MARKET CURRENTS
real-time news and commentary for investors
MARKET CURRENTS
-
Today - Tuesday, May 21, 2013
-
2:19 PM J.C. Penney (JCP +2%) is reported to have reduced the rate on its $2.25B term loan to Libor + 500-525 bps from Libor +575 bps. The retailer is using the funds from the loan for working capital. Comment!
-
2:17 PM South Africa's rand falls to its lowest level in four years as clashes between mine owners and workers erupt again today. Government "heavy-handedness" with mining companies has created a "major negative" for investors both inside and outside mining, as it reduces companies’ abilities to set their balance sheets and control their own destinies, Greenbriar Partners says. AU -3.3%, GFI -3%, HMY -2.6%. [Commodities, Global & FX] Comment!
-
2:09 PM Neiman Marcus says it will close a warehouse in China and start fulfilling orders from the U.S. in what the retailer believes will prove to be a better business model. The cautious approach by Neiman Marcus to China comes with the company reported to be exploring strategic alternatives including a possible IPO. [Consumer] Comment!
-
2:05 PM Given Imaging (GIVN -1.2%) gives back early morning gains after presenting new studies that confirm the value of its PillCam SB in the diagnosis, monitoring and management of Crohn's Disease and other small bowel conditions in patients at this year's Digestive Disease Week in Orlando, Florida. Trial data shows heightened sensitivity for detecting adenomas that are at least 6 mm and 10 mm. [Healthcare] Comment!
-
2:00 PM On the hour: Dow +0.46%. 10-yr +0.17%. Euro +0.14% vs. dollar. Crude -0.65% to $96.3. Gold -0.72% to $1374.15. Comment!
-
1:54 PM Though MSO operators (TWC, CVC, CMCSA, CHTR) all offer subscribers a broadband-only subscription, so far the group seems to be doing an adequate job upselling customers to bigger packages to prevent wide-scale cord cutting on pay TV services. The trend is not without an assist from broadcasters that are only allowing authenticated consumers from pay TV providers to watch their series online and on mobile devices. Still, execs do acknowledge that cities with younger consumers tend to favor broadband-only packages meaning the industry could see a problem sometime in the future keeping its finger in the dike. [Consumer] Comment!
-
1:54 PM Synergy Pharma (SGYP -3.7%) slips despite presenting positive safety and efficacy results from trials of plecanatide, its drug candidate for patients with chronic idiopathic constipation at an industry conference earlier in Orlando, Florida. The data showed the best improvement in symptoms were observed in patients receiving 3-milligram doses of plecanatide. [Healthcare] Comment!
-
1:53 PM Shares of Sony (SNE +8.5%) move higher amid ongoing chatter that the company is considering peeling off its entertainment arm in a spinoff a la Dan Loeb's suggestion. What to watch: Most analysts and traders seem to like the idea of a Sony business split, meaning if CEO Kazuo Hirai reiterates next week during a scheduled presentation that he supports the company staying together as one then shares could see a rapid-fire drop. [Consumer, Global & FX] Comment!
-
1:53 PM More on Intel's reorg: Intel's PC, mobile, and server chip units, previously reporting to chief product officer Dadi Perlmutter, will now report to Brian Krzanich. Software/services chief Renee James, recently named President, will also now be in charge of manufacturing and parts of Intel's (INTC +0.2%) security ops. Krzanich in an internal e-mail: "I am committed to being bolder, moving faster ... we will listen, learn and then make adjustments in order to keep pace." Mike Bell, who has spearheaded Atom CPU development, is now head of Intel's "new devices" unit. Ex-Infineon exec Herman Eul will now fully oversee Intel's mobile ops. [Tech] Comment!
-
1:50 PM Biogen (BIIB +3.6%) submits Biologics License Application to the FDA for the approval of its injectable drug candidate Plegridy for the treatment of multiple sclerosis. The company says the application is supported by data from year one of a two year Phase 3 study which "met all primary and secondary endpoints." In March, BIIB said the drug cut annual relapse rates by 36% and analysts say it could generate revenue of $318M by 2017. (PR) [Healthcare, On the Move] Comment!
-
1:39 PM KB Home (KBH -1%) reaffirmed its FY13 outlook earlier today, saying it continues to see healthy profitability in 2013. Its gross margin is expected to improve sequentially throughout the year. It also plans to invest more than $1B on land acquisition and development over the course of the year. (Webcast). [On the Move] Comment!
-
1:39 PM More on the Xbox One: The device has a Blu-ray player, and is said to be "practically silent" when running. A new Kinect sensor is being bundled with the console (JDSU a likely supplier): its camera, color depth, and motion-sensing abilities are improved, and voice is said to be more "conversational." Xbox SmartGlass mobile apps are integrated with the One, interactive TV content is paired with shows, and a "snap mode" shows multiple apps a once. Electronic Arts (EA) is promising to launch titles from 4 sports franchises - FIFA, Madden, NBA Live, and UFC - in the next 12 months, aided by a new gaming engine. (live blog) [Tech] Comment!
-
1:32 PM CME Group plans additional cuts to its giant board, according to Executive Chairman Terry Duffy, speaking ahead of the annual meeting. At 30 members, the board is more than twice as large as those at ICE (11 now, but 15 after NYSE merger), and Nasdaq OMX (11). The large size reflects the CME's long history as a member-owned operation as opposed to today's public company. [Financials] Comment!
-
1:28 PM WellCare Health Plans (WCG -5.1%) falls on a Goldman downgrade to Neutral from Buy (price target $60). Analyst Matthew Borsch cites downside risks to Medicare Advantage earnings in revising down his FY14 EPS estimate to $5.50 from $5.75 (consensus is $5.47) and his FY15 estimate to $6.30 from $6.65. See the CC transcript for Borsch's back and forth with management regarding Medicare Advantage, Medicaid, and STAR quality scoring. [Healthcare, On the Move] Comment!
-
1:28 PM WellCare Health Plans (WCG -5.1%) falls on a Goldman downgrade to Neutral from Buy (price target $60). Analyst Matthew Borsch cites downside risks to Medicare Advantage earnings in revising down his FY14 EPS estimate to $5.50 from $5.75 (consensus is $5.47) and his FY15 estimate to $6.30 from $6.65. See the CC transcript for Borsch's back and forth with management regarding Medicare Advantage, Medicaid, and STAR quality scoring. [Healthcare, On the Move] Comment!
-
1:15 PM Microsoft (MSFT) unveils the Xbox One, a 3rd-gen console it pitches as "the ultimate all-in-one entertainment system. The device has a rectangular, set-top box-like shape, a slightly bigger controller. a revamped Xbox Live UI, improved app/game loading and switching times, and fresh voice/gesture controls. AMD is widely believed to provide an integrated CPU/GPU for the system. (live blog) (previous) [Tech, Breaking News] 14 Comments
-
1:08 PM That QE taper may end up being a QE expansion as FRBNY President Bill Dudley tells a gathering in Japan the uncertain economic outlook has him unsure if the next move will be up or down. He worries about investor over-reaction to a "normalization" of policy and suggests the FOMC may need to update what it needs to see to move in that direction. Stocks like the "up" talk, the S&P 500 (SPY +0.4%) at a fresh session high. [Breaking News, U.S. Economy] 5 Comments
-
1:00 PM On the hour: Dow +0.32%. 10-yr +0.13%. Euro +0.24% vs. dollar. Crude -0.37% to $96.57. Gold -0.57% to $1376.25. Comment!
Latest Articles
