Friday, October 12, 2012

Market Update: Apple Inc. (NASDAQ:AAPL) Outperforms, Advanced Micro (AMD) Slump, DOW Down – INFY, ANR, BTU, LXRX, NPSP

Markets on Friday erased early gains after opening higher on upbeat earnings from JP Morgan Chase & Co and also strong consumer confidence figures. However investors were cautious about buying in a market that was volatile.

America's largest bank by assets, JPMorgan Chase & Co.(NYSE:JPM) reported quarterly profit of $5.7 billion for the July-to-September period, up 34 percent from the same period a year ago. Earnings were $1.40 per share, far exceeding the $1.21 consensus in the markets.

Meanwhile the University of Michigan said that its main index of consumer confidence had risen in October to 83.1, the highest in five years, from 78.3 in September.

In Europe, Britain's benchmark FTSE 100 index was down 0.1 percent at 5,822 while Germany's DAX was more or less unchanged at 7,283. The CAC-40 in France was 0.1 percent higher at 3,416.

In the U.S., the Dow Jones Industrial Average(INDEXDJX:.DJI) was up flat at 13,324 while the broader S S&P 500(INDEXSP:.INX) fell 0.30 percent to 1,429.  NASDAQ Composite (INDEXNASDAQ:.IXIC) fell 2.64 (-0.09%) at 3,047.41.

The euro up 0.3 percent at $1.2972 and the benchmark oil price 39 cents higher at $92.46 a barrel.

Earlier in the day, trading in Asia was in a narrow range. Japan's Nikkei 225 index ended a bad week with another 0.2 percent decline to 8,534.12.

Japan's cellphone company Softbank led the way lower after it plunged 16.9 percent on news that it is in talks to take a substantial stake in U.S. carrier Sprint Nextel Corp.

Hong Kong's Hang Seng advanced 0.7 percent to 21,136.43 and South Korea's Kospi was flat at 1,933.26.

Apple Inc.(NASDAQ:AAPL) shares are outperforming and rose 0.50% as the company’s iPad Mini is getting to be a reality after all, after all the rumours and speculations over the device.

Apple is expected to hold an event on October 23 where it will showcase the smaller version of its iPad, AllThingsD said on Friday.

Quoting sources, "familiar with Apple's plans" the tech publication said that the event will take place at Apple's Town Hall auditorium.

The smaller, cheaper iPad, which the media had popularly dubbed as the iPad Mini, is set to take on devices such as the Google's Nexus 7 and Amazon's Kindle Fire.

Meanwhile shares of chip maker Advanced Micro Devices, Inc.(NYSE:AMD) fell nearly 9.70 percent after the company warned of a 10 percent fall in revenues in the third quarter compared to the second quarter. The company, which makes microprocessors for computers, also wrote down the value of its inventory by $100 million as it is witnessing a fall in demand for some of its products, it said.

Infosys Ltd ADR(NASDAQ:INFY) plunges 9% on Friday cuts its outlook for fiscal year 2013 citing global uncertainties facing the industry.  The company, which is a bellwether for the Indian technology sector, said that it expected earnings per ADS at a minimum of $2.97 compared to its earlier forecast of $3.03.

Alpha Natural Resources, Inc.(NYSE:ANR) slumps 7% after 16% rally and Peabody Energy Corporation(NYSE:BTU)  slid 2% after they're nailed by downgrades at Nomura. ANR is cut to Neutral from Buy as the firm sees more significant earnings and free cash flow risks than expected, while BTU is cut to Reduce to reflect more conservative forward multiples given elevated earnings risk and weaker growth rates.

Lexicon Pharmaceuticals, Inc.(NASDAQ:LXRX) revealing positive top-line results from a midstage study for telotristat etiprate, its investigational new drug to treat carcinoid syndrome. The drug currently has fast track status and orphan drug designation from the FDA, and orphan drug designation from European regulators. Shares rose 11%.

NPS Pharmaceuticals, Inc.(NASDAQ:NPSP) added 17% after after it says the FDA has released the briefing documents ahead of its October 16 Advisory Committee meeting for NPSP's experimental drug Gattex, which is being developed for the treatment of adults with short bowel syndrome.

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