Market Wrap: H-P Raises Outlook, Loses A GM; VeriFone Hit Squarely; U.S.-Backed A123 Gets Support from China


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August 8, 2012 5:37 PM EDT Send to a Friend
Market wrap-up for August 8th.

End of the Day: Dow Jones up 7.0 to 13,175.64; S&P 500 up 0.9 to 1,402.22; Nasdaq down 4.6 to 3,011.25

The following is a brief summary of events moving markets today:
  • H-P gains on boosted outlook: Hewlett-Packard (NYSE: HPQ) reported an increase in third-quarter 2012 non-GAAP earnings expectations from 94 cents to 97 cents up to about $1.00. The number compared with Street expectations of 97 cents. Third quarter fiscal 2012 non-GAAP diluted EPS estimates exclude after-tax costs related primarily to the amortization and impairment of purchased intangible assets, goodwill impairment charges, restructuring charges and acquisition-related charges.

    In addition, Mike Nefkens was promoted to lead H-P's enterprise services unit, as current head John Visentin is leaving the company.

    For more color, click here.

  • "Swiped" out of sales: VeriFone (NYSE: PAY) had a rough session Wednesday, following news that coffee giant Starbucks (Nasdaq: SBUX) selected start-up mobile transaction processor Square to handle payments across its spectrum of U.S. stores.

    With the furthering of mobile payments, there's less need for the "swipe" method using a credit/debit card, meaning less potential demand for VeriFone's POS systems.

  • All charged up: A123 Systems, Inc. (Nasdaq: AONE) had a fine session following mixed news from the U.S.-backed battery maker. Reported earlier, A123 reported a wider than expected Q212 loss of 56 cents per share, with revs about 26 percent below expectations at $17 million.

    But, A123 also said it entered an MOU with Wanxiang Group Corp to the tune of $450 million. The company was founded on funds backed by the Obama administration, as a push into cleaner, battery-fueled automobiles was still the talk of the town. Following the financial downfall in 2008, A123 was among many suffering as automakers needed to return back to the basics, with few in the way of hybrid and full-electric coming from the likes of Ford (NYSE: F), General Motors (NYSE: GM), and Chrysler.

    The funding will help support A123 through the tough times, as Wanxiang Group Corp is one of the largest auto makers in China.

  • On the rise: Data from CoreLogic shows home prices rose 2.5 percent in June, with a six percent sequential rise in the second quarter. Corelogic said a shortage of homes for sale added to the pricing gains.

  • Crikey!: Bloomin' Brands, Inc. (Nasdaq: BLMN), the proprietor of Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, Fleming's Prime Steakhouse and Wine Bar and Roy's restaurants, had its Initial Public Offering today. About 16 million shares priced at $11.00 and opened at $11.60. The day was solid for Bloomin' amid weak July comps numbers from fast food giant McDonald's, with shares closing up about 12.4 percent.
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Comments

VeriFone is shaky
Dan on Aug 9, 2012 06:39 AM
Mark as Spam | Reply to this comment

VeriFone is starting to look shaky and a short position seems more appropriate. Where Starbucks goes others will follow. Also, more acquirers like Heartland and First Data are making their own hardware, negating the need for VeriFone completely


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