Stock Market Wrapup Nov. 27th
Stocks surged higher in trading, as an infusion of cash into Citigroup (NYSE: C - News) helped ease Wall Street fears concerning the financial sector. For the day, the Dow gained 215 points to end at 12,958. Meanwhile, the Nasdaq rose 1.6% to finish at 2,581, and the S&P ended 1.5% higher to close at 1,428. Light, sweet crude prices fell -$3.28 to settle at $94.22 for January delivery. Treasury and gold prices both tumbled on the day, while the dollar inched higher against the euro but fell versus the yen.
In economic news, a reading of the November Consumer Confidence report came in weaker than predicted, as confidence fell to 87.3 in the month, down from 95.6 in October. Analysts were looking for a reading of 91.5. The report marks a four-month slide in consumer confidence, and was the lowest reading since October 2005.
On the earnings front, Staples (Nasdaq: SPLS - News) reported a third-quarter profit dip, but still posted earnings above Wall Street expectations. For the quarter, the company reported net income of $274.5 million, or 38 cents per share, versus net income of $289.9 million, or 39 cents per share, last year. Excluding a settlement charge, Staples would have posted a profit of 42 cents per share. Quarterly revenue rose to $5.17 billion, up 9% from $4.76 billion a year earlier. On average, analysts were looking for earnings of 40 cents per share on revenue of $5.19 billion. Staples' stock was up 10.6% at the bell.
Retailer American Eagle Outfitters (NYSE: AEO - News) posted a dip in third-quarter profit as net income fell to $99.4 million, or 45 cents per share, from $100.9 million, or 44 cents per share, last year. EPS was higher due to a lower share count. Revenue for the quarter climbed to $744.4 million, up 7% from 696.3 million a year earlier. Earnings per share were in line with expectations although analysts, on average, were expecting revenue of $750.1 million. Shares of American Eagle were down -0.7% in trading.
In corporate news, Citigroup announced that the Abu Dhabi Investment Authority will invest $7.5 billion in the bank in order to obtain a stake not to exceed 4.9%. The cash infusion calls for the Investment Authority to receive equity units that pay an 11% annual yield and can be converted into common shares between March 15th, 2010 and September 15th, 2011 at a price up to $37.24 per share. Citigroup's stock was up 1.7% on the day. Subscribers can read our take on Citigroup in today's edition.
Shares of Activision (Nasdaq: ATVI - News) surged 13.8% after the video-game maker upped its third-quarter and fiscal-year guidance. For the quarter, Activision expects to earn 66 cents per share on revenue of $1.23 billion, up from previous estimates of 51 cents per share on revenue of $1.05 billion. Excluding items, the company is expecting a profit of 70 cents per share, up from 55 cents per share. On average, analysts were calling for earnings of 56 cents per share on sales of $1.04 billion. Subscribers can read our take on Activision in today's edition.
In M&A news, health insurer Cigna (NYSE: CI - News) announced that it will acquire the healthcare unit of Great-West Life in a cash deal worth approximately $1.5 billion. The takeover is expected to increase Cigna's expansion efforts in the Western United States. Analysts said the deal further signals consolidation within the healthcare sector. Shares of Cigna were up 2.3% in trading.
By the BullMarket.com Staff
In economic news, a reading of the November Consumer Confidence report came in weaker than predicted, as confidence fell to 87.3 in the month, down from 95.6 in October. Analysts were looking for a reading of 91.5. The report marks a four-month slide in consumer confidence, and was the lowest reading since October 2005.
On the earnings front, Staples (Nasdaq: SPLS - News) reported a third-quarter profit dip, but still posted earnings above Wall Street expectations. For the quarter, the company reported net income of $274.5 million, or 38 cents per share, versus net income of $289.9 million, or 39 cents per share, last year. Excluding a settlement charge, Staples would have posted a profit of 42 cents per share. Quarterly revenue rose to $5.17 billion, up 9% from $4.76 billion a year earlier. On average, analysts were looking for earnings of 40 cents per share on revenue of $5.19 billion. Staples' stock was up 10.6% at the bell.
Retailer American Eagle Outfitters (NYSE: AEO - News) posted a dip in third-quarter profit as net income fell to $99.4 million, or 45 cents per share, from $100.9 million, or 44 cents per share, last year. EPS was higher due to a lower share count. Revenue for the quarter climbed to $744.4 million, up 7% from 696.3 million a year earlier. Earnings per share were in line with expectations although analysts, on average, were expecting revenue of $750.1 million. Shares of American Eagle were down -0.7% in trading.
In corporate news, Citigroup announced that the Abu Dhabi Investment Authority will invest $7.5 billion in the bank in order to obtain a stake not to exceed 4.9%. The cash infusion calls for the Investment Authority to receive equity units that pay an 11% annual yield and can be converted into common shares between March 15th, 2010 and September 15th, 2011 at a price up to $37.24 per share. Citigroup's stock was up 1.7% on the day. Subscribers can read our take on Citigroup in today's edition.
Shares of Activision (Nasdaq: ATVI - News) surged 13.8% after the video-game maker upped its third-quarter and fiscal-year guidance. For the quarter, Activision expects to earn 66 cents per share on revenue of $1.23 billion, up from previous estimates of 51 cents per share on revenue of $1.05 billion. Excluding items, the company is expecting a profit of 70 cents per share, up from 55 cents per share. On average, analysts were calling for earnings of 56 cents per share on sales of $1.04 billion. Subscribers can read our take on Activision in today's edition.
In M&A news, health insurer Cigna (NYSE: CI - News) announced that it will acquire the healthcare unit of Great-West Life in a cash deal worth approximately $1.5 billion. The takeover is expected to increase Cigna's expansion efforts in the Western United States. Analysts said the deal further signals consolidation within the healthcare sector. Shares of Cigna were up 2.3% in trading.
By the BullMarket.com Staff
0 Comments:
Post a Comment
<< Home