Schaeffer's Trading Floor Blog

Buzz Stocks: Apple, Transocean, Oracle, and Bank of America

Today's stocks to watch in the news include AAPL, RIG, ORCL, and BAC

by 1/14/2013 9:20 AM
Stocks quoted in this article:

U.S. stock futures are pointed south just before the open, as Wall Street prepares for an afternoon speech from Federal Reserve Chairman Ben Bernanke, and a busy week of earnings. Turning to company-specific reports, here are some names to watch in today's session:

  • Because the European Commission (EC) is expected to block the deal, United Parcel Service, Inc. (NYSE:UPS) said its offer to buy Dutch-owned TNT Express is off the table. Although UPS made several concessions to the bid -- which was at $7 billion (or 5.2 billion euro) -- the EC remained resolute about preventing the acquisition. "We proposed significant and tangible remedies designed to address the EC's concerns with the transaction," said UPS chairman and CEO Scott Davis. "The combined company would have been transformative for the logistics industry, bringing meaningful benefits to consumers and customers around the world, while supporting growth in Europe in particular." (FOX Business)

  • Apple Inc. (NASDAQ:AAPL) is being walloped in pre-market trading, down some 3%, thanks to reports the tech giant is cutting orders for iPhone 5 components. The Nikkei reported that weaker-than-expected sales in Japan has prompted a request by AAPL to halve first-quarter production for LCD panels from three Japanese manufacturers. The news is also weighing on several of AAPL's U.S. suppliers, including Cirrus Logic, Inc. (NASDAQ:CRUS) and QUALCOMM, Inc. (NASDAQ:QCOM). (Chicago Tribune)

  • Activist investor Carl Icahn recently bought into Transocean LTD (NYSE:RIG), and is making moves for a larger piece of the company. Nearly two weeks after RIG agreed to a $1.4 billion fine for its role in the Deepwater Horizon incident of 2010, Icahn acquired a 1.56% stake in the offshore oil company, and is waiting for the okay to expand this holding to 3.4%, which is worth about $682.1 million. (Bloomberg)

  • Following the U.S. Department of Homeland Security's warning to disable Internet-browsing software Java, Oracle Corporation (NASDAQ:ORCL) responded with an emergency update to the program. The government said that a bug in Java allowed cyber attackers to exploit the software, leaving users at risk for identity theft. But several security experts believe ORCL has not gone far enough with its fix, and are telling businesses to use extreme caution with Java going forward. (Reuters)

  • Bank of America Corp (NYSE:BAC) has agreed to an increased settlement for problems with its acquisition of Merrill Lynch, according to sources. The suit alleged that BAC misled shareholders about losses attached to Merrill Lynch. To be sure that "some, most, or all" of the original $20 million fine was not completely absorbed by attorney's fees, and that the ruling was fair to the plaintiffs, a U.S. District Judge in Manhattan upped the settlement to $62.5 million. (Reuters)

  • Anheuser-Busch InBev NV (ADR) (NYSE:BUD) could hit a snag in its attempts to acquire Grupo Modelo. The Department of Justice will ask BUD -- which controls 47% of the U.S. beer market -- to make major concessions to its $19-billion buyout bid, because with Modelo's 6% stake, the combined businesses could have too much pricing power in the market. (New York Post)


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