Top 10 News Items 7/9-7/13: JPMorgan Gets Its CIO Losses Out of the Way; Stocks Fall for Six Days; China Reports Slowest Growth Since Early 2009
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Here is a recap of the top news items from Wall Street this week:
1. JPMorgan (NYSE: JPM) shares led the Financial sector sharply higher Friday after reporting Q2 results and announcing it will need to restate Q1 results related to the CIO trading losses. The bank said it shuttered its CIO synthetic group. Quarterly sales fell 16 percent to $22.89 and EPS were $1.21. The stock closed the session up 6 percent.
2. The US's major averages declined for six straight trading sessions since the holiday-shortened session on Tuesday of last week. The Dow was down as much as 3.3 percent over this period. A massive 200-point rally in the Dow on Friday erased a large chunk of the last week's losses however. Reduced guidance from Seagate (NYSE: STX) last week and from AMD (NYSE: AMD), Applied Materials (Nasdaq: AMAT), Cummins (NYSE: CMI), and hhgregg (NYSE: HGG) this week weighed.
3. China's gross domestic product fell to 7.6 percent in the second quarter, down from the 8.1 percent reported in the first quarter. It is the country's lowest level of growth since the first quarter of 2009, although the number was in-line with market expectations. GDP was hurt by slowing European exports, a sluggish real estate market muted domestic consumption.
4. The Fed released the minutes of its latest FOMC meeting this week. Some members of the Committee suggested more stimulus would probably be needed. Click here to see the full minutes.
5. Shares of Amerigroup (NYSE: AGP) jumped nearly 40 percent on Monday after WellPoint (NYSE: WLP) announced a $92 per share cash bid for the company. Peers in the Managed Care group also surged: Centene (NYSE: CNC) shares were up 20 percent, WellCare (NYSE: WCG) shares rose 18 percent.
6. Shares of Procter & Gamble (NYSE: PG) had the best two-day stretch in quite some time on Thursday and Friday amid a rumor Bill Ackman is building an investment in the company. One source said Ackman called the stake was his "largest initial investment ever." Shares closed up nearly 4 percent on Thursday and added another 2 percent on Friday.
7. Cummins (NYSE: CMI) shares plunged 9 percent on Tuesday and another 4 percent on Wednesday following a warning from the company. Cummins now sees FY12 sales to be inline with 2011, compared to a prior outlook for a 10 percent game. Shares of peer Cat (NYSE: CAT) fell 3.5 percent amid the warning, in turn bringing down the Dow.
8. Shares of SAP (NYSE: SAP) were up 3 percent on Thursday after reporting its best ever Q2 profit. The company reported Q2 software sales rose 26 percent to €1.06 billion while non-IFRS operating profit rose 15 percent to €1.17 billion.
9. SUPERVALU (NYSE: SVU) shares plunged 50 percent on Thursday and another 14 percent on Friday after missing Q1 results, suspending its dividend, and announcing it will review strategic alternatives. The company reported Q1 EPS of $0.19, $0.19 worse than the analyst estimate of $0.38. Revenue for the quarter came in at $10.6 billion versus the consensus estimate of $10.81 billion.
10. Patriot Coal (OTC: PCXCQ) filed for Chapter 11 Bankruptcy Protection this week. Peers in the Coal group moved lower amid the news. Shares of James River Coal (Nasdaq: JRCC) were down about 44 percent this week.
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1. JPMorgan (NYSE: JPM) shares led the Financial sector sharply higher Friday after reporting Q2 results and announcing it will need to restate Q1 results related to the CIO trading losses. The bank said it shuttered its CIO synthetic group. Quarterly sales fell 16 percent to $22.89 and EPS were $1.21. The stock closed the session up 6 percent.
2. The US's major averages declined for six straight trading sessions since the holiday-shortened session on Tuesday of last week. The Dow was down as much as 3.3 percent over this period. A massive 200-point rally in the Dow on Friday erased a large chunk of the last week's losses however. Reduced guidance from Seagate (NYSE: STX) last week and from AMD (NYSE: AMD), Applied Materials (Nasdaq: AMAT), Cummins (NYSE: CMI), and hhgregg (NYSE: HGG) this week weighed.
3. China's gross domestic product fell to 7.6 percent in the second quarter, down from the 8.1 percent reported in the first quarter. It is the country's lowest level of growth since the first quarter of 2009, although the number was in-line with market expectations. GDP was hurt by slowing European exports, a sluggish real estate market muted domestic consumption.
4. The Fed released the minutes of its latest FOMC meeting this week. Some members of the Committee suggested more stimulus would probably be needed. Click here to see the full minutes.
5. Shares of Amerigroup (NYSE: AGP) jumped nearly 40 percent on Monday after WellPoint (NYSE: WLP) announced a $92 per share cash bid for the company. Peers in the Managed Care group also surged: Centene (NYSE: CNC) shares were up 20 percent, WellCare (NYSE: WCG) shares rose 18 percent.
6. Shares of Procter & Gamble (NYSE: PG) had the best two-day stretch in quite some time on Thursday and Friday amid a rumor Bill Ackman is building an investment in the company. One source said Ackman called the stake was his "largest initial investment ever." Shares closed up nearly 4 percent on Thursday and added another 2 percent on Friday.
7. Cummins (NYSE: CMI) shares plunged 9 percent on Tuesday and another 4 percent on Wednesday following a warning from the company. Cummins now sees FY12 sales to be inline with 2011, compared to a prior outlook for a 10 percent game. Shares of peer Cat (NYSE: CAT) fell 3.5 percent amid the warning, in turn bringing down the Dow.
8. Shares of SAP (NYSE: SAP) were up 3 percent on Thursday after reporting its best ever Q2 profit. The company reported Q2 software sales rose 26 percent to €1.06 billion while non-IFRS operating profit rose 15 percent to €1.17 billion.
9. SUPERVALU (NYSE: SVU) shares plunged 50 percent on Thursday and another 14 percent on Friday after missing Q1 results, suspending its dividend, and announcing it will review strategic alternatives. The company reported Q1 EPS of $0.19, $0.19 worse than the analyst estimate of $0.38. Revenue for the quarter came in at $10.6 billion versus the consensus estimate of $10.81 billion.
10. Patriot Coal (OTC: PCXCQ) filed for Chapter 11 Bankruptcy Protection this week. Peers in the Coal group moved lower amid the news. Shares of James River Coal (Nasdaq: JRCC) were down about 44 percent this week.
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