Post Market News: Clearwire, Sprint, Delta, Hertz, WebMD, TNS & Urban

Post Market News for December 11th 2012. Some stocks in focus include, Clearwire Corporation (NASDAQ:CLWR), Sprint Nextel Corporation (NYSE:S), Delta Air Lines, Inc. (NYSE:DAL), Hertz Global Holdings, Inc. (NYSE:HTZ), WebMD Health Corp. (NASDAQ:WBMD), TNS, Inc. (NYSE:TNS) and Urban Outfitters, Inc. (NASDAQ:URBN).

Post Market Update

 

Market Levels

•    US:  Dow: 13248.40 (0.60%), S&P 500: 1427.84 (0.65%), NASDAQ: 3022.30 (1.18%)
•    Europe: CAC: 3646.15 (0.93%), DAX: 7589.75 (0.78%), FTSE: 5924.97 (0.06%)
•    Asia-Pacific: Australia: 4576.00 (0.40%), China: 2074.70 (-0.44%), Hong Kong: 22323.94 (0.21%), India: 5898.80 (-0.17%), Japan: 9525.32 (-0.09%).
•    Metals: Gold: 1709.60 (-0.28%), Silver: 33.02 (-1.08%), Copper: 3.69 (-0.53%)
•    Energy: Crude Oil: 85.79 (0.27%), Natural Gas: 3.46 (-10.26%)
•    Commodities: Corn: 7.28 (-0.27%), Soya Bean: 14.72 (-0.19%), Wheat: 8.21 (-3.21%)
•    Currency: Euro (€) / US Dollar ($) (EURUSD): 1.3004 (-0.49%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.6115 (-0.23%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 82.5350 (0.23%)
•    10 year US Treasury: 1.654% (0.038)

Market and Economy News Update

U.S. markets end higher: The Dow Jones Industrial Average (INDEXDJX:.DJI) logged a five-day winning streak amid investor optimism that the Federal Reserve may announce more stimulus measures when it wraps up its final meeting of the year on Wednesday, December 12. On the economic front, U.S. wholesale inventories increased more than expected in October to a seasonally adjusted $497.13 billion. The Dow Jones Industrial Average (INDEXDJX:.DJI) gained 78.56 points, or 0.60 percent, to close at 13,248.44 and the S&P 500 (INDEXSP:.INX) climbed 9.29 points, or 0.65 percent, to finish at 1,427.84, while the NASDAQComposite (INDEXNASDAQ:.IXIC) soared 35.34 points, or 1.18 percent, to end at 3,022.30.

Oil prices rise: Oil prices gained ground for the first time in six sessions amid a decline in OPEC production and continued geo-political tensions in the middle-east. Crude oil for January delivery edged 0.3 percent higher, to settle at $85.79 a barrel on the New York Mercantile Exchange. Brent oil for January settlement added 0.8 percent to $108.15 a barrel on the London-based ICE Futures Europe exchange.

Stocks in Focus

Clearwire Corporation (NASDAQ:CLWR)

Clearwire Corporation (NASDAQ:CLWR) climbed 11.7 percent following a CNBC report that the wireless broadband services provider is close to a deal with biggest shareholder Sprint Nextel Corporation (NYSE:S). CNBC reported that Sprint Nextel Corporation (NYSE:S) was in talks to buy 49 percent of Clearwire Corporation (NASDAQ:CLWR) and a deal might be announced before the end of the year. Sprint Nextel Corporation (NYSE:S) increased its owner ship of Clearwire Corporation (NASDAQ:CLWR) to more than 50 percent in October after it agreed to buy Eagle River Holdings LLC’s 4.5 percent stake in the business for $2.97 a share. Sprint Nextel Corporation (NYSE:S) and Clearwire Corporation (NASDAQ:CLWR) declined to comment.
More information here.

 

Delta Air Lines, Inc. (NYSE:DAL)

Delta Air Lines, Inc. (NYSE:DAL) rallied in trade on Tuesday after agreeing to buy a 49 percent stake in Virgin Atlantic Airways from Singapore Airlines Ltd. for $360 million. Delta Air Lines, Inc. (NYSE:DAL) will also join forces with Virgin for the operation of flights between Europe and North America, the companies said today in a statement. The deal, which is expected to close by the end of 2013, gives Atlanta-based Delta Air Lines, Inc. (NYSE:DAL) greater presence at the congested London Heathrow airport, where Virgin is the second-largest carrier.
Further reading.

 

Liberty Interactive Corp (NASDAQ:LINTA)

Liberty Interactive Corp (NASDAQ:LINTA) bought about $300 million of Tripadvisor Inc (NASDAQ:TRIP) shares from media mogul Barry Diller, gaining voting control of the online travel-review company. Liberty Interactive Corp (NASDAQ:LINTA) purchased five million shares of common stock of Tripadvisor Inc (NASDAQ:TRIP) at a price of $62.50 per share. Liberty Interactive Corp (NASDAQ:LINTA) now holds 57 percent voting control and 22 percent of total equity. Diller will step down as Tripadvisor Inc (NASDAQ:TRIP) chairman but will remain on the company’s board. Shares of Tripadvisor Inc (NASDAQ:TRIP) jumped 6.6 percent to $40.91, while Liberty Interactive Corp (NASDAQ:LINTA) fell 1.1 percent to $18.93. More details on the transaction here.

 

Spectra Energy Corp. (NYSE:SE)

Natural-gas-pipeline operator Spectra Energy Corp. (NYSE:SE) will spend $1.49 billion to buy the Express-Platte System, one of the three major pipelines that bring oil from western Canada and North Dakota to refineries in the Rocky Mountain and Midwest regions in the United States. Spectra Energy Corp. (NYSE:SE) is buying the 1,717-mile pipeline system from Kinder Morgan Energy Partners LP (NYSE:KMP) and two Canadian pension funds. The deal is expected to close during the first half of 2013, and should add 3 cents to 5 cents per share to annual earnings in the first year, Spectra Energy Corp. (NYSE:SE) said.

 

Hertz Global Holdings, Inc. (NYSE:HTZ)

Rental-car company Hertz Global Holdings, Inc. (NYSE:HTZ) dropped 1.9 percent after three of its biggest shareholders sold 50 million of its shares. Clayton Dubilier & Rice, Carlyle Group LP (NASDAQ:CG) and BofA Merrill Lynch sold the stock but still own about 110 million shares, or 26 percent of the total outstanding, Hertz Global Holdings, Inc. (NYSE:HTZ) said in a statement yesterday after trading closed. Hertz Global Holdings, Inc. (NYSE:HTZ), which last month acquired Dollar Thrifty Automotive Group Inc. for $2.6 billion, will not receive any proceeds from the offering.

 

TD Ameritrade Holding Corp. (NYSE:AMTD)

Online brokerage TD Ameritrade Holding Corp. (NYSE:AMTD) said its average daily trading volume in November sank 10 percent from last year, but were up 3 percent from October. TD Ameritrade Holding Corp. (NYSE:AMTD) reported an average of 341,000 client trades a day last month and said client assets as of November 30 totaled $475.1 billion, up 1 percent from October and 18 percent from a year earlier. Average fee-based balances climbed 28 percent year-on-year, while average spread-based balances increased 8 percent from the year-ago period to $79 billion. Shares of TD Ameritrade Holding Corp. (NYSE:AMTD) added 23 cents to $16.57.

 

WebMD Health Corp. (NASDAQ:WBMD)

Health website operator WebMD Health Corp. (NASDAQ:WBMD) moved higher after announcing plans to eliminate 250 jobs, or 14 percent of its workforce as part of a cost-cutting plan. Most of the cuts will take place by the end of the year and WebMD Health Corp. (NASDAQ:WBMD) expects to reduce annual operating expenses by about $45 million. The New York-based WebMD Health Corp. (NASDAQ:WBMD) said it would take a pretax restructuring charge of $6 million to $8 million in the fourth quarter. WebMD Health Corp. (NASDAQ:WBMD) reported a third-quarter loss in November and has lost nearly 40 percent of its value over the past six months, as it struggles to maintain advertising revenue amid a spending cut by drug companies.

 

Genworth Financial Inc (NYSE:GNW)

Genworth Financial Inc (NYSE:GNW) jumped 2.7 percent after the insurer named industry veteran Thomas J. McInerney as its chief executive officer. McInerney, a former executive at ING Groep N.V. (AMS:INGA) (NYSE:ING), replaces Michael Fraizer, who unexpectedly stepped down in May amid shareholder concerns about the pace of the company’s turnaround. Genworth Financial Inc (NYSE:GNW) is seeking to regain investor confidence as bond rating firm Moody’s Investors Service questioned the company’s ability to insulate itself from continuing losses from the mortgage insurance unit. Genworth Financial Inc (NYSE:GNW) had said in October that the company was planning to sell its international protection business and wealth-management unit, but would keep its U.S. mortgage business.

 

TNS, Inc. (NYSE:TNS)

Data communications company TNS, Inc. (NYSE:TNS) soared 43 percent after it agreed to be taken private by an investor group led by Siris Capital in a deal valued at about $862 million. New York-based private-equity firm Siris will pay $21 a share in cash and the deal is expected to close in the first quarter of next year. The board of TNS, Inc. (NYSE:TNS) unanimously approved the deal and recommended that shareholders do the same. TNS, Inc. (NYSE:TNS) provides secure data networks to retailers, banks and telecommunications providers, and last month reported third-quarter revenue of $137.2 million.

 

Urban Outfitters, Inc. (NASDAQ:URBN)

Urban Outfitters, Inc. (NASDAQ:URBN) surged 4.5 percent after the clothing retailer said its fourth-quarter same-store sales were better than what the Street was expecting. In addition, analysts at UBS AG raised their price target on Urban Outfitters, Inc. (NASDAQ:URBN) to $39 from $37 a share.