For Immediate Release
Chicago, IL – September 12, 2016 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Sprouts Farmers Market (SFM),Apple Inc (NASDAQ:AAPL). (AAPL), 3M Company (NYSE:MMM) (MMM), Intel Corporation (NASDAQ:INTC) (INTC) and General Electric (NYSE:GE) ( GE).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Friday’s Analyst Blog:
Dow 30 Stock Roundup
The Dow declined over a holiday-shortened week due to a number of developments. Markets were closed on Monday for the Labor Day holiday. The only gains for the week came on Tuesday when disappointing services data reduced rate hike chances further.
The index declined both on Wednesday and Thursday. Losses on Wednesday were attributable to a decline in consumer staples stocks. The ECB disappointed investors on Thursday by refraining from announcing additional monetary stimulus measures.
Last Week’s Performance
Markets were closed on Monday for the Labor Day holiday. The index increased 0.3% on Tuesday after lackluster services-sector data raised hopes that the Fed may refrain from making rate hikes this month. The ISM Services Index decreased from 55.5% in July to 51.4% in August. The reading also came in significantly below the consensus estimate of 55.5%. The reading showed that service sector activity in the U.S. grew at its slowest pace since 2010.
Following this development, debt-dependent sectors like utilities and telecom gained. Moreover, increase in energy sector following Enbridge-Spectra Energy acquisition news also boosted markets. Chevron (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) increased 1.3% and 1.5%, respectively.
The index lost 0.1% on Wednesday. Fed’s Beige Book showed that most of the districts signaled “that national economic activity continued to expand at a modest pace” during the period of July-August. Moreover, consumer spending remained “little changed,” while tourism activity was unchanged.
Meanwhile, Sprouts Farmers Market (SFM) reduced its quarterly and full year guidance, which in turn had a negative impact on consumer staples sector. Declines in consumer staples stocks pulled the Dow lower. Apple Inc.’s ( AAPL) shares rose 0.6% after the tech giant unveiled iPhone 7 at an event in the Bill Graham Civic Auditorium in San Francisco.
The index decreased 0.3% on Thursday after the European Central Bank (ECB) kept its interest rates unchanged and refrained from announcing any additional stimulus measures. The central bank also did not announce any changes to its $1.9 trillion stimulus package. ECB President Mario Draghi did show concern over low inflation, but also said policymakers did not come up with any new stimulus measures.
Moreover, Apple's shares fell 2.6% after the company said that the iPhone 7’s first weekend sales numbers will not be disclosed by the tech giant. Following this news, Apple’s shares registered its largest percentage decline since June 24. However, some of the day’s losses were curbed by gains in energy stocks on the back of a sharp drop in crude inventories.
Components Moving the Index
Apple Inc. unveiled the iPhone 7 at an event in the Bill Graham Civic Auditorium in San Francisco. Gains in Apple led the tech-based index, Nasdaq to close at its all-time record high. The new iPhone will be water-resistant and features major improvements to the camera.
Confirming the rumors, Zacks Rank #3 (Hold) rated Apple announced the Apple Watch Series 2. The new watch will be “swim-proof” and is water-resistant up to 50 meters. Additionally, Apple announced that its App Store saw 106% year-over-year growth in the months of July and August. (Read: Here's Everything We Learned From Today's Apple Event )
3M Company (MMM) continues to grow inorganically with the acquisition of Semfinder. This deal will help the company expand it healthcare portfolio, and enhance its revenues going forward. The financial details of the deal remain undisclosed.
Headquartered in Kreuzlingen, Switzerland, Semfinder is a premier developer of semantic coding of medical services. Per the deal, Semfinder will provide upgraded coding technology which will enable Zacks Rank #3 rated 3M to speed up the availability of its 360 Encompass System across countries that are adopting the enhanced electronic medical records. (Read: 3M Expands Health Portfolio with Acquisition of Semifinder )
Intel Corporation (INTC) is divesting a majority stake in its security division to alternative asset fund manager TPG. Per the definitive agreement recently signed by both the parties, a new jointly-owned company will be formed in which TPG will have a 51% stake.
The deal valued at $4.2 billion includes an equity value of approximately $2.2 billion for the security division in addition to net debt of approximately $2 billion. Moreover, TPG will infuse $1.1 billion in the standalone business, which will be renamed McAfee following the close of the transaction.
Formerly known as McAfee, rated Intel had acquired the antivirus software maker back in 2010 with a view to secure its chips and improve their threat detection power. The unit was rebranded as Intel Security Group in 2014. The stock holds a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
General Electric (GE) announced plans to purchase two European 3D printing companies, Swedish-based Arcam AB and Germany’s SLM Solutions Group AG, for $1.4 billion in order to accelerate its efforts in the growing industry.
Both SLM and Arcam will report to David Joyce, the President and CEO of GE Aviation, the corporation’s largest division. With this acquisition, Zacks Rank #3 rated GE will now have spent $2.9 billion on 3D printing, or additive manufacturing, since 2010, leading to a total of 346 patents.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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SPROUTS FMR MKT (SFM): Free Stock Analysis Report
APPLE INC (AAPL): Free Stock Analysis Report
3M CO (MMM): Free Stock Analysis Report
INTEL CORP (INTC): Free Stock Analysis Report
GENL ELECTRIC (GE): Free Stock Analysis Report
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