Market Update April 4th 2011

 

TUESDAY, April 5 
Extended-Hours Earnings: ANGO, ISCA, KBH, LAYN, MIND, VRNT, ZEP. 
Economic Data: 10 a.m. ISM Services. 
 
WEDNESDAY, April 6 
Extended-Hours Earnings: BBBY, HEB, APOG, BLUD, MON, OCNF, RELL, RT, 
SMSC, WDFC. 
Economic Data: 7 a.m. MBA Mortgage Index; 10:30 a.m. Crude Inventories. 
 
THURSDAY, April 7 
Extended-Hours Earnings: STZ, LAKE, MOV, PENX, PEDH, PBY, PIR, RAD, NCTY. 
Economic Data: 8:30 a.m. Initial Claims; 3 p.m. Consumer Credit. 
 
FRIDAY, April 8 
Extended-Hours Earnings: BTH. 
Economic Data: 10 a.m. Wholesale Inventories. 
 
 
UPSIDE MOVERS 
VVUS reports on QNEXA's cardiovascular benefits. 
MCP buys controlling stake in AS Silmet which doubles rare earth 
production capacity. 
PFE sells Capsugel business; gets FDA refusal to file letter on 
Tafamidis. 
F upgraded. 
TSEM signs term sheet to buy Micron's wafer plant in Japan. 
EPIC sold to private equity firm Apax for $2 Bln. 
CCL gains on positive Barron's coverage. 
CAKE upgraded. 
CPST inks new orders. 
MCD plans new hiring. 
MSSR gets $9.25 per share offer. 
LB to be sold for $19.25 per share. 
 
DOWNSIDE MOVERS 
LUV continues some flight cancellations as fuselage issue reviewed; BA up 
modestly. 
AMIE files for Ch. 11. 
SNE gains as Sony and Ericsson JV launches Playstation phone. 
LOGI continues recent active-volume slide that followed revenue warning. 
DEPO downgraded. 
VOD sells stake in France's SFR. 
 
MARKET 
 
Chip stocks including Intel (INTC) and Nvidia (NVDA) were leading 
decliners among generally weaker tech shares and that ultimately weighed 
on broader-market sentiment. Averages chopped in mixed fashion for much 
of the session. The major averages are capped below their highs for the 
year, hit in recent sessions. Deal news offered mild early support to the 
broader market. 
 
The Semiconductor Industry Association also said worldwide chip sales 
dipped slightly to $25.2 billion in February from $25.5 billion in 
January, even though sales were up 13.6% from February 2010. The SIA 
noted that the results were before March's disasters in Japan. 
 
High oil prices are also keeping the broader stock market in check. 
 
Brent crude extended gains to a 2-1/2-year peak above $120 a barrel on 
concerns about Libya's conflict, Middle East unrest and potential supply 
threats. U.S. crude oil futures settled at $108.47 a barrel, up 53 cents, 
for the highest close since September 2008. 
 
There were no economic reports issued Monday, leaving focus on recent and 
upcoming commentary from Federal Reserve officials and the global 
interest-rate picture. 
 
The European Central Bank, which is holding a policy meeting on Thursday, 
is expected to raise key rates by 25 basis points from a record low in 
reaction to rising inflationary pressures in the euro zone. Two more 25-
basis-point rate hikes are expected by year-end. 
 
Epicor Software (EPIC) hit a 52-week high of $12.49 out after it says it 
and Activant Solutions will be bought by Apax Partners in a deal worth 
about $2 billion. 
 
Also, Pfizer (PFE) rose after the drug maker and Kohlberg Kravis Roberts 
& Co L.P. announced that an affiliate of KKR will acquire Pfizer's 
Capsugel business for $2.375 billion in cash. Capsugel, a maker of hard 
capsules and drug-delivery systems, generated approximately $750 million 
in revenue and manufactured more than 180 billion hard capsules in 2010. 
 
Abbott Laboratories (ABT) today announced that data from its Endovascular 
Valve Edge-to-Edge Repair Study, or Everest II, showed that treatment 
with the company's investigational percutaneous catheter-based MitraClip 
system has continued clinical benefits one to two years after initial 
treatment. Patients with significant mitral regurgitation who were 
treated showed improvements in heart function and reductions in symptoms. 
 
McDonald's Corp. (MCD) plans to hire 50,000 people, coupled with the 
overall bullish investor sentiment. The fast food chain will hold its 
first national hiring day April 19 nationwide, according to AP. 
 
Southwest Airlines (LUV) canceled more than 50 flights Monday to inspect 
for fuselage cracks in its fleet of Boeing Co. (BA) 737-300 jetliners. 
The safety checks follow an emergency landing on Friday of a Southwest 
737-300 jet after a three-foot hole ripped open in its roof. The ruptured 
fuselage skin from that plane has been sent to the National 
Transportation Safety Board headquarters in Washington, D.C. for in-depth 
analysis. 
 
Carnival (CCL) Barron's said shares may rise 30% as traveling demand 
expands and as the company spends less on building new ships, according 
to a Barclays Capital analyst.
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