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UBS, Apple: Tuesday's Headlines

Swiss lawmakers reject the UBS tax deal, while Apple shares perk up a day after the iPhone 4 unveiling.



) -- Here are the top stock market headlines for the morning of Tuesday, June 8, 2010.

Tuesday's Early Headlines

  • Swiss Lawmakers Reject UBS Tax Deal -- The lower house of the Swiss parliament rejected the UBS (UBS) - Get Report tax evasion deal by a 104-to-76 vote, according to media reports, after having passed muster in the upper house. Last year, UBS and the U.S. and Swiss governments reached a settlement in the tax case after the federal government sued UBS for the names of some 52,000 U.S. citizens who are alleged to have hidden nearly $15 billion in assets from the Internal Revenue Service. A final vote on a reconciliation process should come by June 18, the final day of the current parliamentary session, according to Marketwatch.
  • Apple Introduces Latest iPhone at WWDC -- Apple (AAPL) - Get Report CEO Steve Jobs on Monday unveiled the iPhone 4, the latest iteration of the company's touch-screen smartphone. The iPhone 4 has a new physical design and will allow users to video conference over Wi-Fi connections using a front- or rear-facing camera. Apple shares were up 1% in Tuesday's premarket session to $253.41 after losing ground on Monday's announcement.
  • Small Business Optimism Improves in May -- The National Federation of Independent Business optimism index rose 1.6 points in May to 92.2, although the group said the increase is not enough to spur hiring and capital spending. "The performance of the economy is mediocre at best," Bill Dunkelberg, NFIB's chief economist, said in a release. "Given the extent of the decline over the past two years, pent up demand should be immense, but it is not triggering a rapid pickup in economic activity."
  • Casey's Urges Rejection of Couche-Tard Bid -- Casey's General Stores (CASY) - Get Report is expected to recommend Tuesday that shareholders reject a $1.9 billion hostile bid from Canadian convenience store rival Alimentation Couche-Tard, The Wall Street Journal reports. In April, Casey's rejected an unsolicited proposal from Couche-Tard. But last week, Couche-Tard said it planned to kick off a hostile tender offer to acquire Casey's for $36 a share, the same price as its original proposal submitted in April. Couche-Tard, of Quebec, on Monday announced nine-director nominees to Casey's board to be voted on at Casey's annual shareholders meeting.
  • Baidu Aims for 79% Shares of China Market -- Chinese Internet search engine company Baidu (BIDU) - Get Report is looking to raise its share of China's PC and mobile search market to 79% next year, a senior executive said, according to a report by Reuters. Baidu general manager for corporate development, Tang Hesong, made the comments to reporters during a news conference on Tuesday, according to the report. Baidu captured more than 64% of China's search market in the first quarter, up from 58.4% in the fourth quarter, Reuters reports, citing research from Analysys International.

Tuesday's Earnings Roundup

  • Dollar General (DG) - Get Report said it had a first-quarter adjusted profit of 42 cents a share on sales of $3.11 billion, above the Thomson Reuters average estimate for earnings of 34 cents a share on revenue of $3.03 billion. Looking ahead, Dollar General upped its full-year earnings and revenue guidance, saying it now expects earnings in a range of $1.62 to $1.69 a share on revenue of $12.74 billion to $12.98 billion, compared with the consensus target for earnings of $1.63 a share on revenue of $12.95 billion.
  • FuelCell Energy (FCEL) - Get Report reported a fiscal second-quarter loss of 20 cents a share on revenue of $16.6 million, which came in below the consensus target for a loss of 16 cents a share on revenue of $21.9 million.
  • Talbots (TLB) notched a first-quarter adjusted profit of 38 cents a share on sales of $320.7 million, compared to expectations the retailer would post a profit of 16 cents a share on $323.1 million in revenue. Talbots offered in-line earnings guidance for the second quarter but delivered better-than-expected earnings guidance for the full year.

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-- Written by Robert Holmes in Boston


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