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Day One of Q3; Tribune Acquisition; Time for iWatch?

Dan Berman
Hot Stock Minute
Day One of Q3; Tribune Acquisition; Time for iWatch?

Half of 2013 is now down, but we've got half still to go. Today marks the start of a new month and Q3. June did in fact see a swoon but stocks are still up for the year with the Dow ahead by 14% and the S&P gaining 13%. So, what should we expect as we start the new quarter? Yahoo! Finance Editor-in-Chief Aaron Task has more in the video above.

We have a developing story this morning: Tribune is about to become the largest operator of broadcast TV stations. The company has just announced it's buying 19-stations from Cincinnati-based Local TV. The deal is for more than $2.7 billion and will give Tribune a grand total 42-stations nationwide in addition to its newspaper business. Tribune emerged from Chapter 11 bankruptcy protection in December.

You might say it's about time. Apple (AAPL) has filed a trademark application in Japan for the term "iWatch." Both Apple and Samsung are said to be working on smart watches, while Google (GOOG) focuses on its hi-tech eyewear. The iWatch may be what Apple needs to get its shares bobbing back above $400. The stock dropped 28% in the first half of the year. It lost 12% in June alone. Shares are down 44% since hitting an all-time high in September. In fact Apple has not only ceded its title of world's largest company by market cap to Exxon Mobil. When you adjust for net cash, it has also fallen behind Google.

Apple's chief rival Samsung hasn't been faring much better. Disappointing sales of the flagship S4 phone have sent Samsung shares sliding 11% since the device was released at the end of April. The company lost $25 billion in market cap last month. That's more than the entire value of Sony (SNE). JP Morgan recently cut its profit estimate for Samsung by 9%.


BlackBerry (BBRY) is getting crushed again. It's down another 5% this morning after losing more than 27% on Friday. You probably know what prompted the selloff: A quarterly report that showed a loss of 13-cents a share when analysts were expecting a profit of 6-cents. A one-month chartlooks like an illustration of the fiscal cliff with shares down 25% in June. The good news: if you've been holding these shares a year, they're still up 40%. The trouble right now is disappointing shipments of BlackBerry's newest smartphones which run on its "10" operating system. Many have called these phones the last chance for the company to avoid the same fate as Palm.

Next up is Onyx Pharmaceuticals (ONXX) which is currently up 51% in early trading. The company put itself up for sale on Sunday after having rejected an unsolicited $10 billion takeover bid by Amgen (AMGN). Onyx is a San Francisco based maker of cancer drugs. Over the weekend it said Amgen put up a bid to buy shares at 120-bucks a pop, a 38% premium over Friday's close. Still, the company says the offer is too low. Prior to the rise we're seeing this morning, shares were up about 12% year-to-date. They hit an all-time high just above $101 in April, a selling price being shattered right now.

Now we look at phone-maker Nokia (NOK), which is up 7% this morning. Nokia has announced it's buying out Siemens stake in a telecom equipment joint venture which the companies formed six years ago. The entity is known as Nokia Siemens Networks or NSN. Its profitability has spiked in the past year on growing demand for mobile broadband infrastructure. Prior to this morning shares of Nokia were down 9-% year-to-date.

Finally, there's 21st Century Fox (FOXA), the News Corp (NWSA) spinoff that begins trading today. The new company includes the movie and TV divisions of Rupert Murdoch's empire. Their separation from News Corp's publishing division is designed to help that part of the business mount a turnaround. Shares of News Corp prior to the split on Friday were up 22% so far this year.