Stock Market Wrapup Sept. 28th
Stocks teetered between positive and negative territory for most of the day before finally finishing in the red. On the final trading day of the quarter, the Dow ended down -17 points, while the Nasdaq and S&P fell -0.3%. Oil hit an all-time high intra-day before dropping to close -$1.22 lower at $81.66 a barrel. Gold finished the day solidly higher.
In economic news, the Commerce Department reported that consumer spending rose 0.6% in August, the fastest growth rate in two years, helped by a 0.4% rise in after-tax income adjusted for inflation and lower consumer prices. Consumer prices fell -0.1% for August, while the core CPI, which excludes food and energy costs, rose 0.1%. Wages rose 0.2%. Former Fed chief Alan Greenspan, meanwhile, said the chances that the economy will see a recession are growing, but the odds are still less than 50/50.
On the earnings front, consulting firm Accenture (NYSE: ACN - News) reported a profit of $316.8 million, or 50 cents per share, after the bell last night, beating estimates by 2 cents. Revenue grew 29% to $5.11 billion, easily surpassing the $4.89 billion consensus. The firm also upped its dividend to 42 cents a share. The stock rose 5.9%.
Contract electronics manufacturer Jabil Circuits (NYSE: JBL - News) beat earnings by a penny last night. The company reported net income of $11.7 million, or 6 cents per share, compared with a year-ago loss of -$45.6 million, or -22 cents per share. Excluding one-time items, EPS came in at 29 cents. Revenue climbed to $3.13 billion, a 6% increase. The stock fell -6.8%.
In M&A news, private equity firm Bain Capital Partners has agreed to buy ethernet inventor 3Com Corp. (Nasdaq: COMS - News) for $2.2 billion in cash. As part of the deal, Chinese networking behemoth Huawei Technologies will take a minority stake in 3Com. The acquisition price was a 44% premium to the stock's closing price on Thursday.
Shares of 3Com spin-off Palm (Nasdaq: PALM - News), meanwhile, initially climbed after the company introduced a new $99.99 smartphone last night. The model, called the Centro, is lighter, thinner, and cheaper than its previous offerings. Sprint Nextel (NYSE: S - News) will have exclusivity for the device for 90 days. Palm shares, however, finished the day down -0.8%.
In economic news, the Commerce Department reported that consumer spending rose 0.6% in August, the fastest growth rate in two years, helped by a 0.4% rise in after-tax income adjusted for inflation and lower consumer prices. Consumer prices fell -0.1% for August, while the core CPI, which excludes food and energy costs, rose 0.1%. Wages rose 0.2%. Former Fed chief Alan Greenspan, meanwhile, said the chances that the economy will see a recession are growing, but the odds are still less than 50/50.
On the earnings front, consulting firm Accenture (NYSE: ACN - News) reported a profit of $316.8 million, or 50 cents per share, after the bell last night, beating estimates by 2 cents. Revenue grew 29% to $5.11 billion, easily surpassing the $4.89 billion consensus. The firm also upped its dividend to 42 cents a share. The stock rose 5.9%.
Contract electronics manufacturer Jabil Circuits (NYSE: JBL - News) beat earnings by a penny last night. The company reported net income of $11.7 million, or 6 cents per share, compared with a year-ago loss of -$45.6 million, or -22 cents per share. Excluding one-time items, EPS came in at 29 cents. Revenue climbed to $3.13 billion, a 6% increase. The stock fell -6.8%.
In M&A news, private equity firm Bain Capital Partners has agreed to buy ethernet inventor 3Com Corp. (Nasdaq: COMS - News) for $2.2 billion in cash. As part of the deal, Chinese networking behemoth Huawei Technologies will take a minority stake in 3Com. The acquisition price was a 44% premium to the stock's closing price on Thursday.
Shares of 3Com spin-off Palm (Nasdaq: PALM - News), meanwhile, initially climbed after the company introduced a new $99.99 smartphone last night. The model, called the Centro, is lighter, thinner, and cheaper than its previous offerings. Sprint Nextel (NYSE: S - News) will have exclusivity for the device for 90 days. Palm shares, however, finished the day down -0.8%.
Labels: 3Com Corp., ACN, COMS, Jabil Circuit, JBL, PALM, Palm Inc., S
posted by Stock Administrator @ 7:27 PM
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