MARKET PULSE-JP Morgan, Wells Fargo, Infosys, Rally Software
April 12 (Reuters) - Some U.S. stocks on the move on Friday:
RETAIL SALES, BANKS DRAG WALL STREET LOWER
Wall Street declined, pulling back from record levels set a day earlier, after retail sales unexpectedly dropped last month and as results from major banks failed to impress investors.
The Dow Jones industrial average was down 36.79 points, or 0.25 percent, to 14,828.35, the Standard & Poor's 500 Index were down 7.16 points, or 0.45 percent, to 1,586.21 and the Nasdaq Composite Index lost 11.57 points, or 0.35 percent, to 3,288.59.
** JPMORGAN CHASE & CO, $49.14, down 0.4 pct (1105 ET)
JPMorgan Chase posted higher first-quarter profit on Friday as it spent less money on litigation, but most of its major businesses turned in tepid performances, and the bank's overall revenue declined.
** WELLS FARGO & CO, $36.89, down 2 pct (1002 ET)
The No. 4 U.S. bank by assets reported a higher-than-expected 23 percent rise in first-quarter profit on Friday, but its mortgage business showed further signs of slowing and net interest margins continued to shrink.
** INFOSYS LTD, $43.78, down 20 pct (1000 ET)
** COGNIZANT TECHNOLOGY SOLUTIONS CORP, $74.39, down 4 pct (1000 ET)
** WIPRO LTD, $8.71, down 5 pct (1000 ET)
Infosys forecast full-year sales growth that missed analysts' expectations by a margin of to 50 percent, dimming investor hopes that India's No.2 software services company will soon start reaping the benefits of its strategic revamp.
** EVERTEC INC, $21.44, up 7 pct (1023 ET)
** RALLY SOFTWARE, $17.63, up 25 pct (1109)
Shares of Evertec Inc rose as much as 10 percent in their market debut, valuing the payment processor at $1.75 billion a day after it priced its IPO at the top end of the expected price range. More than 8 million shares had changed hands by 1115 ET, making the stock the most heavily traded on the New York Stock Exchange.
Shares of Rally Software rose as much as 31 percent in their market debut after the software company priced its IPO of 6 million shares at $14 per share.
** INTEROIL CORP, $73.92, up 7 pct (1116 ET)
Raymond James analyst Alex Morris said the stock was up on market reports that Royal Dutch Shell Plc would buy into the liquefied natural gas producer's proposed LNG terminal in Papua New Guinea. Shell confirmed last year that they have had discussions with InterOil.
** CRUMBS BAKE SHOP INC, $2.13, down 29 pct (1105 ET)
The cupcake specialty store chain's fourth-quarter loss widened and net sales fell 2 percent, as Hurricane Sandy hit the the critical Halloween selling season. The company lowered its sales forecast for 2013 to about $57 million from its earlier estimate of $73 million.
"The Company's projected sales are predicated on continued weakness at street-level stores offset by positive contributions from newer mall-based stores and kiosks," Crumbs said.
** EURONET WORLDWIDE INC, $26.09, down 7 pct (1034 ET)
Sterne Agee cut its rating on the electronic payment services provider's stock to "neutral" from "buy," saying the stock met its $28 price target and "it will be more difficult for the shares to outperform the S&P 500 from here over the coming months".
** CLEANTECH SOLUTIONS INTERNATIONAL INC, $4.15, up 32 pct
The company, which makes metal components for the clean energy industry, said adjusted fourth-quarter income more than tripled to $2.7 million, due to strong demand for its dyeing machines and higher sales of products to its wind power customers.
** RITE AID CORP, $2.27, up 7.5 percent (0938 ET)
Raymond James upgraded its rating on the third-largest U.S. drugstore chain's stock to "outperform" from "market perform," saying the company poised to reap the benefits of its recent refinancing and is on track to generate meaningful free cash flow.
Shares of Rite Aid rose to their highest in more than three years to $2.31 in early trade on the New York Stock Exchange on Friday.
** BARRICK GOLD CORP , $23.57, down 4 pct (1004 ET)
** IAMGOLD CORP , $5.93, down 4 pct (1006 ET)
** YAMANA GOLD INC , $13.60, down 4 pct (0949 ET)
** GOLDCORP INC , $30.54; down 2 pct (0949 ET)
** ALAMOS GOLD INC ; $11.71, down 4 pct (0948 ET)
** HARMONY GOLD MINING LTD , $5.73, down 5 pct (0947 ET)
Spot gold on Friday toppled to its lowest since last May, giving way as the dollar rose with residual pressure from a draft plan revealed earlier this week for Cyprus to sell gold as part of its bailout.
Selling accelerated as gold broke through key chart support at $1,530 an ounce. Spot gold hit a low of $1,528.14 an ounce, its weakest since May 16.
** BLACKBERRY , $13.77, up 2 pct (1002 ET)
The Canadian company said on Friday it would ask securities regulators in Canada and the United States to probe a report about retail return rates for its new Z10 smartphone that it called "false and misleading." The company said return rates were at or below its forecasts and in line with industry norms.
** FOREST OIL CORP, $4.95, down 1.4 pct (1001 ET)
** SCHLUMBERGER LTD, $75.82, down 2 pct (1001 ET)
Forest oil said Schlumberger, the oilfield services sector leader, will pick a 50 percent working interest in the oil and gas producer's Eagle Ford shale acreage by paying $90 million towards future drilling costs.
** M&T BANK CORP, $101.24, down 3.5 pct (0959 ET)
** HUDSON CITY BANCORP INC, $8.32, down 5 pct (0959 ET)
The two banks said on Friday it may take more time than expected for the U.S. Federal Reserve to rule on M&T's proposed $3.7 billion purchase of its smaller rival because of concerns over M&T's anti-money laundering program.
** NETFLIX INC, $174.88, up 1 pct (0959 ET)
The company's Chief Executive Reed Hastings quickly took advantage of new federal rules on using social media to disclose information, posting on Facebook Thursday that members of the subscription service watched 4 billion hours of video in the past three months.
Earlier on Thursday, the company announced a multi-year agreement with toy maker Hasbro for children's programming.
** ARCH COAL INC, $5.55, down 1 pct (0956 ET)
** PEABODY ENERGY CORP, $20.67, down 1 pct (0956 ET)
** CLIFFS NATURAL RESOURCES INC, $19.70, down 1 pct (0958 ET)
** ALPHA NATURAL RESOURCES INC, $8.08, down 1 pct (0958 ET)
Australian thermal coal benchmark prices recovered slightly to around $89 per tonne this week as Japanese utilities struck a deal with global miner Xstrata for their annual coal contract.
Australia's Newcastle spot index rose to $88.90 per tonne on Wednesday, from $86.71 per tonne a week earlier, data from online trading platform globalCOAL showed.
** MANNKIND CORP, $3.97, down 8 pct (0956 ET)
An article on the
The therapy, called Afrezza, is intended for the treatment of adult patients with Type 1 and Type 2 diabetes. The therapy consists of a powder loaded into a cartridge which is used as an inhaler.
** MASTERCARD INC, $533.16, down 1.5 pct (0955 ET)
** VISA INC, $166.33, down 0.7 pct (0955 ET)
Brokerage Sterne Agee graded both the payment processors' stocks to "neutral" from "buy." MasterCard is expected to face tough competition from Visa due to its margins, Sterne Agee analyst Greg Smith wrote in a note to clients. He also said that regulatory and political risks could have a greater impact on the share price of Visa.
** XENOPORT INC, $7.08, down 3 pct (0950 ET)
The pharmaceutical company said its marketing partner, GlaxoSmithKline, experienced delays in production of XenoPort's restless leg syndrome drug, Horizant, which resulted in the drug being out of stock.
XenoPort said it expects Horizant to be available in pharmacies in June. The company is also evaluating the impact, if any, on the company's financial expectations for Horizant.
** CALLAWAY GOLF CO, $6.46, down 8 pct (0949 ET)
Raymond James graded the golf equipment retailer to "market perform" from "outperform," citing the sudden and significant devaluation of the Japanese Yen, and to a lesser extent similar challenges with the British Pound.
Callaway generated 48 percent of revenues from the United States, while Japan and Europe represented 19 percent and 14 percent of total revenues, as of end of 2012.
** ASHLAND INC, $84.95, up 8 pct (0949 ET)
Activist hedge fund Jana Partners LLC picked a 7.4 percent stake in Ashland, saying the chemicals maker's stock was "undervalued." Jana Partners said Ashland's current value represents "an attractive investment opportunity," according to a regulatory filing.
** J.C. PENNEY CO INC, $14.58, down 2 pct (0947 ET)
** BLACKSTONE GRO LP, $21.20, up 0.5 pct (0948 ET)
Troubled Penny has hired Blackstone's financial advisory arm to explore how best to position the firm financially, three sources said on Thursday, while key investor William Ackman said shareholders were willing to put more capital.
** WALTER ENERGY INC , $24.95, up 4 pct (0947 ET)
The coal miner, which is locked in a proxy fight with an activist hedge fund, said on Thursday that its first-quarter performance had improved from that of the fourth quarter of 2012.
** HARRIS CORP, $44.67, down 4 pct (0946 ET)
The satellite operator estimated third-quarter results below analysts' expectations and cut its forecast for the year ended June 29 on government budget uncertainty and the likelihood of "key international tactical radio orders" being delayed. Harris is scheduled to report third-quarter results on April 30.
The company also said it is restructuring its operations such as workforce reduction, facility consolidation, and prepayment of debt mainly in the fourth quarter, resulting in pre-tax charges of between $65 million and $115 million.
** IXIA INC, $18.31, down 2 pct (0934 ET)
The company, which makes telecom network testing products, estimated first-quarter revenue below its previous forecast, as $4.15 million that the company expected to recognize in the first quarter has now been recognized in prior periods that were restated. The company now expects first-quarter revenue of $121 million to $123 million.
** HOME DEPOT INC, $72.66, up 1 pct (0933 ET)
Jefferies & Co graded the home-improvement chain's stock to "buy" from "hold," saying it has a bullish view on sales for the near and intermediate terms. "Our recent checks continue to come back favorable, so while it may be chilly outside, we think weather will not impede Home Depot's ability to post strong comparable-store sales in Q1," Jefferies analyst Daniel Binder wrote in a note.
** BANK OF AMERICA CORP, $12.12. down 1.3 pct (0933 ET)
** CITIGROUP INC, $44.28, down 1 pct (0932 ET)
** GOLDMAN SACHS GRO INC, $148.33, down 0.5 pct (0932 ET)
** MORGAN STANLEY, $22.18, down 0.4 pct (0931 ET)
At least three Wall Street analysts this week have written reports about the possibility of the biggest banks breaking themselves to boost profitability, signaling that investors may be more willing to embrace an idea that is still toxic to some lawmakers in Washington.
** J.B. HUNT TRANSPORT SERVICES INC, $72.71, down 2 pct (0931 ET)
The U.S. trucker's first-quarter profit missed analysts' estimates, hurt by higher costs at two of its businesses that contribute about 30 percent of the company's total revenue.
At least three brokerages raised their target price on the stock on Friday. "The earnings miss confirms our thesis that the company will continue to see solid top-line trends, but will likely continue to do so at the expense of pricing and margins," Amit Daryanani, an analyst with RBC Capital Markets, wrote in a research note published on Friday.
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