24/7 Wall St. » VMW

24/7 Wall St. Closing Bell (AAPL, NOK, VMW, EIX, CLD, GOOG, JPM, WFC, IGTE, C, INTC, MSFT, GTIM, INFY, TLB)

Paul Ausick — Fri, 13 Apr 2012 20:08:26 +0000

Markets opened lower this morning and by mid-morning equities were trading down about -1% across the board, where they have mostly remained for the rest of the day. Worries about Spain have replaced worries about Greece, and both the high borrowing levels by Spanish banks (our coverage here) and the record high CDS rates stoked those concerns. China’s weaker-than-expected GDP growth also figured into today’s lower prices (our coverage here). A flight to safety lifted Treasuries and the dollar. The US dollar index rose today, now up 0.76% at 79.885. The GSCI commodity index is up about 1.2% at 687.36, with most commodities falling on the rising dollar. WTI crude oil closed down -0.8% at $102.83/barrel, and Brent crude trades down -0.26% at $121.20/barrel. Gold settled down -1.2% today, at $1,660.20/ounce.

The unofficial closing bells put the DJIA down nearly 137 points to 12,849.59 (-1.05%), the NASDAQ fell more than 44 points (-1.45%) to 3,011.33, and the S&P 500 fell -1.25% or more than 17 points to 1,370.26.

There were several analyst upgrades and downgrades today, including Apple Inc. (NASDAQ: AAPL) reiterated as ‘buy’ and target price raised to $770 at BofA/ML; Nokia Corp. (NYSE: NOK) cut to ‘equal-weight’ at Barclays (our coverage here); VMWare Inc. (NYSE: VMW) started as ‘overweight’ at Piper Jaffray; Edison International (NYSE: EIX) raised to ‘outperform’ at Wells Fargo; and Cloud Peak Energy Corp. (NYSE: CLD) cut to ‘neutral’ at Credit Suisse (more coverage here).

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Google Inc. (NASDAQ: GOOG) is down -3.9% at $625.38 (more coverage here); JPMorgan Chase & Co. (NYSE: JPM) is down -3.5% at $43.26 (more coverage here); Wells Fargo & Co. (NYSE: WFC) is down -3.3% at $32.90 (more coverage here); and iGate Corp. (NASDAQ: IGTE) is up 10.5% at $18.97 after posting a new 52-week high earlier today of $19.64.

Our preview of the top earnings reports due next week is available here. Citigroup Inc. (NYSE: C), Intel Corp. (NASDAQ: INTC), and Microsoft Corp. (NASDAQ: MSFT) are among the major reports we’re waiting for.

Other standouts from today include the following stocks:

Good Times Restaurants Inc. (NASDAQ: GTIM) is up 98.2% at $2.18 after posting a new 52-week high today of $3.14. The small restaurant chain hired a consultant to help it review its strategic options, one of which would be more acquisitions.

Infosys Ltd. (NASDAQ: INFY) is down -13.6% at $49.08. The business outsourcing firm issued a forecast that was short of analysts’ expectations. More coverage here.

The Talbots Inc. (NYSE: TLB) is down -16.3% at $2.62. The troubled retailer forecast lower-than-expected first-quarter revenues and put itself up for sale last year.

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

8:30 a.m. – Retail sales
9:00 a.m. – Treasury International Capital (TIC) data
10:00 a.m. – Business Inventories
10:00 a.m. – Housing market index
11:30 a.m. – 3- and 6-month bill auction

Paul Ausick

Filed under: HI/LOW, Market Close Tagged: AAPL, C, CLD, EIX, GOOG, GTIM, IGTE, INFY, INTC, JPM, MSFT, NOK, TLB, VMW, WFC

7 Big Tech Companies That Need To Follow Apple’s Dividend Policy (AAPL, MSFT, INTC, ADBE, DELL, EBAY, EMC, GOOG, SYMC, YHOO)

Administrator — Wed, 21 Mar 2012 12:05:35 +0000

Apple Inc. (NASDAQ: AAPL) has finally listened to the call from Wall Street and Main Street to start using its cash for dividends. With a yield of about 1.8% a the launch, Apple has left the ‘dividend sinners club’ from the S&P 500 Index and technology peers to join Microsoft Corporation (NASDAQ: MSFT) and Intel Corporation (NASDAQ: INTC) in paying a dividend out. Apple should not be alone in this call to pay dividends and there are many more S^&P 500 components which should consider paying a dividend. Some of these companies almost have no excuse to not be paying a dividend.

The key technology dividend sinners are as follows: Adobe Systems Inc. (NASDAQ: ADBE); Dell Inc. (NASDAQ: DELL); eBay Inc. (NASDAQ: EBAY); EMC Corporation (NYSE: EMC); Google Inc. (NASDAQ: GOOG); Symantec Corporation (NASDAQ: SYMC); and Yahoo! Inc. (NASDAQ: YHOO).

We have given some detail on each here, including the history and how able a company is to begin paying a dividend. In the total liquidity calculations we have included what the companies list as their cash, cash equivalents, short-term investments, and also included the long-term investments. No consideration has been made for inventory, receivables, and other hard assets. Another metric we used was a 40% income payout model to see what sort of yields investors could get without even touching the capital reserves. We have used operating and non-GAAP estimates for calculating theoretical dividend yields.

Adobe Systems Inc. (NASDAQ: ADBE) is in the dividend sinning club out of the S&P 500 technology group. The company has a market value of close to $16 billion and it has been a public company since the 1980′s if you can believe it. The company does not pay a dividend currently and it has not indicated any intention to. With markets being mostly established, we would wonder if it needs to hold back more capital for even more acquisitions. The company has over $3 billion in liquidity on its books. Adobe could offer a yield of about 2.9% if it were to adopt a 40% adjusted income payout to shareholders.

Dell Inc. (NASDAQ: DELL) has been making acquisitions here and there to bolster its move from just being a PC company into a PC and information technology company. While it has more than $6 billion in direct long-term debt, Dell also has what is close to $20 billion in total liquidity. Rivals HP and IBM pay dividends and now Apple pays a dividend. What is so interesting here is that with a $30 billion market value, Dell could be a candidate for a solid one-time dividend this year and a hefty payout ratio going forward. It is just too hard to argue that its core market is growing. What is amazing is that Dell could pay out roughly a 4.9% dividend yield if it adopted a 40% of adjusted earnings to be paid out as dividends with touching a penny of its cash on hand.

eBay Inc. (NASDAQ: EBAY) is a dividend sinner of epic proportions. It has made acquisitions and it has made sales, and the real growth now lies in the PayPal market rather than in the auction markets. The only real need for eBay to keep a hold of its $8+ billion in total liquidity is if it can find a huge international outfit to buy. If eBay adopted a 40% payout ratio of income, without even considering its mountain of cash today on the books, eBay could be offering shareholders a 2.4% yield without denting its cash and reserves.

EMC Corporation (NYSE: EMC) has proven to grow and grow in the world of storage. With the cloud growth and with storage being nearly infinite, the company has been able to grow organically and via acquisitions and has preferred to use its capital for growth over dividends. It also owns a super-majority stake in VMware Inc. (NYSE: VMW). The storage leader has almost $11 billion in total liquidity and it carries almost no long-term debt. Without touching a penny of its cash and liquidity, a 40% adjusted income payout would generate a dividend yield of almost 2.4%.

Google Inc. (NASDAQ: GOOG) may be in the midst of a Motorola integration and acquisition, but it seems unlikely that it will need its cash arsenal in order to make a large acquisition. With such a huge amount of the search market, other acquisitions might be just yet another distraction from the core markets. As of December 31, 2011, its total liquidity was a whopping $44.6 billion against a market cap of just over $200 billion. Google could easily pay a 10% one-time dividend while dividend tax rates are low and could offer a hefty quarterly dividend and still grow its cash in the years ahead. If Google paid out 40% of its adjusted income without considering one-cent of its mountain of cash it could offer a 2.6% dividend yield today.

Symantec Corporation (NASDAQ: SYMC) has such little shareholder enthusiasm that it needs to consider more return of capital. It did just recently announce a $1 billion share buyback against its $13.3 billion market cap. The company has about $2.4 billion in liquidity, but it also has about $2 billion in direct long-term debt. If the company did not use any leverage, a 40% income payout ratio would actually give a dividend yield of about 3.5% as of today. With shares around $18.00, this one has been stuck like chuck in a long-term range of $15 to $20 since its huge Veritas acquisition.

Yahoo! Inc. (NASDAQ: YHOO) is the obvious candidate for a dividend. Management has decided to keep that liquidity arsenal of more than $7 billion at bay to help fund its turnaround. It is also hard to know what will become of the Alibaba and Yahoo! Japan stakes for liquidity in the equation. If Yahoo! were to just pay out 40% of its expected earnings from operations without tapping any cash on hand then it could offer a 2.1% dividend yield today without much worry. This is an ongoing call and it will not likely be answered until the international assets are properly monetized.

JON C. OGG

Filed under: 24/7 Wall St. Wire, Accounting, Compensation, Corporate Governance, Dividend, PC Companies, Semiconductor, Shareholder Issues, Software, Stock Buybacks, Stock Splits, Technology Companies Tagged: AAPL, ADBE, DELL, EBAY, EMC, GOOG, INTC, MSFT, SYMC, VMW, YHOO

Top After-Hours Stocks on the Move (IDCC, NVDA, PLCM, TXN, VMW, EMC, WDC, ZION)

Administrator — Mon, 23 Jan 2012 22:27:36 +0000

We have several stocks on the move in Monday’s after-hours trading session. Most of these are on earnings as follows: InterDigital Inc. (NASDAQ: IDCC); NVIDIA Corporation (NASDAQ: NVDA); Polycom Inc. (NASDAQ: PLCM); Texas Instruments Inc. (NYSE: TXN); VMware Inc. (NYSE: VMW); EMC Corporation (NYSE: EMC); Western Digital Corporation (NYSE: WDC); and Zions Bancorporation (NASDAQ: ZION). We have given a news summary and the current moves on each.

InterDigital Inc. (NASDAQ: IDCC) was down 3.3% today as is, but now the company is getting slashed and burned on news of what many had considered an obvious coming outcome. The company ended its strategic review process and it did not find a buyer for its deep patent collection. Now it is going to proceed on its own licensing or selling patents. Shares are down over 16% at $37.10 in the after-hours against a 52-week range of $34.61 to $82.50.

NVIDIA Corporation (NASDAQ: NVDA) was down 3% after the Texas Instruments earnings but now shares are down “only” about 0.6% after closing up 2.7% on the day.

Polycom Inc. (NASDAQ: PLCM) has a history of big hits and bad misses, but tonight’s reaction has shares on the up and up. After beating earnings handily, Polycom shares are up 9.6% at $20.29 and that is after closing up almost 4% today.

Texas Instruments Inc. (NYSE: TXN) was down initially due to headlines showing GAAP earnings above estimates but the chip giant is now up over 3% ay $34.25 in the after-hours session against a 52-week range of $24.34 to $36.71.

VMware Inc. (NYSE: VMW) closed down 2.4% at $86.00 today but shares are up 5% at $90.50 on almost 1 million shares after just over an hour after the 4PM closing bell. The virtualization leader said sales rose 27% to $1.06 billion and it sees revenues of $1.015 billion to $1.04 billion for the first quarter of 2012. These are being taken as above plan. The news has the (former) parent company of EMC Corporation (NYSE: EMC) up about 1.8% at $23.87 on over 2 million after-hours shares.

Western Digital Corporation (NYSE: WDC) may have seen earnings drop almost 36%, but the update is proving to be above plan and it claims to be making much more progress in Thai floods. Shares closed up marginally today and the after-hours reaction has shares up 4.4% at $36.25 versus a 52-week range of $22.64 to $41.87.

Zions Bancorporation (NASDAQ: ZION) posted earnings light at $0.30 versus estimates of $0.33. Its book value per common shares grew to $25.02 from $24.78 one quarter earlier and shares are down 3% at $17.98 in the after-hours.

JON C. OGG

Filed under: 24/7 Wall St. Wire, After-Hours Activity, Trading Alert Tagged: EMC, IDCC, NVDA, PLCM, TXN, VMW, WDC, ZION

24/7 Wall St. Closing Bell (JPM, VMW, AIG, SCHW, CHK, CTXS, SAP, JDAS, GGC, MBLX, PCX, DMND, CSIQ)

Paul Ausick — Fri, 13 Jan 2012 21:06:19 +0000

US equities opened lower this morning, weighed down by an undistinguished earnings report from JPMorgan Chase & Co. (NYSE: JPM). More coverage here. Markets in Europe and Asia were higher on the sale of Italian and Spanish debt at lower-than-expected interest rates. The dollar gained strength throughout the day, putting downward pressure on commodities, and a story from Europe that countries would wait another six months to impose further sanctions on Iran pushed crude oil down even further. None of the three major indexes broke through to positive territory today. Crude oil is ending the day down, with WTI down -0.14% at $98.96/barrel and Brent crude is down -0.52% at $110.68/barrel. Gold closed at $1,636.90, down less than -1% on the day.

The unofficial closing bells put the DJIA down nearly 49 points to 12,422.06 (-0.39%), the NASDAQ fell more than 14 points (-0.51%) to 2,710.67, and the S&P 500 fell -0.49% or more than 6 points to 1,289.10.

There were several analyst upgrades and downgrades today, including VMWare Inc. (NYSE: VMW) cut to ‘sell’ with a target price of $80 at Citigroup; American International Group Inc. (NYSE: AIG) started as ‘hold’ at Stifel Nicolaus; The Charles Schwab Corp. (NYSE: SCHW) cut to ‘market perform’ at Wells Fargo; Chesapeake Energy Corp. (NYSE: CHK) reiterated as ‘sell’ with lower estimates at Argus; and Citrix Systems Inc. (NASDAQ: CTXS) raised to ‘buy’ from ‘neutral’ at Citigroup.

Earnings reports since markets closed yesterday have led to some price changes as of the last half hour of trading today: JPMorgan Chase & Co. is down -2.63% at $35.88; SAP AG (NYSE: SAP) is up 2.42% at $54.54; and JDA Software Group Inc. (NASDAQ: JDAS) is down nearly -14% at $28.21.

Other standouts from today include the following stocks:

Georgia Gulf Corp. (NYSE: GGC) is up more than 34% at $32.85. The chemical and home products maker has received a buyout offer of about $1.03 billion ($30/share) from Westlake Chemical Corp. (NYSE: WLK).

Metabolix Inc. (NASDAQ: MBLX) is down about -58% at $2.52, after posting a new 52-week low of $2.51 earlier. The bioscience and chemicals company is suffering from the cancellation of a joint venture with Archer Daniels Midland Co. (NYSE: ADM), which the larger company unexpectedly announced this morning.

Patriot Coal Corp. (NYSE: PCX) is down nearly -13% at $7.87. The coal miner lowered its production forecast and closed several operations. We have more coverage here.

Diamond Foods Inc. (NASDAQ: DMND) is down more than -10% at $29.71. The snack food maker is now the subject of a criminal inquiry related to payments it made to farmers.

Canadian Solar Inc. (NASDAQ: CSIQ) is down more than -9% at $3.19. The China-based solar panel maker is among the group of Chinese makers who are cooling off, probably due to profit taking, after several days of sharp share price increases.

US markets are closed on Monday in observance of the birthday of Martin Luther King, Jr. We have the following events for Tuesday:

8:30 a.m. – Empire State manufacturing survey
11:30 a.m. – 3- and 6-month Treasury bill auctions

Have a great long weekend.

Paul Ausick

Filed under: HI/LOW, Market Close, The Day Tagged: AIG, CHK, CSIQ, CTXS, DMND, GGC, JDAS, JPM, MBLX, PCX, SAP, SCHW, VMW

Top Analyst Upgrades & Downgrades (AIG, BKU, SCHW, CHK, CTXS, DPS, GES, HUM, RNWK, RF, TWI, VMW, YNDX)

Administrator — Fri, 13 Jan 2012 13:29:08 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street brokerage and research firms this Friday (the 13th) morning.

American International Group, Inc. (NYSE: AIG) Started as Hold at Stifel Nicolaus.
BankUnited, Inc. (NYSE: BKU) Started as Outperform at Wells Fargo.
The Charles Schwab Corporation (NYSE: SCHW) Cut to Market Perform at Wells Fargo.
Chesapeake Energy Corporation (NYSE: CHK) Reiterated Sell and lowered estimates at Argus.
Citrix Systems, Inc. (NASDAQ: CTXS) Raised to Buy from Neutral at Citigroup.
Dr. Pepper Snapple Group, Inc. (NYSE: DPS) Cut to Market Perform at Wells Fargo.
Guess? Inc. (NYSE: GES) Cut to Neutral as Bear of the Day at Zacks.
Humana, Inc. (NYSE: HUM) Raised to Outperform as Bull of the Day at Zacks.
RealNetworks Inc. (NASDAQ: RNWK) maintained Speculative Buy with $15 price target at Canaccord Genuity.
Regions Financial Corporation (NYSE: RF) Started as Market Perform at Wells Fargo.
Titan International, Inc. (NYSE: TWI) named as value stock of the day at Zacks.
VMware Inc. (NYSE: VMW) Cut to Sell with an $80 price target at Citigroup.
Yandex N.V. (NASDAQ: YNDX) Started as Underweight at HSBC.

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: Analyst Calls Tagged: AIG, BKU, CHK, CTXS, DPS, GES, HUM, RF, RNWK, SCHW, TWI, VMW, YNDX

24/7 Wall St. Closing Bell (BRCM, NFLX, NOK, GOOG, VMW, STZ, MON, WOR, HELE, DNDN, ACOM, ZUMZ, OSH, BKS, AEO)

Paul Ausick — Thu, 05 Jan 2012 21:05:34 +0000

US markets opened lower today and finally managed modest gains by mid-afternoon. News from Europe on the reluctance of banks to lend, coupled with an higher-than-expected yield on a French bond issue were not outweighed by encouraging employment news in the US. The ISM services index came in lower than expected, and mid-morning reports on US energy inventories sent natural gas and WTI crude oil prices lower. WTI crude is down about -1.4% at $101.73/barrel and Brent crude is down about -1% at $112.65/barrel. Gold is up more than 0.5% at $1,621.80.

The unofficial closing bells put the DJIA down nearly 3 points to 12,415.70 (-0.02%), the NASDAQ rose more than 21 points (0.81%) to 2,669.86, and the S&P 500 rose 0.29% or nearly 4 points to 1,281.05.

There were several analyst upgrades and downgrades today, including Broadcom Corp. (NASDAQ: BRCM) maintained ‘buy’ with a $46 target price at Argus; Netflix Inc. (NASDAQ: NFLX) maintained ‘underperform’ and estimates cut at Needham; Nokia Corp. (NYSE: NOK) raised to ‘outperform’ at Credit Suisse; Google Inc. (NASDAQ: GOOG) cut to ‘hold’ at Benchmark; and VMWare Inc. (NYSE: VMW) started as ‘buy’ at Sterne Agee.

Earnings reports of note since markets closed yesterday include: Constellation Brands Inc. (NYSE: STZ) is down about -3.5% at $19.72; Monsanto Co. (NYSE: MON) is up more than 5.5% at $76.70; Worthington Industries Inc. (NYSE: WOR) is down -0.6% at $17.55; and Helen of Troy Ltd. (NASDAQ: HELE) is up more than 4% at $32.73.

Other standouts from today include the following stocks:

Dendreon Corp. (NASDAQ: DNDN) is up nearly 40% at $10.61. The biotech company reported a sales jump of 25% for its prostate cancer drug. The company is one of our top biotech picks for 2012.

Ancestry.com, Inc. (NASDAQ: ACOM) is up more than 21% at $27.69. The internet genealogy provider reported a 22% rise in subscribers and forecast sales growth for 2012 of more than 14%.

Zumiez Inc. (NASDAQ: ZUMZ) is up nearly 17% at $30.74 after posting a new 52-week high earlier of $30.94. The sports apparel company reported a 10% same-store sales gain and raised guidance this morning. See our coverage here.

Orchard Supply Hardware Stores (NYSE: OSH) is down nearly -25% at $16.70. The home improvement store held its IPO on Monday and today provided a weak outlook for 2012.

Barnes & Noble Inc. (NYSE: BKS) is down more than -17% at $11.25. The bookstore chain said today that it is considering spinning off its Nook e-reader unit as a strategic option. Our coverage is available here.

American Eagle Outfitters Inc. (NYSE: AEO) is down more than -10% at $13.61. The clothing retailer slashed its fourth-quarter profit guidance by nearly a quarter.

Stay tuned for Friday. Federal Reserve Governors Elizabeth Duke and Sarah Bloom Raskin are speaking, as are Boston Fed President Eric Rosengren and New York Fed President William Dudley. Here are the noteworthy events on the schedule (all times Eastern):

8:30 a.m. – Employment reports, including non-farm payrolls
3:00 p.m. – US Treasury STRIPS

Paul Ausick

Filed under: HI/LOW, Market Close Tagged: ACOM, AEO, BKS, BRCM, DNDN, GOOG, HELE, MON, NFLX, NOK, OSH, STZ, VMW, WOR, ZUMZ

Top Analyst Upgrades & Downgrades (AZN, BLK, BRCM, CEG, ED, EBAY, ERIC, EXC, GOOG, NFLX, NOK, PSUN, SOL, SAP, SNY, TRN, UPS, VVUS, VMW)

Administrator — Thu, 05 Jan 2012 13:21:46 +0000

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

AstraZeneca PLC (NYSE: AZN) Cut to Underweight at JPMorgan.
BlackRock, Inc. (NYSE: BLK) Cut to Neutral at Stern Agee.
Broadcom Corp. (NASDAQ: BRCM) Reiterated Buy with $46 price target at Argus.
Constellation Energy Group, Inc. (NYSE: CEG) Cut to Neutral at Citigroup.
Consolidated Edison Inc. (NYSE: ED) Cut to Neutral at Citigroup.
eBay Inc. (NASDAQ: EBAY) Reiterated Buy with $40 price target at Argus.
LM Ericsson Telephone Co. (NASDAQ: ERIC) Cut to Neutral at Credit Suisse.
Exelon Corporation (NYSE: EXC) Cut to Neutral at Citigroup.
Google Inc. (NASDAQ: GOOG) downgraded to Hold at Benchmark; Raised targets at boutique firm Global Equities Research.
Netflix, Inc. (NASDAQ: NFLX) Maintained Underperform and cut estimates at Needham.
Nokia Corporation (NYSE: NOK) Raised to Outperform at Credit Suisse (full summary).
Pacific Sunwear of California Inc. (NASDAQ: PSUN) Raised to Buy at Janney Capital Markets.
ReneSola Ltd. (NYSE: SOL) named as the Bear of the Day at Zacks Investment Research.
SAP AG (NYSE: SAP) Raised to Neutral at BNP Paribas.
Sanofi (NYSE: SNY) Cut to Neutral at JPMorgan.
Trinity Industries, Inc. (NYSE: TRN) named as value stock of the day at Zacks.
United Parcel Service, Inc. (NYSE: UPS) Cut to Neutral at HSBC.
VIVUS Inc. (NASDAQ: VVUS) Started as Perform at Rodman & Renshaw.
VMware Inc. (NYSE: VWM) Started as Buy at Stern Agee.

If you enjoyed the morning Wall Street research notes, you can sign up to receive these directly in your inbox each morning by joining our free email list in the box below. We also include major movers, key stock calls, news on Warren Buffett and other gurus, as well as special exclusive feature stories.

JON C. OGG

Filed under: Analyst Calls Tagged: AZN, BLK, BRCM, CEG, EBAY, ED, ERIC, EXC, GOOG, NFLX, NOK, PSUN, SAP, SNY, SOL, TRN, UPS, VMW, VVUS

24/7 Wall St. Closing Bell (VMW, YHOO, SNE, EA, SRE, DLPH, CALM, DMAN, SHLD, CSC, PARL, WHR, MHR)

Paul Ausick — Tue, 27 Dec 2011 21:04:38 +0000

US equity markets rose rather steeply in the first hour of trading this morning, but weren’t able to sustain the momentum for long. Consumer confidence indexes rose this month, but home prices fell according to the Case-Shiller index report this morning. The lower housing prices combined with a weaker dollar index held down equities but boosted most commodities. A renewed threat from Iran to close the critical Strait of Hormuz helped push up crude oil prices. WTI crude rose 1.61% to $101.28 and Brent crude is up 0.93% at $108.96. Gold prices fell again today, to $1,594.80, off -0.70%. Last minute selling appears to have pushed the DJIA to a lower close today.

The unofficial closing bells put the DJIA down about 2 points to 12,291.73 (-0.02%), the NASDAQ rose more than 6 points (0.25%) to 2,625.20, and the S&P 500 rose 0.01% or less than 1 point to 1,265.47.

There were several analyst upgrades and downgrades today, including VMWare Inc. (NYSE: VMW) raised to ‘outperform’ at Oppenheimer; Yahoo! Inc. (NASDAQ: YHOO) maintained ‘buy’ with a price target of $18 at BofA/Merrill Lynch; Sony Corp. (NYSE: SNE) Japanese target price cut by Barclays; Electronic Arts Inc. (NASDAQ: EA) maintained ‘buy’ with a $28 price target at BofA/Merrill Lynch; and Sempra Energy Inc. (NYSE: SRE) reiterated as ‘buy’ with a $61 target price at Argus. Delphi Automotive (NYSE: DLPH) received four ratings this morning: initiated as ‘outperform’ at Credit Suisse; started as ‘buy’ at BofA/Merrill Lynch; started as ‘overweight’ at JPMorgan; and started as ‘outperform’ at R.W. Baird.

Here are today’s post-earnings news reactions with prices during the last half-hour of trading: Cal-Maine Foods Inc. (NASDAQ: CALM) is up nearly 5% at $35.84; and DemandTec, Inc. (NASDAQ: DMAN), which is being acquired by IBM Corp. (NYSE: IBM), is down about -0.04% at $13.13. This is the beginning of a very light week for earnings.

Other standouts from today include the following stocks:

Sears Holding Co. (NASDAQ: SHLD) is down about -26% at $33.95, a new 52-week low. The department store has announced that it will miss its previous earnings forecast by at least 50% and that it will close another 100-120 stores. See more coverage here and here.

Computer Sciences Corp. (NYSE: CSC) is down more than -9% at $24.06. The technology and IT services company has said it may have to take a $1.5 billion writedown on a UK contract. More coverage here.

Parlux Fragrances Inc. (NASDAQ: PARL) is up more than 72% at $5.98, after posting a new 52-week high this morning of $6.60. The perfume maker is being acquired by Perfumania Holdings Inc. (NASDAQ: PERF) for about $170 million.

Whirlpool Corp. (NYSE: WHR) is down more than -8% at $46.95. The appliance maker, which makes products for Sears, is caught in that company’s dismal announcement.

Magnum Hunter Resources Corp. (NYSE: MHR) is up nearly 19% at $5.54. The oil & gas producer has raised its production estimate from 10,000 barrels/day of oil equivalent to 12,500 barrels/day.

Stay tuned for Wednesday. Here are the noteworthy events on the schedule (all times Eastern):

7:00 a.m. – Mortgage Bankers Association purchase applications
11:30 a.m. – Four-week T-bill auction

Paul Ausick

Filed under: HI/LOW, Market Close Tagged: CALM, CSC, DLPH, DMAN, EA, MHR, PARL, SHLD, SNE, SRE, VMW, WHR, YHOO

Top Analyst Upgrades & Downgrades (CF, DLPH, EA, EL, MCK, RSH, SRE, SNE, TDC, VMW, YHOO)

Administrator — Tue, 27 Dec 2011 13:29:02 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Tuesday morning. It is generally light in analyst coverage the week between Christmas and New Years, but there are also some great hidden gems during this time.

CF Industries Holdings Inc. (NYSE: CF) named as value stock of the day by Zacks Investment Research.
Delphi Automotive (NYSE: DLPH) Initiated as Outperform at Credit Suisse; Started as Buy at Bank of America Merrill Lynch; Started as Overweight at J.P.Morgan; Started as Outperform at R.W. Baird.
Electronic Arts Inc. (NASDAQ: EA) Maintained Neutral with $28.00 price target at Bank of America Merrill Lynch.
Estee Lauder Companies (NYSE: EL) raised to Outperform as Bull of the Day by Zacks Investment Research.
McKesson Corp. (NYSE: MCK) Reiterated Hold at Argus.
RadioShack Corporation (NYSE: RSH) Cut to Underperform as Bear of the Day by Zacks Investment Research.
Sempra Energy (NYSE: SRE) Reiterated Buy with $61 price target objective at Argus.
Sony Corporation (NYSE: SNE) target cut in Japan by Barclays.
Teradata Corporation (NYSE: TDC) added to US 1 focus list at Bank of America Merrill Lynch.
VMware Inc. (NYSE: VMW) Raised to Outperform at Oppenheimer.
Yahoo! Inc. (NASDAQ: YHOO) Maintained Buy with $18.00 price target objective at Bank of America Merrill Lynch.

JON C. OGG

Filed under: Analyst Calls Tagged: CF, DLPH, EA, EL, MCK, RSH, SNE, SRE, TDC, VMW, YHOO

24/7 Wall St. Closing Bell (F, GS, RIMM, HON, ORCL, NKE, ATU, KMX, KBH, SHAW, WAG, DFG, CMFB, WWAY, AMPE, VMW, CVLT)

Paul Ausick — Wed, 21 Dec 2011 21:11:35 +0000

Markets opened lower this morning on mixed reaction to the $641 billion borrowing spree from the European Central Bank. Technology stocks were weighed down by poor earnings report and uninspired guidance from one of the industry’s biggest players. The DJIA and the S&P 500 finally reached positive territory about half an hour before closing, but the Nasdaq never touched the line. A very large drawdown on US crude oil inventories helped energy stocks post some gains. One hour before trading closes for the day only a half billion shares have traded hands on the NYSE today. The US dollar is slightly stronger against the euro and the Japanese yen, but down slightly against the British pound. WTI crude oil is up more than 1.5% at $98.79/barrel, and Brent crude is up about 1% at $107.78. Gold was down -0.25% at $1,613.50.

The unofficial closing bells put the DJIA up about 4 points to 12,107.74 (0.03%), the NASDAQ fell nearly 26 points (-0.99%) to 2,577.97, and the S&P 500 rose 0.19% or more than 2 points to 1,243.72.

There were several analyst upgrades and downgrades today, including Ford Motor Co. (NYSE: F) started as ‘buy’ at Sterne Agee. Other ratings actions today include Goldman Sachs Group Inc. (NYSE: GS) started as ‘market perform’ at Wells Fargo; Research in Motion Ltd. (NASDAQ: RIMM) raised from ‘hold’ to ‘buy’ with a $16 target price at ThinkEquity; Honeywell International Inc. (NYSE: HON) reiterated as ‘buy’ with a $70 target price at Argus; and Oracle Corp. (NASDAQ: ORCL) cut from ‘buy’ to ‘hold’ at Canaccord Genuity and maintained as ‘buy’ with a lowered target price of $40 at Credit Suisse.

Here are today’s post-earnings news reactions with prices during the last half-hour of trading: Oracle Corp. is down nearly -11% at $25.98; Nike Inc. (NYSE: NKE) is up nearly 3% at $96.40; Actuant Corp. (NYSE: ATU) is up nearly 9% at $22.61; CarMax Inc. (NYSE: KMX) is down nearly -6% at $29.22; KB Home (NYSE: KBH) is down more than -5% at $7.33; Shaw Group Inc. (NYSE: SHAW) is up nearly 17% at $26.45; and Walgreen Co. (NYSE: WAG) is down about -0.5% at $33.34. For more on the ripple effects of Oracle’s weak earnings, see our coverage here.

Other standouts from today include the following stocks:

Delphi Financial Group Inc. (NYSE: DFG) is up almost 73% at $43.99 after posting a new 52-week high of $44.00. The insurance and financial services company has agreed to be acquired by Japan’s Tokio Marine for $2.66 billion.

Commercefirst Bancorp Inc. (NASDAQ: CMFB) is up nearly 71% at $13.25 after posting a new 52-week high of $13.99 earlier today. The Maryland bank holding company is being acquired by Sandy Spring Bancorp Inc. (NASDAQ: SASR) for $24.5 million in stock and cash, or about $13.50/share.

Westway Group Inc. (NASDAQ: WWAY) is up nearly 23% at $5.50 after posting a new 52-week high of $6.60 earlier today. The bulk liquid storage provider has rejected a $6/share unsolicited takeover offer from an unidentified infrastructure investment fund.

Ampio Pharmaceuticals Inc. (NASDAQ: AMPE) is down more than -17% at $4.38. The drug company announced the sale of 2.2 million shares in private sale to investors at $4.25/share.

VMWare Inc. (NYSE: VMW) is down more than -10% at $76.65. The virtual software company is suffering from Oracle’s weak earnings and guidance.

CommVault Systems Inc. (NASDAQ: CVLT) is down more than -15% at $39.22. The software company is another of Oracle’s victims.

Stay tuned for Thursday. Here are other noteworthy events on the schedule (all times Eastern):

8:30 a.m. – US Commerce Department GDP report
8:30 a.m. – Initial unemployment benefits claims report
8:30 a.m. – Chicago Federal Reserve national activity index
8:30 a.m. – Bureaus of Economic Analysis corporate profits report
9:55 a.m. – Reuters/University of Michigan consumer sentiment index
10:00 a.m. – Federal Housing Finance Agency house price index
10:00 a.m. – Conference Board leading economic indicators
10:30 a.m. – EIA weekly natural gas inventory report
4:30 p.m. – Federal Reserve balance sheet and money supply reports

Paul Ausick

Filed under: HI/LOW, Market Close Tagged: AMPE, ATU, CMFB, CVLT, DFG, F, GS, HON, KBH, KMX, NKE, ORCL, RIMM, SHAW, VMW, WAG, WWAY