Stocks rallied today on the release of the Labor Department's May jobs report. It showed 176,000 new non-farm payroll jobs created during the month. This beat expectations which were for roughly 165,000 jobs. The unemployment rate ticked up to 7.6% from 7.5%, as the labor participation rate ticked up from 63.3% to 63.4%.
TiVo (TIVO) tanked losing 19% percent today after settling a patent lawsuit with Google's Motorola Mobility unit. The case involved the use of Tivo's pioneering technology to record TV shows. Motorola was accused of stealing that technology in its set-top cable boxes. Prior to today's plunge, the settlement sent TiVo shares to their highest level in three years.
Quiksilver (ZQK) shed 10% following a dismal quarterly report which was released after yesterday's closing bell. The company posted losses of 12-cents a share excluding items, when analysts expected earnings of 4-cents. As for revenue, it was about 10% lower than predicted. Quiksilver says sales have been up here in America at both its namesake and Roxbury stores. Sales overseas, however have been down substantially. Prior to today's drop, shares were up more than 75% year-to-date.
Shares of Elan (ELN) rose 5% today on a sweetened takeover bid. Royalty Pharma is now willing to pay $13 a share in cash. That's in addition to a contingent value right of up to $2.50 a share for future sales of Elan's multiple sclerosis treatment Tysabri. Elan is based in Ireland. It says it needs to assess the new bid before making any decisions. In the meantime the company is advising its shareholders not to take any action.
Yum! Brands (YUM) climbed nearly 3% on an upgrade. UBS has moved the stock to "buy" from "neutral." UBS predicts that Yum's sales and profitability in China will improve. China is Yum's biggest market outside the United States. Sales there have suffered after reports of high levels of an antibiotic in chickens at the company's KFC restaurants. The resurgence of bird flu has also kept some potential customers away from the chain. Yum is set to report its China sales next week.
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