). (WSJ)

Sudan agrees to begin new shipments of crude oil, which had been suspended recently. (WSJ)

China steel output rose 9.8% last month, largely due to domestic construction. (WSJ)

Discover Financial Services (NYSE: DFS) enters the mortgage business. (WSJ)

Google presses into the cloud computing market now dominated by Amazon.com Inc. (NASDAQ: AMZN) and Microsoft Corp. (NASDAQ: MSFT). (NYT)

West Texas Intermediate crude nears a two-week high as U.S. supplies drop. (Bloomberg)

The new Samsung Galaxy IV will target sales of Apple’s iPhone. (Bloomberg)

Filed under: Investing Tagged: AAPL, AMZN, APO, BA, DFS, FB, GOOG, MSFT, PCS

24/7 Wall St. Closing Bell — February 8, 2013: Markets Start Higher, Hold on to Gains (DIS, CS, ARMH, BIIB, DFS, ATVI, CSTR, LNKD, RVBD, SPWR, AOL, APO, MCO, CCJ, L, NAT, WPP, ZNGA, ONCY, CZR)

Paul Ausick — Fri, 08 Feb 2013 21:03:41 +0000

U.S. equity markets opened higher this morning boosted by higher-than-expected trade balances in China (more coverage here) and in the U.S. (more coverage here). In Europe the big news came later in the morning, with an agreement on the smaller European Union budget supported by U.K. Prime Minister Cameron (more coverage here). In Asia, the Chinese trade data was skewed by an extra five working days in January due to a later lunar New Year. U.S. equities posted early gains and held on to those gains through the day.

The U.S. dollar index rose 0.09% today, now at 80.264. The GSCI commodity index is down about 0.3% at 674.01, with commodities prices mixed today. WTI crude oil closed down 0.1% today, at $95.72 a barrel, and post a drop of 2.1% for the week. Brent crude trades up 1.5% at $118.79 a barrel, opening spread of $22 between WTI and Brent prices. Natural gas is down 0.3% today at about $3.28 per million BTUs. Gold settled down 0.3% today at $1,666.90 an ounce, finishing the week down 0.2%.

The unofficial closing bells put the DJIA up about 48 points to 13,992.13 (0.34%), the NASDAQ rose nearly 29 points (0.91%) to 3,193.87, and the S&P 500 rose 0.56% or more than 8 points to 1,517.88.

There were a several analyst upgrades and downgrades today, including The Walt Disney Co. (NYSE: DIS) reiterated as ‘buy’ and price target raised to $65 at Argus; Credit Suisse Group (NYSE: CS) cut to ‘hold’ at Deutsche Bank; ARM Holdings plc (NASDAQ: ARMH) raised to ‘outperform’ at Credit Suisse; Biogen Idec Inc. (NASDAQ: BIIB) raised to ‘buy’ with a target price of $167 at Citigroup; and Discover Financial Services (NYSE: DFS) raised to ‘outperform’ and target price raised to $47 at Credit Suisse.

Earnings reports since markets closed last night resulted in several price moves today, including these: Activision Blizzard Inc. (NASDAQ: ATVI) is up 11.3% at $13.42 after posting a new 52-week high of $13.94 earlier today; Coinstar Inc. (NASDAQ: CSTR) is down 6.8% at $48.54 (more coverage here); LinkedIn Corp. (NYSE: LNKD) is up 21.7% at $151.05, a new all-time high (more coverage here); Riverbed Technology Inc. (NASDAQ: RVBD) is down 18% at $16.48; SunPower Corp. (NASDAQ: SPWR) is down 6.1% at $7.89 (more coverage here); AOL Inc. (NYSE: AOL) is up 7.8% at $33.86 (more coverage here); Apollo Global Management LLC (NYSE: APO) is up 3.3% at $22.88 after posting a new 52-week high of $23.88 earlier today; and Moody’s Corp. (NYSE: MCO) is down 8.6% at $42.97 (more coverage here).

After markets close today and before they open Monday morning we are scheduled to hear from Cameco Corp. (NYSE: CCJ), Loews Corp. (NYSE: L), Nordic American Tankder Ltd. (NYSE: NAT), and Wausau Paper Corp. (NYSE: WPP).

Some standouts from today include the following stocks:

Zynga Inc. (NASDAQ: ZNGA) is up 12.3% at $3.47. The social game company continues to rise after pounding estimates earlier this week. The key for long-term growth remains Internet gambling, and that might be getting a bit closer.

Oncolytics Biotech Inc. (NASDAQ: ONCY) is up 21.9% at $4.35. The Canada-based biotech firm got a positive result in a Phase II study of its lung cancer drug. More coverage here.

Ceasars Entertainment Corp. (NASDAQ: CZR) is up 38.4% at $13.94. The casino operator will get a significant share price boost if New Jersey approves online gambling. The governor vetoed an online gambling bill today, but asked for changes that would be acceptable to him.

Stay tuned for Monday. We have also noted the following events on the schedule (all times Eastern):

11:30 a.m. – 3- and 6-month Treasury bill auctions

Have a great weekend!

Filed under: Investing Tagged: AOL, APO, ARMH, ATVI, BIIB, CCJ, CS, CSTR, CZR, DFS, DIS, L, LNKD, MCO, NAT, ONCY, RVBD, SPWR, WPP, ZNGA

Top Analyst Upgrades and Downgrades (ALU, NLY, ARMH, BIIB, BX, COF, CS, DFS, IGT, NUAN, KORS, RVBD, VOD, DIS)

Jon C. Ogg — Fri, 08 Feb 2013 13:40:17 +0000

These are some of this Friday’s top analyst upgrades, downgrades and initiations seen from Wall St. research calls.

Alcatel-Lucent S.A. (NYSE: ALU) raised to Overweight at Morgan Stanley and reiterated Hold at Argus.

Annaly Capital Management Inc. (NYSE: NLY) raised to Neutral from Underperform at Stern Agee.

ARM Holdings PLC (NASDAQ: ARMH) had seen a major downgrade wave but now shares have been raised to Outperform at Credit Suisse.

Biogen Idec Inc. (NASDAQ: BIIB) raised to Buy with $167 price target at Citigroup and reiterated Outperform and raised target to $185 from $175 at Credit Suisse.

Blackstone Group L.P. (NYSE: BX) reiterated Buy and raised target price to $22 from $18 at Argus.

Capital One Financial Corp. (NYSE: COF) named Bear of the Day on concerns about what is in its portfolio at Zacks.

Credit Suisse Group (NYSE: CS) cut to Hold at Deutsche Bank.

Discover Financial Services (NYSE: DFS) raised to Outperform and raised target price to $47 from $44 at Credit Suisse.

International Game Technology (NYSE: IGT) raised to Buy with $20 target at Argus.

Nuance Communications Inc. (NASDAQ: NUAN) cut to Hold at Needham.

Michael Kors Holdings Ltd. (NYSE: KORS) named Bull of the Day as the high-end and “accessible” luxury demand fashion this designer’s growth around the world at Zacks.

Riverbed Technology Inc. (NASDAQ: RVBD) cut to Hold at Cantor Fitzgerald and cut to Market Perform at FBR Capital Markets.

Vodafone Group PLC (NASDAQ: VOD) raised to Buy at BofA/Merrill Lynch.

Walt Disney Co. (NYSE: DIS) reiterated Buy and raised target by $5 to $65 at Argus.

Filed under: Investing Tagged: ALU, ARMH, BIIB, BX, COF, CS, DFS, DIS, IGT, KORS, NLY, NUAN, RVBD, VOD

24/7 Wall St. Closing Bell — December 21, 2012: Markets Gloomy All Day (MDRX, GG, NKE, EAT, DFS, RHT, WAG, SMRT, RIMM, ASCA, PNK, DQ, HLF, HALO, PFE)

Paul Ausick — Fri, 21 Dec 2012 21:05:59 +0000

U.S. equity markets opened lower this morning following last night’s failure by the U.S. House of Representatives to hold a vote on a plan to deal with the country’s budget deficit. In Europe, Germany’s consumer climate reading was higher than expected, but the U.K.’s GDP growth was revised downward. In Asia, markets reacted strongly to the failed U.S. House vote. A number of data points were released in the U.S. today. Durable goods orders and personal spending were better than expected (more coverage here). The consumer sentiment index reading was lower than expected, down from 74.5 last month to 72.9 in December. Equities traded solidly lower all day — a quadruple-witching day — with index futures, index options, stock options, and single stock futures all expiring. U.S. markets close early on Monday and are closed all day Tuesday for the Christmas holiday.

The U.S. dollar index rose sharply today, now up 0.45% at 79.609. The GSCI commodity index is down 0.2% at 643.49, with commodities prices mostly higher today. WTI crude oil closed down 1.6% today, at $88.66 a barrel, for a weekly gain of 2.2%. Brent crude trades down 1% at $109.06 a barrel. Natural gas is down 0.4% today at about $3.45 per thousand cubic feet. Gold settled up 0.9% today at $1,660.10 an ounce,but posted a loss of 2.2% for the week.

The unofficial closing bells put the DJIA down about 119 points to 13,192.61 (-0.89%), the NASDAQ fell more than 29 points (-0.96%) to 3,021.01, and the S&P 500 fell -0.94% or more than 13 points to 1,430.17.

There were several analyst upgrades and downgrades today, including Allscripts Healthcare Solutions Inc. (NASDAQ: MDRX) cut to ‘hold’ at Argus; Goldcorp Inc. (NYSE: GG) cut to ‘neutral’ at Credit Suisse; Nike Inc. (NYSE: NKE) cut to ‘neutral’ at Janney; Brinker International Inc. (NYSE: EAT) raised to ‘buy’ at Sterne Agee; and Discover Financial Services (NYSE: DFS) cut to ‘market perform’ at FBR Capital Markets and reiterated as ‘buy’ at BofA/ML.

Earnings reports since markets closed last night have resulted in the following price change as of the last half hour of trading today: Nike Inc. (NYSE: NKE) is up 6.3% at $105.27; Red Hat Inc. (NYSE: RHT) is up 4.5% at $54.96; and Walgreen Co. (NYSE: WAG) is down 3.1% at $36.38 (more coverage here).

After markets close today and before they open on Wednesday morning we are scheduled to hear only from Stein Mart Inc. (NASDAQ: SMRT).

Some standouts from today include the following stocks:

Research in Motion Ltd. (NASDAQ: RIMM) is down 21.1% at $11.14. The smartphone maker posted weak results after markets closed last night. More coverage here.

Ameristar Casinos Inc. (NASDAQ: ASCA) is up 19.6% at $26.40 after posting a new 52-week high of $26.59 earlier today. The casino operator is being acquired by competitor Pinnacle Entertainment Inc. (NYSE: PNK) for $26.50 a share. More coverage here.

Daquo New Energy Corp. (NYSE: DQ) is up 421.5% at $6.26. The Chinese maker of polysilicon for solar panel manufacturing raised the number of common shares in one U.S. American Depositary Share (ADS) from 5 to 25.

Herbalife Inc. (NYSE: HLF) is down 20.8% at $26.68 after posting a new 52-week low of $26.04 earlier today. The nutrition and weight-loss food maker has been hammered by comments from William Ackman, who holds a massive short position in the stock. More coverage here.

Halozyme Therapeutics Inc. (NASDAQ: HALO) is up 26.1% at $6.96. The drug development company will collaborate with industry giant Pfizer Inc. (NYSE: PFE) on six new injectable medicines.

Stay tuned for next Wednesday. U.S. markets close at 1:00 p.m. on Monday and are closed all day Tuesday for the Christmas holiday. No data releases are scheduled for Monday. We have noted the following events on the schedule for Wednesday (all times Eastern):

7:00 a.m. – Mortgage Bankers Association purchase applications
9:00 a.m. – S&P Case-Shiller housing price index
10:00 a.m. – Richmond Fed manufacturing index
11:30 a.m. – 4-week Treasury bill auction
1:00 p.m. – 3- and 6-month Treasury bill auctions

Have a great weekend!

Paul Ausick

Filed under: Investing Tagged: ASCA, DFS, DQ, EAT, GG, HALO, HLF, MDRX, NKE, PFE, PNK, RHT, RIMM, SMRT, WAG

Top Analyst Upgrades and Downgrades (MDRX, FOLD, EAT, XTEX, DRI, DFS, GG, HLF, MU, NKE, PAYX, RIMM, WHR)

Jon C. Ogg — Fri, 21 Dec 2012 13:37:39 +0000

These are some of the top analyst upgrades, downgrades and initiations seen in Wall St. research calls this Friday.

Allscripts Healthcare Solutions Inc. (NASDAQ: MDRX) cut to Hold at Argus.

Amicus Therapeutics (NASDAQ: FOLD) cut to Underperform at Wedbush.

Brinker International Inc. (NYSE: EAT) raised to Buy at Stern Agee.

Crosstex Energy L.P. (NASDAQ: XTEX) started as Outperform at Credit Suisse.

Darden Restaurants Inc. (NYSE: DRI) named Bear of the Day at Zacks.

Discover Financial Services (NYSE: DFS) cut to Market Perform at FBR Capital Markets and reiterated Buy at BofA/ML.

Goldcorp Inc. (NYSE: GG) cut to Neutral at Credit Suisse.

Herbalife Ltd. (NYSE: HLF) cut to Hold at Argus.

Micron Technology Inc. (NASDAQ: MU) reiterated Buy with $10 target at BofA/ML.

Nike Inc. (NYSE: NKE) cut to Neutral at Janney.

Paychex Inc. (NASDAQ: PAYX) cut to Neutral at Baird.

Research In Motion Ltd. (NASDAQ: RIMM) was downgraded this morning after earnings by several firms: CLSA, National Bank and Paradigm Research. RIM maintained at Underperform at BofA/ML.

Whirlpool Inc. (NYSE: WHR) named Bull of the Day at Zacks.

24/7 Wall St. downgrades the Mayan Calendar to Strong Sell from Sell.

Here are some other outside (and internal) outlook pieces for the end of 2012 and 2013:

Nine Big Biotech Winners for 2013
Imagine this: Coal could be a top performer in 2013 after two really bad years.
Silver and Gold Outlook for 2013
Fortune’s Top 10 Stocks to Buy for 2013
BofA’s 10 Defensive and Yield Stock Picks for 2013
S&P 500 Upside Targets for 2013, from everyone

JON C. OGG

Filed under: Investing Tagged: DFS, DRI, EAT, FOLD, GG, HLF, MDRX, MU, NKE, PAYX, RIMM, WHR, XTEX

24/7 Wall St. Closing Bell — December 20, 2012: Markets Open Mixed, Climb at Close (FCX, BLK, ABT, SAM, LNCO, BBBY, JBL, PAYX, KMX, CCL, CAG, DFS, KBH, RAD, SCHL, NKE, RHT, RIMM, WAG, NYX, ICE, ELOQ, ORCL, MDRX, WGO)

Paul Ausick — Thu, 20 Dec 2012 21:06:01 +0000

U.S. equity markets opened flat to higher again this morning following the third revision to U.S. GDP growth in the third quarter and the report on new claims for unemployment benefits (more coverage here). Growth rose to 3.1%, but the deflator was unchanged at 2.7%. In Europe, Germany’s producer price index dropped 0.1% in December, better than the expected 0.2% decline. Retail sales were down 1% in Italy, but unchanged in the U.K. In Asia, the Bank of Japan increased its stimulus by 10 trillion yen (about $110 billion) and left its key interest rate at 1%. The central bank is also raising Japan’s inflation target from 1% to 2%. In the U.S., existing home sales rose to a seasonally adjusted annual rate of 5.04 million and the FHFA house price index rose 0.5%, both signs of a continuing recovery in housing (more coverage here).

The U.S. dollar index fell today, now down 0.02% at 79.249. The GSCI commodity index is up 0.7% at 644.73, with commodities prices mostly lower again today. WTI crude oil closed up fractionally today, at $90.01 a barrel. Brent crude trades down 0.2% at $110.17 a barrel. Natural gas is up 3.8% today at about $3.45 per thousand cubic feet following the EIA report on gas storage inventories (more coverage here). Gold settled down 1.3% today at $1,645.90 an ounce.

The unofficial closing bells put the DJIA up nearly 60 points to 13,311.72 (0.45%), the NASDAQ rose about 6 points (0.20%) to 3,050.39, and the S&P 500 rose 0.55% or nearly 8 points to 1,442.69.

There were several analyst upgrades and downgrades today, including Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) raised to ‘buy’ at Deutsche Bank; BlackRock Inc. (NYSE: BLK) started as ‘overweight’ at J.P. Morgan; Abbott Laboratories (NYSE: ABT) started as ‘outperform’ at William Blair; Boston Beer Co. (NYSE: SAM) started as ‘neutral’ at Citigroup; and LinnCo (NASDAQ: LNCO) started as ‘outperform’ at Wells Fargo.

Earnings reports since markets closed last night have resulted in the following price change as of the last half hour of trading today: Bed, Bath & Beyond Inc. (NASDAQ: BBBY) is down 6.8% at $56.19 after posting a new 52-week low of $54.33 earlier today; Jabil Circuit Inc. (NYSE: JBL) is up 8.1% at $20.07; Paychex Inc. (NASDAQ: PAYX) is down 2% at $32.38; Carmax Inc. (NYSE: KMX) is up 8.9% at $37.94 after posting a new 52-week high of $38.24 earlier today; Carnival Corp. (NYSE: CCL) is down 5.3% at $36.98; ConAgra Foods Inc. (NYSE: CAG) is up 0.6% at $30.13 after posting a new 52-week high of $30.86 earlier today (more coverage here); Discover Financial Services (NYSE: DFS) is down 3.8% at $38.26 (more coverage here); KB Home (NYSE: KBH) is down 6.9% at $15.52 (more coverage here); Rite Aid Corp. (NYSE: RAD) is up 19.7% at $1.25; and Scholastic Corp. (NASDAQ: SCHL) is down 1.5% at $28.85.

After markets close today and before they open on Monday morning we are scheduled to hear from Nike Inc. (NYSE: NKE), Red Hat Inc. (NYSE: RHT), Research in Motion Ltd. (NASDAQ: RIMM), and Walgreen Co. (NYSE: WAG).

Some standouts from today include the following stocks:

NYSE Euronext (NYSE: NYX) is up 33.8% at $32.19 after posting a new 52-week high of $33.38 earlier today. The owner of the NYSE is being acquired by Intercontinental Exchange Inc. (NYSE: ICE). More coverage here.

Eloqua Inc. (NASDAQ: ELOQ) is up 31.6% at $23.58. The business application software firm is being acquired by Oracle Corp. (NASDAQ: ORCL) for $871 million.

Allscripts Healthcare Solutions Inc. (NASDAQ: MDRX) is down 14.3% at $9.15. The medical records software firm fired its CEO and terminated its search for a buyer.

Winnebago Industries Inc. (NYSE: WGO) is up 14.5% at $16.12 after posting a new 52-week high of $16.42 earlier today. The recreational vehicle maker beat profit and revenue estimates handily this morning.

Stay tuned for Friday. We have noted the following events on the schedule (all times Eastern):

8:30 a.m. – Durable goods orders
8:30 a.m. – Personal income and spending
8:30 a.m. – Chicago Fed national activity index
9:55 a.m. – University of Michigan/Thomson Reuters consumer sentiment
11:00 a.m. – Kansas City Fed manufacturing index

Paul Ausick

Filed under: Investing Tagged: ABT, BBBY, BLK, CAG, CCL, DFS, ELOQ, FCX, ICE, JBL, KBH, KMX, LNCO, MDRX, NKE, NYX, ORCL, PAYX, RAD, RHT, RIMM, SAM, SCHL, WAG, WGO

Discover Sinks After Falling Short of Earnings Estimates

Paul Ausick — Thu, 20 Dec 2012 14:49:46 +0000

Discover Financial Services (NYSE: DFS) reported fourth-quarter fiscal 2012 results before markets opened this morning. The financial services company posted diluted earnings per share (EPS) of $1.07 on revenues of $2 billion, net of interest expense. In the same period a year ago, Discover reported EPS of $0.95 on revenue of $1.96 billion. Today’s results also compare to the Thomson Reuters consensus estimates for EPS of $1.13 and $1.97 billion in revenue.

The company’s CEO said:

In 2012, we established new partnerships in payments, diversified our direct banking product offerings and demonstrated our commitment to returning excess capital, which we are further emphasizing with a 40% increase in our dividend.

Volume on credit card sales grew 6% year-over-year and net interest margin rose 34 basis points to 9.44%. The delinquency rate for bills more than 30 days past due fell to 1.86% and the net charge-off rate fell to 2.29%, down 95 basis points from a year ago and down 14 basis points sequentially.

Discover did not provide guidance, but the consensus estimates for the first quarter of 2013 call for EPS of $1.11 on revenues of $1.98 billion. For the full fiscal year ending next November, EPS is forecast at $4.35 on revenues of $8.02 billion.

Shares are down 4% in early trading this morning, at $38.15 in a 52-week range of $23.75 to $42.08. Thomson Reuters had a consensus analyst price target of around $45.75 before today’s results were announced.

Paul Ausick

Filed under: Banking & Finance Tagged: DFS