24/7 Wall St. » UBS

24/7 Wall St. Closing Bell (YUM, DMD, NLY, MS, UBS, AGU, CVS, RL, RAI, TWX, DIS, WYN, BWLD, CSCO, CZR, FFN, TNK, AKAM, NURO)

Paul Ausick — Wed, 08 Feb 2012 21:06:49 +0000

The US equity markets opened slightly higher this morning, but soon turned around and spent the rest of the morning lower before returning to about even by afternoon. Equities could close at or near where they opened today. The lack of a decision on the Greek debt swap deal is leading investors to exercise caution both in Europe and the US. If the new Greek deal is anything like the last dozen or so, it will send markets up as soon as it is announced; and once people have a chance to read the details, markets will turn south again. Crude is higher today, with WTI up 0.51% at $98.91/barrel and Brent up 1.24% at $117.67/barrel. Gold closed down -0.73% at $1,735.60/ounce.

The unofficial closing bells put the DJIA up about 6 points to 12,883.95 (0.04%), the NASDAQ rose nearly 12 points (0.41%) to 2,915.86, and the S&P 500 rose 0.22% or about 3 points to 1,349.97.

There were several analyst upgrades and downgrades today, including Yum! Brands Inc. (NYSE: YUM) cut to ‘neutral’ at Goldman Sachs; Demand Media Inc. (NYSE: DMD) cut to ‘underweight’ at Morgan Stanley; Annaly Capital Management Inc. (NYSE: NLY) cut to ‘market perform’ at FBR; Morgan Stanley (NYSE: MS) cut to ‘hold’ at Collins Stewart; and UBS AG (NYSE: UBS) cut to ‘sell’ at Deutsche Bank.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Agrium Inc. (NYSE: AGU) is up 2.16% at $82.95; CVS Caremark Corp. (NYSE: CVS) is up 1.18% at $43.59 after posting a new 52-week high of $44.08 earlier in the day; Ralph Lauren Corp. (NYSE: RL) is up 9.8% at $172.50 after posting a new 52-week high of $178.47 earlier today; Reynolds American Inc. (NYSE: RAI) is down -1.35% at $39.57; Time Warner Inc. (NYSE: TWX) is up 0.3% at $38.21 after posting a new 52-week high of $39.23 earlier today; Walt Disney Co. (NYSE: DIS) is up 0.95 at $41.34; Wyndham Worldwide Corp. (NYSE: WYN) is up 5.6% at $43.22 after posting a new 52-week high of $43.36 earlier today; and Buffalo Wild Wings Inc. (NASDAQ: BWLD) is up nearly 17% at $82.04 after posting a new 52-week high of $82.45 earlier today.

Our preview of tomorrow’s earnings releases is here. Also see our coverage of earnings for Cisco Systems Inc. (NASDAQ: CSCO) due after markets close today

Other standouts from today include the following stocks:

Ceasars Entertainment Corp. (NASDAQ: CZR) is up more than 70% at $15.32. The casino owner completed its IPO today, with 1.8 million shares going out at $9/share. We have some issues with this IPO.

FriendFinder Networks Inc. (NASDAQ: FFN) is up nearly 33% at $1.95. The adult dating site had no news today, so this must just be more halo effect from Facebook — or something else.

Teekay Tankers Ltd. (NYSE: TNK) is down more than -12% today at $3.98. The shipping company this morning priced a secondary stock offering of 15 million shares at $4/share.

Akamai Technologies Inc. (NASDAQ: AKAM) is up about 2% at $34.33. The internet company acquired a Canadian company today, and reports earnings after markets close today. We have more coverage here.

NeuroMetrix Inc. (NASDAQ: NURO) is down more than -17% at $0.95 after posting a new 52-week low of $0.94 earlier today. The medical device maker priced a secondary offering of 10.5 million shares at $1/share this morning.

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

8:30 a.m. – New unemployment benefits claims
10:00 a.m. – Wholesale trade report
10:30 a.m. – EIA weekly natural gas storage report
1:00 p.m. – Treasury 30-year bond auction
4:30 p.m. – Federal Reserve balance sheet and money supply

Paul Ausick

Filed under: 24/7 Wall St. Wire Tagged: AGU, AKAM, BWLD, CSCO, CVS, CZR, DIS, DMD, FFN, MS, NLY, NURO, RAI, RL, TNK, TWX, UBS, WYN, YUM

Top Analyst Upgrades & Downgrades (NLY, MT, BP, CBOE, DMD, RDY, ING, MS, NOV, OPEN, SOHU, UBS, VSH, YUM)

Administrator — Wed, 08 Feb 2012 13:18:44 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street brokerage and research firms this Wednesday morning.

Annaly Capital Management Inc. (NYSE: NLY) Cut to Market Perform at FBR.
ArcelorMittal (NYSE: MT) Cut to Sell at S&P Capital IQ.
BP PLC (NYSE: BP) Raised Estimates by UBS; Cut to Hold at Soc-Gen.
CBOE Holdings, Inc. (NASDAQ: CBOE) Cut to Underperform at KBW.
Demand Media Inc. (NYSE: DMD) Cut to Underweight at Morgan Stanley.
Dr. Reddy’s Laboratories Ltd. (NYSE: RDY) Cut to Neutral at Credit Suisse.
ING Group, N.V. (NYSE: ING) Cut to Neutral at Goldman Sachs.
Morgan Stanley (NYSE: MS) Cut to Hold at Collins Stewart.
National Oilwell Varco Inc. (NYSE: NOV) raised target to $96 at Argus.
OpenTable Inc. (NASDAQ: OPEN) Cut to Perform at Oppenheimer; Cut to Neutral at Credit Suisse; Raised to Overweight at Piper Jaffray.
Sohu.com Inc. (NASDAQ: SOHU) lowered targets by Credit Suisse and Nomura.
UBS AG (NYSE: UBS) Cut to Sell at Deutsche Bank.
Vishay Intertechnology, Inc. (NYSE: VSH) Raised to Overweight at JPMorgan.
Yum! Brands Inc. (NYSE: YUM) Raised to Neutral at Goldman Sachs.

Credit Suisse makes a change to its favorite biotech list.

If you enjoyed the top analyst calls, you can sign up in the box below to join our morning email list to receive news directly in your inbox each morning. We include major analyst upgrades and downgrades, IPO and M&A news, special situation developments, observations on Warren Buffett and key market gurus, as well as special exclusive feature stories.

JON C. OGG

Filed under: 24/7 Wall St. Wire, Analyst Calls Tagged: BP, CBOE, DMD, ING, MS, MT, NLY, NOV, OPEN, RDY, SOHU, UBS, VSH, YUM

Media Digest (2/8/2012) Reuters, WSJ, NYT, FT, Bloomberg

247wallst — Wed, 08 Feb 2012 11:43:53 +0000

The Greeks try to get a financial aid package while some regional leaders say the eurozone does not need the southern European nation. (Reuters)

A House committee pushes through plans for a reconsideration of the Keystone XL pipeline. (Reuters)

The chairman of Yahoo! (NASDAQ: YHOO) to leave. (Reuters)

Nissan posts better earnings on strong sales. (Reuters)

An attempt to bolster money market funds may involve setting up a capital buffer and blocking redemptions for 30 days. (Reuters)

A hacker releases source code from security firm Symantec (NASDAQ: SYMC). (Reuters)

Amazon.com (NASDAQ: AMZN) and Viacom (NYSE: VIA) may close a transaction to allow the e-commerce company to stream premium video from Viacom properties. (Reuters)

The European Central Bank will change the treatment of its Greek debt to try to salvage a bailout deal. (WSJ)

Some large investors disapprove of a merger deal between Glencore and Xtrata. (WSJ)

General Motors (NYSE: GM) will again try to cut workers at Opel. (WSJ)

UBS (NYSE: UBS) to cut bonuses by 60%. (WSJ)

CalSTRS says it has concerns about the diversity of Facebook’s board. (WSJ)

Apple (NASDAQ: AAPL) asks the European Telecommunications Standards Institute to set rules for patent licensing among mobile device companies. (WSJ)

Italian Prime Minister Mario Monti believes Europe must move beyond austerity to plans that will help create growth. (WSJ)

U.S. businesses upgrade plants and move jobs back to the U.S. (WSJ)

European sales of U.S. companies rose in the fourth quarter, which may cause a problem this year as the region’s economy slows. (WSJ)

Six Spanish banks to set aside €11.8 billion because of real estate trouble in the country. (WSJ)

India becomes more open to foreign investment as its economy slows. (NYT)

As Greece fails to set a deal on its debt, more workers go on strike. (NYT)

U.S. stocks reach a six-month high. (FT)

Collateralized mortgage obligations, one of the causes of the credit crisis, are again popular investments for banks. (FT)

Prices for Canadian oil drop sharply as supplies surge. (FT)

Nokia (NYSE: NOK) to fire 4,000 and move more production to Asia. (Bloomberg)

The Illumina (NASDAQ: ILMN) board rejects a $5.7 billion offer from Roche. (Bloomberg)

Douglas A. McIntyre

Filed under: 24/7 Wall St. Wire, Press Digest Tagged: AAPL, AMZN, GM, ILMN, NOK, SYMC, UBS, VIA, YHOO

Top Analyst Upgrades & Downgrades (ADTN, AAP, APD, MT, ADP, BKU, BA, CATM, CSH, CVX, C, HGSI, LAMR, MA, RSH, SMG, UBS, VE, V, WFT, BRCM)

Administrator — Thu, 19 Jan 2012 13:14:47 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street brokerage and research firms this Thursday morning.

ADTRAN, Inc. (NASDAQ: ADTN) Cut to Hold at Needham Research.
Advance Auto Parts (NYSE: AAP) Raised to Outperform at Credit Suisse.
Air Products and Chemical, Inc. (NYSE: APD) Cut to Neutral at JPMorgan.
Arcelor Mittal (NYSE: MT) Cut to Neutral at HSBC.
Automatic Data Processing. Inc. (NYSE: ADP) Started as Outperform at Credit Suisse.
BankUnited, Inc. (NYSE: BKU) Cut to Neutral at BofA/ML.
Boeing Co. (NYSE: BA) Cut to Sell at Societe Generale.
Cardtronics, Inc. (NASDAQ: CATM) Started as Outperform at Credit Suisse.
Cash America International (NYSE: CSH) Raised to Buy at Sterne Agee.
Chevron Corporation (NYSE: CVX) maintained Buy with $130 target but cut estimates at Argus.
Citigroup, Inc. (NYSE: C) Maintained Sell at Argus.
Human Genome Sciences Inc. (NASDAQ: HGSI) Started as Buy with $14 price target at Maxim.
Lamar Advertising Co. (NASDAQ: LAMR) maintained as Outperform and named as the Bull of the Day at Zacks.
MasterCard Inc. (NYSE: MA) Started as Outperform at Credit Suisse.
RadioShack Corporation (NYSE: RSH) Cut to Underperform at Credit Suisse.
Scotts Miracle-Gro (NYSE: SMG) Cut to Underperform at BMO Capital.
UBS AG (NYSE: UBS) Raised to Overweight at Morgan Stanley.
Veolia Environnement (NYSE: VE) Cut to Neutral at HSBC.
Visa, Inc. (NYSE: V) Started as Outperform at Credit Suisse.
Weatherford International Inc. (NYSE: WFT) named as value stock of the day at Zacks.

Read Also: Jim Cramer touts Broadcom Corporation (NASDAQ: BRCM) as a cheap catch-up semiconductor stock. This creates a chart versus fundamental event in price.

JON C. OGG

Filed under: Analyst Calls Tagged: AAP, ADP,, ADTN, APD, BA, BKU, BRCM, C, CATM, CSH, CVX, HGSI, LAMR, MA, MT, RSH, SMG, UBS, V, VE, WFT

Euro Banks on the Rise for Merkel/Sarkozy (STD, BBVA, IRE, CS, UBS, DB, NBG, BCS, RBS)

Administrator — Mon, 05 Dec 2011 12:45:31 +0000

Sarkozy and Merkel have gone from killers of the markets to saviors of the market, and oddly enough there is no full resolution yet to the Euro Zone debt crisis other than he hope that the two will reach an agreement of sorts on higher oversight of local government budgets. The move has European bank ADRs on the rise all over again.

Spain is a particular winner. Banco Santander, S.A. (NYSE: STD) is up almost 5% at $7.94; and Banco Bilbao Vizcaya Argentaria, S.A. (NYSE: BBVA) has not traded but shares are indicated up around $8.90 in New York after a $8.53 close on Friday.

The Bank of Ireland (NYSE: IRE) is up almost 4% at $5.02.

The Swiss banks are on the rise as Credit Suisse Group (NYSE: CS) is up 2.6% at $25.25 and UBS AG (NYSE: UBS) is up 1.6% at $12.44.

Deutsche Bank AG (NYSE: DB) is up 1.2% at $40.48.

National Bank of Greece SA (NYSE: NBG) has not yet traded.

The British Banks are higher as well and they are technically not a part of the Euro Zone other than doing business in Europe. Barclays PLC (NYSE: BCS) is up 4.1% at $12.35; The Royal Bank of Scotland Group plc (NYSE: RBS) is up 5.9% at $7.15.

JON C. OGG

Filed under: ADR, Banking, International Markets Tagged: BBVA, BCS, CS, DB, IRE, NBG, RBS, STD, UBS

European ADRs Surging on Global Central Bank Action (ALU, MT, BHP, STD, IRE, CS, UBS, DB, FTE, PHG, ERIC, NOK, NBG, SI, TI)

Administrator — Wed, 30 Nov 2011 14:03:50 +0000

The action out of China’s virtual easing by lowering reserve requirements was already a boost to global markets, but the coordinated central bank efforts of the U.S., Canada, Europe, Switzerland, and the U.K. to preserve global liquidity is creating a boom for stocks today at the expense of the U.S. dollar.

Alcatel-Lucent (NYSE: ALU) is up only 1.25% at $1.60 and shares are flat in local trading in Paris. Arcelor Mittal (NYSE: MT) is up 10% at $18.26 and BHP Billiton Ltd. (NYSE: BHP) is up 6.5% at $74.21.

Banco Santander, S.A. (NYSE: STD) is up 5.6% at $7.56 and the stock is up 4% in local trading in Madrid. The Bank of Ireland (NYSE: IRE) is now up 8.6% at $4.92 and shares are up 7% in local trading in Dublin. National Bank of Greece SA (NYSE: NBG) is up 4.9% at $2.55 in New York but shares are up almost 3% in local trading in Athens.

Credit Suisse Group (NYSE: CS) is up 7% at $24.03 and UBS AG (NYSE: UBS) is up 6.1% at $12.18. Deutsche Bank AG (NYSE: DB) is up 7.9% at $38.36 and shares are up 6.6% in local trading in Frankfurt.

France Telecom (NYSE: FTE) is up 4.3% at $17.01 and shares are up 3.4% in local trading in Paris. Koninklijke Philips Electronics NV (NYSE: PHG) is up 4.6% at $20.00 in New York trading. LM Ericsson Telephone Co. (NASDAQ: ERIC) is up 5.5% at $10.37; Nokia Corporation (NYSE: NOK) is up 4.2% at $5.73. Funny, Nokia’s problems are not really tied to “liquidity” issues or other uncertainties. Siemens AG (NYSE: SI) is up 5.9% at $101.54 in New York and shares are up 4.1% in local trading in Frankfurt.

Telecom Italia SpA (NYSE: TI) is up 5.6% at $11.32 in New York and shares are up 4% in local trading in Milan.

JON C. OGG

Filed under: ADR, International Markets, Pre-Market Activity, Trading Alert Tagged: ALU, BHP, CS, DB, ERIC, FTE, IRE, MT, NBG, NOK, PHG, SI, STD, TI, UBS

Today’s Best Market Rumors (11/21/2011) UBS To Cut Bonus

247wallst — Mon, 21 Nov 2011 13:45:08 +0000

Updated throughout the day

Clearwire (NASDAQ: CLWR) may skip a major bond payment to preseve cash (WSJ)

UBS (NYSE: UBS) may cut its bonus pool. (FT)

Filed under: Rumors Tagged: CLWR, UBS

Media Digest (11/21/2011) Reuters, WSJ, NYTimes, FT, Bloomberg

247wallst — Mon, 21 Nov 2011 10:45:36 +0000

The supercommittee appears unlikely to settle on a deficit agreement. (Reuters)

A senior Chinese official says he expects the global recession to last for some time. (Reuters)

Spain’s center-right People’s Party gains a majority in parliament as work on austerity grows. (Reuters)

Delphi Automotive (NYSE: DLPH) may begin M&A work once its IPO is done. (Reuters)

Some retailers, including Gap (NYSE: GPS), Zales (NYSE: ZLC) and Best Buy (NYSE: BBY), expect a hard holiday season. (WSJ)

Pfizer (NYSE: PFE) pays $60 million to settle bribery claims brought by the government. (WSJ)

Clearwire (NASDAQ: CLWR) may skip a large dept payment. (WSJ)

Twenty-two states set partial-work patterns that allow workers to operate part-time and receive reduced unemployment checks. (WSJ)

The used car business is growing quickly in China. (WSJ)

Chevron (NYSE: CVX) takes responsibility for a major spill off Brazil’s coast. (WSJ)

Many monthly magazines have ad page fall-offs in the fourth quarter. (WSJ)

Warren Buffett to invite analysts to the Berkshire Hathaway (NYSE: BRK-B) annual meeting. (WSJ)

Large U.S. companies continue to sell bonds with little impact from troubled financial markets. (WSJ)

Google (NASDAQ: GOOG) has trouble competing with Microsoft (NASDAQ: MSFT) Office. (NYT)

Retailers try to help catalog sales with apps. (NYT)

UBS (NYSE: UBS) may cut its bonus pool. (FT)

Volkswagen to make electric cars in China. (Bloomberg)

Foreign banks’ reserves at the Fed have doubled since the end of last year, as the financial firms seek safety. (Bloomberg)

Douglas A. McIntyre

Filed under: Press Digest Tagged: BBY, BRK-B, CLWR, CVX, DLPH, GOOG, GPS, MSFT, PFE, UBS, ZLC

Media Digest (11/18/2011) Reuters,WSJ, NYT, FT

247wallst — Fri, 18 Nov 2011 11:05:37 +0000

Greek citizens stage large protests. (Reuters)

Citigroup (NYSE: C), Bank of America (NYSE: BAC) and Morgan Stanley (NYSE: MS) could be affected when S&P updates its credit ratings on the world’s 30 largest banks. (Reuters)

The Highway Loss Data Institute says hybrids are often safer in crashes. (Reuters)

The California Attorney General sends subpoenas to Fannie Mae and Freddie Mac in a review of lending foreclosure practices. (Reuters)

The ECB has a secret 20 billion euro bond-buying limit. (Reuters)

Proxy votes for Microsoft (NASDAQ: MSFT) CEO Steve Ballmer decline. (Reuters)

The Super Committee reaches no decision on Bush-era tax cuts. (WSJ)

The European Central Bank may be the only hope for a euro region bail out. (WSJ)

Eastman Kodak (NYSE: EK) puts its online gallery up for sale. (WSJ)

UBS (NYSE: UBS) will fire thousands at its investment bank. (WSJ)

Pressure on Alcatel-Lucent’s (NYSE: ALU) CEO increases due to poor performance. (WSJ)

Shares of Liberty Starz (NASDAQ: LSTZA) and Liberty Capital (NASDAQ: LCAPA) will be combined. (WSJ)

Data shows that Amazon.com’s (NASDAQ: AMZN) Kindle Fire has low margins. (WSJ)

Yelp files for an IPO to raise $100 million. (WSJ)

A new Spanish government will increase austerity plans. (WSJ)

Activist shareholder Relational Investors will get a Hewlett-Packard (NYSE: HPQ) board seat. (WSJ)

Gamestop (NYSE: GME) cuts its forecasts. (WSJ)

Silver Lake Partners is closer to a deal to buy Yahoo! (NASDAQ: YHOO). (WSJ)

Italy’s new prime minister offers a package to turn around the nation’s finances. (NYT)

Organized crime may be involved in the losses at Olympus. (NYT)

Spain’s borrowing costs soar. (FT)

NYSE Euronext (NYSE: NYX) and Deutsche Boerse will make some concessions to complete their marriage. (FT)

Home prices in many Chinese cities fall. (FT)

Douglas A. McIntyre

Filed under: Press Digest Tagged: ALU, AMZN, BAC, C, EK, GME, HPQ, LCAPA, LSTZA, MS, MSFT, NYX, UBS, YHOO

What’s Important in the Financial World (11/17/2011) Nokia Phone With AT&T, Oil Above $100

247wallst — Thu, 17 Nov 2011 11:31:18 +0000

Concerns about the price of oil have returned after a summer in which both crude and gasoline prices fell. Slow production from OPEC nations is not to blame. Libyan production is actually higher now that political issues have been partially resolved. Problems with the movement of oil between Canada and the U.S. have been cited as a reason for the increase. So has demand in China, which is almost always a culprit when crude rises. The worry is that if crude stays above $100, the price of gasoline will rise above $4 in America. If that happens, consumer spending on other goods and services will falter.

Spain is the most recent country to suffer from the panic over eurozone sovereign debt. The yield on newly issued 10-year notes rose to 6.97%. That is the highest since the eurozone was formed. Nothing has changed in Spain over the past two weeks. Its financial prospects are no different. Unemployment is above 21%, but has been at that level since the recession began. Either investors have dug deeper into Spain’s situation and suddenly found something that appears more dangerous that before, or a herd mentality has been the core cause of yield increase in Spain — and Italy, France and Greece. The herd mentality case is more likely, based on recent events. Europe’s problems have been Europe’s problems for years.

Nokia’s (NYSE: NOK) smartphones based on the Microsoft (NASDAQ: MSFT) Windows mobile OS may get an unexpected boost. AT&T (NYSE: T) is apparently in conversations with the world’s largest handset manufacturer about sales of the smartphone through its large retail network. The new Nokia products were supposed to be dead on arrival because of the popularity of Google (NASDAQ: GOOG) Android-based devices and the Apple (NASDAQ: AAPL) iPhone. AT&T may be Nokia’s last and perhaps best hope to gain a foothold in the smartphone business.

The rogue trading culture at UBS (NYSE: UBS) may not have been stamped out, despite the number of traders and top executives who lost jobs. The Financial Times reports more accusations about unauthorized activity on the bank’s Africa trading desk. Since there is very little attention on paper issued by African nations, that desk may be the best place in the bank to conceal illegal sales.

Douglas A. McIntrye

Filed under: Research Tagged: AAPL, GOOG, MSFT, NOK, UBS