Market Wrap: New Home Sales Surge; Wall St. 'Likes' Facebook...Again; Another Dime for Dell

Market wrap for July 24th

End of the Day: S&P 500 down 1,685.94 to 6.5; Dow Jones down 25.5 to 15,542.24; Nasdaq up 0.3 to 3,579.60

* The U.S. Commerce Department said that new home sales rose 8.3 percent in June to an annualized rate of 497,000 homes, which is the best seen since May 2008. Consensus estimates were looking for a gain to a pace of 484,000 homes. The figure for May 2013 was revised from 476,000 down to 459,000 homes.

* Facebook (Nasdaq: FB) reported Q2 EPS of $0.19, $0.05 better than the analyst estimate of $0.14. Revenue for the quarter came in at $1.81 billion versus the consensus estimate of $1.62 billion.

* Qualcomm, Inc. (Nasdaq: QCOM) posted Q3 EPS of $1.03, in-line with the analyst estimate of $1.03. Revenue for the quarter came in at $6.2 billion versus the consensus estimate of $6.05 billion.

* Carl C. Icahn and his affiliates and Southeastern Asset Management issued an open letter to stockholders of Dell Inc. (Nasdaq: DELL) and its Special Committee. The letter followed an increased bid from Michael Dell and Silver Lake at $13.75, which is roughly 0.7 percent above their prior bid.

* Caterpillar, Inc. (NYSE: CAT) reported Q2 EPS of $1.45, $0.26 worse than the analyst estimate of $1.71. Revenue for the quarter came in at $14.62 billion versus the consensus estimate of $15.03 billion. Looking ahead, Caterpillar sees FY13 EPS of $6.50, versus prior guidance of $7 and the consensus of $6.84. The Company also sees FY13 revenue of $56 to $58 billion, versus prior guidance of $57 to $61 billion and the consensus of $58.67 billion. For more on the results, click here.

* Maidenform, Inc. (NYSE: MFB) entered into a definitive agreement with HanesBrands (NYSE: HBI) pursuant to which Hanes will acquire all of the outstanding shares of Maidenform for $23.50 per share in cash, representing a transaction value of approximately $575 million. The transaction price represents a premium of approximately 23% to yesterday’s closing share price and a premium of approximately 30% to the 30-day average trading price. The transaction, which has been unanimously approved by the Maidenform Board of Directors, is expected to close in the fourth quarter of 2013.

*As M.C. Hammer once said: You can't touch this. That's exactly what Michigan Governor Rick Snyder is humming today, following a federal court order which grant him immunity in the recently announced Detroit bankruptcy. U.S. Bankruptcy Judge Steven Rhodes said that claims against Snyder would need to be filed in bankruptcy court. Detroit needs to address its $18 billion in debt and do so without any disruptions, he noted.

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