Top 10 News Items 7/2-7/6: Private Sector Showed Slowest Pace of Job Growth in 10 Months; Central Banks React; Mergers Get Serious on Monday
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Revenue Growth %: +5.3%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 4.7%
Revenue Growth %: +5.3%
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Here is a recap of the top news items from this week on Wall Street:
1. The Labor Department Friday issued new data showing the US added 80,000 nonfarm jobs during the month of June, below the economist estimate of 100,000 but up from the addition of 77,000 jobs in May. Private-sector payrolls totaled 84,000 during the month, the worst growth reading since September of 2011. Economists were expecting 106,000 jobs to be added in that sector. The unemployment rate was flat at 8.2 percent. The news pushed US stocks down by more than 1 percent.
2. The ECB, Bank of England and Chinese central bank all jumped into action to promote global growth on Thursday. While the ECB reduced its key interest rate from 1 percent to 0.75 percent, China's central bank lowered its key rate by 31 basis points. Although the BoE made no change to rates, members voted to increase its asset purchase program by £50 billion to a total of £375 billion. While US equities futures initially moved higher in Thursday's pre-market session, the S&P 500 closed about 0.5 percent lower.
3. A number of big mergers were announced on Monday of this week: Bristol (NYSE: BMY) will buy Amylin (Nasdaq: AMLN) for $31/share, Micron (NYSE: MU) will acquire Elpida for about $2.5 billion, Ingram Micro (NYSE: IM) announced a deal for Brightpoint (Nasdaq: CELL) at $9/share, Linde will buy Lincare (Nasdaq: LNCR) for $41.50/share, and Dell (Nasdaq: DELL) announced a deal for Quest Software (Nasdaq: QSFT) at $28/share.
4. The Institute for Supply Management returned a manufacturing reading for the month of May of 49.7, sharply worse than the 52 economists were expecting. Out of 18 manufacturing industries, seven showed growth during the month. Comments from the panel range from continued optimism to concern that demand may be softening due to uncertainties in the economies in Europe and China.
5. Barclays (NYSE: BCS) had a rough week as the bank's Chairman Agius, CEO Diamond and COO Del Missier all resigned following the LIBOR manipulation case and resulting settlement.
6. Shares of Informatica (Nasdaq: INFA) plunged almost 30 percent on Friday following a warning from the company on Thursday afternoon. The company said it is looking for Q2 sales of $188-$190 million on a gain of 27-28 cents per share. The Street was looking for quarterly sales of $217.2 million and a gain of 37 cents per share.
7. On Friday, Seagate (NYSE: STX) shares closed down modestly compared to the broader equities market despite a Q4 warning from the company Thursday after the market closed. Seagate offered preliminary quarterly sales of about $4.5 billion, down from the company's previously-guided "at least" $5 billion in sales.
8. Microsoft (Nasdaq: MSFT) disclosed a non-cash, non-tax-deductible income statement charge during its Q4 for the impairment of goodwill related to its 2007 aQuantive, Inc. acquisition. The company has determined the writedown will be in the range of $6.2 billion.
9. A number of sources reported on rumors Apple (Nasdaq: AAPL) will soon unveil a new, smaller iPad. The stock pushed over the $600 level for the first time since the end of April amid the headlines.
10. Retailers issued their monthly same-store sales results on Thursday of this week. Click here to see a full rundown of some of the highlights. In addition, automakers reported monthly sales figures. GM (NYSE: GM) posted a 15.5 percent rise, Ford (NYSE: F) said units were up 7 percent during June, and Chrysler said sales were up 20 percent.
1. The Labor Department Friday issued new data showing the US added 80,000 nonfarm jobs during the month of June, below the economist estimate of 100,000 but up from the addition of 77,000 jobs in May. Private-sector payrolls totaled 84,000 during the month, the worst growth reading since September of 2011. Economists were expecting 106,000 jobs to be added in that sector. The unemployment rate was flat at 8.2 percent. The news pushed US stocks down by more than 1 percent.
2. The ECB, Bank of England and Chinese central bank all jumped into action to promote global growth on Thursday. While the ECB reduced its key interest rate from 1 percent to 0.75 percent, China's central bank lowered its key rate by 31 basis points. Although the BoE made no change to rates, members voted to increase its asset purchase program by £50 billion to a total of £375 billion. While US equities futures initially moved higher in Thursday's pre-market session, the S&P 500 closed about 0.5 percent lower.
3. A number of big mergers were announced on Monday of this week: Bristol (NYSE: BMY) will buy Amylin (Nasdaq: AMLN) for $31/share, Micron (NYSE: MU) will acquire Elpida for about $2.5 billion, Ingram Micro (NYSE: IM) announced a deal for Brightpoint (Nasdaq: CELL) at $9/share, Linde will buy Lincare (Nasdaq: LNCR) for $41.50/share, and Dell (Nasdaq: DELL) announced a deal for Quest Software (Nasdaq: QSFT) at $28/share.
4. The Institute for Supply Management returned a manufacturing reading for the month of May of 49.7, sharply worse than the 52 economists were expecting. Out of 18 manufacturing industries, seven showed growth during the month. Comments from the panel range from continued optimism to concern that demand may be softening due to uncertainties in the economies in Europe and China.
5. Barclays (NYSE: BCS) had a rough week as the bank's Chairman Agius, CEO Diamond and COO Del Missier all resigned following the LIBOR manipulation case and resulting settlement.
6. Shares of Informatica (Nasdaq: INFA) plunged almost 30 percent on Friday following a warning from the company on Thursday afternoon. The company said it is looking for Q2 sales of $188-$190 million on a gain of 27-28 cents per share. The Street was looking for quarterly sales of $217.2 million and a gain of 37 cents per share.
7. On Friday, Seagate (NYSE: STX) shares closed down modestly compared to the broader equities market despite a Q4 warning from the company Thursday after the market closed. Seagate offered preliminary quarterly sales of about $4.5 billion, down from the company's previously-guided "at least" $5 billion in sales.
8. Microsoft (Nasdaq: MSFT) disclosed a non-cash, non-tax-deductible income statement charge during its Q4 for the impairment of goodwill related to its 2007 aQuantive, Inc. acquisition. The company has determined the writedown will be in the range of $6.2 billion.
9. A number of sources reported on rumors Apple (Nasdaq: AAPL) will soon unveil a new, smaller iPad. The stock pushed over the $600 level for the first time since the end of April amid the headlines.
10. Retailers issued their monthly same-store sales results on Thursday of this week. Click here to see a full rundown of some of the highlights. In addition, automakers reported monthly sales figures. GM (NYSE: GM) posted a 15.5 percent rise, Ford (NYSE: F) said units were up 7 percent during June, and Chrysler said sales were up 20 percent.
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