The U.S. Consumer confidence index was well more than expected in October; the third-quarter results of JP Morgan and Wells Fargo were better than market expectations. The U.S. stocks opened higher on Friday.
The first one among the hot stocks is STMicroelectronics (STM), its stock opened sharply higher today because before the market openning, it was reported that STMicroelectronics is evaluating the spin-off matters, and may eventually sell bleak mobile phone chip business. The company may announce the decision before the end of the year, but is also likely to maintain the present status. STM stock price is up more than 8%.
After Advanced Micro Devices, Inc. (AMD) released earnings warning its stock dived. AMD stock price plunged more than 9.5% this morning.
Late Thursday, AMD said its third quarter net sales to decline 10% compared to the prior quarter, wider than the previously anticipated 1% with a fluctuation range between 3%. AMD said this cut was primarily because adverse impacts of micro-economic environment brought about lower-than-expected demand of all its products, resulting in inventory impairment loss of $100 million.
Ninetowns Internet Technlgy Grp Co Ltd.(NINE) gaped higher at the opening of the market today soared, its stock price rose more than 78%, however, the volume is very light, after the surge, the company’s market cap is only around $70 million
The board of directors of Ninetowns announced that it has received a non-binding privatization takeover offer by parts of the shareholders with the privatization price range between $1.80 and $2.00 per share. The company has established a special committee to consider this deal.
An IPO stock also joined the group of hot stocks today. Human Resources (HR) software developer Workday (WDAY) got listing and priced its IPO at $28 per share, higher than the previous estimated offering price range of $24-$26 per share; Calculating by 2275 shares of common stock issued, the IPO financing amount reached $637 million and the company will command a market value of about $4.49 billion. WDAY stock opened at $48.05, or 71.6%, from its IPO price.
Read more about: Workday IPO price range.
Wells Fargo (WFC), the fourth largest bank in the United States on Friday reported its third quarter net profit rose 22%, thanks to the substantial growth in mortgage revenues, as well as the continuous improvement of credit quality.
The bank reported its earnings increased to $4.94 billion, or 88 cents per share, from $4.06 billion, or 72 cents per share. Revenue came in at $21.21 billion, up 8.1% from a year ago. Analysts surveyed by Thomson Reuters had previously on average estimated the third quarter earnings of 87 cents per share on $21.47 billion. WFC stock price slipped 3.24% this morning.
JP Morgan Chase (JPM) published stronger than expected third-quarter results on Friday, showing that its net profit rose 34% to $5.71 billion, or $1.40 per share. JP Morgan Chase’s last year same period profit was $4.26 billion, or $1.02 per share.
JP Morgan recognized $25.15 billion in revenues for the third quarter, an increase of 6% compared with $23.76 billion in the same period last year. Analysts accepted FactSet Research’s survey had on average forecasted the third quarter earnings of $1.21 per share, on revenue of $ 24.42 billion. JPM stock edged down 0.26% in the early trading session today.