Schaeffer's Trading Floor Blog

Buzz Stocks: Green Mountain Coffee, Monsanto, AIG, and The Gap

Today's stocks to watch include GMCR, YELP, MON, AIG, GPS, GM, and AAPL

by 8/2/2012 9:21 AM
Stocks quoted in this article:

After an initial move higher on mere anticipation of the European Central Bank meeting, stock futures have now reversed lower (as have oil and gold futures) as the ECB left its key rate unchanged. While this move (or lack thereof) was expected, the market is now digesting comments from ECB President Mario Draghi with a skeptical eye. Meanwhile, these are some stocks to watch in today's trading:

  • Earnings news: While Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) quarterly earnings were slightly above estimates, the coffee company lowered its sales outlook for the full fiscal year. The stock has been volatile since this report, plunging after hours and moving sharply higher this morning (Business Insider); General Motors Company (NYSE:GM) announced a 41% drop in second-quarter profit, due to slowing sales in Europe and South America. Results were still better than analysts' estimates (CNBC); First Solar, Inc. (NASDAQ:FSLR) announced an 82% jump in second-quarter earnings as revenue widened. Looking forward, the company upped its earnings projection for the full year (The Wall Street Journal); Yelp Inc (NYSE:YELP) shares are moving higher after second-quarter earnings and revenue exceeded expectations, prompting the online company to lift its full-year earnings guidance. (Forbes)

  • Monsanto Company (NYSE:MON) has scored a big legal victory -- the priciest verdict in the U.S. this year and the fourth-largest in history -- as a jury ordered E.I. du Pont de Nemours and Company (NYSE:DD) to pay a cool $1 billion in a patent-infringement lawsuit. The suit alleged that DD engineered soybeans that were resistant to herbicide, infringing upon Monsanto's Roundup Ready crops technology. (Bloomberg BusinessWeek)

  • In other legal news, a judge ruled against Oracle Corporation (NASDAQ:ORCL), saying the firm ignored a "clear and unambiguous" existing agreement with Hewlett-Packard Company (NYSE:HPQ) when it opted to stop producing software for an AP server. Damages have not been determined, but HP officials argue that the inconvenience has already cost them about $500 million. (San Jose Mercury News)

  • American International Group, Inc. (NYSE:AIG) is trying to become a little more independent as it hopes to buy back some of its own shares from the U.S. government. The insurer aims to reduce the government stake from the current 61% to below 50%. (FOX Business News)

  • Citing an ominous-sounding "serious safety issue," Bristol-Myers Squibb Co. (NYSE:BMY) has halted a study of its hepatitis-C drug. In January, BMY purchased Inhibitex -- the developer of this drug -- for $2.5 billion (representing a significant 163% premium). (The Wall Street Journal)

  • Same-store sales are starting to pour in, and one notable report came from The Gap Inc. (NYSE:GPS), which said July sales at stores open at least a year surged 10%. Analysts were expecting a more modest rise of 3.8%. (MarketWatch)

  • Finally, Apple Inc. (NASDAQ:AAPL) has more than 68% of the tablet market, according to the latest reports from the International Data Corporation. Overall, total tablet shipments rose 33.6% from the first quarter to the second quarter and have grown more than 66% year-over-year. The iPad enjoyed its best-ever quarter in terms of shipments, with 17 million of the devices winding up in consumers' hands. (International Data Corporation)

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