Market Wrap: Cummins Warns, So Does Applied Materials; RIM Doesn't Surprise at Meeting; AMR M&A


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July 10, 2012 5:07 PM EDT Send to a Friend
Market wrap-up for July 10th

End of the Day: Dow Jones down 83.2 to 12,653.12; S&P 500 down 11.0 to 1,341.47; Nasdaq down 29.4 to 2,902.33

The following is a brief summary of events moving markets today:
  • Industrial giants falling: Moving stocks Tuesday was industrial giant Cummins (NYSE: CMI), which cut its fiscal 2012 sales outlook to be flat with 2011 sales, compared with prior growth expectations of 10 percent for the year.

    For the second quarter, Cummins sees sales of $4.45 billion, versus $5.07 billion expected on the Street.

    Peers like Caterpillar (NYSE: CAT), W.W. Grainger (NYSE: GWW), and Navistar (NYSE: NAV) all took a tumble following the update. For a full list, click here.

  • Chips crunched: In other guidance news: The other big guidance cut today was from Applied Materials (Nasdaq: AMAT), which said it expects fiscal 2012 sales to come in below expectations.

    Despite the dour outlook for its fiscal year, Applied expects financial results for the third quarter of fiscal 2012 ending July 29, 2012, to remain within the outlook ranges provided during its second quarter earnings call on May 17th, 2012.

  • No surprises for RIM shareholders: Not sure if anything else was expected today, but Research In Motion (Nasdaq: RIMM) shares hit the skids on overall market pressure as well as lack of inspiration at its annual shareholders meeting.

    Although the full-slate of directors at RIM was re-elected, a message that should hit hard with outside observers, lead director John Richardson found that over 30 percent of shareholders withheld votes for his re-election.

    RIM Chairwoman Barbara Stymiest said the company hired an outside firm to "augment the board." Stymiest said investors should expect one or two new faces on the board before next year's shareholder meeting.

    Shares of RIM ended the session down about 4.6 percent.

  • Moving across the sea with Proview's blessing: Apple (Nasdaq: AAPL) said it would begin selling its new iPad in China starting on July 20th. The news comes following settlement of an iPad trademark suit with Proview, which was done for $60 million on July 2nd. For more color on Apple's plans with the iPad in China, click here.

  • It's off to the skies! Er, races!: AMR Corp. (OTCBB: AAMRQ) said it plans to formerly explore options for the airline, which may include a merger or other mutually beneficial deal. The WSJ said AMR plans to send out nondisclosure documents to other airlines, possibly as soon as this month.

    One of the front-runners on a potential deal is US Airways (NYSE: LCC), which has been negotiating deals with AMR's unionized pilots, mechanics, and flight attendants on what would happen if a deal were to be struck with AMR. US Airways ended the session up about 3 percent.
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