6 Min Read
(For faster updates on individual market-movers, Eikon users please use search string "STXBZ US"; for more market insights, including options activity, ; for the Day Ahead newsletter, link.reuters.com/mex49s; for the Morning News Call newsletter, link.reuters.com/nex49s) U.S. stock rose on Wednesday, led by tech shares after Intel's earnings and word of a partnership between IBM and Apple, while Time Warner Inc rallied on news it rebuffed a takeover attempt from Rupert Murdoch's Twenty-First Century Fox. The Dow Jones industrial average was up 0.27 percent at 17,107.53 and the S&P 500 was up 0.31 percent at 1,979.45.
** TIME WARNER INC, $83.84, +18.07 pct
** TWENTY-FIRST CENTURY FOX INC, $34.445, -2.12 pct
Rupert Murdoch's 21st Century Fox said it made a bid to buy media conglomerate Time Warner but was rebuffed. The bid was worth roughly $80 billion, or $85 per share in cash and stock, a source familiar with the situation told Reuters.
** INTERACTIVE INTELLIGENCE GROUP INC, $41.93, -16.11 pct
The telecom software maker said it expects second-quarter revenue below analysts' expectations as it deferred revenue from two sizable contracts and faced delays in signing several others. The company expects to report an adjusted operating loss of $6-$7 million for the quarter ended June 30. It had earlier forecast near-breakeven operations.
** INTERNATIONAL GAME TECHNOLOGY INC, $16.86, +8.77 pct
Italy's GTECH will buy U.S. slot machine maker International Game Technology for $6.4 billion including debt, shifting the lottery operator's center of gravity away from its struggling domestic market.
** BANK OF AMERICA CORP, $15.46, -2.21 pct
The second-largest U.S. bank reported a 43 percent drop in second-quarter profit, falling short of Wall Street estimates, as revenue from mortgages fell and litigation costs soared. Earnings attributable to shareholders fell to $2.04 billion, or 19 cents per share, in the three months ended June 30 from $3.58 billion, or 32 cents per share, a year earlier.
** MGIC INVESTMENT CORP, $8.07, -3.35 pct
The mortgage insurer reported a lower-than-expected second-quarter said may not continue to meet government-sponsored profit as net premiums earned fall 13 percent. Total revenue down 12 pct at $231.2 million in the quarter ended June 30. The company Fannie Mae and Freddie Mac's mortgage insurer eligibility requirements and that returns may decrease if company is required to maintain significantly more capital.
** YAHOO INC, $34, -4.52 pct
Yahoo's net revenue, which excludes fees paid to partner websites, decreased 3 percent year-on-year to $1.04 billion in the three months ended June 30. Analysts polled by Thomson Reuters I/B/E/S were looking for net revenue of $1.084 billion.
** INTEL CORP, $33.73, +6.37 pct
** ADVANCED MICRO DEVICES INC, $4.685, +3.42 pct
Intel believes the worst is over for a personal computer industry hammered by the mobile revolution. The Santa Clara, California chipmaker forecast third-quarter revenue above Wall Street's expectations on Tuesday
Smaller rival Advanced Micro Devices Inc's shares are also up in premarket, boosted by Intel's third-quarter and full-year revenue outlook.
** APPLE INC, $96.4, +1.13 pct
** INTERNATIONAL BUSINESS MACHINES CORP, $191.38, +1.53 pct
** BLACKBERRY LTD, $10.7, -5.31 pct
IBM Corp said it will partner exclusively with Apple Inc to sell iPhones and iPads loaded with applications geared at enterprise clients.
This comes as a threat to BlackBerry, which has increasingly targeted its secure software at businesses as part of an effort to turn the company around after losing ground to Apple's iPhone and Samsung Electronics Co.
** TAIWAN SEMICONDUCTOR MFG CO LTD, $21.35, -4.98 pct
Susquehanna Financial Group downgraded the world's largest contract chipmaker's shares to "negative" from "neutral", saying the company was likely to face higher competition if Apple Inc moves some orders for 20 nanometer chips to GlobalFoundries in 2015. Taiwan Semiconductor is likely to see lower demand for chips below 20 nanometers even as it moderately raises capital investment in 2015 to commercialize 10 nanometer chips, analyst Mehdi Hosseini said.
** TEXTRON INC, $39.19, +2.14 pct
The world's largest business jet maker said business jet deliveries rose to 36 from 20 in second quarter. Kept 2014 earnings forecast of $1.92-$2.12/share. "Good execution and volumes helped overcome our conservative expectations for Beechcraft-related costs," says RBC Capital Markets' Robert Stallard.
** HERSHEY CO, $91.65, -3.18 pct
The No. 1 candy producer in the United States on Tuesday raised its chocolate prices for the first time in three years, a sign that a year-long soaring cocoa market is eating into confectioners' profits.
** AMAZON.COM INC, $358.1, +1.03 pct
** CBS CORP, $60.75, +2.10 pct
Amazon.com is in talks with Simon & Schuster Inc, the chief executive of the book publisher's parent company CBS Corp said on Tuesday, representing a second front in Amazon's feud with the publishing industry over digital book pricing.
** ARES CAPITAL CORP, $17.014, -2.22 pct
Investment firm priced an offering of 13.5 million shares of its common stock. Offering represents about 4.5 pct of total outstanding shares as of May 5.
** PNC FINANCIAL SERVICES GROUP INC, $85.21, -3.43 pct
The regional bank said second-quarter profit was down 6 pct as net interest income fell. Institutional banking unit earnings fall 23 pct to $470 million.
** JINKOSOLAR HOLDING CO LTD, $28.54, +3.18 pct
The Chinese solar company entered into a 1-billion-yuan ($161.2 million) financing deal over five-year period with China Minsheng Banking Corp Ltd. Loan to include merger and acquisition, trade and project finance, especially for distributed photovoltaic projects. CMBC to first offer 88.8-million-yuan loan for 20 megawatt solar project, covering 234,000 square meters. (Compiled by Sneha Banerjee in Bangalore; Edited by Don Sebastian)