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

February 7, 2013 5:41 PM EST
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.

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