April 12, 2013, 5:44 p.m. EDT
Friday’s movers: J.C. Penney heads south
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By Sue Chang and Saumya Vaishampayan, MarketWatch
SAN FRANCISCO (MarketWatch) — J.P. Penney Co. was stuck in negative territory on Friday following reports it is seeking to secure funds to shore up its cash position. News of a favorable ruling in its legal dispute with Macy’s Inc. failed to prop up the stock.
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$JCP: J.C. Penney JCP -1.62% shares shed almost 2% to finish at $14.62. The beleaguered retailer reportedly has retained Blackstone Group LP for advice as it seeks to raise about $ 1 billion in cash.
A judge on Friday ruled that Penney can sell non-branded Martha Stewart products for now, according to reports. Macy’s Inc. M +0.27% sued the department store chain and Martha Stewart Living Omnimedia Inc. MSO +1.63% after Penney announced plans to open in-store Martha Stewart shops. Shares of Macy’s are fractionally higher.
$AAPL: Apple AAPL -1.04% remained under pressure after analysts at RBC Capital Markets lowered the stock’s price target to $550 from $600 on waning appetite for the company’s devices.
Reuters
“We are lowering estimates on AAPL as our checks suggest AAPL saw weaker demand in March coupled with mix headwinds. Furthermore, June-quarter guide could disappoint as iPhone sales may be lower than expected (product transitions),” said Amit Daryanani in a report.
On the positive side, Apple could update its capital allocation policy and launch iOS7, iPhone 5s, a low-end iPhone and refreshed iPads soon, said Daryanani.
Apple shares closed down 1% at $429.80.
$BBRY: BlackBerry BBRY +0.66% recovered after the Canadian company said it is asking the U.S. Securities and Exchange Commission as well as the Ontario Securities Commission to review a report claiming high rates of returns for its Z10.
The statement is in response to a Detwiler Fenton report on Thursday that returns are outpacing sales in some cases.
BlackBerry late Thursday characterized the unflattering report as false in a statement emailed to MarketWatch.
“Our data shows that return rates for BlackBerry Z10 devices both in the U.S. and on a global basis are in line with or better than our expectations and are consistent with return rates for other premium smartphones in the market today,” said Rebecca Freiburger, BlackBerry’s corporate communications manager.
Winners and losers
Perhaps it wasn't the best sort of attention, but J.C. Penney and KPMG dominated headlines this week. David Benoit looks at the week in Winners and Losers.
Detwiler Fenton, in turn, said it isstanding behind its report and that it was “confident in our research methodology and we welcome any regulatory scrutiny.”
Blackberry shares finished at $13.64, up 0.7%.
$LNKD: LinkedIn Corp. LNKD +2.89%shares fell more than 1% after it agreed to buy Pulse, a news reader and mobile-content company, on Thursday in a deal valued at $90 million. Shares closed at $185.39, up 3%.
$JPM: Bank shares were in focus as J.P. Morgan Chase & Co. JPM -0.61% and Wells Fargo & Co. WFC -0.80% kicked off bank earnings. J.P. Morgan shares lost 0.6% to $49.01 after the company reported a 33% rise in first-quarter net income, beating estimates. Wells Fargo shares fell 0.8% to $37.21 as it also beat Wall Street estimates, but reported a drop in income from mortgage banking.
Gainers
NetApp Inc. NTAP +5.93% shares rallied 6% to $35.46 although it wasn’t immediately clear what triggered the surge. The stock is up 7% over the past three months.
Rally Software Development Corp. RALY +27.21% jumped 27% to $17.81 on its debut in the market. The cloud-based software applications company priced its initial public offering at $14, above the expected range of $11-$13. The company sold 6 million shares in the offering.
Decliners
Harris Corp. HRS -5.37% shares declined 5% to $44.06, reducing earlier losses. The maker of wireless network transmission equipment said late Thursday that its quarterly earnings are likely to be weaker than expected on delays stemming from U.S. budget uncertainties. Harris now expects to report third-quarter adjusted earning of $1.12 a share, compared with $1.26 a share forecast by Wall Street.
Hudson City Bancorp Inc. HCBK -5.47% shares slid 5% to $8.29. Hudson City, which is merging with M&T Bank Corp. MTB -4.46% , said it needs additional time to complete the deal after the Federal Reserve raised concerns about M&T’s anti-money-laundering compliance program. “M&T has already commenced a major initiative, including the hiring of an outside consulting firm, intended to fully address the Federal Reserve’s concerns,” the banks said in a joint statement.
U.S.-listed shares of Infosys Ltd. ADR INFY -20.68% plunged 21% to $43.10. The Indian software company reported lower-than-expected revenue for the fiscal fourth quarter as the firm continues to struggle to meet its growth expectations. The Infosys miss dragged down shares of competitor Cognizant Technology Solutions Corp., CTSH -2.70% which fell 3% to $75.56.
Newmont Mining Corp. NEM -5.90% shares shed 6% to $36.37. Deutsche Bank, which rates the gold producer’s stock at hold, on Thursday cut its price target to $40 from $47.
Follow Sue Chang on Twitter at @SueChangMW and Saumya Vaishampayan @saumvaish.
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