Market Wrap: Microsoft's New Devices 'Surface'; Dimon Loves Testimonies; Getting the 'Boots'; Homebuilders Climb

Market wrap-up for June 19th

End of the Day: Dow Jones up 95.5 to 12,837.33; S&P 500 up 13.2 to 1,357.98; Nasdaq up 34.4 to 2,929.76

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

• Back in the hot seat...and loving it: Don't let him fool you, JPMorgan (NYSE: JPM) CEO Jamie Dimon likes the heat. Or, if he doesn't, you can't really tell. Following his appearance in front of a Senate Panel last week, Dimon found himself in front a Congressional committee fielding more questions about the recently disclosed CIO losses stemming from risky trades and sloppy management.
  
  Dimon noted JPMorgan isn't too big to fail (TBTF), he doesn't plan on it, and if it did, the institution would be dismantled with charges levied to the financial industry. Dimon defended lobbying efforts as a "constitutional right," also calling for the simplification and clarification of the draft Volcker rule.
  
  No specific numbers were given on the CIO losses, which will be updated when JPMorgan issues second-quarter numbers on July 13th. Otherwise, it ended up being a typical grilling session from lawmakers.
  
  
• Walgreen gets the 'Boots': Ahead of the bell Tuesday, Walgreen Co. (NYSE: WAG) announced it had entered an agreement to acquire a 45 percent stake in Alliance Boots for $6.7 billion in cash and stock.
  
  Walgreen will also have an option to buy the remaining 55 percent of Alliance Boots in three years for $9.5 billion plus the assumption of then-outstanding debt for Boots.
  
  Also winning the day was KKR & Co. L.P. (NYSE: KKR), which is said to garner a 2.4 to 2.5 times return on its original investment in Boots. For more, click here.
  
  
• We didn't see a front-facing camera: Late Monday, Microsoft (Nasdaq: MSFT) unveiled its first effort into the realm of PCs: two tablet devices. Carrying the names Surface for Windows RT and Surface for Windows 8 Pro, the tablets are aimed at making a dent in the Ultrabook market, as well as taking some tablet market share from nemesis Apple, Inc. (Nasdaq: AAPL).
  
  Reviews have been mixed on the tablets and Microsoft has been mute about the details. Initial impressions are generally favorable, as the design and function work well. Investors and consumers will just have to wait between now and the fall for more detail on this exciting undertaking from Microsoft.
  
  Shares ended the session up nearly 3 percent.
  
  
• Adobe showing some cracks: Despite peer Oracle (Nasdaq: ORCL) setting the bar Monday with an early fourth-quarter release, Adobe (Nasdaq: ADBE) came up short following second-quarter numbers and guidance. The company reported EPS of 60 cents on revs of $1.12 billion, both beating expectations. Looking to the third quarter, Adobe expects EPS of 56 cents to 61 cents and revs of $1.075 billion to $1.13 billion, versus views calling for EPS of 61 cents and sales of $1.13 billion.
  
  For fiscal 2012, Adobe is looking at adjusted EPS of $2.40 to $2.46 and sales growth of 6 percent to 7 percent. Previously, Adobe was looking for EPS of $2.38 to $2.48 and sale growth of 6 percent to 8 percent. The Street is modeling EPS of 2.44.
  
  
• Building gains, one permit at a time: Homebuilders moved higher Tuesday following data from the Dept. of Commerce showing building permits rose from 723,000 last month to 780,000 during May, compared to expectations of just 725,000. The SPDR S&P Homebuilders (NYSE: XHB) ETF rose just over 1 percent on the session and is trading higher after hours. For more on the numbers, click here.

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