Posts by Dean Arrindell
- Dean Arrindell at Hot Stock Minute1 day ago
The number of people who applied for initial jobless claims last week rose from a 14-year low, but was still fewer than economists expected. The Labor Department said weekly jobless claims rose to 302,000 from the previous week’s revised 279,000. Analysts expected 305,000 initial jobless claims last week. The four-week average fell 3,500 to 297,250. It’s the first time the four-week average fell below 300,000 since April 2006.
Bank of America (BAC) was fined nearly $1.3 billion by a federal judge for bad mortgages sold by its Countrywide Financial unit to Fannie Mae and Freddie Mac. BofA acquired Countrywide in 2008 as the financial crisis was unfolding. This comes as Bank of America is in negotiations with the Justice Department to settle claims over other shoddy mortgage securities it sold. The two sides have been at odds for some time over the amount of the penalty.
- Dean Arrindell at Hot Stock Minute2 days ago
The economy grew more than expected in the second quarter. GDP expanded 4% last quarter, more than the 3.1% growth analysts were expecting. It also reversed the 2.1% decline in the first quarter. Consumer spending, larger stock dividends and construction spending helped drive growth.
The ADP private employment report said that 218,000 jobs were added in July. That was below the economists’ estimates. It was less than the 281,000 private-sector jobs created in June. The figure comes ahead of the Labor Department’s job report which will be released Friday.
Investors will be looking for the Federal Reserve’s policy announcement, which is expected this afternoon at 2 p.m. Eastern.
General Motors (GM) faces a new lawsuit by 658 people who claim they were injured, or are related to someone who was killed in an accident, allegedly due to defective ignition switches. The lawsuit covers claims that are not eligible for payments under the program set up by GM to compensate victims of crashes related to the faulty switches.
- Dean Arrindell at Hot Stock Minute3 days ago
The Federal Reserve kicks off its two-day meeting today. Investors will want to see if Fed will reduce its bond-buying program by another $10 billion, as well as when it will raise interest rates. The Fed will make an announcement on policy decisions tomorrow at 2 p.m. Eastern.
Twitter (TWTR) is scheduled to release its second quarter earnings report this afternoon. In addition to user growth and ad revenue, many were looking for the micro-blogging site to release new metrics to show that Twitter reaches people in the general public who aren't signed up to use the site, like Ellen DeGeneres’s Oscar selfie that received massive exposure beyond Twitter. However, Recode reported that Twitter will not release those new metrics today.
Zillow to buy Trulia; Dollar Tree to acquire Family Dollar; Hospira reportedly in talks to buy Danone unitDean Arrindell at Hot Stock Minute4 days ago
The week begins with lots of M&A news.
Real estate website Zillow (Z) will purchase Trulia (TRLA). The companies announced this morning that Zillow will buy Trulia in a $3.5 billion stock deal that is expected to close next year. Zillow reportedly first approached Trulia about a takeover six weeks ago. The companies expect $100 million in cost savings by 2016. The combined brands will remain in tact.
Discount retailer Dollar Tree (DLTR) is buying rival Family Dollar (FDO) in a cash and stock deal valued at about $8.5 billion. The combined company will have over 13,000 stores and more than $18 billion in sales. Activist investor Carl Icahn, who has a more than 9% stake in Family Dollar, has been pressuring the company to put itself up for sale.
- Dean Arrindell at Hot Stock Minute6 days ago
While Visa (V) beat second quarter earnings and revenue estimates, the world’s-largest credit and debit company said it was having some difficulties internationally. Visa lowered its revenue outlook for the year because of a slow-down in cross-border transactions and a stronger U.S. dollar. The company is also affected by the conflict between Russia and Ukraine.
A new Russian law is forcing Visa and rival MasterCard (MA) to deposit nearly $3 billion in collateral in Russian banks to operate there. Visa considered pulling out of Russia, but officials there said the companies could avoid paying the collateral if they find local partners by the end of October. Transactions in Russia make up about 2% of Visa’s revenue.
- Dean Arrindell at Hot Stock Minute7 days ago
Demand increased for aircraft, heavy machinery and computers in June, which helped boost durable goods orders. The Commerce Department said durable goods orders rose of 0.7% last month, following a 1.0% decline in May. Analysts expected a rise of only 0.5% in June.
Amazon (AMZN) reported a wider-than-expected loss of $126 million in the second quarter. However, revenue rose 23%, matching estimates. The company also said it expects to see a bigger-than-expected operating loss of $410 million to $810 million in the current quarter. Amazon's losses reflect the big investments its been making on new businesses and services. This year alone it unveiled streaming services, and its first set-top box and smartphone.
Visa (V) lowered its revenue outlook for the year due to a slow-down in cross-border transactions and a strengthening U.S. dollar. That news over-shadowed the company's favorable earnings. Visa beat analysts' earnings estimate by $0.07. It also beat on revenue.
- Dean Arrindell at Hot Stock Minute8 days ago
The number of people applying for first-time unemployment benefits dropped to is lowest level in more than eight years. The Labor Department reported that 284,000 people applied for initial jobless claims last week. That’s the lowest level since February 2006. Analysts had expected 310,000 people to apply for jobless claims.
Wal-Mart (WMT) announced this morning that Bill Simon, the president and CEO of Wal-Mart U.S., will leave his role and transition out of the company. Greg Foran, the president and CEO of Wal-Mart in Asia, will replace him. Foran will assume his new role on August 9. Simon will stay with Wal-Mart as advisor for six months.
- Dean Arrindell at Hot Stock Minute9 days ago
Chrysler is recalling 792,000 Jeep SUVs worldwide because ignition switches could go out of the “run” position and cause engines to stall. The ignition problem affects Jeep Commanders from model years 2006 through 2007, and Jeep Grand Cherokees from 2005 through 2007. Chrysler says that only one accident has been linked to the recall and is not aware of any injuries.
Several big-name companies have reported earnings. Strong iPhone sales helped Apple (AAPL) boost profits, but iPad sales fell for the second consecutive quarter. Earnings beat estimates, and even though revenue rose 6% from a year ago, it still came in below expectations. PepsiCo (PEP) beat analysts’ estimates thanks to cost-cutting. Revenue also beat estimates helped by higher beverage and snack volumes. Whirlpool (WHR) missed on earnings by $0.29, and fell short on revenue, too, which fell 1.4%. Whirlpool also cut its full-year guidance outlook.
- Dean Arrindell at Hot Stock Minute9 days ago
Some fund managers are not so big on Apple (AAPL) stock, but the company has big plans for the iPhone 6. That comes ahead of the company's much anticpated earnings report after the close.
A report from Goldman Sachs says that Apple is one of the most underweighted stocks by large cap fund managers. The managers say that the company isn’t a growth stock anymore and hasn’t introduced a truly new product since in 2010, when it released the iPad.
Yahoo Finance Senior Columnist Michael Santoli, said that the largest-cap stocks tend to be slightly underweighted by active fund managers. He also said skepticism is healthy for Apple stock, and is preferable to the way investors were overconfident in 2012.