Market Wrap: More Questions than Answers for Herbalife; Surplus in Cali; A Super-value?; Nokia is Back-ia - InvestingChannel

Market Wrap: More Questions than Answers for Herbalife; Surplus in Cali; A Super-value?; Nokia is Back-ia

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January 10, 2013 5:32 PM EST Tweet

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End of the Day: S&P 500 up 11.1 to 1,472.12; Dow Jones up 80.7 to 13,471.22; Nasdaq up 16.0 to 3,121.76

The following is a brief summary of events moving markets today:

* Herbalife (NYSE: HLF) was in focus once again as it held an analyst and investor meeting to counter recent allegations from Pershing Square’s Bill Ackman. Shares started positive, but moved into negative territory late in the session following comments from CEO Michael Johnson.

Ackman alleges that Herbalife is a scheme and most of its distributors end up either not making much, or quitting the business in a short time. Third Point’s Dan Loeb thinks Ackman is full of it, having disclosed an 8.24 percent stake in the company on Wednesday.

To read more about this ongoing Clash of Titans, click here.

* Nokia (NYSE: NOK) announced solid preliminary fourth-quarter results today. Particularly, the company noted that its Devices & Services unit achieved underlying profitability in the quarter. Shares moved nearly 20 percent higher on the session.

* Apple, Inc. (Nasdaq: AAPL) shares were in between positive and negative territory all session amid reports that CEO Tim Cook met with China Mobile (NYSE: CHL) CEO Xi Gouhua while visiting China this week. Given that China Mobile is the world’s largest wireless provider and Apple still doesn’t have its iPhone on that network, the meeting might end up being a significant one. For more color, click here>

* SUPERVALU (NYSE: SVU) and Cerberus entered a deal today for the private equity firm to acquire Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market stores and related Osco and Sav-on in-store pharmacies for $3.3 billion.

A $4-per-share tender for 30 percent of SUPERVALU will be submitted within ten days by a newly-formed acquisition entity owned by a Cerberus-led investor consortium. For more on the acquisition, click here.

* Ford Motor (NYSE: F) got a pop after announcing it would double its quarterly dividend to investors. For more color, click here.

* Molycorp (NYSE: MCP) shares saw some weakness Thursday after reporting that the ramp-up of its Mountain Pass, California, complex would result in lower revs and cash flows in 2013. For more on the report, click here.

* Smith & Wesson (Nasdaq: SWHC), Sturm, Ruger (NYSE: RGR) shares were pressured amid a shooting taking place at Taft Union High School in California. Two students were said to be hospitalized, one with a gunshot would, according to the LA Times.

* California Governor Jerry Brown said his state would be ending its next fiscal year with surplus of $851 million, the first surplus in more than a decade. Key points of Brown’s spending plan include the elimination of redevelopment agencies and slower repayment of internal borrowing from special funds.

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