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24/7 Wall St. Closing Bell — December 11, 2012: Markets Track Higher Today (KORS, FWLT, ARUN, TWC, GPS, DG, TEA, FGP, COST, JOY, CLWR, S, FDO, SPW, BGMD)

Paul Ausick — Tue, 11 Dec 2012 21:05:01 +0000

U.S. equity markets opened higher this morning on hopeful sentiment that negotiations related to the approaching fiscal cliff might show some progress. In Asia, that sentiment helped push shares higher at most of the major exchanges. In Europe, a survey of German economic sentiment came in much stronger than expected and yielded the first positive reading in six months (more coverage here). In the U.S., hopes for progress toward avoiding the fiscal cliff buoyed markets for most of the day. Then Senator Harry Reid said that he doubted that a deal could get done before Christmas. Shares began to give back some of their gains almost immediately.

The U.S. dollar index fell today, now down 0.33% at 80.059. The GSCI commodity index is down 0.2% at 631.40, with commodities prices mixed again today. WTI crude oil closed up 0.3% today, at $85.79 a barrel. Brent crude trades up 0.7% at $108.03 a barrel. Natural gas is down 1.2% today at about $3.42 per thousand cubic feet. Gold settled down 0.3% today at $1,709.60 an ounce.

The unofficial closing bells put the DJIA up about 79 points to 13,248.90 (0.60%), the NASDAQ rose more than 44 points (1.49%) to 3,022.30, and the S&P 500 rose 0.66% or more than 9 points to 1,427.85.

There were several analyst upgrades and downgrades today, including Michael Kors Holdings Ltd. (NYSE: KORS) started as ‘Conviction Buy’ with a $75 target price at Goldman Sachs; Foster Wheeler AG (NASDAQ: FWLT) cut to ‘neutral’ at Lazard; Aruba Networks Inc. (NASDAQ: ARUN) started as ‘neutral’ at JPMorgan and as ‘outperform’ at Oppenheimer; Time Warner Cable Inc. (NYSE: TWC) reitereated as ‘buy’ and target price raised to $115 at Argus; and Gap Inc. (NYSE: GPS) started as ‘buy’ with a target price of $41 at Goldman Sachs.

Earnings reports since markets closed last night have resulted in the following price changes for reporting companies as of the last half hour of trading today: Dollar General Corp. (NYSE: DG) is down 7.9% at $42.90 (more coverage here); Teavana Holdings Inc. (NYSE: TEA)is down 0.1% at $15.43; and Ferrellgas Partners LP (NYSE: FGP) is up 2.2% at $18.07.

Before markets open tomorrow morning we are scheduled to hear from Costco Wholesale Corp. (NASDAQ: COST) and Joy Global Inc. (NYSE: JOY).

Some standouts from today include the following stocks:

Clearwire Corp. (NASDAQ: CLWR) is up 12.9% at $2.71. The wireless network carrier is rumored (again) to be an acquisition target of Sprint Nextel Corp. (NYSE: S). More coverage here.

Family Dollar Stores Inc. (NYSE: FDO) is down about 8.3% at $64.75. The discount retailer is down following Dollar General’s weak outlook.

SPX Corp. (NYSE: SPW) is down 9.3% at $61.96. The flow technology company on a report that the company is considering a merger with competitor Gardner-Denver.

BG Medicine Inc. (NASDAQ: BGMD) is up 136% at $3.14. The medical diagnostics maker has received permission to sell its CardioScore test in the European Union and other countries that recognize the CE Mark.

Stay tuned for Wednesday. The Fed Open Market Committee concludes its two-day meeting tomorrow. We have also noted the following events on the schedule (all times Eastern):

7:00 a.m. – Mortgage Bankers Association purchase applications
8:30 a.m. – Import and export prices
10:30 a.m. – EIA weekly petroleum status report
11:30 a.m. – 10-year note auction
12:30 p.m. – FOMC meeting announcement
2:00 p.m. – FOMC forecasts
2:00 p.m. – Treasury budget
2:15 p.m. – Ben Bernanke press conference

Paul Ausick

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: ARUN, BGMD, CLWR, COST, DG, FDO, FGP, FWLT, GPS, JOY, KORS, S, SPW, TEA, TWC

24/7 Wall St. Closing Bell — December 10, 2012: Markets Open Lower, Close with Small Gain (CME, BBY, SKS, NBL, APA, UEC, TEA, FGP, IN, HON, GRPN, GOOG, NXY, CEO, CSFS)

Paul Ausick — Mon, 10 Dec 2012 21:03:38 +0000

U.S. equity markets opened lower this morning, probably as a reaction to the news that Italy’s prime minister has said that he will resign after a new budget is agreed to (more coverage here). Combined with weaker-than-expected industrial production data from both France and Germany, European news led to a risk-off opening. In Asia, data out of China was mixed, with lower-than-expected inflation, stronger industrial production, and higher retail sales offset by a lower-than-expected trade surplus (more coverage here). In the U.S., the Conference Board’s employment trends index turned negative for the first time in three years (more coverage here).

The U.S. dollar index fell today, now down 0.08% at 80.347. The GSCI commodity index is down 0.4% at 632.88, with commodities prices mixed today. WTI crude oil closed down 0.4% today, at $85.56 a barrel. Brent crude trades up 0.4% at $107.39 a barrel. Natural gas is down 2.7% today at about $3.46 per thousand cubic feet. Gold settled up 0.5% today at $1,714.40 an ounce.

The unofficial closing bells put the DJIA up more than 14 points to 13,169.57 (0.11%), the NASDAQ rose about 9 points (0.30%) to 2,986.96, and the S&P 500 rose 0.03% or less than 1 point to 1,418.56.

There were several analyst upgrades and downgrades today, including CME Group Inc. (NASDAQ: CME) cut to ‘sell’ with a target price of $48 at Goldman Sachs; Best Buy Co. Inc. (NYSE: BBY) initiated as ‘underperform’ with a target price of $9 at BofA/ML (more coverage here); Saks Inc. (NYSE: SKS) reiterated as ‘buy’ with a target price of $14 at Argus; Noble Energy Inc. (NYSE: NBL) raised to ‘outperform’ at Baird; and Apache Corp. (NYSE: APA) cut to ‘hold’ at Deutsche Bank and cut to ‘neutral’ at Baird.

There have been no significant earnings reports since markets closed Friday night.

Before markets open tomorrow morning we are scheduled to hear from Uranium Energy Corp. (NYSEMKT: UEC), Teavana Holdings Inc. (NYSE: TEA), and Ferrellgas Partners LP (NYSE: FGP).

Some standouts from today include the following stocks:

Intermec Inc. (NYSE: IN) is up 22.9% at $9.81 after posting a new 52-week high of $9.82 earlier today. The mobile scanning technology company is being acquired by Honeywell International Inc. (NYSE: HON) for $10 a share. More coverage here.

Groupon Inc. (NASDAQ: GRPN) is down about 9.1% at $4.26. The daily deals company rose about 20% on Friday, apparently on a rumor that Google Inc. (NYSE: GOOG) would acquire the company. That didn’t happen today.

Nexen Inc. (NYSE: NXY) is up 14% at $26.81 after posting a new 52-week high of $26.98 earlier today. The oil and gas producer’s acquisition by China’s Cnooc Ltd. (NYSE: CEO) was approved by the Canadian government. More coverage here.

The Cash Store Financial Services Co. (NYSE: CSFS) is down 20.1% at $3.39 after posting a new 52-week low of $2.90 earlier today. The payday lending firm said this morning that it will restate financial results for the first two quarters of this year relate to the company’s acquisition of a portfolio of loans from third-party lenders.

Stay tuned for Tuesday. The Fed Open Market Committee begins its two-day meeting tomorrow. We have also noted the following events on the schedule (all times Eastern):

7:30 a.m. – National Federation of Independent Business optimism index
8:30 a.m. – International trade
10:00 a.m. – Wholesale trade
11:30 a.m. – 4- and 52-week bill auctions
1:00 p.m. – 3-year note auction

Paul Ausick

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: APA, BBY, CEO, CME, CSFS, FGP, GOOG, GRPN, HON, IN, NBL, NXY, SKS, TEA, UEC

24/7 Wall St. Closing Bell — December 7, 2012: Markets Wobble to Mixed Close (TCK, MCD, SYT, AET, MPEL, HWD, PANW, SWHC, WGO, UEC, SMRT, SCHL, FGP, CMVT, AMRN, GRPN, F)

Paul Ausick — Fri, 07 Dec 2012 21:04:25 +0000

U.S. equity markets opened higher this morning following a poor growth forecast from Europe and a better-than-expected report on U.S. unemployment. The German central bank said this morning that Germany’s expected GDP growth in 2013 was a mere 0.4%, down massively from a 1.6% growth projection in July (more coverage here). In Asia markets closed mixed, with Shanghai up the most on a report of a large urbanization plan for Sichuan province. The U.S. unemployment rate fell to 7.7% in November and non-farm payrolls rose by 146,000 (more coverage here). That good news was diluted by a poor report on consumer sentiment (more coverage here). Markets finished mixed today, with the tech heavy Nasdaq closing lower and the S&P and the Dow both closing higher.

The U.S. dollar index rose today, now up 0.19% at 80.408. The GSCI commodity index is down 1.2% at 635.69, with commodities prices mostly lower today on the stronger dollar. WTI crude oil closed down 0.4% today, at $85.93 a barrel, down more than 3% for the week. Brent crude trades flat at $107.03 a barrel. Natural gas is down 3% today at about $3.56 per thousand cubic feet. Gold settled up 0.2% today at $1,705.50 an ounce, but fell 0.4% on the week.

The unofficial closing bells put the DJIA up about 81 points to 13,155.13 (0.62%), the NASDAQ fell more than 11 points (-0.38%) to 2,978.04, and the S&P 500 rose 0.29% or about 4 points to 1,418.07.

There were several analyst upgrades and downgrades today, including Teck Resources Ltd. (NYSE: TCK) cut to ‘hold’ at TD Securities; McDonald’s Corp. (NYSE: MCD) raised to ‘buy’ with a target price of $104 at Janney Capital; Syngenta AG (NYSE: SYT) raised to ‘neutral’ at JPMorgan Chase; Aetna Inc. (NYSE: AET) raised to ‘overweight’ with a target price of $52 at JPMorgan Chase; and Melco Crown Entertainment Ltd. (NASDAQ: MPEL) raised to ‘overweight’ with a $20 target price at JPMorgan Chase.

Earnings reports since markets closed last night have resulted in several price changes for reporting companies as of the last half hour of trading today: Harry Winston Diamond Corp. (NYSE: HWD) is down 1.4% at $14.21; Palo Alto Networks Inc. (NYSE: PANW) is down 0.3% at $51.14 (more coverage here); and Smith & Wesson Holding Co. (NASDAQ: SWHC) is down 8.1% at $9.97 (more coverage here).

No significant earnings reports are due before markets open Monday morning, but later that day we’re scheduled to hear from Winnebago Industries Inc. (NYSE: WGO), Uranium Energy Corp. (NYSEMKT: UEC), Stein Mart Inc. (NASDAQ: SMRT), Scholastic Corp. (NASDAQ: SCHL), Ferrellgas Partners LP (NYSE: FGP), and Comverse Technology Inc. (NASDAQ: CMVT).

Some standouts from today include the following stocks:

Amarin Corporation plc (NASDAQ: AMRN) is down about 19% at $9.73. The biopharma company is taking on more debt to ramp up the launch and sales of its new cardio drug. More coverage here.

Groupon Inc. (NASDAQ: GRPN) is up 20.7% at $4.60. The daily deals company had no news today, and everybody wonders what’s going on. Unfortunately shares are still down about 75% for the year to date.

Ford Motor Co. (NYSE: F) is up 2% at $11.46. The automaker recalled 19,000 of its 2013 Fusion models today and Consumer Reports challenged the mileage ratings on two of its hybrid models. Investors don’t seem to mind. More coverage here.

Stay tuned for Monday. We have 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!

Paul Ausick

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: AET, AMRN, CMVT, F, FGP, GRPN, HWD, MCD, MPEL, PANW, SCHL, SMRT, SWHC, SYT, TCK, UEC, WGO

24/7 Wall St. Closing Bell — October 1, 2012: Markets Struggle to Hold Early Gains (ALU, NOW, FINL, IACI, BIDU, CALM, FGP, SURG, TISI, ZNGA, AYI, MOS, CRDN, MMM, FONR, NOK, ORCL)

Paul Ausick — Mon, 01 Oct 2012 20:04:56 +0000

The three major U.S. stock indexes opened higher this morning as the eurozone PMI numbers came in slightly better than expected, but still with a contractionary direction (more coverage here). China’s manufacturing PMI number also indicated continued contraction. Markets in Shanghai and Hong Kong are closed for the week to observe the Golden Week holiday. The September ISM manufacturing index came in higher than expected in the U.S. (more coverage here), but construction spending fell in August (more coverage here).

The U.S. dollar index fell today, now down 0.13% at 79.832. The GSCI commodity index is up 0.8% at 665.73, with commodities prices mixed. WTI crude oil closed up 0.3% today, at $92.48 a barrel. Brent crude trades down 0.17% at $112.20 a barrel. Natural gas is up 4.8% today to $3.48 per thousand cubic feet. Gold closed at $1,783.30 an ounce, up 0.5%.

The unofficial closing bells put the DJIA up nearly 78 points to 13,515.04 (0.58%), the NASDAQ fell nearly 3 points (-0.09%) to 3,113.53, and the S&P 500 rose 0.26% or nearly 4 points to 1,444.47.

There were several analyst upgrades and downgrades today, including Alcatel Lucent (NYSE: ALU) cut to ‘sell’ with a target price of $0.78 at UBS; ServiceNow Inc. (NYSE: NOW) cut to ‘sell’ with a target price of $28 at UBS; The Finish Line Inc. (NASDAQ: FINL) raised to ‘neutral’ at Sterne Agee; IAC/InteractiveCorp (NASDAQ: IACI) raised to ‘buy’ with a target price of $65 at Needham; and Baidu.com Inc. (NASDAQ: BIDU) cut to ‘hold’ with a target price of $125 at Jefferies.

Earnings reports since markets closed last Friday resulted in some price moves today, including these as of the last half hour of trading: Cal-Maine Foods Inc. (NASDAQ: CALM) is up 1.5% at $45.59 after posting a new 52-week high of $47.00 earlier today; Ferrellgas Partners LP (NYSE: FGP) is flat at $19.40 (more coverage here); and Synergetics USA Inc. (NASDAQ: SURG) is down 2.8% at $4.80.

Before markets open on Tuesday we are scheduled to hear from Team Inc. (NYSE: TISI), Zynga Inc. (NASDAQ: ZNGA), Acuity Brands Inc. (NYSE: AYI), and Mosaic Co. (NYSE: MOS).

Some standouts from today include the following stocks:

Ceradyne Inc. (NASDAQ: CRDN)) is up 43.3% at $34.99. The ceramic products maker is being acquired by 3M Co. (NYSE: MMM) for $860 million, or $35/share. More coverage here.

Fonar Corp. (NASDAQ: FONR) is up 30.4% at $4.89. The maker of upright and stand-up MRI machines reported much better than expected earnings this morning.

Nokia Corp. (NYSE: NOK) is up 6.8% at $2.75. The handset maker will supply its mapping and location services software to Oracle Corp. (NASDAQ: ORCL). More coverage here.

Stay tuned for Tuesday. Motor vehicles sales reports start coming out. We have noted the following events on the schedule (all times Eastern):

7:45 a.m. – ICSC-Goldman Sachs Store Sales
8.55 a.m. – Redbook
11.30 a.m. – 4-week bill auction

Paul Ausick

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: ALU, AYI, BIDU, CALM, CRDN, FGP, FINL, FONR, IACI, MMM, MOS, NOK, NOW, ORCL, SURG, TISI, ZNGA

Ferrellgas Partners Sputters in Its Fiscal Fourth Quarter

Trey — Mon, 01 Oct 2012 11:45:30 +0000

Ferrellgas Partners L.G. (NYSE: FGP) has reported a net loss of $0.45 per unit on revenue of $341.8 million for the fiscal fourth-quarter 2012. In the same period a year ago, the American propane supplier reported a net loss of $0.53 per unit on revenue of $449.6 million. Fourth-quarter results compare to the Thomson Reuters consensus estimates for a net loss of $0.43 per unit and $399.9 million in revenue.

The press release highlighted that adjusted EBITDA rose 78% to a record $18.1 million from $10.1 million in the year-earlier quarter and said that significant expense savings drove performance.

For the full 2012 fiscal year, Ferrellgas Partners reported a per-unit loss of $0.14 compared with a net loss of $0.60 in 2011. Full-year revenues totaled $2.34 billion, compared with $2.40 billion a year ago. The consensus estimate called for a full-year net loss of $0.17 per unit on revenue of $2.42 billion.

The president and CEO said:

Our fourth-quarter results highlight our ongoing efforts to both drive profitable growth and manage expenses in this highly competitive operating environment. We remain committed to driving significant cost savings throughout our operations providing both the opportunity to be more competitive for new business and provide immediate financial returns for investors.

The partnership did not offer specific guidance, but the CEO also said:

We expect a continuation of our organic gallon growth. In addition, the opportunities for acquisitions seem to be heating up after a lull.

The consensus estimate for the first fiscal quarter of 2013 calls for a net loss of $0.40 per unit on revenues of $426.1 million. For the full 2013 fiscal year, the estimate is for earnings of $0.33 per unit on revenues of $2.2 billion.

Ferrellgas Partners’s shares are inactive in premarket trading, having closed Friday at $19.40. The 52-week range is $10.20 to $23.02. Thomson Reuters had a consensus analyst price target of $13.30 before today’s report.

Filed under: 24/7 Wall St. Wire, Commodities, Earnings, Oil & Gas Tagged: FGP

24/7 Wall St. Closing Bell — September 28, 2012: Markets Sag as Quarter Ends (CAT, MCD, QCOM, APA, PFE, RIMM, NKE, ACN, AM, FINL, WAG, CALM, FGP, SURG, MDRX, ADTN, FB)

Paul Ausick — Fri, 28 Sep 2012 20:05:39 +0000

The three major U.S. stock indexes opened lower this morning following a weaker-than-expected report on U.S. personal income and inline personal consumption spending (more coverage here). U.S. markets followed Europe, where today’s data releases were not particularly poor, but not upbeat at all. Eurozone inflation ticked higher (more coverage here) and concerns over Spanish banks’ stress test results kept equities in the red (more coverage here). In Asia, a weak report on industrial production in Japan offset speculation about more stimulus in China. U.S. consumer sentiment continues low (more coverage here) and Chicago PMI posted a surprising reading that fell on the contraction side of the line (more coverage here).

The U.S. dollar index rose today, now up 0.41% at 79.876. The GSCI commodity index is up 1.3% at 660.26, with commodities prices mostly higher. WTI crude oil closed up 0.5% today, at $92.23 a barrel, to close the quarter up 7%. Brent crude trades up 0.24% at $112.28 a barrel. Natural gas is up 0.7% today to $3.32 per thousand cubic feet. Gold closed at $1,773.90 an ounce, down 0.4%, but up 11% on the quarter (more coverage here).

The unofficial closing bells put the DJIA down about 50 points to 13,435.97 (-0.37%), the NASDAQ fell more than 20 points (-0.65%) to 3,116.23, and the S&P 500 fell -0.45% or more than 6 points to 1,440.65.

There were several analyst upgrades and downgrades today, including Caterpillar Inc. (NYSE: CAT) cut to ‘neutral’ at BofA/ML; McDonald’s Corp. (NYSE: MCD) cut to ‘neutral’ at Janney; Qualcomm Inc. (NASDAQ: QCOM) started as ‘buy’ at Brean Murray; Apache Corp. (NYSE: APA) maintained as ‘hold’ but estimates lowered at Argus; and Pfizer Inc. (NYSE: PFE) started as ‘outperform’ at BMO.

Earnings reports since markets closed last night resulted in some price moves today, including these as of the last half hour of trading: Research in Motion Ltd. (NASDAQ: RIMM) is up 7.1% at $7.65 (more coverage here); Nike Inc. (NYSE: NKE) is down 1.1% at $94.93 (more coverage here); Accenture plc (NYSE: ACN) is up 7% at $69.95 after posting a new 52-week high of $70.64 earlier today; American Greetings Corp. (NYSE: AM) is down 1% at $16.84; Finish Line Inc. (NASDAQ: FINL) is down 0.1% at $22.72 (more coverage here); and Walgreen Co. (NYSE: WAG) is down 0.8% at $36.31 after posting a new 52-week high of $36.90 earlier today (more coverage here).

Before markets open on Monday we are scheduled to hear from Cal-Maine Foods Inc. (NASDAQ: CALM), Ferrellgas Partners LP (NYSE: FGP), and Synergetics USA Inc. (NASDAQ: SURG).

Some standouts from today include the following stocks:

Allscripts Healthcare Solutions Inc. (NASDAQ: MDRX) is up 13% at $12.31. The electronic health records provider has been reported to be looking to sell the company.

ADTRAN Inc. (NASDAQ: ADTN) is down 9.8% at $17.27. The network equipment maker revised quarterly revenues and earnings downward. The news hit other network equipment makers as well.

Facebook Inc. (NASDAQ: FB) is up 6.6% at $21.65. The social network announced a new retail feature yesterday, giving rise to hopes that the company will pump up its revenues and profits.

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

9:00 a.m. – PMI manufacturing index
10:00 a.m. – Institute for Supply Management manufacturing index
10:00 a.m. – Construction spending
11.30 a.m. – 3- and 6-month bill auctions

Have a great weekend!

Paul Ausick

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: ACN, ADTN, AM, APA, CALM, CAT, FB, FGP, FINL, MCD, MDRX, NKE, PFE, QCOM, RIMM, SURG, WAG

Top Analyst Upgrades and Downgrades (BSFT, PRSS, CBI, CMCSA, DNDN, DOW, FB, FGP, GSK, LVS, PMCS, RYAAY, STO, TSRA, TWC, VRTX)

Jon C. Ogg — Tue, 31 Jul 2012 12:30:25 +0000

These are some of the top analyst upgrades, downgrades and initiations seen from Wall St. research calls this Tuesday morning.

Broadsoft Inc. (NASDAQ: BSFT) raised to Buy at Goldman Sachs.

CafePress Inc. (NASDAQ: PRSS) cut to Neutral at JPMorgan and cut to Neutral at Cowen.

Chicago Bridge & Iron Co. (NYSE: CBI) cut to Neutral at Credit Suisse and cut to Neutral at Lazard.

Comcast Corp. (NASDAQ: CMCSA) started as Buy at Jefferies.

Dendreon Corp. (NASDAQ: DNDN) cut to Neutral at JPMorgan and cut to Hold at Deutsche Bank.

The Dow Chemical Co. (NYSE: DOW) cut to Hold at Argus.

Facebook Inc. (NASDAQ: FB) raised to Market Perform from Underperform at Bernstein.

Ferrellgas Partners LP (NYSE: FGP) raised to Outperform as Bull of the Day at Zacks.

GlaxoSmithKline PLC (NYSE: GSK) named as Bear of the Day at Zacks.

Las Vegas Sands Corp. (NYSE: LVS) cut to Hold at Argus.

PMC-Sierra Inc. (NASDAQ: PMCS) cut to Hold at Wunderlich and cut to Hold at Jefferies.

Ryanair Holdings PLC (NASDAQ: RYAAY) cut to Market Perform at Raymond James.

Statoil ASA (NYSE: STO) cut to Hold at Deutsche Bank.

Tessera Technologies Inc. (NASDAQ: TSRA) cut to Underperform at BofA/ML.

Time Warner Cable (NYSE: TWC) started as Buy at Jefferies.

Vertex Pharmaceuticals Inc. (NASDAQ: VRTX) cut to Neutral at Piper Jaffray.

Banking and brokerage analyst Meredith Whitney bashed the big banks again today to downsize their models on Bloomberg TV.

If you enjoyed the top analyst upgrades and downgrades, you can join our free email newsletter that includes analyst summaries each morning sent right to your inbox. We also cover top issues such as IPOs, special financial exclusives, mergers and more. Sign up in the box below.

JON C. OGG

Filed under: 24/7 Wall St. Wire, Analyst Calls Tagged: BSFT, CBI, CMCSA, DNDN, DOW, FB, FGP, GSK, LVS, PMCS, PRSS, RYAAY, STO, TSRA, TWC, VRTX

24/7 Wall St. Closing Bell — June 8, 2012 (CSCO, SD, QCOM, KMI, LEN, XIDE, PNY, FGP, KMGB, FNSR, KORS, FDS, KFY, KR, PIR, WGO, PCX, ANR, NOK, NAV, CHK)

Paul Ausick — Fri, 08 Jun 2012 20:11:33 +0000

The three major US stock indexes opened lower this morning as investors wait for weekend data on Chinese trade and industrial production. The drop in US unemployment benefits claims didn’t spur much buying, nor did news of the smaller US trade deficit in April. Trading volume has been light today, with just 400 million shares trading hands on the NYSE. Going into the last hour of trading the DJIA is up about 0.5%, the Nasdaq is up about 0.6%, and the S&P 500 is up about 0.8%, and all finished the day higher by less than 1%.

The US dollar index rose today, now up 0.55% at 82.506. The GSCI commodity index is fractionally at 592.05, with commodities prices mostly lower today on the stronger dollar. WTI crude oil closed down -0.9%% at $84.10/barrel. Brent crude trades down -0.24% at $99.69/barrel. Natural gas rose about 1.1% today to $2.299/thousand cubic feet. Gold settled up 0.2% today, at $1,591.40/ounce, but took a weekly loss of about -2%.

The unofficial closing bells put the DJIA up about 93 points to 12,553.97(0.75%), the NASDAQ rose more than 27 points (0.97%) to 2,858.42, and the S&P 500 rose 0.81% or nearly 11 points to 1,325.63.

There were several analyst upgrades and downgrades today, including Cisco Systems Inc. (NASDAQ: CSCO) started as ‘buy’ at Citigroup; SandRidge Energy Inc. (NYSE: SD) started as ‘outperform’ at RBC Capital; Qualcomm Inc. (NASDAQ: QCOM) reiterated as ‘buy’ with a target price of $80 at Argus; Kinder Morgan Inc. (NYSE: KMI) raised to ‘overweight’ at Morgan Stanley; and Lennar Corp. (NYSE: LEN) cut from ‘neutral’ to ‘sell’ at Citigroup.

Earnings reports since markets closed last night have been scarce, but here are some price changes for reporting companies as of the last half hour of trading today: Exide Technologies (NASDAQ: XIDE) is up 16.3% at $2.85; Piedmont Natural Gas Co. Inc. (NYSE: PNY) is up 0.3% at $31.71; Ferrellgas Partners LP (NYSE: FGP) is up 6.9% at $17.25; and KMG Chemicals Inc. (NASDAQ: KMGB) is down -2% at $16.91.

As we approach the quarter’s end there are fewer and fewer notable earnings reports scheduled. Next week we are scheduled to get earnings reports from Finisar Corp. (NASDAQ: FNSR), Michael Kors Holdings Ltd. (NYSE: KORS), FactSet Research Systems Inc. (NYSE: FDS), Korn/Ferry International (NYSE: KFY), Kroger Co. (NYSE: KR), Pier 1 Imports Inc. (NYSE: PIR), and Winnebago Industries Inc. (NYSE: WGO).

Other standouts from today include the following stocks:

Patriot Coal Corp. (NYSE: PCX) is down -9.5% at $1.68. The coal miner took the biggest share price hit today following news that Alpha Natural Resources Inc. (NYSE: ANR) is closing some mines. More coverage here.

Nokia Corp. (NYSE: NOK) is up 5.7% at $2.99. The Finnish handset company was rumored to be the target of a possible takeover by Samsung Electronics. More coverage here.

Navistar International Inc. (NYSE: NAV) is up 16.6% at $28.10. The commercial truck and engine maker got a boost from an increased investment by Carl Icahn, who now owns 12% of the company.

Chesapeake Energy Corp. (NYSE: CHK) is 2.7% at $18.33. The natural gas producer sold $4 billion in assets today (coverage here) and stockholders rejected two current directors by a wide margin at today’s shareholders’ meeting (more coverage here).

Stay tuned for Monday. We have noted the following event (all times Eastern):

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

Have a great weekend!

Paul Ausick

Filed under: Active Trader, HI/LOW, Market Close Tagged: ANR, CHK, CSCO, FDS, FGP, FNSR, KFY, KMGB, KMI, KORS, KR, LEN, NAV, NOK, PCX, PIR, PNY, QCOM, SD, WGO, XIDE

Big Deal in the Propane Business (SPH, NRGY, APU, FGP)

Paul Ausick — Thu, 26 Apr 2012 17:37:56 +0000

There could be a new big dog in the propane distribution business soon, following this morning’s announcement by Suburban Propane Partners LP (NYSE: SPH) that it has reached an agreement to acquire the propane businesses of Inergy L.P. (NYSE: NRGY) in a stock and cash deal worth approximately $1.8 billion. The current market cap leader in the business is AmeriGas Partners L.P. (NYSE: APU) at $3.4 billion, followed by Inergy at $2.5 billion, Suburban at about $1.55 billion, and Ferrellgas Partners LP (NYSE: FGP) at $1.22 billion. Suburban and Inergy will switch places and Suburban could even threaten AmeriGas for the top spot.

Suburban will pay for the deal with $1 billion in new senior notes, $200 million in cash, and $600 million in new common units of Suburban to be distributed primarily to Inergy unitholders. Inergy will retain its midstream operations which include storage and transportation of natural gas and natural gas liquids (NGL) for third parties, NGL fractionation and distribution, processing of natural gas, and the production and sale of salt.

In connection with the acquisition, Suburban will begin an exchange offer for $1.2 billion in Inergy’s outstanding debt in exchange for $100 billion in new Suburban debt and $200 million in cash. The offer is expected to commence about May 3rd.

Suburban will also hold an underwritten offer $250 million in new common units to pay the cash portion of the acquisition price and to pay the costs and fees related to the acquisition. The deal is expected to close in the second half of 2012.

Essentially Suburban is doing the entire deal without spending a real dime. To take some of the sting out of that for current unitholders, Suburban raised its annual distribution from $3.41/common unit to $3.50/common unit, but it won’t be payable until the payment due for the company’s first fiscal quarter of 2013, which ends on December 29, 2012.

Inergy’s common units are up 16.7% at $19.66 in a 52-week range of $15.06-$41.22. Suburban’s common units are also up, but by a more modest 0.3% at $43.73 in a 52-week range of $40.25-$57.89.

Paul Ausick

Filed under: Mergers & Acquisitions, Mergers and Buy Outs, Oil & Gas Tagged: APU, FGP, NRGY, SPH

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Paul Ausick — Fri, 09 Mar 2012 21:05:53 +0000

US equities opened higher this morning following the report on a US non-farm payroll gain of 227,000 jobs (more coverage here). In Europe, the Greek debt swap deal went off smoothly, but the declaration late this afternoon by the International Swaps and Derivatives Association (ISDA) that the swap was, in fact, a “credit event” sent stocks down sharply though the three major indexes remain in positive territory about half an hour before the markets close. The dollar opened up this morning and got stronger as the day went on, with the dollar index now up 1.07% at 79.987. Crude oil was up today, with WTI crude settling up 0.8% at $107.40/barrel and Brent crude trading up 0.29% at $125.80/barrel. Gold settled higher by 0.8% at $1,711.50/ounce.

The unofficial closing bells put the DJIA up 14 points to 12,921.94 (0.11%), the NASDAQ rose nearly 18 points (0.6%) to 2,988.34, and the S&P 500 rose 0.36% or nearly 5 points to 1,370.87.

There were several analyst upgrades and downgrades today, including Johnson & Johnson (NYSE: JNJ) started as ‘hold’ at Jefferies; Kohl’s Corp. (NYSE: KSS) raised to ‘buy’ at Jefferies; Weight Watchers International Inc. (NYSE: WTW) started as ‘overweight’ (!) at Barclays; D.R. Horton Inc. (NYSE: DHI), Lennar Corp. (NYSE: LEN), and Toll Brothers Inc. (NYSE: TOL) all raised to ‘outperform’ at Credit Suisse; and Arch Coal Inc. (NYSE: ACI) cut to ‘market perform’ at BMO.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Alimera Systems Inc. (NASDAQ: ALIM) is down -3.4% at $4.00; Zumiez Inc. (NASDAQ: ZUMZ) is up 5.7% at $34.16 after posting a new 52-week high of $34.44 earlier today; Aeropostale Inc. (NYSE: ARO) is up 2.6% at $19.45; Ann Inc. (NYSE: ANN) is up 6% at $27.36; Carnival Corp. (NYSE: CCL) is down -1.2% at $30.57 (more coverage here); Ferrellgas Partners LP (NYSE: FGP) is down -2.6% at $16.80; Halozyme Therapeutics Inc. (NASDAQ: HALO) is down -1.8% at $11.30; and Uranium Resources Inc. (NASDAQ: URRE) is up 3.1% at $1.00.

Other standouts from today include the following stocks:

Coffee Holding Co. Inc. (NASDAQ: JVA) is up nearly 38% at $10.81. The integrated coffee roaster and distributor posted better-than-expected quarterly results this morning.

Quest Software Inc. (NASDAQ: QSFT) is up more than 24% at $24.09. The firm has agreed to be acquired at $23/share. More coverage here.

Aastrom Biosciences Inc. (NASDAQ: ASTM) is up more than 21% at $2.21. The biotechnology company has completed a private placement of $40 million in Series B convertible preferred stock. More coverage here.

Dynegy Inc. (NYSE: DYN) is down more than -38% at $0.72 after posting a new 52-week low of $0.59 earlier today. A Delaware court ruled that the company had engaged in a “fraudulent transfer” of assets prior to its bankruptcy filing.

Zogenix Inc. (NASDAQ: ZGNX) is down nearly -18% at $2.05. The drug maker posted a wider than expected loss after the markets closed yesterday.

Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) is down nearly -16% at $52.61. The company is being hit hard by yesterday’s announcement from Starbucks Inc. (NASDAQ: SBUX) that it will launch a single-cup espresso and coffee machine to compete with the Keurig products from Green Mountain. More coverage here and here.

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

11:30 a.m. – 3- and 6-month Treasury bill auction
1:00 p.m. – 3-year Treasury note auction
2.00 p.m. – US Treasury budget report

Have a great weekend.

Paul Ausick

Filed under: 24/7 Wall St. Wire Tagged: ACI, ALIM, ANN, ARO, ASTM, CCL, DHI, DYN, FGP, GMCR, HALO, JNJ, JVA, KSS, LEN, QSFT, TOL, URRE, WTW, ZGNX, ZUMZ