Market Wrap: Obama Nominates Hagel for Defense Secretary; BofA, Fannie Settle; Chicken Scare Hits Yum!

January 7, 2013 5:26 PM EST
Market wrap-up for January 7th

End of the Day: S&P 500 down 4.5 to 1,461.89; Dow Jones down 50.9 to 13,384.29; Nasdaq down 3.9 to 3,098.81

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

* President Obama nominated former Nebraska senator Chuck Hagel as Leon Panetta's successor for Secretary of Defense. John O. Brennan was nominated as counterterrorism advisor.

Should Hagel get the job, he would be the first Vietnam veteran to do so.

* Bank of America (NYSE: BAC) entered a deal with Federal National Mortgage Association (OTCBB: FNMA) aimed a settling mortgage origination, sales, and delivery made by Countrywide Financial Corporation (legacy Countrywide) and Bank of America, National Association (BANA) from January 1, 2000 through December 31, 2008. BofA also will sell servicing rights on 2 million residential mortgages. For more on color, click here.

* Yum! Brands (NYSE: YUM) slipped in after-hours trading Monday following an updated outlook for its China Division. Yum! widened its comparable-store sales loss expectation from four percent out to six percent. The company also said it sees FY12 EPS of $3.24, versus the current Street consensus of $3.26.

Yum! cited recent government investigations into China poultry supply on the lowered sales outlook.

* (Nasdaq: AMZN) made it to a new all-time high of $269.73 today following an upgrade at Morgan Stanley earlier. The firm raised Amazon from Equalweight to Overweight, with a price target of $325. For more on the call, click here.

* Apple (Nasdaq: AAPL) reported strong app growth through 2012. According to a release from the company, about 40 billion apps have been downloaded from the App Store and there are now 500 million active accounts. Notably, 2012 saw app downloads of 20 billion, effectively doubling downloads in one year. For more from the release, click here.

* athenahealth, Inc. (Nasdaq: ATHN) entered a definitive agreement to acquire point-of-care medical application provider Epocrates, Inc. (Nasdaq: EPOC) for $11.75 per share.

* HTC Corp saw a fifth consecutive quarter of lower profit as its rapid rise on the back of Google's (Nasdaq: GOOG) Android mobile operating system is quickly fading away. The company reported Q4 profit fell 91 percent to just NT$1 billion (about $34.4 million). Despite the dramatic drop, the Street was looking for HTC to post profit of just NT$666 million on average.

For a little more on HTC, click here.

* Netflix (Nasdaq: NFLX) ended the session higher Monday after entering a new content deal with Warner Bros. Television Group. The deal will bring several "serialized dramas" to Netflix in 2013.

News came as HBO and Universal Pictures entered an exclusive 10-year deal for Universal and Focus Features films. Click here for more color.

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

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Special Reports

Related Entities

Morgan Stanley, Bank of America, Standard & Poor's, Barack Obama

Add Your Comment