Month: May 2012

All sectors leaped into the green after the growth in American factory output accelerated unexpectedly in April to the fastest rate in nearly one year. ISM index rose to 54.8 from 53.4, beating economists’ expectation of dropping to 53. Financial, energy and commodity names led the gains among the 10 major industries in the S&P. Alcoa, JP Morgan, Bank of America, American Express, Intel, Verizon and AT&T led the rally in the Dow and pushed it the highest level since 2007. Equity indexes erased the losses in April. YTD return for the Dow, 8.69%. And it gets better with the S&P and NASDAQ, YTD returns are 11.79% and 17.09% respectively. For more news and updates, keep it right here at the Financial News Network. I’m Julia Sun reporting from New York City.

Shares of Herbalife (NYSE:HLF) tumbled on news that Greenlight Capital’s David Einhorn was asking questions during the company’s webcast.The questions came at the 37 minute mark.Greenlight’s spokesman declined to comment on Einhorn’s remarks during the call.Shares are trading over 19% lower during Tuesday’s session.

This is what’s in the news for Wednesday April 11, 2012. The Wall Street Journal reports China’s crude oil imports surged to near-record levels last month, as some energy analysts believe the country is hoarding oil for its strategic reserves The Wall Street Journal also reports American International Group (NYSE:AIG) plans to again invest in U.S. property, reversing efforts to downsize its real estate business after its near collapse and government bailout. Reuters reports Las Vegas Sands (NYSE:LVS) Chairman and CEO Sheldon Adelson says he plans to spend $35B on a mini-Las Vegas strip in Spain where he’s courting Barcelona and Madrid. Reuters also reports Bain Capital LLC is considering raising $6B-$8B for a new global buyout fund, offering investors up to three options on fees it charges to manage the money, sources say. Bloomberg reports Credit Suisse Group (NYSE:CS) can’t disclose a client’s account data to U.S. tax authorities because a request for assistance last year addressed only tax evasion, not covered by a 1996 treaty, a Swiss court ruled. Finally, Bloomberg also reports money losing Liz Claiborne (NYSE:LIZ), which owns the Kate Spade brand, could still be a bargain in a takeover, as it returns to profitability in 2012, according to analysts’ estimates.

The markets added to their gains with the Dow closing at a four year high, on news of a better than expected manufacturing report. The Institute for Supply Management is reporting that factory activity in the US rose unexpectedly to 54.8 in April.

Abercrombie & Fitch (ANF) was upgraded today from neutral to buy by UBS (UBS) with a price target of $66, as trends have stabilized and the stock represents a good value at current levels. Shares are higher by about 5.7 percent.

5-1-12-Cummins (NYSE:CMI) reported Q1 EPS of $2.38, beating estimates by $0.18.Revenues in the quarter rose 15.9% year-over-year to $4.47 billion, inline with estimates.Cummins reiterated its 2012 revenue growth forecast of 10%, which implies $19.85 billion, vs. estimates of $20.1 billion, 2012 EBIT view 14.5%-15% of sales.

Accretive Health (AH) was downgraded today by UBS (UBS) from hold to neutral with a price target of $11 as the firm believes that there are risks in the company’s business model that will negatively affect the stock price in the near future. Shares are lower by about 6.6 percent.

5-1-12-Domino’s Pizza (NYSE:DPZ) reported Q1 EPS of $0.47, missing estimates by $0.03.Revenues in the quarter fell 1.2% year-over-year to $385 million, missing estimates by $9 million.The company reported Q1 total domestic comp sales rose 2.0%.Meanwhile, Domino’s said Q1 international comp sales rose 4.7%.

In trading on Tuesday, railroads shares were relative leaders, up on the day by about 2.5%. Leading the group were shares of Genesee & Wyo (GWR), up about 8% and shares of Kansas City Southern (KSU) up about 2.5% on the day.

Office Depot (ODP) announced that it earned $41 million, or 14 cents per share, in its most recent fiscal quarter, versus a loss of $14.6 million in the same period last year. Revenue was $2.9 billion, down by three percent versus the same period last year.