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Friday, November 16, 2012

Schacknow - Today's Brief, November 16, 2012

TODAY'S PRIMER                             
Peter Schacknow, Senior Producer, CNBC Breaking News Desk


    Wall Street is concluding what’s been by all measures a losing week, on increasing worries about the so-called fiscal cliff. The S&P 500 has the distinction of having the only winning session this week — a gain of exactly 0.18 points (0.01 percent) on Monday. President Obama will meet with Congressional leaders at the White House this morning to discuss the fiscal cliff issue, but no major movement is expected out of today’s session.

    Just one economic report on the calendar to wrap up the week, with the Federal Reserve issuing its October industrial production report at 9:15 a.m. New York time. Industrial production is expected to be up 0.2 percent, compared to September’s 0.4 percent, with factory capacity utilization edging higher to 78.4 percent.

    The pace of earnings releases slows considerably this morning, with food producer J.M. Smucker (SJM) and retailer Foot Locker (FL) among the few companies scheduled to report.

    Dell (DELL) leads our stocks to watch, after reporting quarterly profit of $0.39 per share, excluding certain items, one cent below estimates. The computer maker says challenging macroeconomic conditions remain for the current quarter, with corporate customers continuing to defer technology spending.

    Schiff Nutrition (SHF) is the object of a bidding war between two European companies. Britain’s Reckitt Benckiser is offering to buy Schiff for $1.4 billion dollars, or $42 per share. The vitamin maker had previously agreed to be bought by Germany’s Bayer for $34 per share.

    Penn National Gaming (PENN) will split into two separate publicly traded companies, a gaming-based real estate investment trust, and a gaming operator.

    Aruba Networks (ARUN) reported fiscal first quarter profit of $0.18 per share, excluding certain items, one cent above estimates. Revenue was also above consensus, as was the network equipment maker’s current quarter forecast.

    Sears Holdings (SHLD) posted a loss of $1.99 per share for its latest quarter, a smaller loss than analysts had expected. Same-store sales fell 1.6 percent at Sears and 4.8 percent at the company’s Kmart division. The retailer is, however, seeing improved results for areas like appliances and apparel.

    Sina (SINA) reported a third quarter profit of $0.17 per share, excluding certain items, six cents above estimates, though revenues were short of consensus. The China-based internet service provider did give a current quarter revenue outlook that falls short of estimates, as non-advertising revenue drops.

    Nike (NKE) has announced a two-for-one stock split, and is also increasing its quarterly dividend by 17 percent to split-adjusted $0.21 per share. The athletic shoe and apparel maker has now increased its dividend for 11 consecutive years.

    Hertz Global (HTZ) has received Federal Trade Commission Clearance for its acquisition of Dollar Thrifty (DTG). As part of the agreement, Hertz will divest certain airport locations as well its Advantage car rental business.

    Knight Capital (KCG) has a new investor, with Getco Strategic Investments reporting a 23.8 percent stake, saying it will evaluate its investment in the brokerage firm on an ongoing basis.

    Starbucks (SBUX) has authorized the repurchase of up to 25 million shares of the coffee retailer’s common stock. That amount is in addition to 12.1 million shares that remain available for repurchase under a prior authorization.

    Google (GOOG) is prepping a new version of its popular Google Maps for Apple (AAPL) devices, according to the Wall Street Journal. That follows Apple’s iOS 6 update, which replaced Google Maps as the default mapping app with its own widely-criticized version. Google will only say that it wants users to be able to use the application on whatever device they would like.

    FedEx (FDX) and UPS (UPS) are the targets of a criminal probe relating to online drug shipments. Federal investigators have been increasing their efforts against online pharmacies to stop prescription drug abuse.

    JPMorgan Chase (JPM) is expected to face U.S. action on its anti-money laundering practices, according to the Wall Street Journal. Regulators are expected to require the bank to improve its procedures and examine past transactions.

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