equity futures point to a higher openU.S. stock futures are up slightly after last week’s rally. In the spotlight this morning is the pharmaceutical sector with news that Roche Holdings (RHHBY) bid close to $44B for the stake it didn’t own in Genentech (DNA), and as Merck (MRK) and Schering-Plough (SGP) were due to release a study on a key cholesterol drug. Adding to the rise in the futures is earnings from Bank of America (BAC) which joined its banking peers in reporting declining profits but topping Wall Street estimates at 72c on $20.32B in revenue; consensus was 53c on $18.37B. Currently the indices are showing the S&P 500 futures up 6.3 points to 1,266.70 and that the Nasdaq 100 futures added 15.8 points to 1,844.50. Dow industrial futures rose 59 points to 11,560.
VMware-VMW target lowered ahead of Q2 results@BOFA
Banc of America lowered their target to $45 from $65 ahead of VMW’s Q2 results tomorrow to reflect a lack of visibility around the company’s license revenue trajectory and the new management team. The firm expects management to issue conservative guidance for the remainder of 2008 and keeps a Neutral rating on the stock. :
Semiconductor Production Eqt sector upgraded to Neutral from Cautious@GSCO
Goldman upgraded the SPE sector and added VRGY to its Conviction Buy List.
Yahoo-YHOO announce settlement with Carl Icahn
Yahoo! Inc. announced that it has reached an agreement with Carl Icahn to settle their pending proxy contest related to the Company’s 2008 annual meeting of stockholders. Under the terms of the settlement agreement, eight members of Yahoo!’s current Board of Directors will stand for re-election at the 2008 annual meeting: Roy Bostock, Ronald Burkle, Eric Hippeau, VyomeshJoshi, Arthur Kern, Mary Agnes Wilderotter, Gary Wilson and Jerry Yang. In view of the settlement agreement with Mr. Icahn, and the termination of the proxy contest, Robert Kotick has decided not to stand for re-election to the Board at the 2008 annual meeting.
ImClone-IMCL target raised to $56 from $52, maintain Buy@SBSH
Citigroup raised IMCL’s target after their oncology survey suggested that Erbitux’s market share in 1st-line lung cancer could reach 26% in 12 months.
Sovereign wealth funds were reportedly interested in buying BlackRock shares-FT
Sources say that two sovereign wealth funds may have bought some of Merrill Lynch’s (MER) shares in BlackRock (BLK), if Merrill had put its 49% stake up for sale. Kuwait Investment Authority probably would have bought some of the shares, and Singapore’s Temasek may also have looked to acquire a stake, the sources add.
Bank of America-BAC now sees Countrywide acquisition accretive in 2008
The company previously saw the acquisition as neutral in 2008.
Asian Markets Wrap-Up for Monday, July 21
Asian stocks advanced and were lead by the financial and raw material sectors. The Japanese markets were closed for a holiday. Of the Asian markets only Vietnam declined…CHINA: The CSI 300 Index gained 95.59, or 3.4%, to 2,911.05. Ping An Insurance rose 4.5% to 42.92 yuan. China Merchants Bank was up 4.2% to 23.68 yuan. Daqin Railway Co. climbed 4.4% to 13.73 yuan. Suning Appliance Co. added 5% to 46.25 yuan. China Vanke Co. increased 3.8% percent to 8.96 yuan. Citic Securities Co. jumped 1.20 yuan, or 5.2%, to 24.32…AUSTRALIA: The S&P/ASX 200 Index increased 171.40, or 3.5%, to 5,011.80. National Australia Bank (NABZY) jumped 4.9% to A$28.32. Commonwealth Bank was up 3.7% to A$43.35. Fortescue Metals soared A$1.01, or 12% percent, to A$9.13. BHP Billiton (BHP) gained 4.2% to A$38.20. Rio Tinto Group (RTP) rose 2.6% to A$118.49…AROUND ASIA: In Hong Kong, the Hang Seng Index advanced 658.71, or 3.01%, to 22,532.90.
American Int’l-AIG upgraded to Buy from Neutral@BOFA
Banc of America upgraded AIG shares on valuation as they find the risk/reward attractive at current levels. Target $35.
Schlumberger-SLB target raised to $125 from $120, reiterate Buy@JEFF
Jefferies raised their target after the company’s Q2 results topped their estimate.
Las Vegas Sands-LVS: View shares as undervalued at current levels@JEFF
Jefferies sees a buying opportunity at current levels but lowered their target price to $93 from $116 after fine tuning their model. Shares remain Buy rated.
iPhone sold out at all of Apple’s stores-Website
According to Apple’s (AAPL) website its new 3G iPhone is sold out in all 188 of its retail stores. As of Monday July 21st, Apple’s website no longer shows the 8GB, 16GB (white) or 16GB (black) being available.
Apple-AAPL: Expect Q3 results to exceed consensus estimates@RBCM
RBC expects AAPL to report Q3 EPS of $1.13, above consensus of $1.08, on revenue of $7.5B, above consensus of $7.5B, on Mac momentum and back-to-school promotions. Shares remain Outperform rated.
Fast Money position recap: Jeff likes MCD, Joe likes FCX, Pete like HAL, Karen likes PDE.
Macke Owns (ATVID), (MSFT), (GS), (WMT), (HAS); Pete Najarian Owns (AAPL), (CHK), (TSO), (XLF); Pete Najarian Owns (CSCO) Calls, (MRK) Calls, ; Pete Najarian Owns A (YHOO) Call Spread; Finerman Owns (GS); Finerman’s Firm And Finerman Own (PDE); Finerman’s Firm Owns (MCC), (MSFT), (SUN), (TSO), (VLO), (MCC); Finerman’s Firm And Finerman Own (C), (C) Leap; Finerman’s Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM); Terranova Owns (VLO), (RIMM), (INTC), (YHOO), (GOOG), (CME), (FCX), (BNI), (XLF), (IYT), (SU), (SA); Terranova Is Short September Crude Oil $130 Puts; Terranova Is Short September Crude Oil $130 Calls; Terranova Is Long September Crude Oil $154 Calls.
Good start to the day and week with the IBB up strongly due to the DNA buyout offer! DNA strong. IMCL, BIIB, GILD, ONXX, GILD, CELG all gapping up. letting the market range early this morning to see how this market gap up will hold. Pick plays with a high probability of success, plan the trade and trade the plan, have focus and patience, run technicals through supply and demand.
