Market Wrap: 'Here, Have Some Money' - Oracle; Clearwire, Sprint Cozy Up; Facebook's Insta-Film!
Market wrap for June 20th
End of the Day: S&P 500 down 40.7 to 1,588.19; Dow Jones down 353.9 to 14,758.32; Nasdaq down 78.6 to 3,364.63
* Initial jobless claims for the week ending June 15 was 354,000, higher than the 340,000 expected by economists and an increase of 18,000 from the previous week's revised figure of 336,000. The 4-week moving average was 348,250, an increase of 2,500 from the previous week's revised average of 345,750.
* Existing homes sales for May rose to a seasonally-adjusted annual rate of 5.18 million. The number was ahead of consensus of 5.0 million and 4.2 percent higher than April sales. Sales levels reached their highest level since November of 2009.
* Oracle (Nasdaq: ORCL) had an unusual day. The company announced flat Q4 EPS of $0.87 with revs of $10.9 billion missing the consensus. However, the company plans to move its listing over to the NYSE, doubled its quarterly dividend to 12 cents, and approved a $12 billion repurchase plan. For more color, click here.
* Clearwire Corporation (Nasdaq: CLWR) announced that its board of directors, based on the unanimous recommendation of the Special Committee consisting of independent, non-Sprint-affiliated directors, recommended that stockholders accept a revised offer from Sprint (NYSE: S) to acquire the approximately 50 percent stake in the Company it does not currently own for $5.00 per share, valuing Clearwire at more than $14 billion, or $0.30 per MHZ pop.
* Facebook (Nasdaq: FB) announced Thursday that its popular picture-sharing service Instagram will now allow video sharing. Videos on the service can be up to 15 seconds long, which compare to 6 seconds for Twitter's Vine video-sharing service. Also, Instagram videos can have multiple clips and there are 13 different filters.
* Rite Aid (NYSE: RAD) reported Q1 EPS of $0.09, in-line with the analyst estimate of $0.09. Revenue for the quarter came in at $6.29 billion versus the consensus estimate of $6.27 billion. The company sees FY13 EPS of $0.01 to $0.16, versus the consensus of $0.17. Net income guidance reflects the anticipated charge from Rite Aidâs recently announced refinancing transactions, as well as the interest savings from those transactions.
* The HSBC flash PMI for China fell to 48.3 in June, from a reading of 49.2 in May. Levels below 50.0 indicate contraction in a reporting segment from the previous month. Key factors in the lower number include falling external demand, easing domestic demand, and efforts to clean-up inventories versus manufacturing new product.
* Eastman Kodak Company (OTCBB: EKDKQ) announced that it reached agreements with leading financial institutions J.P. Morgan, Bank of America Merrill Lynch, and Barclays to arrange new post-emergence credit facilities of up to $895 million.
* Latest data from the Bank of England (BoE) show a Â£27.1 billion ($41.96 billion) capital shortfall from Barclays (NYSE: BCS), Royal Bank of Scotland Group (NYSE: RBS), Lloyds Banking Group, (NYSE: LYG), Nationwide Building Society, and Co-op Bank at the end of 2012. The WSJ noted Thursday morning that RBS, Lloyds, and Barclays would sell assets and shrink certain parts of their businesses to address the shortfalls.
* Idenix Pharmaceuticals, Inc. (Nasdaq: IDIX) is getting hit late after announcing that the U.S. FDA requested additional preclinical safety info for IDX20963, Idenix's lead uridine nucleotide prodrug candidate. Shares are down about 32 percent.
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