Top 10 News Items 1/23-1/27: Apple Destroys Q1 Estimates; RIM's Lazaridis, Balsillie Step Down; Fed Extends 'Exceptionally Low' Rates Language Through At Least Late 2014
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Price: $169.31 +0.17%
Overall Analyst Rating:
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Dividend Yield: 0.5%
EPS Growth %: -0.7%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 0.5%
EPS Growth %: -0.7%
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Here is a recap of the top news items from this week on Wall Street:
1. Shares of Apple (Nasdaq: AAPL) rose more than 6 percent on Wednesday (pushing the company's market value to thee highest in the world among publicly-trade companies) after the maker of the iPhone and iPad absolutely demolished first-quarter expectations. Apple posted quarterly earnings of $13.87 per share on sales of $46.3 billion. The Street was looking for EPS of $10.08 on sales $46.33 billion. Looking for second-quarter EPS of about $8.50 on sales of $32.5 billion. The Street is looking for EPS of $8.03 on sales of $32.04 billion. The company sold 37.04 million iPhones, 15.43 million iPads, Macs of 5.2 million, and 15.4 million iPods.
2. Late Sunday night RIM (Nasdaq: RIMM) announced its Co-Chair and CEO's Jim Balsillie and Mike Lazaridis would be stepping down. Mr. Lazaridis will stay on as the board's vice chairman, and Mr. Balsillie will stay on as a board member. While the stock was initially higher on the news, comments from the newly appointed CEO Thorsten Heins on a call that he would not be making any drastic changes within the company had shares giving up gains. The stock fell nearly 12 percent over Monday and Tuesday but rebounded about 8 percent on Wednesday.
3. The Fed maintained its low interest rate policy this week, however extended the language for these "exceptionally low" rates through "at least late 2014." The Fed signaled it would "continue its program to extend the average maturity of its holdings of securities as announced in September."
4. Shares of Netflix (Nasdaq: NFLX) surged more than 22 percent on Thursday and another 6 percent on Friday following better-than-expected results on Wednesday afternoon. The company reported Q4 EPS of $0.73, $0.18 better than the analyst estimate of $0.55. Netflix, Inc. sees Q1 2012 EPS of $-0.16-$-0.49, versus the consensus of $-0.29.
5. Late Friday the WSJ reported Facebook will file its IPO documents with the SEC on Wednesday of next week with an initial valuation expected between $75-$100 billion.
6. The biotech sector was on fire this week as Roche launched a hostile bid for Illumina (Nasdaq: ILMN) on Wednesday. Illumina shares surged more than 46 percent that day. Roche's bid is at $44.50/share, or about $5.7 billion in total. With the stock closing this week around $52, investors are clearly indicating expectations for more bids.
7. Solutia (NYSE: SOA) shares jumped almost 41 percent on Friday after Eastman Chemical (NYSE: EMN) bid equaled $27.65 per share, or $22 per share in cash and 0.12 shares of Eastman.
8. Elsewhere on the earnings front: J&J (NYSE: JNJ), McDonald's (NYSE: MCD), Boeing (NYSE: BA), Cat (NYSE: CAT), Lockheed Martin (NYSE: LMT), AMD (NYSE: AMD), P&G (NYSE: PG), Juniper (Nasdaq: JNPR), Texas Instruments (NYSE: TXN), Ford (NYSE: F), Starbucks (Nasdaq: SBUX) and 3M (NYSE: MMM).
9. JCPenney (NYSE: JCP) shares surged nearly 19 percent on Thursday as new chief Ron Johnson laid out the company's new marketing strategy on a conference call. The exec also said he expects FY12 profit to be above FY10 levels.
10. The Street got the first reading of Q4 economic growth on Friday. US GDP rose 2.8 percent, slightly below the 3.0 percent economists were expecting.
1. Shares of Apple (Nasdaq: AAPL) rose more than 6 percent on Wednesday (pushing the company's market value to thee highest in the world among publicly-trade companies) after the maker of the iPhone and iPad absolutely demolished first-quarter expectations. Apple posted quarterly earnings of $13.87 per share on sales of $46.3 billion. The Street was looking for EPS of $10.08 on sales $46.33 billion. Looking for second-quarter EPS of about $8.50 on sales of $32.5 billion. The Street is looking for EPS of $8.03 on sales of $32.04 billion. The company sold 37.04 million iPhones, 15.43 million iPads, Macs of 5.2 million, and 15.4 million iPods.
2. Late Sunday night RIM (Nasdaq: RIMM) announced its Co-Chair and CEO's Jim Balsillie and Mike Lazaridis would be stepping down. Mr. Lazaridis will stay on as the board's vice chairman, and Mr. Balsillie will stay on as a board member. While the stock was initially higher on the news, comments from the newly appointed CEO Thorsten Heins on a call that he would not be making any drastic changes within the company had shares giving up gains. The stock fell nearly 12 percent over Monday and Tuesday but rebounded about 8 percent on Wednesday.
3. The Fed maintained its low interest rate policy this week, however extended the language for these "exceptionally low" rates through "at least late 2014." The Fed signaled it would "continue its program to extend the average maturity of its holdings of securities as announced in September."
4. Shares of Netflix (Nasdaq: NFLX) surged more than 22 percent on Thursday and another 6 percent on Friday following better-than-expected results on Wednesday afternoon. The company reported Q4 EPS of $0.73, $0.18 better than the analyst estimate of $0.55. Netflix, Inc. sees Q1 2012 EPS of $-0.16-$-0.49, versus the consensus of $-0.29.
5. Late Friday the WSJ reported Facebook will file its IPO documents with the SEC on Wednesday of next week with an initial valuation expected between $75-$100 billion.
6. The biotech sector was on fire this week as Roche launched a hostile bid for Illumina (Nasdaq: ILMN) on Wednesday. Illumina shares surged more than 46 percent that day. Roche's bid is at $44.50/share, or about $5.7 billion in total. With the stock closing this week around $52, investors are clearly indicating expectations for more bids.
7. Solutia (NYSE: SOA) shares jumped almost 41 percent on Friday after Eastman Chemical (NYSE: EMN) bid equaled $27.65 per share, or $22 per share in cash and 0.12 shares of Eastman.
8. Elsewhere on the earnings front: J&J (NYSE: JNJ), McDonald's (NYSE: MCD), Boeing (NYSE: BA), Cat (NYSE: CAT), Lockheed Martin (NYSE: LMT), AMD (NYSE: AMD), P&G (NYSE: PG), Juniper (Nasdaq: JNPR), Texas Instruments (NYSE: TXN), Ford (NYSE: F), Starbucks (Nasdaq: SBUX) and 3M (NYSE: MMM).
9. JCPenney (NYSE: JCP) shares surged nearly 19 percent on Thursday as new chief Ron Johnson laid out the company's new marketing strategy on a conference call. The exec also said he expects FY12 profit to be above FY10 levels.
10. The Street got the first reading of Q4 economic growth on Friday. US GDP rose 2.8 percent, slightly below the 3.0 percent economists were expecting.
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