Android app on Google Play

Market Wrap: Apple's Cash Dilemma; New Chief at RadioShack; PVH Corp Joins S&P 500

February 7, 2013 5:41 PM EST Send to a Friend
Market wrap-up for February 7th

End of the Day: S&P 500 down 2.7 to 1,509.39; Dow Jones down 42.5 to 13,944.05; Nasdaq down 3.4 to 3,165.13

The following is a brief summary of events moving markets today:

* Today has largely been focused on Apple (Nasdaq: AAPL), as hedge fund giant David Einhorn of Greenlight Capital issued a letter urging shareholders to vote no on proposal 2 at Apple's annual meeting. Later in the session, Apple issued a statement, saying that it had plans for its cash. Aside from prior announcements that it will return $45 billion in cash to investors over three years, the Company also noted cash flow of $23 billion in the latest quarter alone.

* US Airways (NYSE: LCC) and AMR Corp (OTCBB: AAMRQ) have been in talks over a potential deal for what seems like ages. Those discussions may be coming to a head soon however, with a potential deal expected to be announced within weeks. The two sides are hammering out a few more details over management structure, ownership, and the like. For more color, click here.

* PVH Corp (NYSE: PVH) will replace Big Lots (NYSE: BIG) on the S&P 500 index. For the full release, click here.

* Internet darling LinkedIn (NYSE: LNKD) is ripping in late trading following solid fourth-quarter 2012 results and outlook. EPS from the business-oriented, social-networking giant came in at 35 cents on revs of $303.6 million, compared with consensus views calling for EPS of 19 cents and revs of just $279.5 million. The company also sees first-quarter 2013 revs of $305 million to $310 million, versus views expecting revs of $301.2 million. For more color on the results, click here.

* U.S. consumer credit hit $14.6 billion in December, the fifth straight month of gains. The number compares with $15.9 billion of borrowing in November and the consensus calling for an increase of $14 billion. Many attribute consumer willingness to borrow on improved job prospects and rising home prices.

* Alcatel-Lucent (NYSE: ALU), CEO Ben Verwaayen said he would step down on Thursday, following a 4.5 year run as CEO. The announcement follows a Q4 loss at the struggling telecom company. Under Verwaayen's watch, Alcatel-Lucent attempted to restructure its business and return to profitability. These efforts have largely fallen flat, and as a result the stock declined, disappointing investors.

* After hours, RadioShack Corp. (NYSE: RSH) announced that Joseph C. Magnacca has been appointed chief executive officer of the Company effective February 11th. Magnacca has also been named a member of RadioShack's Board of Directors. He joins from Walgreen (NYSE: WAG), where he is currently executive vice president and president of Daily Living Products and Solutions. Click here for more color.

* Corrections Corp. of America (NYSE: CXW) Board authorized the Company to elect to qualify as a Real Estate Investment Trust (REIT) for the taxable year commencing January 1, 2013 (the REIT Conversion). For more on the conversion, click here.

Click here to go to Streetinsider's Full News Feed and never miss a beat!




You May Also Be Interested In


Related Categories

Special Reports

Related Entities

Greenlight Capital, David Einhorn, Standard & Poor's, Dividend, Hedge Funds

Add Your Comment