Wall Street Breakfast: Must-Know News

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 |  Includes: AGU, AOSDF, APPCQ, BCS, DB, HDSN, JPM, MOS, NOK, PFE, POT, QCOM, QQQ, RWC, S, SIEGY, SPY, TEVA, UBS, URALL
by: Wall Street Breakfast
Wall Street Breakfast
Seeking Alpha's flagship daily business news summary, gives you a rapid overview of the day's key financial news. It is published before 7:00 AM ET every market day and delivered to over 900,000 email subscribers.

Top Stories
Sprint's losses grow as customer hemorrhaging worsens. Sprint's (NYSE:S) net losses widened to $1.6B in Q2 from $1.4B a year earlier, hurt by depreciation of $430M and charges of $623M related to the shutdown of Nextel's platform. Losses per share were $0.53 while revenues were flat at $8.87B but beat consensus. Sprint hemorrhaged a net 1.05M contract subscribers - up from 246,000 - due to the closure of Nextel, although wireless-service revenues climbed 8% to a record $7.2B. Sprint raised its outlook for one measure of profit to $5.5-5.7B from a previous forecast of $5.2-5.5B.

Barclays H1 pretax profit -17%, to issue £5.8B in new shares. Barclays' (NYSE:BCS) H1 pretax profit sank 17% to £3.59B as the bank set aside another £1.35B for the mis-selling of Payment Protection Insurance and £650M for compensation related to interest-rate hedging products. Barclays plans to issue £5.8B in new shares in order to meet regulatory requirements to boost its capital, and £2B of bonds that can be converted into shares or will be wiped out if the bank gets into difficulties. Shares tumbled 6.7% pre-market.

Pfizer profit gains from spin-off and patent deal. Pfizer's (NYSE:PFE) Q2 net profit jumped over fourfold to $14.1B, or $1.98 a share, boosted by the spinoff of the company's Zoetis animal-health unit, and by a patent settlement with Teva (NYSE:TEVA) and Sun Pharmaceutical over Pfizer's Protonix acid reflux medicine. However, adjusted net profit fell 10% to $4B. EPS of $0.56 beat consensus, but revenue dropped 7% to $12.97B and missed expectations. Because of the Zoetis spin-off and patent deal, Pfizer raised its FY reported EPS outlook.

Top Stock News
UBS confirms Q2 profit, to repay bailout loan. UBS (NYSE:UBS) confirmed preliminary guidance that its Q2 net profit rose 32% to 690M Swiss francs ($740.9M), while the company also swung to a pretax profit of 775M francs from a loss of 92M francs a year earlier. UBS plans to repay a loan and repurchase shares in a fund created as part of its 2008 bailout, a transaction that is expected to cost $1B plus 50% of the fund's gains.

Deutsche Bank Q2 net profit unexpectedly halves, shares sink. Deutsche Bank's (NYSE:DB) Q2 net profit dropped 49% to €335M and badly missed forecasts of €767.6M as the company increased its legal provisions by €630M to €3B. Revenue rose 2% to €8.2B. Deutsche Bank expects legal "settlements to accelerate in the coming quarters," although it didn't provide details on which issues are set to be resolved. Shares sank 3.5% pre-market.

Alcatel-Lucent Q2 net loss grows; Qualcomm to buy stake. Alcatel-Lucent's (ALU) Q2 net loss widened to €885M from €254M last year and came in worse than consensus of €280M, hurt by impairment and restructuring charges of €746M. However, Alcatel-Lucent unexpectedly swung to an operating profit of €24M from a loss of €86M, while revenue grew 1.9% to €3.61B. Qualcomm (NASDAQ:QCOM) is buying a small stake in Alcatel-Lucent as part of an R&D pact, with the latter hoping that other strategic investors will follow suit. Shares rose 3.6% pre-market.

Siemens CFO in line for top job. Siemens (SI) CFO Joe Kaeser is reportedly in negotiations to take over from Peter Loescher as CEO. The conglomerate's supervisory board is poised to fire Loescher at a meeting tomorrow, with the sides in talks over his exit. Loescher is paying for a series of missed targets, expensive writedowns and an unsuccessful foray into green energy.

FERC accuses JPMorgan of electricity price manipulation. The Federal Energy Regulatory Commission has alleged that JPMorgan (NYSE:JPM) engaged in "eight manipulative bidding strategies" in 2010-11 aimed at getting electricity providers in California and the Midwest to overpay. The WSJ previously reported that JPMorgan is expected to settle with the FERC for $410M+ and relinquish around $200M in unpaid electricity claims. The regulator recently ordered Barclays and four of its traders to pay $487.9M for similar sins.

Potash producers plunge over Russian spat. Shares in potash producers slumped in overseas trading after Russia's Uralkali (OTC:URALL) said it is leaving its joint venture with Belaruskali, accusing the latter of violating the terms of their agreement. On a conference call, Uralkali CEO Vladislav Baumgertner said the move could trigger a drop in global potash prices to below $300 a tonne in H2 from around $400 a tonne. North American fertilizer stocks in play include Potash Corp. (NYSE:POT), Agrium (NYSE:AGU) and Mosaic (NYSE:MOS).

Top Economic & Other News
No change expected from Fed. The FOMC is due to hold its latest policy meeting today and tomorrow, when policy makers are expected to debate how best to prepare markets for a tapering of QE, although they're also ultimately expected to decide to do nothing for the time being. Markets went all a flutter last time around after Ben Bernanke said the bond-buying would end in mid-2014, which forced officials to make speeches that weakened the strength of the guidance.

Japanese industrial output drops in June. Japanese industrial production unexpectedly dipped in June by 3.3% on month, trailing expectations for a 1.7% drop. A decline in the production of transport equipment, including autos, led the fall, followed by electronics and machinery. However, manufacturers offered an upbeat outlook for July, with a survey showing they expect growth of 6.5%, up from 3.3% projected in last month's print.

Alpha-Rich Stock Movers and Great Calls
1) Yesterday, Alpha Bet said Hudson Technologies (NASDAQ:HDSN) was in line to benefit from an EPA regulation phasing out a refrigerant. The stock finished the day +17.5%. Read article »
2) On June 14, William Garrison presented the case for RELM Wireless's (NYSEMKT:RWC) shares to double as the company stood poised to gain market share. The stock has moved up 22% since then. Read article »

Alpha-Rich Stocks To Watch
1) American Apparel (APP). With a recent debt refinancing squared away, American Apparel can refocus on its growth plan and putting controversy behind it. The clothing company therefore has multi-bagger potential. Read article »
2) Alberta Oilsands Inc. (OTCPK:AOSDF). Alberta Oilsands is due to receive a cash payment that will leave it trading at half its net cash. With several domestic and international oil assets providing optionality, there's considerable upside. Read article »

Alpha-Rich articles are the best long and short ideas on Seeking Alpha. SA Pro subscribers receive early access to these Alpha-Rich articles, which often move markets. For more information about SA Pro and becoming a subscriber, click here.

Today's Markets:
In Asia, Japan +1.5% to 13870. Hong Kong +0.5% to 21954. China +0.7% to 1990. India -1.3% to 19,336.
In Europe, at midday, London +0.1%. Paris +0.1%. Frankfurt flat.
Futures at 6:20: Dow flat. S&P flat. Nasdaq +0.1%. Crude -0.6% to $103.89. Gold -0.5% to $1322.90.

Today's economic calendar:
FOMC meeting begins
7:45 ICSC Retail Store Sales
8:55 Redbook Chain Store Sales
9:00 S&P Case-Shiller Home Price Index
10:00 Consumer Confidence
10:00 State Street Investor Confidence Index

Notable earnings before today's open: ACI, ADS, AET, ARQL, AUDC, BLC, BP, BYD, CIE, CMI, COH, CVLT, DB, DDD,DIN, DISCA, DSX, ECL, ESV, ETR, EZPW, FIS, GLW, GNRC, GT, GTI, GTLS, HCP, HEP, HRS, HW, IPGP, JBLU, KLIC, MCGC, MDC, MLM, MRK, MSO, MWV, NEE, NLSN,NOV, NTLS, NYX, ODP, OSK, OXY, PBI, PEG, PES, PFE, ROK, S, SAN,SNH, TRI, TRW, UBS, UDR, VSH, WLK, WM, WU, XYL

Notable earnings after today's close: ACAS, ACMP, AFL, AMGN, ANAD, APU, BOOM, BSMX, BWLD, BXP, CALX, CAP, CBI, CENX, CHMT,CLD, CSE, CVD, DRIV, ELGX, EQR, EXTR, FARO , FISV, FTNT, GDOT, GNW, GPRE, HBI,HR, HT, IACI, INVN, ISIL, JIVE, KIM, LOPE, MAKO, MERU, MKTO, MSPD, MTGE, MWA,MX, NANO, NCR, NEU, NSR, NUVA, OIS, OKE, OKS, POL, PRAA, QCOR, QGEN, RBC,RPXC, RVBD, SIMG, SKT, SM, SNCR, SYMC, TRLG , TRMB, TTS, TTWO, UGI, ULTI, VRSK,WFT, WNC, XXIA

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