U.S. Markets closed

Markets Moving Lower After Record Close; Horse Race for Sprint; Best Buy Bails

Dan Berman
Hot Stock Minute
Markets Moving Lower After Record Close; Horse Race for Sprint; Best Buy Bails

Stocks are poised to open lower after ending yesterday's session with new records. The S&P closed at 1,593.61 which was an all-time high. The NASDAQ composite also notched a 12-year high closing at 3,307.02. Energy and tech stocks led the broader markets higher.

There's more jockeying this morning in the horse race for Sprint (S). Japan's Softbank says it won't be sweetening its offer for the cell company, because it's already better than the counter-offer from Dish Network (DISH). Softbank first laid out its proposal last October in an effort to expand globally. Dish submitted its offer this month. hares popped at time, contributing to a 23% climb in the stock's price this year.

Best Buy (BBY) is bailing on Europe. The big box retailer is selling back its 50-percent stake in British cell phone company "Carphone Warehouse." Best Buy bought in to Carphone Warehouse 5-years ago as a way to get its feet wet overseas. The two companies also coordinated on Best Buy cell-phone stores here in the U.S.

Get this for irony: a company that can't pay its own bills is now in negotiations to issue credit cards. It's belly-up American Airlines. As part of its merger plan with US Airways (LCC), American is now in talks with several banks for its own branded credit card. American has been issuing credit cards through Citigroup for the past 26-years.


Herbalife (HLF) beat the street with its quarterly earnings and raised its full-year forecast. The controversial supplement company posted $1.10 a share compared with estimates of $1.06. Excluding items it actually made $1.27 and revenue rose 17% from a year ago. Call the report at least a temporary win for activist investor Carl Icahn who's been backing the company while his rival Bill Ackman calls it a pyramid scheme. Shares are well off their 52-week high of about $71 which was set exactly a year ago. So far they haven't moved much on this earnings report.

Next up is McGraw Hill (MHP) which is out with earnings this morning. The company beat on both the top and bottom lines posting 80-cents a share on $1.18 billion in revenue. Just yesterday it was announced that the company's S&P ratings service has settled a lawsuit involving its ratings before the financial crisis. There were 14-plaintiffs in the case. Moody's was also part of the settlement. McGraw Hill stock is down 4% year to date, but has climbed about 10-bucks a share since mid-February.

Now we look at Sina (SINA). Shares jumped more than 9% yesterday. Sina owns a microblogging service in China that's similar to twitter. The stock jumped on the news that Alibaba has taken an 18% stake in the company. Prior to the spike, shares of Sina had been down for the year. Now investors are about 5% in the green.

Finally, there's networking company Riverbed Technology (RVBD) which has been sinking to the bottom since yesterday's closing bell. Riverbed disappointed with its quarterly earnings, posting 23-cents a share when consensus was for 24-cents. But the bigger problem may be that the company is lowering guidance for the current quarter. This morning's moves put the stock near its 52-week low which it hit back in July.