Top 10 News 4/30-5/4: Jobs Report Disappoints; Facebook IPO Terms Set; The Chesapeake Saga Continues...
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Here is a recap of the top news items from this week on Wall Street:
1. Stocks traded lower on Friday following a jobs report which came in worse than economists had been expecting. The gain in nonfarm payrolls for the month of April comes in at 115,000, which compares to the economist estimate of 160,000. The reading for March was 154,000. The private sector added 130,000 jobs, versus the consensus estimate of 165,000 job gains. The March reading was 166,000. The unemployment rate was 8.1%, vs. the Street estimate of 8.2%.
2. Facebook (Nasdaq: FB) officially set the terms for its IPO this week. The company will sell just over 337 million shares at a price range between $28-$35 per share. The proposed maximum offering size of the IPO is $13.58 billion. The IPO road show is expected to begin next week, with an expected IPO debut of May 18th. Also, the company got one of its first new ratings: Wedbush initiated coverage on the stock with an Outperform and $44 price target.
3. The saga in Chesapeake Energy (NYSE: CHK) continued this week. The company announced its Board and Aubrey McClendon agreed to the early termination of the Founder Well Participation Program about 18 months ahead of the original terms. McClendon also rescinded his Chairman role, but will remain as the CEO. Chesapeake shares rose 4 percent and 6 percent on Monday and Tuesday, respectively, however gave up gains following a Q1 miss.
4. Hedge fund titan Dan Loeb once again fired straight at the heart of Yahoo! (Nasdaq: YHOO) this week, revealing the company's latest CEO Scott Thompson in fact did not receive a college degree in Computer Science. When Yahoo! confirmed the error and said it was "inadvertent," Loeb immediately responded saying it was a "big deal," demanding the termination of Thompson by Monday the 7th. Click here to see the full letter.
5. Shares of Green Mountain (Nasdaq: GMCR) got absolutely creamed this week, down nearly 48 percent on Thursday and another 3 percent on Friday. The company reported Q2 EPS of $0.64, in-line with the analyst estimate of $0.64. Revenue for the quarter came in at $885.1 million versus the consensus estimate of $971.7 million. Green Mountain sees Q3 2012 EPS of $0.48-$0.53, versus the consensus of $0.72. Sees FY2012 EPS of $2.40-$2.50, versus the consensus of $2.67. Green Mountain Coffee Roasters sees FY2012 revenue of $3.8-$4 billion, versus the consensus of $4.3 billion.
6. In addition to making some serious money in his short on Green Mountain this week, David Einhorn of Greenlight Capital asked several questions on Herbalife's (NYSE: HLF) Q1 conference call which got investors a little hot and bothered. The famed short seller questioned execs about the company's distribution model, specifically the percentage of customers who were not distributors. The stock tumbled 20 percent on Tuesday, another 6 percent on Wednesday, and 12 percent on Thursday.
7. On the M&A front: PF Chang's (Nasdaq: PFCB) will go private at $51.50/share, Hologic (Nasdaq: HOLX) will acquire Gen-Probe (Nasdaq: GPRO) for $82.75/share in cash, and Energy Transfer Partners (NYSE: ETP) to acquire Sunoco (NYSE: SUN) in a $5.3 billion deal.
8. Barnes & Noble (NYSE: BKS) shares surged more than 50 percent on Monday following news of a $300 million strategic investment from Microsoft (Nasdaq: MSFT). The new subsidiary, referred to in this release as Newco, will bring together the digital and College businesses of Barnes & Noble.
9. Data out of ISM on non-manufacturing weighed on the market this week. The index came in at 53.5, vs. the consensus of 55.3.
10. Elsewhere on the earnings front: Sirius (Nasdaq: SIRI), MasterCard (NYSE: MA), GM (NYSE: GM), Kraft (NYSE: KFT), LinkedIn (Nasdaq: LNKD), and First Solar.
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1. Stocks traded lower on Friday following a jobs report which came in worse than economists had been expecting. The gain in nonfarm payrolls for the month of April comes in at 115,000, which compares to the economist estimate of 160,000. The reading for March was 154,000. The private sector added 130,000 jobs, versus the consensus estimate of 165,000 job gains. The March reading was 166,000. The unemployment rate was 8.1%, vs. the Street estimate of 8.2%.
2. Facebook (Nasdaq: FB) officially set the terms for its IPO this week. The company will sell just over 337 million shares at a price range between $28-$35 per share. The proposed maximum offering size of the IPO is $13.58 billion. The IPO road show is expected to begin next week, with an expected IPO debut of May 18th. Also, the company got one of its first new ratings: Wedbush initiated coverage on the stock with an Outperform and $44 price target.
3. The saga in Chesapeake Energy (NYSE: CHK) continued this week. The company announced its Board and Aubrey McClendon agreed to the early termination of the Founder Well Participation Program about 18 months ahead of the original terms. McClendon also rescinded his Chairman role, but will remain as the CEO. Chesapeake shares rose 4 percent and 6 percent on Monday and Tuesday, respectively, however gave up gains following a Q1 miss.
4. Hedge fund titan Dan Loeb once again fired straight at the heart of Yahoo! (Nasdaq: YHOO) this week, revealing the company's latest CEO Scott Thompson in fact did not receive a college degree in Computer Science. When Yahoo! confirmed the error and said it was "inadvertent," Loeb immediately responded saying it was a "big deal," demanding the termination of Thompson by Monday the 7th. Click here to see the full letter.
5. Shares of Green Mountain (Nasdaq: GMCR) got absolutely creamed this week, down nearly 48 percent on Thursday and another 3 percent on Friday. The company reported Q2 EPS of $0.64, in-line with the analyst estimate of $0.64. Revenue for the quarter came in at $885.1 million versus the consensus estimate of $971.7 million. Green Mountain sees Q3 2012 EPS of $0.48-$0.53, versus the consensus of $0.72. Sees FY2012 EPS of $2.40-$2.50, versus the consensus of $2.67. Green Mountain Coffee Roasters sees FY2012 revenue of $3.8-$4 billion, versus the consensus of $4.3 billion.
6. In addition to making some serious money in his short on Green Mountain this week, David Einhorn of Greenlight Capital asked several questions on Herbalife's (NYSE: HLF) Q1 conference call which got investors a little hot and bothered. The famed short seller questioned execs about the company's distribution model, specifically the percentage of customers who were not distributors. The stock tumbled 20 percent on Tuesday, another 6 percent on Wednesday, and 12 percent on Thursday.
7. On the M&A front: PF Chang's (Nasdaq: PFCB) will go private at $51.50/share, Hologic (Nasdaq: HOLX) will acquire Gen-Probe (Nasdaq: GPRO) for $82.75/share in cash, and Energy Transfer Partners (NYSE: ETP) to acquire Sunoco (NYSE: SUN) in a $5.3 billion deal.
8. Barnes & Noble (NYSE: BKS) shares surged more than 50 percent on Monday following news of a $300 million strategic investment from Microsoft (Nasdaq: MSFT). The new subsidiary, referred to in this release as Newco, will bring together the digital and College businesses of Barnes & Noble.
9. Data out of ISM on non-manufacturing weighed on the market this week. The index came in at 53.5, vs. the consensus of 55.3.
10. Elsewhere on the earnings front: Sirius (Nasdaq: SIRI), MasterCard (NYSE: MA), GM (NYSE: GM), Kraft (NYSE: KFT), LinkedIn (Nasdaq: LNKD), and First Solar.
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Daniel Loeb, Nonfarm Payrolls, Greenlight Capital, David Einhorn, Third Point LLC, Hedge Funds, Aubrey McClendon, Earnings
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