Before the bell: BAC, DNA, YHOO, AAPL, MRK, AXP, TWX, HAS …
Posted by: admin in Goog news
Filed under: Before the bell, Earnings reports, Deals, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Apple Inc (AAPL), Time Warner (TWX), Market matters, American Express (AXP), Bank of America (BAC), Merck and Co (MRK), Genentech Inc (DNA), Hasbro Inc (HAS)
Stock futures were higher this morning after Bank of America joined recent financials and topped Wall Street estimates. Also pushing futures higher is a deal in the pharma sector with Roche bidding nearly $44 billion for the rest of Genentech. However, both Merck and Schering-Plough said they’ll postpone reporting their financial results after the close; Apple will also be reporting results then. Finally, oil prices came off a six-week low and are trading back above $130 a barrel due to escalating Middle East tensions. Higher oil prices could dampen the mood on the Street.
Bank of America Corp. (NYSE: BAC), the biggest U.S. consumer bank and home lender, said profit fell 41% to $3.41 billion, or 72 cents a share, much better than analysts estimates of 21 cents according to Bloomberg. The bank curtailed loan losses, adding $2.2 billion to loan loss reserves. The bank has completed the purchase of Countrywide Financial Corp. on July 1. With these results, BAC joins other big banks that have recently reported better-than-expected results. BAC shares are up 8.6% in premarket trading.
Roche Holding on Monday said it was offering $43.7 billion to take over the remaining 44.1% shares of Genentech Inc. (NYSE: DNA) for $89 per share, 8.8% above DNA’s closing price Friday. DNA shares are up nearly 18% in premarket trading to $96.50.
Yahoo! Inc. (NASDAQ: YHOO) said Monday morning it settled its fight for control of the board with billionaire investor Carl Icahn. The board will expand to 11 members to include Icahn and the remaining two seats will be filled by the board upon the recommendation of its nominating and governance committee. In addition, Icahn, who owns about 5% on Yahoo common shares, agreed to withdraw his nominees for consideration at the annual meeting and to support the board’s nominees. YHOO shares are declining 2% in premarket trading.
Reporting today:
- Apple Inc. (NASDAQ: AAPL) is due to report after the close. The tech giant’s results will be closely watched after Microsoft Corp. (NASDAQ: MSFT) and Google Inc. (NASDAQ: GOOG) have disappointed last week. Here’s a Bloomberg preview. AAPL shares are up 1% in premarket trading.
- Meanwhile, Merck & Co., Inc. (NYSE: MRK) and Schering-Plough Corp. (NYSE: SGP) have pushed back reporting their financial results to after the close as well, saying they wanted to first publish research notes for a study of cholesterol medicine Simvastatin are released. According to First Call, analysts are looking for a profit of 83 cents on revenue of $6.05 billion. Merck preview.
- American Express (NYSE: AXP) is also due to report after the close. Here’s Bloomberg preview.
Time Warner Inc. (NYSE: TWX)’s movie The Dark Knight, the sequel to 2005’s Batman Begins, made a record $155.3 million in its opening weekend for Warner Bros., while setting at least five other box-office records. Time Warner rose 0.3 percent to $14.70 on July 18.
Toymaker Hasbro (NYSE: HAS) says second-quarter profit rose to $37.5 million, or 25 cents per share and sales jumped 13.4% to $784.3 million on demand for brands such as Transformers, Littlest Pet Shop and Indiana Jones.
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