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US EQUITIES OPENING HEADLINES INCLUDING: Customers around the US are reporting widespread problems with Verizon's 3G and 4G networks this morning

Published: 14:02 21 Dec 2011 GMT

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Stock futures are pointing to a slightly lower open having initially been higher following the ECB’s 3y LTRO seeing a take-up higher than the estimate. A successful LTRO was widely expected and much event selling, particularly from US desks has been touted.
 
•          US MBA Mortgage Applications (Dec 16) -2.6% vs. Prev. 4.1%. (RTRS)
 
•          FTSE (-0.61%), CAC (-0.65%), DAX (-0.40%), FTSE MIB (-1.02%), IBEX (-1.15%), SMI (-0.03%), prices taken at 1337 GMT.
 
Pre-Market activity:
 
Nike - up 1.5%
Walgreens - down 7.5%
Oracle - down 11%
 
DJIA
 
Earnings:
 
N/A
 
Other news:
 
Microsoft - The ALJ determined that Motorola Mobility does not violate six of the seven Microsoft patents listed in Microsoft's suit submitted to the US ITC. (RTRS) In other news Microsoft has sold online shopping portal Ciao to LeGuide.com Group, financial terms of the deal have not been disclosed. (TechCrunch)
 
Verizon - Customers around the US are reporting widespread problems with Verizon's 3G and 4G networks this morning. (Business Insider)
 
AT&T - Fitch Ratings has affirmed the 'A' IDR and debt security ratings of to co. The ratings have been removed from Rating Watch Negative and a Stable Rating Outlook has been assigned. (RTRS)
 
Bank of America – Co. is said to be on the verge of settling a US Justice Department probe into whether its Countrywide Financial unit violated fair-lending practices, according to people close to the issue. (theflyonthewall.com)
 
S&P 500
 
Earnings:
 
Nike – Q2 EPS USD 1.00 vs. Exp. USD 0.97, Q2 revenue USD 5.73 vs. Exp. USD 5.63bln. (RTRS/Sources)
-       Q2 gross margin 42.7%
-       co. brand future orders ex-currency up 13% to USD 8.9bln vs. Exp. up 12.7%
-       co. inventories were USD 3.2bln at end of Q2, up 35%
-       Q2 North American revenue USD 2.07bln
-       Q2 apparel revenue USD 1.68bln, Q2 equipment revenue USD 266mln, Q2 footwear revenue USD 3.09bln 
-       Co. expects FY12 revenue growth to be higher-than-expected 
-       Co. sees more price increases to offset costs 
-       Co. sees FY12 sales will grow mid-teens percentage 
-       Co. continues to see gross margin pressure from input costs  
-       Co. says facing significant currency headwinds 
-       Co. shares were seen up 1.5% in after-market trade
 
Walgreens - Q1 EPS USD 0.63 vs. Exp. USD 0.67, Q1 Revenues USD 18.16bln vs. Exp. USD 18.21bln. (RTRS/Sources)
-       Co. sees achieving 97-99% of FY11 prescription volume
-       Q1 same store sales up 2.5%
-       Co. sees rise in gross profit growth from new generics, including generic Lipitor, during H2 of the current year compared with Q1
 
Jabil Circuit – Q1 Adjusted EPS USD 0.65 vs. Exp. USD 0.65, Q1 revenue USD 4.3bln vs. Exp. USD 4.41bln. (RTRS)
-       Co. sees Q2 Adjusted EPS USD 0.52-0.62 vs. Exp. USD 0.60
-       Co. sees Q2 revenue USD 4.0-4.2bln vs. Exp. USD 4.24bln
 
Other news:
 
Clearwire/Sprint Nextel – LightSquared has asked the FCC to confirm its right to use the spectrum licensed to it by the government. (NY Post)
 
Seagate/Western Digital - Following Seagate's completion of its acquisition of Samsung's hard disc drive business, industry observers believe the industry will be dominated by Western Digital and Seagate in 2012. (Digitimes)
 
Walgreens - As announced on June 21, Walgreens does not plan to be part of the Express Scripts pharmacy provider network beginning Jan. 1 as a result of unsuccessful contract renewal negotiations. The firm remains open to a "fair," "competitive" offer from Express Scripts. (RTRS)
 
Companies going ex-dividend: Chubb (USD 0.3900), Computer Sciences (USD 0.2000), Staples (USD 0.1000)
 
Companies paying dividend: Unitedhealth (USD 0.1625), Wynn (USD 5.000)
 
Nasdaq 100
 
Earnings:
 
Oracle – Q2 adjusted EPS 0.54 vs. Exp. USD 0.57, co. authorised added buyback of USD 5bln in shares, Q2 total adjusted revenue USD 8.79bln vs. Exp. USD 9.23bln. (RTRS/Sources)
-       Q2 operating margin 35%
-       Q2 GAAP/non-GAAP new software license revenue USD 2bln, up 2% 
-       Q2 software license updates/products support revenues USD 4bln, up 9% 
-       Q2 hardware systems products revenue USD 953mln, down 14% 
-       Q3 adjusted EPS USD 0.55-0.58 vs. Exp. USD 0.59
-       Q3 adjusted revenue approximately USD 8.9-9.25bln vs. Exp. USD 9.46bln
-       Q3 as "much more normal" quarter 
-       Q3 new software license revenue growth of 2%-12%
-       Co. believes it can achieve pre-Sun operating margin "shortly" 
 
Paychex - Q2 EPS USD 0.39 vs. Exp. USD 0.38, Q2 revenue USD 545.7mln vs. Exp. USD 551.66mln. (RTRS)
-       Co. reaffirms guidance for FY12
-       Co. sees net income up 5%-7%
 
Cintas - Q2 EPS USD 0.57 vs. Exp. USD 0.48, Q2 revenue USD 1.019bln vs. Exp. USD 1.0bln. (RTRS)
-       Co. sees FY12 EPS USD 2.16-2.20 vs. Exp. USD 2.03
-       Co. sees FY12 revenue USD 4.075-4.125bln vs. Exp. USD 4.08bln
 
Other news:
 
Apple - Piper Jaffray expects Apple to unveil a redesigned iPhone 5, iPad 3 and potentially an Apple Television in 2012 and calls the stock a top pick for 2012. (Sources)
 
Google – Co. executive Andy Rubin says the recent court ruling shows that Apple patents are not likely to affect fundamental parts of the Android o/s. (WSJ)
 
Teva – Co. announced a new USD 3bln share repurchase program which has no time limits and is expected to be completed over a three-year period. (RTRS) In related news the co. CEO said he sees strong growth year for the firm, seeing 2012 EPS between USD 5.48 - USD 5.68 and 2012 revenue at USD 22bln. (Sources)
 
Amazon – Co.’s Lovefilm DVD rental and streaming service has announced a deal with Sony Pictures Television granting it exclusive UK rights to stream movies during the "second pay TV window." (The Verge)
 
Research In Motion – Co. has turned down takeover overtures from Amazon and other potential buyers because the Blackberry maker prefers to fix its problems on its own according to people familiar with the matter. Co. has also been circled by Microsoft and Nokia, who have considered a joint bid for the co. (RTRS)
 
Yahoo – Co. announced it has extended the Facebook integration launched at f8 in September, the news activity feature, to 26 additional Yahoo! sites worldwide. (All Things Digital)
 
Cisco/Dell - A former Cisco exec now working at Dell, said Dell plans to undercut Cisco on price, on servers as well as with networking equipment and storage. (Business Insider)
 
Companies paying dividend: Qualcomm (USD 0.2150)
 
Broker moves
 
Upgrades:
 
Hershey – Co. upgraded to Buy from Neutral at BofA/Merrill 
 
Fusion-io – Co. upgraded to Neutral from Underperform at Sterne Agee
 
Research In Motion – Co. upgraded to Buy from Hold at ThinkEquity, Price target is USD 16
 
CVS Caremark – Co. price target raised to $50 from $45 at Susquehanna, Shares are Positive rated
 
Cintas – Co. price target raised to USD 38 from USD 35 at Citigroup, firm reiterates a Buy rating on the stock
 
Coca-Cola Enterprises – Co. upgraded to Buy from Hold at Argus
 
Coca Cola – Co. raised to buy from hold by Argus
 
Downgrades:
 
Jefferies – Co. downgraded to Market Perform from Outperform at Keefe Bruyette, firm keeps a USD 16 price target 
 
Ralcorp – Co. downgraded to Neutral from Buy at UBS, Price target remains USD 87
 
Oracle – Co. price target lowered to USD 29 from USD 33 at Deutsche Bank, firm reiterates a Hold rating on the stock, Co. downgraded to Underperform from Buy at CLSA, Price target lowered to USD 30 from USD 36
 
AT&T – Co. downgraded to Hold from Buy at Argus
 
Coventry Health – Co. downgraded to Sell from Hold at Deutsche Bank, firm lowered its price target for shares to USD 28 from USD 33
 
JP Morgan – Co. downgraded to Neutral from Buy at Sterne Agee, Price target is USD 36
 
CNBC’s Jim Cramer on US corporate earnings
 
Wednesday - Tibco and Bed Bath & Beyond - Cramer expects good things from their report. Walgreens report depends on their on-going war with Express Scripts. 
 
Thursday - Italy's retail sales number will be in focus vs. the US Cramer said sluggish sales may be all it takes for the rating agencies to downgrade Italy come Friday. 
 
Friday - November new home sales number will be released and a low number there would be great news, said Cramer, as home builders are still building too many homes in the U.S. and prolonging our housing crisis. 
 
Other News
 
Whole Foods – Co. files to sell 13.9mln shares of common stock for holders. (RTRS)
 
General Motors – Co. will honour warranties of Saab cars that were sold while Saab was part of GM. (Associated Press) In other news the co. recalls 15,000 Chevrolet Capitiva crossovers sold worldwide for a power steering overheating issue that could lead to an engine compartment fire. (RTRS)

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