Stock Market Wrapup June 19th
The Dow, Nasdaq, and S&P 500 all closed up on the day after an up and down day of trading. The U.S. Department of Commerce reported new housing starts and building permits this morning, with results in line with expectations. Construction of new homes and apartments was down -2.1% for the month of May. Single-family home construction dropped -3.4%, while construction of apartments rose 3.1%. Broken down by region, the South and West saw drops of -1.6% and -19.7%, respectively, while the Northeast and Midwest saw increases of about 15% each. Oil closed up again, remaining above $69.00 for the second-straight day as the Nigerian labor union rejected a government plan to avert a strike.
Yahoo (Nasdaq: YHOO) announced the resignation of Terry Semel as CEO last night after the bell. Semel had been criticized at length for his inability to raise the stock's value as well as his high ($71 million) annual salary. Yahoo co-founder Jerry Yang will take over as chief executive. BullMarket.com subscribers can read a detailed report on Yahoo in today's issue.
Home Depot (NYSE: HD) will sell its supply division to three private equity firms for approximately $10 billion after the unit was put up for auction. The winning bid by Bain Capital; Carlyle Group; and Clayton, Dubilier & Rice topped those offered by other private equity firms including Thomas H. Lee Partners. The sale price is lower than what analysts had expected, and the discount is attributed to the depressed housing market. "Home Depot may be taking a bit of a price concession," Keith Davis, an analyst from Farr Miller Washington, said. "They are kind of selling at a bad time. They believe that shareholders would rather see them get it done."
Expedia (Nasdaq: EXPE) announced that it will initiate a massive tender offer to repurchase approximately 42% of its outstanding shares for between $27.50 and $30.00. The stock rose 14.3%. Bristol-Myers Squibb (NYSE: BMY) was another winner, rising 4.2%, after a U.S. district judge blocked a generic version of blood thinner Plavix from the U.S. market until 2011.
Electronics retailer Best Buy (NYSE: BBY) announced disappointing first-quarter earnings today. Lower margins in products such as gaming systems and notebook computers resulted in an -18% drop in net income to $192 million, or 39 cents per share. Revenues rose 14% to $7.85 billion, with same-store sales growth of 3.4%. The company revised its guidance for the fiscal year, lowering earnings estimates from April's $3.10-$3.25 a share to $2.95-$3.15 a share. The stock fell -5.9%.
By the BullMarket.com Staff
Yahoo (Nasdaq: YHOO) announced the resignation of Terry Semel as CEO last night after the bell. Semel had been criticized at length for his inability to raise the stock's value as well as his high ($71 million) annual salary. Yahoo co-founder Jerry Yang will take over as chief executive. BullMarket.com subscribers can read a detailed report on Yahoo in today's issue.
Home Depot (NYSE: HD) will sell its supply division to three private equity firms for approximately $10 billion after the unit was put up for auction. The winning bid by Bain Capital; Carlyle Group; and Clayton, Dubilier & Rice topped those offered by other private equity firms including Thomas H. Lee Partners. The sale price is lower than what analysts had expected, and the discount is attributed to the depressed housing market. "Home Depot may be taking a bit of a price concession," Keith Davis, an analyst from Farr Miller Washington, said. "They are kind of selling at a bad time. They believe that shareholders would rather see them get it done."
Expedia (Nasdaq: EXPE) announced that it will initiate a massive tender offer to repurchase approximately 42% of its outstanding shares for between $27.50 and $30.00. The stock rose 14.3%. Bristol-Myers Squibb (NYSE: BMY) was another winner, rising 4.2%, after a U.S. district judge blocked a generic version of blood thinner Plavix from the U.S. market until 2011.
Electronics retailer Best Buy (NYSE: BBY) announced disappointing first-quarter earnings today. Lower margins in products such as gaming systems and notebook computers resulted in an -18% drop in net income to $192 million, or 39 cents per share. Revenues rose 14% to $7.85 billion, with same-store sales growth of 3.4%. The company revised its guidance for the fiscal year, lowering earnings estimates from April's $3.10-$3.25 a share to $2.95-$3.15 a share. The stock fell -5.9%.
By the BullMarket.com Staff
posted by Stock Administrator @ 10:48 PM
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