Showing posts with label Motorola. Show all posts
Showing posts with label Motorola. Show all posts
Wednesday, October 6, 2010
Tuesday, October 5, 2010
Friday, October 1, 2010
Saturday, September 25, 2010
Thursday, September 16, 2010
Tuesday, August 31, 2010
European and North American Review – August 31st 2010
US Shares Flat as Market Awaited for More Data
European bourses ended up on Tuesday, helped by US data which came in above the expectation. German DAX was lifted 12.81 points to 5,925.22 (+0.2%), and FTSE 100 index was up 23.66 points to 5,225.22 or up 0.5%. European data released on the same day also showed improvements.
In August, GfK consumer confidence survey index was edging higher from -22 to -18, beating the consensus of a drop to -24. German data continued to be encouraging. The jobless number was down 17,000 in August, although the unemployment rate remained at 7.6%. Euro-Zone’s unemployment rate stayed high however, at 10% in August. Another economic data from Europe showed CPI slowed from increasing by 1.7% in July to 1.6% in August.
This Wednesday, along with US ISM for manufacturing sector, PMI for manufacturing sector will be released in Germany and UK. German PMI is expected to be unchanged at 58.2, the same as in July, while UK PMI is seen to slip to 57.0 from 57.3.
On the corporate front, Bayer AG successfully proved that its Xarelto was as effective as the old warfarin drug. The medication could land Bayer in a lucrative market worth $10 billion to $20 billion of annual profit. Bayer gained 2.43% by the end of the day and closed at €48.18.
Allianz SE aimed at China and India as potentially strategic markets with high potential of both life and non-life insurance business growth in Asia Pacific. Throughout the first half of 2010 Allianz achieved 31% increase in written premiums worth €5.6 billion with life insurance as the lead contributor. For Asia Pacific, life insurance worth $4.1 billion with Taiwan as the biggest contributor, while for non-life, India and Malaysia led the market. Allianz was at €80.94 at the end of the day.
Siemens Enterprise Communications, jointly owned by Siemens AG and The Gores Group acquired a contract to build communication infrastructures for 165,000 ports from the German Federal Employment Agency. The contract was worth over 100 million euros and will span for eight years. It will be a full service contract which includes provision of software and hardware as well as end-user devices. Siemens was up 0.59% to €71.78 on Tuesday.
HSBC plann
ed to exit its entire consumer lending business in the US by the end of 2014. The most recent move from the British bank was to sell its auto loans business to Santander Consumer USA with the price tag of $3.56 billion. The value of the loans obtained by Santander was $4.3 billion. HSBC was settled at 643.70 pence or up 1.05%.
Joining Bayer and HSBC as the top gainers, Vodafone advanced 2.31% to 157.15 pence. At the bottom, Barclays Plc, BT Group, and the bourse operator Deutsche Boerse ended down 1.1%, 0.75% and 0.65%, respectively.
The North American market was boosted earlier by data from the Conference Board but unable to withhold the gains as the Dow pulled back to near flat along with S&P 500 and Nasdaq Composite indexes. Dow Jones index inched up 4.99 points to 10,014.70, S&P 500 index went 0.04% higher to 1,049.33, but Nasdaq slipped 5.94 points to 2,114.03.
Consumer confidence improved in August, according to the data from the C
onference Board. The index went up to 53.5 from the upwardly revised July’s 51.0. Initially, July’s index was at 50.4. The current situation index fell to 24.9 from 26.4, while the expectations index went up to 72.5 from 67.5. Another data due on Tuesday was the house prices from Case-Shiller. In June, prices went up 1% compared to May; while year-on-year the prices were 4.2% higher. Despite the data was positive, it should be noted that the data lagged two months as it reported June, not the most recent August market conditions. The Dow’s late slip back to the flat area was mostly due to the FOMC minutes which was lacking new leads to lift the mood, turning the market back to the cautionary mode as it waits for more data to come.
Motorola which would be split in early next year would have the mobile phone division some cash amounting to $3.5 billion, which would be used for operational needs and business expansions as well as potential acquisitions. Motorola stayed flat by the end of Tuesday at $7.52.
Microsoft was reportedly developing a search application for the Google Android platform. The application which going to be available for free for Verizon Wireless users will be the mobile version of Microsoft’s Bing. Microsoft ended at $23.47 or down 0.74%.
Google and Associated Press reached an agreement in the distribution of AP’s news materials. Google will have the right to host AP’s materials for two years ahead. Google was down 0.59% at $450.02 by the end of the session.
3M acquired
Cogent in a deal worth $943 million. The maker of the fingerprint identification systems for government and civilians was bought at $10.50 a share, or 18% above Cogent’s closing price on Friday. 3M fell however, to $78.55 or 1.38%.
JP Morgan Chase & Co. would shut down its proprietary trading desk for commodities to abide the Volcker Rule. Consequently, all of its proprietary trading desk will be closed completely. Volcker Rule, which was a result of the recent banking reform in the US, was expected to reduce JP Morgan’s annual profit by $1.4 billion. JP Morgan was at $36.36 in late New York, up 1.42%.
On downgrades and upgrades, Intel Corp. was downgraded at Charter Equity from BUY to MARKET PERFORM on the back of the recent earnings revision for 3Q 2010. Gleacher & Co. maintained Intel at BUY, while FBR Capital also kept Intel at MARKET PERFORM. Intel was down 1.64% to $17.67.
Gainers on Tuesday include AT&T (+1.5%), JP Morgan & Chase (+1.42%), and Merck & Co. (+1.24%). Languishing at the bottom were AMD (-2.94%), Dell (-2.08%) and Starbucks (-1.92%).
Wednesday’s focus will be on the ADP employment data, a guide to Friday’s non-farm payrolls figure. Another key data for the day will be ISM for manufacturing sector. ADP employment figure is expected to show an increase of private sector’s hiring by 20,000 compared to July’s 42,000. ISM for manufacturing sector however, is seen to edge down to 53.0 from 55.5.
European bourses ended up on Tuesday, helped by US data which came in above the expectation. German DAX was lifted 12.81 points to 5,925.22 (+0.2%), and FTSE 100 index was up 23.66 points to 5,225.22 or up 0.5%. European data released on the same day also showed improvements.
In August, GfK consumer confidence survey index was edging higher from -22 to -18, beating the consensus of a drop to -24. German data continued to be encouraging. The jobless number was down 17,000 in August, although the unemployment rate remained at 7.6%. Euro-Zone’s unemployment rate stayed high however, at 10% in August. Another economic data from Europe showed CPI slowed from increasing by 1.7% in July to 1.6% in August.
This Wednesday, along with US ISM for manufacturing sector, PMI for manufacturing sector will be released in Germany and UK. German PMI is expected to be unchanged at 58.2, the same as in July, while UK PMI is seen to slip to 57.0 from 57.3.
On the corporate front, Bayer AG successfully proved that its Xarelto was as effective as the old warfarin drug. The medication could land Bayer in a lucrative market worth $10 billion to $20 billion of annual profit. Bayer gained 2.43% by the end of the day and closed at €48.18.
Allianz SE aimed at China and India as potentially strategic markets with high potential of both life and non-life insurance business growth in Asia Pacific. Throughout the first half of 2010 Allianz achieved 31% increase in written premiums worth €5.6 billion with life insurance as the lead contributor. For Asia Pacific, life insurance worth $4.1 billion with Taiwan as the biggest contributor, while for non-life, India and Malaysia led the market. Allianz was at €80.94 at the end of the day.
Siemens Enterprise Communications, jointly owned by Siemens AG and The Gores Group acquired a contract to build communication infrastructures for 165,000 ports from the German Federal Employment Agency. The contract was worth over 100 million euros and will span for eight years. It will be a full service contract which includes provision of software and hardware as well as end-user devices. Siemens was up 0.59% to €71.78 on Tuesday.
HSBC plann
ed to exit its entire consumer lending business in the US by the end of 2014. The most recent move from the British bank was to sell its auto loans business to Santander Consumer USA with the price tag of $3.56 billion. The value of the loans obtained by Santander was $4.3 billion. HSBC was settled at 643.70 pence or up 1.05%.Joining Bayer and HSBC as the top gainers, Vodafone advanced 2.31% to 157.15 pence. At the bottom, Barclays Plc, BT Group, and the bourse operator Deutsche Boerse ended down 1.1%, 0.75% and 0.65%, respectively.
The North American market was boosted earlier by data from the Conference Board but unable to withhold the gains as the Dow pulled back to near flat along with S&P 500 and Nasdaq Composite indexes. Dow Jones index inched up 4.99 points to 10,014.70, S&P 500 index went 0.04% higher to 1,049.33, but Nasdaq slipped 5.94 points to 2,114.03.
Consumer confidence improved in August, according to the data from the C
onference Board. The index went up to 53.5 from the upwardly revised July’s 51.0. Initially, July’s index was at 50.4. The current situation index fell to 24.9 from 26.4, while the expectations index went up to 72.5 from 67.5. Another data due on Tuesday was the house prices from Case-Shiller. In June, prices went up 1% compared to May; while year-on-year the prices were 4.2% higher. Despite the data was positive, it should be noted that the data lagged two months as it reported June, not the most recent August market conditions. The Dow’s late slip back to the flat area was mostly due to the FOMC minutes which was lacking new leads to lift the mood, turning the market back to the cautionary mode as it waits for more data to come.Motorola which would be split in early next year would have the mobile phone division some cash amounting to $3.5 billion, which would be used for operational needs and business expansions as well as potential acquisitions. Motorola stayed flat by the end of Tuesday at $7.52.
Microsoft was reportedly developing a search application for the Google Android platform. The application which going to be available for free for Verizon Wireless users will be the mobile version of Microsoft’s Bing. Microsoft ended at $23.47 or down 0.74%.
Google and Associated Press reached an agreement in the distribution of AP’s news materials. Google will have the right to host AP’s materials for two years ahead. Google was down 0.59% at $450.02 by the end of the session.
3M acquired
Cogent in a deal worth $943 million. The maker of the fingerprint identification systems for government and civilians was bought at $10.50 a share, or 18% above Cogent’s closing price on Friday. 3M fell however, to $78.55 or 1.38%.JP Morgan Chase & Co. would shut down its proprietary trading desk for commodities to abide the Volcker Rule. Consequently, all of its proprietary trading desk will be closed completely. Volcker Rule, which was a result of the recent banking reform in the US, was expected to reduce JP Morgan’s annual profit by $1.4 billion. JP Morgan was at $36.36 in late New York, up 1.42%.
On downgrades and upgrades, Intel Corp. was downgraded at Charter Equity from BUY to MARKET PERFORM on the back of the recent earnings revision for 3Q 2010. Gleacher & Co. maintained Intel at BUY, while FBR Capital also kept Intel at MARKET PERFORM. Intel was down 1.64% to $17.67.
Gainers on Tuesday include AT&T (+1.5%), JP Morgan & Chase (+1.42%), and Merck & Co. (+1.24%). Languishing at the bottom were AMD (-2.94%), Dell (-2.08%) and Starbucks (-1.92%).
Wednesday’s focus will be on the ADP employment data, a guide to Friday’s non-farm payrolls figure. Another key data for the day will be ISM for manufacturing sector. ADP employment figure is expected to show an increase of private sector’s hiring by 20,000 compared to July’s 42,000. ISM for manufacturing sector however, is seen to edge down to 53.0 from 55.5.
Thursday, August 12, 2010
North America Review – US Stocks Still In the Red
US stocks still in the red for three days in a row as investors continued to worry about the economic outlook, especially after the jobless claims data showed no improvements in recent week. Cisco’s results, despite good, had its sales forecast fell below expectations, adding gloomy outlook on tech shares.
US jobless claims rose 2,000 during the week ended August 7, bringing the total claims to 484,000, way beyond the consensus of 469,000. It was the highest in nearly the last six months. The results reminded that the state of US labor market remains fragile and this does not bode well for spending which relies on employment.
At Apple, pressures from Japanese government pushed the company to replace older models of iPod Nano which are having battery problems. Elsewhere, Bernstein suggested that Apple’s cash balance of $46 billion is excessive. One solution suggested is distribution of dividend to increase potential ownership of Apple’s shares which are rated Outperform with target at $325.
The Cisco Story
Although it delivered a 79% rise in profit, Cisco plunged nearly 10% to end the Thursday session at $21.36. Net profit for 4Q was $1.9 billion or 33 cents a share compared to the net profit in prior year of $1.1 billion or 19 cents per share. Revenue was up 27% from $8.5 billion to $10.8 billion. Cisco’s results were below consensus net profit of $10.88 billion or 42 cents per share. For the current quarter, revenue is expected to grow 18%-20% (yoy) or $10.62 billion to $10.82 billion, also below consensus of $10.96 billion.
CEO John Chambers said that despite the reported quarter was very strong, global economy showed mixed signals. This implied that based on the market and the customers’ expectations the company is facing a possible global economy slowdown as the current situation is showing uncertainties.
As a result, analysts did some adjustments on Cisco’s rating:
Upgrades and downgrades
On the positive side, Motorola surged 4.16%, eBay up 1.6%, while Pfizer rose 1.25%.
At the end of the day, Dow Jones index fell 58.88 points or 0.57% to close at 10,319.95, S&P 500 index shed 0.5% to end at 1,083.61 while Nasdaq Composite slipped 0.8% to 2,190.27.
US jobless claims rose 2,000 during the week ended August 7, bringing the total claims to 484,000, way beyond the consensus of 469,000. It was the highest in nearly the last six months. The results reminded that the state of US labor market remains fragile and this does not bode well for spending which relies on employment.
At Apple, pressures from Japanese government pushed the company to replace older models of iPod Nano which are having battery problems. Elsewhere, Bernstein suggested that Apple’s cash balance of $46 billion is excessive. One solution suggested is distribution of dividend to increase potential ownership of Apple’s shares which are rated Outperform with target at $325.
The Cisco Story
Although it delivered a 79% rise in profit, Cisco plunged nearly 10% to end the Thursday session at $21.36. Net profit for 4Q was $1.9 billion or 33 cents a share compared to the net profit in prior year of $1.1 billion or 19 cents per share. Revenue was up 27% from $8.5 billion to $10.8 billion. Cisco’s results were below consensus net profit of $10.88 billion or 42 cents per share. For the current quarter, revenue is expected to grow 18%-20% (yoy) or $10.62 billion to $10.82 billion, also below consensus of $10.96 billion.
CEO John Chambers said that despite the reported quarter was very strong, global economy showed mixed signals. This implied that based on the market and the customers’ expectations the company is facing a possible global economy slowdown as the current situation is showing uncertainties.
As a result, analysts did some adjustments on Cisco’s rating:
- Cisco downgraded by Oppenheimer from Outperform to Perform as Q1 sales outlook soft;
- BMO Capital downgraded Cisco to Market Perform from Outperform;
- Deutsche Bank maintained Buy rating on Cisco but with lowered target at $28 from $32;
- Kaufman Bros. considered Cisco’s guidance as “conservative”;
- RBC Capital lowered Cisco’s target to $28 from $33;
- Citigroup saw weakness in Cisco as a buying opportunity;
- Wunderlich kept Buy rating on Cisco but with lowered target from $33 to $28, saying that the stock is ‘inexpensive enough to be compelling’;
- At Wedbush, Cisco target lowered to $27 from $29 but kept at Outperform;
- Barclays downgraded Cisco to Equal Weight from Overweight;
Upgrades and downgrades
- Wells Fargo initiated/continued a handful of ratings on tech stocks. At Market Perform are Microsoft, Dell, Hewlett-Packard, and Yahoo!; at Outperform are IBM, Google, and Apple.
- In addition, Microsoft is also expected to Outperform by FBR Capital while Bernstein saw Apple at Outperform with target set at $325.
- BMO Capital downgraded semiconductor sector and in effect, put both Intel and Texas Instruments at Market Perform, down from Outperform.
- eBay upgraded from Hold to Buy at Citigroup;
On the positive side, Motorola surged 4.16%, eBay up 1.6%, while Pfizer rose 1.25%.
At the end of the day, Dow Jones index fell 58.88 points or 0.57% to close at 10,319.95, S&P 500 index shed 0.5% to end at 1,083.61 while Nasdaq Composite slipped 0.8% to 2,190.27.
Thursday, August 5, 2010
North American Review – ADP and ISM Data Lifted Stocks
Data from ADP showed an increase of 42,000 private sector jobs in July, the sixth gains in a row. Economy uncertainty and general business climate remain the prime factors behind the weakness in the job market. US data has been somewhat weakening since some of government’s incentives had ended. Hence, market sees more incentives needed to encourage business investment to create more jobs. July’s data beat the consensus of 23,000, while ADP revised June’s number from 13,000 to 19,000. A guide to the government’s nonfarm payroll report due Friday, ADP does not include government workers. NFP data for July is seen to have fallen 60,000 as the private sector is expected to have added 96,000 jobs while the government is seen to have lain off 145,000 temporary Census workers.
Another support came from US service sector when the ISM reported its non-manufacturing index advanced in July to 54.3% from 53.8% in June. A reading above 50 indicates expansion. Consensus number expected the index to have fallen to 53.6%. The employment sub-index rose to 50.9, the highest since December 2007. Business activity index fell to 57.4%, new orders sub-index rose 56.7%, and prices sub-index fell to 52.7%.
Dow Jones index settled at 10,680.43 or up 0.41%, Nasdaq Composite went up 20.05 points to end at 2,303.57, and S&P 500 index advanced 6.78 points to 1,127.24.
Among gainers, Motorola was up 5.8% to settle 44 cents higher at $8.06. The rise was triggered by report that investor Carl Icahn recently bought 10.2 million additional shares of Motorola ahead of its plan to split in two. Icahn now holds stake of 9.99% in the company.
Merck gained 37 cents to end at $35.19 after the company reported that its experimental hepatitis C drug went well during clinical trials. The drug, boceprevir is planned to be submitted for regulatory approval in the US and Europe this year.
On upgrades and downgrades front, Microsoft was downgraded to Equal Weight at Global Equities, based on declining Office 2010 attach rates and declining relevance of Windows as more students use Macs. The price target has been set at $25. Elsewhere, AMD was initiated with a NEUTRAL at Sterne Agee.
Another support came from US service sector when the ISM reported its non-manufacturing index advanced in July to 54.3% from 53.8% in June. A reading above 50 indicates expansion. Consensus number expected the index to have fallen to 53.6%. The employment sub-index rose to 50.9, the highest since December 2007. Business activity index fell to 57.4%, new orders sub-index rose 56.7%, and prices sub-index fell to 52.7%.
Dow Jones index settled at 10,680.43 or up 0.41%, Nasdaq Composite went up 20.05 points to end at 2,303.57, and S&P 500 index advanced 6.78 points to 1,127.24.
Among gainers, Motorola was up 5.8% to settle 44 cents higher at $8.06. The rise was triggered by report that investor Carl Icahn recently bought 10.2 million additional shares of Motorola ahead of its plan to split in two. Icahn now holds stake of 9.99% in the company.
Merck gained 37 cents to end at $35.19 after the company reported that its experimental hepatitis C drug went well during clinical trials. The drug, boceprevir is planned to be submitted for regulatory approval in the US and Europe this year.
On upgrades and downgrades front, Microsoft was downgraded to Equal Weight at Global Equities, based on declining Office 2010 attach rates and declining relevance of Windows as more students use Macs. The price target has been set at $25. Elsewhere, AMD was initiated with a NEUTRAL at Sterne Agee.
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