Seeking Alpha
Get ready for today's market
Profile| Send Message|
( followers)  

Top Stories
Samsung considers issuing ADRs, increasing dividends. In a move that would make it easier for U.S. investors to trade its shares, Samsung Electronics (OTC:SSNLF, OTC:SSNGY) is considering listing American Depositary Receipts, CFO Lee Sang-hoon said today at the South Korean giant's first analyst meeting in eight years. Samsung is also considering a dividend payout of 1% of its average stock price vs a current dividend yield of 0.54%. "We will put more emphasis on direct shareholder returns," Lee said.

Toyota net profit roars 70% higher. Toyota (NYSE:TM) enjoyed strong earnings growth in FQ2, boosted by the weaker yen and cost reductions, and it raised its fiscal-year outlook. FQ2 net profit soared 70% to ¥438.4B ($4.4B) - although that was below consensus of ¥451.69B - while net revenues jumped 16.2% to ¥6.28T. Toyota increased its guidance for FY net profit by 13% to ¥1.67T, not far off its record of ¥1.72T; consensus is for ¥1.79T. Shares were +1.9% premarket.

Top Stock News
Tesla shares drop sharply despite earnings improvement. Tesla's (NASDAQ:TSLA) shares skidded 10.3% premarket despite the electric-vehicle maker beating expectations in Q3. Losses narrowed to $38M from $111M a year earlier and revenues rose to $431M from $50M in Q3 2012, when Tesla started delivering its Model S luxury sedan to showrooms. However, investors were apparently disappointed with less-than-dazzling production numbers for Q3 and targets for Q4. For 2014, CEO Elon Musk said Tesla is "production constrained," not demand constrained.

ING core pretax profit climbs 8.3% to €1.22B. ING's (NYSE:ING) Q3 underlying pretax profit rose 8.3% to €1.22B but fell short of consensus of €1.25B. Still, earnings were lifted by solid performances at ING Bank and Insurance EurAsia. ING has repaid €1.125B in bailout money to the Dutch state, reducing the amount it owes to €1.5B. The bank expects to complete its restructuring by the end of 2016, two years early, and it plans to carry out the IPO of ING Insurance in 2014. Shares were +4.7% premarket.

Twitter poised for IPO. Twitter (NYSE:TWTR) is expected to price its IPO today and debut tomorrow on the NYSE. Earlier this week, the microblogging Web site upped the price range of the listing to $23-$25 a share, although reports say the company could increase the number again. With Twitter looking to sell 70M shares, it would generate $1.61-1.75B at the latest price range. The company's market cap would be $12.5-13.6B.

Starbucks commits to recruiting 10,000 veterans, army spouses. Starbucks (NASDAQ:SBUX) intends to hire at least 10,000 veterans and spouses of active military personnel over the next five years. The coffee-house giant has specialized recruiters who will match applicants' skills with company jobs. "This demographic represents one of the most underutilized talent pools in our country," said Starbucks director and former U.S. Defense Secretary Robert Gates.

Abercrombie & Fitch shares tumble following trading update. Abercrombie & Fitch's (NYSE:ANF) FQ3 net sales dropped 12% to $1.03B and missed expectations, although the clothing retailer projects that adjusted EPS will come in at the higher end of its guidance of $0.40-0.45 vs Street estimates of $0.40. The news is less good for the fiscal year, with Abercrombie & Fitch forecasting a maximum EPS of $1.50 vs consensus of $1.97. The company plans to close all 28 standalone stores of its Gilly Hicks lingerie brand, for which it will book pretax charges of $90-100M in FQ3. Shares tumbled 7.3% in after-hours trading.

Microsoft narrows CEO shortlist. Microsoft (NASDAQ:MSFT) has reportedly narrowed its list of potential CEOs to replace Steve Ballmer to "about five people." Ford (NYSE:F) CEO Alan Mulally is still a frontrunner, as are Stephen Elop, enterprise/cloud software chief Satya Nadella, and ex-Skype CEO Tony Bates. Whomever gets the job might need to get ready for tutoring from Bill Gates, who is spending a lot more time at Microsoft's offices lately and expects to spend plenty of time working with the next CEO.

Top Economic & Other News
Eurozone business activity continues growing but loses momentum. Eurozone composite PMI dropped to 51.9 in October from 52.2 in September and the services reading also declined, although overall business activity still grew for the fourth consecutive month. The surveys indicate a loss of momentum at the start of Q4, says Markit, raising "concerns that the upturn is faltering" and increasing the pressure on the ECB "to reinvigorate the recovery." Still, the economy is expanding across the board in Germany, France, Italy and Spain.


Alpha-Rich Stock Movers and Great Calls
1) On Monday, Alpha Vulture explained how Solitron (OTCQB:SODI) was on the brink of significant value creation, with activist investors serving as a key prod. The stock is +11.1% since. Read article »
2) On September 30, Ashraf Eassa said Violin Memory's (NYSE:VMEM) initial valuation was too optimistic, leading to a strong short play. The stock is -20.8% to date. Read article »

Alpha-Rich Stocks To Watch
1) Willis Lease Finance (NASDAQ:WLFC) has a strong track record that belies its persistent discount to book value. A major buyback program allowing the company to arbitrage its own shares could provide 30% upside. Read article »
2) Capital One's (NYSE:COF) strong capital generation and low valuation make it an attractive investment. Buysider Terrier Investing crunches the numbers on the warrants (NYSE:COF.W) and finds 20%+ annual returns possible. 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 +0.8% to 14337. Hong Kong flat at 23037. China -0.8% to 2140. India -0.4% to 20895.
In Europe, at midday, London +0.1%. Paris +0.9%. Frankfurt +0.5%.
Futures at 6:20: Dow +0.5%. S&P +0.6%. Nasdaq +0.4%. Crude +0.8% to $94.11. Gold +0.7% to $1317.30.
Ten-year Treasury Yield -1 bps to 2.66%.

Today's economic calendar:
7:00 MBA Mortgage Applications
10:00 Leading Indicators
10:30 EIA Petroleum Inventories

Notable earnings before today's open: ABMD, AUXL, AVA, CHK, CLH, CNP, CSTE, CWH, DUK, DVN, END, EZCH, GEO, GGS, HCLP, HFC, HSNI, HSP, HUM, KELYA, LAMR, MGA, MMC, NAVB, NPSP,OGE, PKD, PNK, POM, POWR, POZN, PWE, RL, SBGI, SKYW, STRZA, SUNE, SUSP, SUSS, TAP, TLM, TSRA, TWX, VG, VOYA, WRES, XEC

Notable earnings after today's close: ACLS, ACXM, ALNY, ALSK, AMTG, ANDE, ATO, ATVI, AWAY, AWK, BALT, BIOS, BKD, CBS, CECO, CKP, CLR, CODI, CPE, CTL, CVG, CXO, CXW, DCTH, DGIT,DK, DVR, DXCM, ENS, ERII, EVC, FLTX, FTK, G, GA, GNK, HIMX, HNSN, HT, INWK, IO, LPSN, MAA, MDLZ, MKL, MRIN, NDLS, NVTL, OAS, OILT,OSUR, PDLI, PHH, PMT, PMTC, PRI, PRU, QCOM, RIG, RJET, ROSE, RST, SCTY, SLCA, SN, TCAP, TEG, TPX, TS, TSO, TWTC, UHAL, WAC, WES, WFM,WG, WTI

See full real-time earnings coverage »

Wall Street Breakfast is sent out by email for free -- Get it now »

Source: Wall Street Breakfast: Must-Know News