US open: IBM said to be eyeing RIM unit
Posted on: 10 Aug 2012 by Polly York

Disappointing Chinese trade data has depressed stock markets round the world, and the US is no exception, with the main benchmark indices opening lower.

In July the world’s second largest economy saw exports rise just 1% compared to a consensus estimate of a rise of 8%. Imports, meanwhile, grew less than expected. The year-on-year rise was 4.7% versus market expectations of a 7.2% rise.

The trade surplus narrowed from $31.7bn in June to $25.1bn in July.

To add to the gloom, local currency lending for last month was 540.1bn yuan, compared to 919.8bn in June.

The International Energy Agency (IEA) cut oil demand expectations for 2012 and 2013 by 300,000 to 400,000 barrels per day, according to its August Oil Market Report.

The IEA noted that the change is due to ‘baseline data revisions and a weaker economic prognosis’.

Despite this reduction in forecasts, the IEA still expects annual growth of 800,000 to 900,000 barrels per day with demand averaging 89.6m barrels per day in 2012 and 90.5m in 2013.

RIM rumours rife

Embattled Research In Motion (RIM), maker of the fast-fading Blackberry phone, is widely regarded as ‘circling the drain’ with no sign of a white knight coming along to rescue it. However, rumours are circulating in the market that International Business Machines (IBM) is sniffing around. looking to buy RIM’s enterprise-services unit.

US fund manager Janus Capital has its glad-face on after sealing a deal which will seek Japan’s largest life assurance firm, Dai-Ichi Life, take a large stake in the US firm.

The Japanese firm is looking to buy at least 15% and up to 20% of the US fund manager, which has seen its star wane since its golden era of the nineties.

Medical devices maker CareFusion is in rude health after announcing fiscal fourth-quarter profits that were 29% higher year-on-year, as it achieved the double-bubble bonus of lifting sales while cutting operating costs.

Earnings per share of 49 cents were up from 37 cents in the corresponding quarter of last year, and more or less in line with market forecasts. Revenue of $968m was ahead of market forecasts of $957m.

Mixed messages at JC Penney

Retailer JC Penney’s second quarter profits were not much to write home about but investors chased up the shares after the group said its facelift programme for its stores began to pay off in July.

Like-for-like sales plummeted 21.7% in the second quarter, with many pundits attributing the sharp decline to an unpopular change in pricing strategy.

Loss per share in the firm’s fiscal second quarter was 67 cents, versus positive earnings per share of 7 cents the year before.

Manchester United will be hoping to make a better start to the new football season than its shares managed on their début in New York. Bundled by US financial institutions into lowering its flotation price to $14, below its previously indicated range of $16 to $20, the flotation is looking about as well-timed as a Paul Scholes tackle, with the shares little changed.

S&P 500 – Risers
Janus Capital Group Inc. (JNS) $8.88 +15.47%
CareFusion Corp. (CFN) $26.48 +7.77%
J.C. Penney Co. Inc. (JCP) $23.49 +6.29%
Harman International Industries Inc. (HAR) $44.45 +4.56%
Broadcom Corp. (BRCM) $35.17 +2.45%
Nordstrom Inc. (JWN) $56.40 +2.39%
Salesforce.Com Inc. (CRM) $140.61 +2.07%

S&P 500 – Fallers
Monster Beverage Corp (MNST) $57.00 -6.86%
Big Lots Inc. (BIG) $39.17 -5.18%
Yahoo! Inc. (YHOO) $15.25 -4.75%
Southwestern Energy Co. (SWN) $31.66 -3.53%
Cabot Oil & Gas Corp. (COG) $42.02 -3.36%
DeVry Inc. (DV) $19.23 -3.22%
W.W. Grainger Inc. (GWW) $198.28 -3.05%
Chesapeake Energy Corp. (CHK) $19.75 -2.73%
Cablevision Systems Corp. (CVC) $15.35 -2.54%
Nabors Industries Ltd. (NBR) $15.27 -2.30%

Dow Jones I.A – Risers
McDonald’s Corp. (MCD) $87.48 +0.38%

Dow Jones I.A – Fallers
Cisco Systems Inc. (CSCO) $17.33 -2.09%
JP Morgan Chase & Co. (JPM) $36.59 -0.89%
Exxon Mobil Corp. (XOM) $87.43 -0.88%
Kraft Foods Inc. (KFT) $40.73 -0.82%

Nasdaq 100 – Risers
Research in Motion Ltd. (RIMM) $8.22 +5.38%
Broadcom Corp. (BRCM) $35.17 +2.45%
Nuance Communications Inc. (NUAN) $23.08 +1.94%
Sirius Satellite Radio Inc. (SIRI) $2.42 +1.04%

Nasdaq 100 – Fallers
Liberty Interactive Corp (LINTA) $17.38 -7.80%
Monster Beverage Corp (MNST) $57.00 -6.86%
Yahoo! Inc. (YHOO) $15.25 -4.75%
Fastenal Co. (FAST) $41.85 -2.24%
Cisco Systems Inc. (CSCO) $17.33 -2.09%

JH

Tags: carefusion | chinese trade | consensus estimate | international energy agency | japanese firm | life assurance | prognosis | research in motion | stock markets | trade surplus