Wall Street Breakfast: Must-Know News

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.

Crude oil jumped 2.2% to hit highs yesterday of $106.53 a barrel, the highest in nine months, as reports of intensifying battles in Iraq raised concerns about oil supply. Oil prices also triggered stocks to finish with broad losses, as the S&P fell for a third straight session and the Dow shed more than 100 points for the second day in a row.

LinkedIn is facing a lawsuit which claims it violated customers’ privacy rights for marketing purposes, by accessing users' external e-mail accounts and downloading their contacts’ addresses. LinkedIn (NYSE:LNKD) users can now pursue damages for revenue it made from using the e-mail address books. The lawsuit calls into question how wiretap laws enacted before the Internet apply to data generated when people send e-mails and surf online.

After Intel raised its second quarter revenue forecast yesterday, shares climbed as high as 6.6% to $29.80 in extended trading. The second quarter boost came after an increased demand for personal computers, with annual company sales estimated to increase for the first time since 2011. Intel (NASDAQ:INTC) sales for this quarter are predicted to be approximately $13.7B, compared to an earlier estimate of $13B.

BlackBerry has reached an agreement with EnStream, a joint venture between Canada's three biggest telecom companies — Bell (NYSE:BCE), Rogers (NYSE:RCI) and Telus (NYSE:TU), to provide the infrastructure for a new mobile payment platform. Under the three-year deal, EnStream will use BlackBerry (NASDAQ:BBRY) infrastructure so banks and mobile operators can securely keep sensitive payment information on any smartphone able to use near field communication ((NYSEMKT:NFC)) tags.

The IPO for Michaels will finally take place this summer, after an elevator ride to the offering. Previously, the crafts retailer was publicly traded, however it was taken private by Blackstone (NYSE:BX) and Bain Capital for $6B in 2006. In March 2012, the company filed for an initial $500M IPO, but it was postponed after then-CEO John Menzer had a stroke and left the company. The IPO was refiled again this past May.

Google is said to be in talks with Virgin Galactic regarding a joint venture, Sky News reports. Google (GOOG, GOOGL) is seeking to put hundreds of satellites into low-Earth orbit to provide internet access to billions of people, and sees the opportunity with Virgin Galactic as a means to obtain its vision. In turn, Google will invest hundreds of millions of dollars into Virgin Galactic to develop its space tourism business.

Caterpillar is facing at least 15 lawsuits relating to truck and bus engines it sold between 2006 and 2010. The plaintiffs are claiming the engines broke down often, and even in some cases caught fire, although no deaths or injuries have been reported. Last year, Caterpillar's (NYSE:CAT) engine business accounted for 60% of its $5.63B operating profit. The news comes after a $46M settlement the company paid this past Wednesday, involving a marine engine that caught on fire in 2009.

BMW says it met with U.S.-based electric car maker Tesla (NASDAQ:TSLA) this week to discuss a possible joint operation regarding electric vehicle technology. "Both companies are strongly committed to the success of electro-mobility and discussed how to further strengthen the development of electro-mobility on an international level," a BMW (BAMXY) spokesman announced.

The U.S. Marshals Service says it will auction off over 29k bitcoins (BITCN, OTCQB:BTCS) seized during its investigation of drug marketplace Silk Road. Bitcoin prices fell yesterday to $550 from $625. The sale will take place on June 27, over a 12-hour period. Bitcoins will be auctioned off in blocks of 3,000, each worth about $1.8M.

The first BP employee to be charged with crimes connected with the Gulf of Mexico oil spill has won a new trial. U.S. District Judge Stanwood Duval of New Orleans has given Kurt Mix another court case, stating he did not have an impartial jury. Mix was convicted on one of two counts of obstruction for deleting hundreds of messages he exchanged with his supervisor and a contractor after the BP (NYSE:BP) Macondo well explosion.

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Today's Markets:
In Asia, Japan +0.8% to 15098. Hong Kong +0.6% to 23319. China +0.9% to 2070. India -1.4% to 25228.
In Europe, at midday, London -1%. Paris -0.8%. Frankfurt -0.9%.
Futures at 6:20: Dow -0.1%. S&P flat. Nasdaq flat. Crude -0.4% to $107. Gold -0.1% to $1273.40.
Ten-year Treasury Yield flat at 2.59%

Today's economic calendar:
8:30 Producer Price Index
9:55 Reuters/UofM Consumer Sentiment

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