Spotlight Stocks: Advanced Micro, Alcoa, Merrill Lynch, Motorola
Tuesday's top stories and stocks with potential to move.
Stocks to watch for Tuesday, April 8, 2008:
- Advanced Micro Devices (AMD) has plans to cut 10% of its work force, or more than 1,600 jobs. Cuts will start later this month and last into September. The company has struggled amid product delays and acquisition costs, namely its $5.6 billion purchase of ATI Technologies which is reportedly worth about 30% less than when it was bought.
- Alcoa (AA) reported a 54% drop in 1Q net income year/year, with sales falling 6.7%. The company earned $303 million, or 37 cents a share, down from $662 million, or 75 cents a share a year ago. AA said that higher costs and the declining US dollar impacted the results, but also gave a bright outlook for the future.
- Merrill Lynch (MER) will, according to CEO John Thain, not raise more capital and will continue to shrink its balance sheet, reported Reuters. Thain also said he predicts growth for the company, particularly outside of the US. He also hinted at the possibility of future layoffs.
- Motorola (MOT) agreed to nominate two of Carl Icahn's picks for its board as long as Icahn ended his proxy battle for four board seats, reported the Wall Street Journal. Icahn, who owns 6.4% of Motorola's stock, does plan to continue his push to hasten the spinoff of MOT's cellphone division, which the company has slated for sometime next year.
- Nike (NKE) unveiled its largest ever lineup of new Olympic products for the 2008 games in Beijing. The company has traditionally not acted as a sponsor to the event, yet takes the position of outfitting many of the athletes. NKE's rival, Adidas, is the official sponsor of the games.
- Asian trading closed with the Hang Seng -1.09%, Nikkei -1.49%, Sensex -1.08%, Taiwan -0.65% and Shanghai +0.36%.
- A quick look towards Europe finds the CAC -1.11%, DAX -1.37%, FTSE -1.02%, ATX -1.86%, Swiss Mkt. -0.66% and Stockholm -1.43%.
- Over in commodities, crude oil is lower -0.25 to 108.85 and gold is also down -0.2 to 922.5 this morning.
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