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Markets Poised for Drop; Lululemon Tanks; Softbank Dials Up Race for Sprint

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Markets are poised to open substantially lower. Futures have been falling on disappointing news out of Japan. The BOJ has decided not to take any new action, either to encourage growth or cut volatility. Yahoo! Finance Senior Columnist Mike Santoli has more in the video above.

It's the end of Day at Lululemon (LULU). The yoga maker has announced that CEO Christine Day is departing. The news came as the company reported quarterly earnings. Lulu made 32-cents a share, beating estimates of 30-cents on revenues that were also slightly higher than the consensus. Sales tripled at the chain during the 3-years that Day lead the company. But the scandal over see-through yoga pants may have caused her downfall. Shares are down 13% in early trading, meaning they've given up all their gains year-to-date and then some.

Softbank ups its bid for Sprint (S) by seven-and-a-half percent, raising the buyout offer to $21.6-billion from $20.1-billion. This would give Softbank a 78% stake in Sprint. Shareholders are set to vote on the proposal tomorrow. Meanwhile, Sprint ended negotiations with Dish Network (DISH), saying they failed to "put forth an actionable offer." Shares of the third largest U.S. wireless carrier have been on a tear, up 140% from one year ago.

The war over new game consoles is shifting into high gear. Microsoft (MSFT) has announced that it will launch its new Xbox One in November at a price of $499. That's well above the price for previous consoles. Meanwhile, not to be outdone, Sony SNE has revealed that it will charge $399 for the new PlayStation 4. By the way, the Xbox will sell as a single package with no extra charges for accessories. Sony for its part will allow gamers to sell, trade and lend games with one another, something Microsoft is trying to stop.

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First up is Apple (AAPL), which is currently down fractionally. This will be day-two of Apple's annual developer's conference. Yesterday, as expected the company unveiled a new iOS for mobile devices, as well as a streaming music service. By the way our poll question yesterday was, which would be more important for Apple? People seemed pretty evenly divided with the streaming service winning out by just 1-point. As for Apple's performance during previous conferences, our partners at CNBC crunched the numbers and found shares dropped in each of the past 5-years. In fact they fell more than 5% three times.

Next is Facebook (FB). It was up 4.5% yesterday. Speculation began to swirl yesterday that the social network may soon be added to the S&P 500. The company has also been receiving upgrades like ones from analysts at Stifel and Topeka Capital. J-P Morgan also reiterated that it has Facebook as an overweight. Even with yesterday's rise, Facebook shares are down 13% year-to-date. They're more that 36% off their IPO price some 13-months ago.

Now we look at Diamond Foods (DMND), which has been up more than 3% in early trading here on the NASDAQ. That's on top of an 8% climb yesterday. The company surprised traders with its quarterly results, posting earnings of 5-cents a share when estimates were for losses of 17-cents a share. But it also restated results from the prior quarter, turning a profit of 43-cents a share into a loss of 37-cents. Trading of the stock actually had to be halted for a short time, as the company also announced it is replace CEO Michael Murphy with Raymond Silcock. Diamond also lowered its outlook for the coming quarter.

Finally Corinthian Colleges (COCO) which has been trading more than 15% lower this morning here on the NASDAQ. Corinthian specializes in short-term diploma programs. It's a for-profit college chain. Word surfaced last night that on June 6th it was subpoenaed by the SEC. This is part of an investigation into student information, recruitment and attendance. Trading of shares actually had to be halted temporarily after the news broke. Shares of Corinthian have been in a recent rise, up 36% over the past month until now.

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