Schaeffer's Trading Floor Blog

Buzz Stocks: Discover Financial, General Electric, Adobe, and News Corp

Among today's stocks in the news to watch are DFS, GE, ADBE, and NWS

by 12/21/2012 8:49 AM
Stocks quoted in this article:

This expiration Friday may be a turbulent one; Dow futures are off nearly 140 points ahead of the open, following the failure of House Speaker John Boehner's, R-Ohio, "Plan B" budget proposal. Meanwhile, here are some stocks to watch in the news today:

  • Earnings news: NIKE, Inc. (NYSE:NKE) reported an 18% drop in second-quarter profit, mostly associated with the sale of the Umbro brand. The athletic apparel maker said per-share results (excluding items) totaled $1.14, 14 cents above Wall Street's view. Though revenue rose 7%, it still landed slightly below expectations. In pre-market action, NKE has tacked on 3.6% (NASDAQ); Discover Financial Services (NYSE:DFS) posted poorly received fourth-quarter results after the close last night. Despite a year-over-year gain, the company posted earnings of $1.07 per share on $1.99 billion in revenue, which fell short of analysts' predictions for a profit of $1.13 per share, but edged out the projected $1.97 in revenue. DFS is off 1.2% ahead of the bell.(Fox Business)

  • General Electric Company (NYSE:GE) said it wants to acquire Italy-based aviation concern Avio. GE believes the deal -- worth an estimated $4.3 billion -- will help expand its aviation division by growing its supply chain and bolstering its jet propulsion business. (U.S. News & World Report)

  • In an effort to expand its Creative Cloud division, Adobe Systems Incorporated (NASDAQ:ADBE) is acquiring privately held social media site Behance. Behance currently boasts one million members -- in addition to corporate clients such as design schools, AdWeek, and LinkedIn -- who use the portal to share their portfolios and other creative work online. (Forbes)

  • Railcar manufacturer Greenbrier Companies Inc (NYSE:GBX) turned down another takeover bid from American Railcar Industries, Inc. (NASDAQ:ARII). ARII -- controlled by activist investor Carl Icahn -- increased its recent offer to $22 per share from $20 per share, but was snubbed because GBX believes this grossly undervalues its assets. Icahn had attempted a previous buyout in 2008, when his offer of $30 per share fell apart due to "unresolved issues." (Reuters)

  • News Corp (NASDAQ:NWS) has filed official papers with the U.S. Securities and Exchange Commission as part of its plan to split into two independent companies. One division will oversee the company's publishing assets; the other will control the entertainment business, including Fox News and 20th Century Fox film studio -- both will be publicly traded. (Yahoo! Finance)

  • Yum! Brands is managing a public-relations issue in China, as consumer groups accuse the company's KFC chain of improperly injecting poultry with hormones. YUM officials are investigating the matter along with Chinese authorities, and promise to "deal with it seriously" if any wrongdoing is unearthed. (Financial Times)

  • Finally, a new crop of do-gooders has emerged this holiday season -- so-called "layaway angels," who anonymously pay off charges at Wal-Mart Stores (NYSE:WMT), Toys R Us, and elsewhere. These philanthropists tend to focus on accounts that include items for children. (USA Today)

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