Stocks in the News: Citigroup, Apple, Kraft, Tyco
Citigroup (C) is scheduled to report earnings Tuesday morning with analysts expecting a loss of 33 cents a share in the fourth quarter, according to Thomson Reuters. International Business Machines (IBM) is due to report after the close of trade.
Update: Citigroup matched analyst expectations, reporting a loss of $7.6 billion, or 33 cents per share. Adjusted net loss was $1.4 billion or only 6 cents a share. Loan-loss provision was down 36% at $8.2 billion.
Cadbury PLC (CBY) finally on Tuesday recommended that shareholders acceptKraft's (KFT) improved takeover offer worth $19.5 billion -- up from $17.1 billion -- potentially ending a months-long corporate battle to create the world's largest maker of chocolate and sweets. The door remains open until 7 a.m. Monday for The Hershey Co. (HSY) to jump in with a rival bid. CBY shares jumped 4.8%, while KFT shares fell 2.3% in premarket trade.
Tyco International (TYC) said it's buyingBrink's Home Security Holdings (CFL) for $2 billion in cash and stock. TYC shares were 1.2% higher ahead of the bell. CFL shares soared about 32%.
Buffett's Berkshire Hathaway (BRK.A) paid $1.3 billion for U.S. life insurance business from Swiss Re. Berkshire is also looking to increase its stake in Korean steelmaker Posco.
Also reporting Tuesday are CSX (CSX), Forest Laboratories Inc. (FRX) and TD Ameritrade Holding Corp. (AMTD). AMTD disappointed investors with a 26% decline in profit.
Bank of America (BAC), American Express (AXP), Goldman Sachs Group Inc. (GS), Morgan Stanley (MS) and Wells Fargo (WFC) are among the many reporting this week, with financials being the bulk of companies, but some tech heavyweights such as Google (GOOG) and eBay (EBAY) will also share the spot light.
Japan Airlinesfiled for bankruptcy Tuesday in one of the nation's biggest corporate failures, entering a restructuring that will shrink Asia's top carrier and its presence around the world. JAL owes $25.6 billion in debt and will slash nearly 16,000 jobs. The news will no doubt put airlines in focus as several alliances, one including Delta Air Lines (DAL) and the other including AMR Corp's (AMR) American Airlines tried to make a deal with the failing JAL.
Apple Inc. (AAPL) has confirmed it will host a special event on January 27 where it is widely expected to unveil its tablet computer, as the company looks to extend its hot hand into a brand new product category.
Google (GOOG), meanwhile, on Tuesday postponed the planned launch of its mobile phone in China because of the dispute it has with the government over Internet censorship and e-mail hacking.
Goodyear Tire & Rubber Co. (GT) on Monday said it expects to record a charge of about $150 million in the first quarter due to Venezuela's devaluation of its currency earlier this month. Shares fell 1.5% before the bell.
AT&T (T) late Friday introduced a new wireless price plan, just hours after Verizon Wireless, a joint venture between Verizon Communications Inc. (VZ) and Vodafone (VOD) also rolled out a new price plan.
Notable analyst calls:
- Credit Suisse upgraded McDonald's (MCD) from neutral to outperform, but downgraded Burger King (BKC) from outperform to neutral.
- Deutsche Bank upgraded U.S. Steel (X) from hold to buy, but downgraded AK Steel (AKS) from buy to hold.