This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Stocks Start Week With Stumble

Stocks in this article: ^DJI ^GSPC ^IXIC AFFX FB DIS UNH AAPL TPCG IOSP GDOT

"In the short term, we may see a bit of a bounce in the markets as companies beat an already lowered bar. However, analysts are still predicting double digit earnings growth for 2013 which doesn't seem plausible to us given that sales growth is slowing and costs are beginning to rise," said Michael Simmons, managing director and partner at HighTower. "Combined with the uncertainty surrounding the fiscal cliff, we expect that guidance for the fourth quarter and beyond to be weak, which will lead to a further ratcheting down in analyst estimates."

The U.S. economic calendar was empty Monday.

In corporate news, shares of Green Dot (GDOT), a prepaid card provider whose business greatly depends on Wal-Mart (WMT) customers, plunged 20.3% after Wal-Mart announced its Bluebird payment and money management partnership with American Express (AXP).

Allscripts Healthcare Solutions (MDRX), the electronic health-records firm that is mulling a leveraged buyout, has received first-round bids from a number of private equity firms including Blackstone Group (BX ), Carlyle Group (CG ) and Silver Lake Management, Bloomberg reported, citing sources close to the situation. Shares of Allscripts popped 3.9%.

TPC Group ( TPCG ) shares climbed 12.8% after the petrochemical products producer was offered to be bought by specialty chemicals company Innospec ( IOSP ) for $44 to $46 in cash. TPC had earlier agreed to be purchased by First Reserve and S.K. Capital Partners for $40 a share and thinks that they will sweeten their offer after Innospec's proposal.

Facebook (FB) plans to cut the $3 billion credit line it received before its May initial public offering to $1.5 billion, since the company won't be needing as much money now to pay for tax liabilities relating to the vesting of employee stock, given the steep decline in its share prices since the company's IPO, according to the Wall Street Journal.

The stock was downgraded to sell at BTIG Monday with analyst Richard Greenfield saying that "we see a growing tension between the Facebook user experience and monetization."

Facebook shares closed down 2.3%.

Affymetrix ( AFFX ) shares dove more than 15% after the life science company gave a third-quarter revenue forecast that missed Wall Street expectations, as weaker academic funding conditions hurt its gene expression and eBioscience businesses.




--Written by Andrea Tse and Joe Deaux in New York.



>To contact the writer of this article, click here: Andrea Tse.

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs