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U.S. sells 10-year debt at 2.02%; bonds down

Wed, 08 Feb 2012 18:08:38 GMT

NEW YORK (MarketWatch) -- The Treasury Department sold $24 billion in 10-year notes on Wednesday at a yield of 2.02%. Bidders offered to buy 3.05 times the amount of debt sold, compared to an average of 3.02 times at the last four sales of new 10-year notes, according to CRT Capital Group. Indirect bidders, a group which includes foreign central banks, bought 38.9%, below the 48.9% average at recent sales. Direct bidders - a class which includes domestic money managers -- purchased another 17.2%, versus an average of 12.1%. After the auction, the broader bond market remained under slight pressure. Yields on the current 10-year notes , which move inversely to prices, stayed up 1 basis point to 1.99%.

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FDA issues warning on PPI stomach-acid drugs

Wed, 08 Feb 2012 17:48:51 GMT

BOSTON (MarketWatch) -- The U.S. Food and Drug Administration said Tuesday that certain stomach-acid medications known as proton-pump inhibitors, or PPIs, can trigger the development of Clostridium difficile-associated diarrhea, a bacterial infection that can be particularly hazardous to the elderly. Drugs classified as PPIs include such popular medications as AcipHex (rabeprazole sodium), Dexilant (dexlansoprazole), Nexium (esomeprazole magnesium), Omeprazole, Prevacid (lansoprazole), Prilosec, Protonix (pantoprazole sodium), Vimovo (esomeprazole magnesium and naproxen), and Zegerid (omeprazole and sodium bicarbonate). The FDA advises users to consult their doctor if they develop diarrhea that does not improve. The FDA said it is also reviewing another class of gastrointestinal drugs known as H2 receptor blockers to see if they can also trigger the illness.

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Caesars still climbing, up almost 90%

Wed, 08 Feb 2012 17:34:19 GMT

CHICAGO (MarketWatch) -- The small fraction of Caesars Entertainment that was the subject of an initial public offering continued to increase in value Wednesday, rising nearly 90% from its debut price of $9. While the company offered just 1.8 million shares and hoped to reap $16 million in proceeds, a few other investors were also allowed to sell. Volume at midday was running at about 7 million. The jump came despite a warnings from some analysts including Morningstar's Chad Mollman, who said he views Caesars as "unattractive" due to its reliance on the U.S. for revenue, lack of exposure to the lucrative Asian market and its heavy debt load, among other concerns.

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Cerner shares leap 13% on higher bookings

Wed, 08 Feb 2012 17:34:24 GMT

LOS ANGELES (MarketWatch) -- Shares of Cerner Corp. leapt more than 13% by midday Wednesday after the medical services company reported better-than-expected earnings, revenue and bookings that exceeded analyst forecasts. The company said net income was $91.2 million, or 54 cents a share, compared with the $70.6 million, or 43 cents a share, reported a year ago. Revenue for the Kansas City-based company was $615.6 million vs. $500.2 million. Analysts polled by FactSet Research had expected earnings of 53 cents a share on sales of $588.2 million. Analyst Charles Rhyee of Cowen & Co. said the company's bookings of $899 million for the quarter were well above the previously forecast $670 million.

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K12 Inc. shares fall 5% on revenue miss

Wed, 08 Feb 2012 17:25:43 GMT

CHICAGO (MarketWatch) -- Shares of online education provider K12 Inc. were down 5.4% Wednesday a day after the company reported disappointing fiscal second-quarter results. K12 said it earned 11 cents a share on revenue of $166.5 million. Analysts were expecting a profit of 26 cents a share on $170 million in revenue, according to the consensus estimate of analysts polled by Thomson Reuters.

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TSA to expand pre-screening to more airports

Wed, 08 Feb 2012 17:16:46 GMT

CHICAGO (MarketWatch) -- The Transportation Security Administration said Wednesday that it will expand a passenger pre-screening program designed to speed the security process to several dozen of the nation's busiest airports this year. Under the new system, passengers who provide personal details in advance to carriers including American Airlines , Delta and United Continental will be able to go through special lanes and may not have to remove their shoes and belts and/or liquids and laptops from carry-on bags. Among the airports where it will be put in place are Chicago's O'Hare, Denver International and all three New York-area facilities. The program has been tested at seven locations already, and 360,000 travelers have gone through the screening process.

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Danube River closed to shipping due to ice

Wed, 08 Feb 2012 17:02:30 GMT

CHICAGO (MarketWatch) -- Freezing conditions have led at least four countries to order the suspension of shipping on the Danube River, the Associated Press reported Wednesday. Croatia, Serbia, Romania and Bulgaria have closed the waterway due to ice that is blocking traffic and creating hazardous conditions. About 90% of the river's surface is covered with floating ice, the AP noted. Much of Europe is currently in the grip of a cold snap that has killed hundreds of people and left many more stranded in remote areas due to heavy snowfall.

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Caesars Entertainment shares surge on market debut

Wed, 08 Feb 2012 16:09:20 GMT

SAN FRANCISCO (MarketWatch) -- Caesars Entertainment surged Wednesday on its debut on the Nasdaq with more than 2.5 million shares changing hands so far. The entertainment company offered 1.8 million shares at $9 a share to raise roughly $16 million. In addition to stock sold by Caesars, shares held by some existing investors worth about 27.8% stake in the company were registered for resale, according to Caesars. Shares jumped 37% to $12.29 a share in recent activity.

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QE3 remains on the table, Fed's Williams says

Wed, 08 Feb 2012 15:50:00 GMT

WASHINGTON (MarketWatch) - The Federal Reserve may need to launch another round of asset purchases with printed money, commonly known as quantitative easing, if the economy loses momentum or if inflation remains well below 2%, said John Williams, the president of the San Francisco Federal Reserve Bank, on Wednesday. Williams said buying more mortgage-backed securities "would likely be the best way to provide a boost to the economy." Williams is a voting member of the Federal Reserve's interest-rate-setting body this year. In a speech in suburban San Francisco, Williams said that, despite the recent improvement in the labor market, he expects the unemployment rate to remain over 8% well into 2013 and still be well over 7% at the end of 2014. "I expect the pace of economic growth to be frustratingly slow and the unemployment rate to remain high for years to come," Williams said. On the positive side, credit conditions "are slowly improving" and households are repairing their finances. Williams forecast growth of 2.25% this year and 2.75% in 2013.

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Oil futures trim gains after EIA inventories data

Wed, 08 Feb 2012 15:38:22 GMT

SAN FRANCISCO (MarketWatch) -- Crude-oil futures pared gains slightly after a weekly government report on supplies showed a small increase in crude in the week ended Feb. 3. Crude for March delivery rose $1.06, or 1.1%, to $99.50 a barrel on the New York Mercantile Exchange. It had earlier traded at $99.76 a barrel. The Energy Information Administration reported an increase of 300,000 barrels in the week, contrasting with analyst expectations of a rise 2.25 million barrels, according to a Platts survey. On Tuesday, however, a trade group reported a steep decline, fueling hopes the EIA would follow suit. The EIA also said gasoline supplies increased 1.6 million, and inventories of distillates rose 1.2 million barrels.

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OpenTable's shares fall 8% as analysts cut ratings

Wed, 08 Feb 2012 15:36:26 GMT

SAN FRANCISCO (MarketWatch) -- Internet-based restaurant reservation and review company OpenTable Inc. saw its shares fall $4, or more than 8%, to $47.15 Wednesday. Late Tuesday, OpenTable reported a fourth-quarter profit of $7 million, or 29 cents a share, on revenue of $37.2 million, up from a profit of $5.1 million, or 21 cents a share, on $30.8 million in sales a year ago. Excluding one-time items, OpenTable would have earned 37 cents a shares. However, Oppeneheimer analyst Jason Helfstein cut his rating on the stock to perform from outperform, citing OpenTable's weaker-than-expected first-quarter sales forecast, and Credit Suisee analyst Stephen Ju also cut his rating on the stock to neutral from outperform.

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Canadian stocks edge up ahead of Greek debt deal

Wed, 08 Feb 2012 15:16:40 GMT

NEW YORK (MarketWatch) -- Canadian stocks edged higher on Wednesday as global stocks made moderate gains ahead of a Greek debt deal. The S&P/TSX Composite Index added 41.22points to 12,553.64. Investors awaited Greek agreement on austerity plan to avoid default. Materials and energy sectors led the most gains in early trade. Shares of Agrium Inc , a major producer of agricultural nutrients, rose 2.8% as the company reported a 43% jump in fourth-quarter net profit. Shares of Goldcorp Inc remained flat, after the firm's chairman was named in insider trading probe.

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Buffalo Wild Wings surges as new price targets set

Wed, 08 Feb 2012 15:12:17 GMT

SAN FRANCISCO (MarketWatch) -- Buffalo Wild Wings shares jumped 14% to $79.91 Wednesday morning after the popular sports-themed restaurant chain delivered a better-than-expected fourth quarter report. Three analysts raised their stock-price targets to $90 a share, while another set a target of $100 a share. Buffalo Wild Wings has been trading at 52-week highs and set a new high of $81.19 in opening trades Wednesday. Heading into the company's earnings report issued late Tuesday, a couple of analysts downgraded the stock over concerns that rising prices for chicken wings would slow Buffalo Wild Wings this year. The Minneapolis-based company, which operates 827 restaurants, is forging ahead with expansion. Its chain will grow to 900 restaurants this year, and the company is weighing the idea of buying other small restaurant chains.

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Western Union shares fall on missed revenue target

Wed, 08 Feb 2012 15:12:27 GMT

SAN FRANCISCO (MarketWatch) -- Western Union Co. shares fell as much as 9% at the open Wednesday, making it the biggest decliner on the S&P 500 Index. The slump followed the wire and money transfer company's fourth-quarter report, issued late Tuesday. The company's profit jumped sharply to 73 cents a share from 37 cents a year earlier, matching Wall Street expectations, but revenue growth for the quarter came in at a disappointing 5%, falling shy of expectations. Western Union shares were last down 7.3% at $18.25. The stock is off nearly 15% over the past 12 months.

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Synchronoss Tech shares rise 8% on strong results

Wed, 08 Feb 2012 14:57:49 GMT

SAN FRANCISCO (MarketWatch) -- Synchronoss Technologies Inc. [s; sncr] shares rose almost $3, or more than 8%, to $37.01 Wednesday following the software company's strong quarterly results. Late Tuesday, Synchronoss reported a fiscal fourth-quarter profit of $8.2 million, or 21 cents a share, on $62.2 million in revenue, turning around from a loss of $4 million, or 9 cents a share, on sales of $49.2 million in the same period a year ago. Excluding one-time items, Synchronoss would have earned 34 cents a share, which topped Wall Street analysts' forecasts of a profit of 23 cents a share on $61.6 million in revenue. Following the results. FBR Capital Markets analyst Daniel Ives raised his price target on the Synchronoss' stock to $40 a share from $35.

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Ralph Lauren jumps 11% on strong earnings, outlook

Wed, 08 Feb 2012 14:55:08 GMT

SAN FRANCISCO (MarketWatch) -- Ralph Lauren Corp. shares jumped as much as 11% at the open Wednesday, vaulting the company to second-best percentage gainer in the S&P 500. The move followed the high-end apparel maker's surprisingly strong fiscal second-quarter statement in which it posted earnings of $1.78 a share, topping the $1.67 analysts were looking for. Revenue was up 17% from a year ago. The company also said it expects to see revenue growth of 20% in 2012. Ralph Lauren shares were last up 11.2% at $174.51. The stock is up 50% over the past 12 months, with half that gain seen since Jan. 1.

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GameStop sets first ever cash dividend

Wed, 08 Feb 2012 14:54:16 GMT

NEW YORK (MarketWatch) -- GameStop Corp. said on Wednesday that its board approved the initiation of a 15 cents a share quarterly dividend to its shareholders. The dividend will be paid on March 12, with a Feb. 21 record date. Future dividends will be subject to board approval, the firm said.

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Epam Systems' shares jump in IPO debut

Wed, 08 Feb 2012 14:49:55 GMT

SAN FRANCISCO (MarketWatch) -- Shares of Epam Systems Inc. jumped more than 20% in their initial trades on the New York Stock Exchange Wednesday morning after the provider of IT services priced its initial public offering below its expected range. Late Tuesday, Newton, Penn.-based Epam priced 6 million shares at $12, below the previously expected range of $16-$18 a share. The stock rose to $14.50 soon after its trading debut on Thursday morning.

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Annual foreclosure inventory drops 8%: CoreLogic

Wed, 08 Feb 2012 14:49:10 GMT

WASHINGTON (MarketWatch) - The number of homes in the foreclosure inventory stood at 1.4 million at the end of 2011, down 8.4% from a year earlier, according to a report from data firm CoreLogic Inc. released on Wednesday. The 2011 level represents 3.4% of all homes with a mortgage. For the month of December, the number of completed foreclosures fell to 55,000 from 57,000 in November. The share of borrowers nationally who were 90 days or more delinquent on their mortgage payments slipped to 7.3% in December from 7.8% in the same month in 2010. Corelogic said servicers have stepped up the rate that they were able to process distressed assets. The distressed clearing ratio, calculated by dividing the number of sales of property owned by a lender by completed foreclosures, rose to 1.03 in December from 0.94 in November. "This is the first time in a year that REO sales [of properties owned by a lender] have outpaced completed foreclosures and part of the reason for the decrease in the foreclosure inventory," said Mark Fleming, chief economist with Corelogic. There have been about 3.2 million completed foreclosures since the start of the financial crisis in Sept. 2008.

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U.S. stocks wobble on Greek uncertainty

Wed, 08 Feb 2012 14:43:00 GMT

NEW YORK (MarketWatch) -- U.S. stocks wavered early Wednesday, with investors unsure what to make of Greece's work to reach the accord needed to secure new rescue funds. The Dow Jones Industrial Average fell 9.23 points to 12,868.97. The S&P 500 Index gained half a point to 1,347.58. The Nasdaq Composite climbed 4.5 points to 2,907.58.

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Moody's off after earnings fall but finanials rise

Wed, 08 Feb 2012 14:42:04 GMT

NEW YORK (MarketWatch) -- Shares of Moody's Corp fell almost 5% on Wednesday morning after the firm said that rising costs drove its profits sharply lower. The rating agency's fourth-quarter earnings fell 30%. In the broader financial sector, the Financial Select Sector SPDR ETF , which tracks the financial stocks in the S&P 500 , added 0.1%. The four financial firms in the Dow diverged, with Bank of America Corp. and J.P. Morgan Chase & Co. each adding about 1%. American Express Co. and Travelers Cos. Inc. both fell.

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Computer Sciences, Rambus lead early tech gains

Wed, 08 Feb 2012 14:41:24 GMT

SAN FRANCISCO (MarketWatch) -- Technology stocks were modestly higher Wednesday morning, propelled by gains in shares of Rambus Inc. which soared more than 8% after the company announced a patent license agreement with Nvidia Corp. . Nvidia shares were up a fraction. The group also got a lift from shares of Computer Sciences Corp. which jumped more than 16% after the company posted better-than-expected earnings. The Nasdaq Composite Index moved up 0.1% to 2,907. The Philadelphia Semiconductor Index gained 0.4%.

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Energy stocks rise as crude approaches $100

Wed, 08 Feb 2012 14:39:07 GMT

NEW YORK (MarketWatch) -- Energy stocks rose on Wednesday as the sector's upward momentum continued from the previous session. Crude oil futures rose 1.5% to $99.86 a barrel, providing support for the sector. Energy stocks in the S&P 500 rose 0.4%. Alpha Natural Resources jumped 1.7%. Halliburton Co. moved up by 1.1%. Exxon Mobil dipped 0.2% and Chevron moved up by 0.3%.

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Euro fades on reports about ECB, Greece

Wed, 08 Feb 2012 14:19:24 GMT

NEW YORK (MarketWatch) -- The euro pared most of its gains against the dollar on Wednesday after Dow Jones Newswires said the European Central Bank may hold off on helping Greece until after other key elements of its ongoing debt negotiations fall into place. That reduced optimism earlier stemming from the ECB helping Greece reduce its debt burden. The euro traded at $1.3254 after pressing to a two-month high, and compared to $1.3256 in late North American trading on Tuesday. The dollar index , which measures the performance of the U.S. currency against six units, pared a loss to 78.563, from 78.552 Tuesday.

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Ceres cuts IPO price range

Wed, 08 Feb 2012 14:14:11 GMT

NEW YORK (MarketWatch) -- Ceres Inc. on Wednesday cut the proposed price range of its upcoming initial public offering to $16 to $17 a share, from its earlier range of $21 to $23 a share. The Thousand Oaks, Calif., company kept the size of the deal at 5 million shares. Based on the midpoint of the new range, the maker of sweet sorghum to be used in renewable fuels and other products will raise $83 million with underwriters Goldman Sachs and Piper Jaffray . Ceres plans to trade on the Nasdaq GLobal Market under the symbol CERE.

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Akamai buying Blaze Software for undisclosed sum

Wed, 08 Feb 2012 14:01:46 GMT

NEW YORK (MarketWatch) -- Akamai Technologies Inc. on Wednesday said it will pay an undisclosed sum to buy Blaze Software Inc. Cambridge, Mass.-based Akamai said the purchase will complement its technology to optimize the speed that web pages are rendered, regardless of the device.

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U.S., Europeans agree on ways to find tax cheats

Wed, 08 Feb 2012 13:45:17 GMT

WASHINGTON (MarketWatch) - The United States and five of the largest countries in Europe have agreed on a framework to cooperate to combat international tax evasion, according to a joint announcement released by the U.S. Treasury on Wednesday. Under the framework, financial institutions would be able to report necessary information about accounts of U.S. taxpayers to their home governments rather than to the U.S. Internal Revenue Service. Treasury and the IRS also issued regulations implementing the Foreign Account Tax Compliance Act, which seeks to target U.S. taxpayers who avoid taxes using foreign accounts. "When taxpayers overseas avoid paying what they owe, other Americans have to bear a disproportionate share of the tax burden," said Emily McMahon, acting Treasury assistant secretary for tax policy. The agreement covers France, Germany, Italy, Spain and the United Kingdom.

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Treasurys fall; 30-year yields up to 3-month high

Wed, 08 Feb 2012 13:34:41 GMT

NEW YORK (MarketWatch) -- Treasury prices slipped on Wednesday, pushing 30-year yields to their highest since October, as reports led traders to believe that a final deal on austerity measures for Greece may be agreed upon during the session, supporting stocks and the euro and reducing interest in the relative safe-haven status of U.S. debt. However, a deal has long been expected, which may limit the move. The price action in recent days "tells you we really needed the catalyst to sell even if the catalyst has been in the works for weeks and weeks," said bond strategists at CRT Capital Group. "That means it's probably so well discounted that it's unlikely to inspire a lot more." Yields on 10-year notes , which move inversely to prices, rose 2 basis points to 1.99%. Thirty-year yields rose to 3.17%. The main U.S. event for the bond market will be the government's sale of 10-year notes, which could attract foreign investors with a 2% coupon.

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Ralph Lauren profit about flat, revenue up 17%

Wed, 08 Feb 2012 13:24:08 GMT

NEW YORK (MarketWatch) -- Ralph Lauren said Wednesday its third-quarter profit remained about flat at $169 million, or $1.78 a share, from $168.4 million, or $1.72 a share, in the year-ago period. Revenue rose to $1.81 billion, from $1.55 billion. Wall Street analysts polled by FactSet Research expected the clothing firm to earn $1.66 a share on revenue of $1.76 billion. Looking ahead, Ralph Lauren said it now expects 2012 revenue to increase by 20%, narrowing its earlier view for high-teens to low 20s.

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McDonald's same-store sales up 6.7% in January

Wed, 08 Feb 2012 13:03:43 GMT

NEW YORK (MarketWatch) -- McDonald's Corp. said Wednesday its January comparable sales rose 6.7%. Same-store sales in the U.S. rose 7.8% and rose 4% in Europe. In Asia/Pacific, Middle East and Africa, comparable sales increased by 7.3%. Systemwide sales for the month rose by 8.4%, or 9.1% in constant currencies.

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