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Mar 12, 2013

Hostess Picks Apollo-Led Group as New Owner of Twinkies: DealBook P.M. Edition March 12, 2013.

NYTimes.com Home |Business Day| Video The New York Times


Tuesday, March 12, 2013
TOP STORY
Hostess Picks Apollo-Led Group as New Owner of Twinkies Hostess said on Tuesday that it had picked a partnership of two investment firms, Apollo Global Management and Metropoulos & Company, as the new owner of its snack cake business, officially concluding the sale of the bankrupt baker's most prized assets.
  • DEALBOOK »
  • DEALBOOK HIGHLIGHTS
    Greenberg Forges Ahead With Lawsuit Over A.I.G. Bailout The American International Group's former chief executive is moving ahead with a lawsuit against the federal government over its $182 billion rescue of the insurer - even without the backing of the company itself.
    One Possible Hitch to an Autonomy Investigation The Serious Fraud Office of Britain cautioned that it first needed to make sure that its use of an Autonomy product did not pose a conflict of interest for an investigation into its sale to Hewlett-Packard.
    MetroPCS Urges Shareholders to Back Merger With T-Mobile MetroPCS urged shareholders on Tuesday to approve its merger with T-Mobile USA, in the face of opposition from two major hedge funds.
    Mary Jo White, the nominee to be the S.E.C. chairwoman, in January.
    Live Blog: Senate Hearing on S.E.C. Nominee At a Senate hearing on her nomination to become head of the Securities and Exchange Commission, Mary Jo White faced few tough questions.
    Breakingviews: Intrade Sheds Light on How Gray Markets Can Go Dark Robert Cyran says that while Intrade's predictive record was good, it didn't foresee the rising controversy over under-regulated speculation.
    Buzz Tracker
    Watch Out for the Lamp! Lawyers for George Soros, who is fighting a legal battle with his former romantic companion, Adriana Ferreyr, claim in a new lawsuit that Ms. Ferreyr threw a glass lamp at the billionaire during a heated bedroom argument, The New York Post reports.
    LOOKING AHEAD
    Economic Reports Information to be released on Wednesday includes retail sales for February, import prices for February and business inventories for January.
    In the United States On Wednesday, a House Financial Services subcommittee will conduct a hearing on mortgage insurance; a House Energy and Commerce subcommittee will conduct a hearing on the effect of the Obama health care law on jobs; a House Judiciary subcommittee will conduct a hearing about investigating and prosecuting cyberthreats; and a judge in New York will oversee the auction of Hostess Brands' snack cake business, including Twinkies.
    Overseas On Wednesday and Thursday, global regulators will meet in Basel, Switzerland, to discuss revisions to capital and liquidity rules for banks.
     
  • Quotation of the Day
    "Thanks, Mr. Chairman. My understanding is Rich Cordray loves dogs and cats, too, so. We all do."
    Senator Sherrod Brown, at the confirmation hearings for Richard Cordray at the Consumer Financial Protection Bureau and Mary Jo White at the S.E.C.
     
  •  

Stocks end mostly lower... by Kate Gibson, MarketWatch: Wall Street at Close Report March 12, 2013.

By Kate Gibson, MarketWatch 
 
NEW YORK (MarketWatch)U.S. stocks ended mostly lower on Tuesday, but the blue-chip Dow Jones Industrial Average staged a late-session turnaround to finish at a record high. 

Less than 14 points from its all-time closing high, hit in October 2009, the S&P 500 index SPX -0.24%  closed down 3.74 points, or 0.2%, to 1,552.48, snapping a 7-session winning streak. 

The financial sector was the hardest hit and telecommunications fared best among the index’s 10 major industry groups. 

“All sectors seem to be in a pause mode, as Washington remains a wild card due to uncertainty with policy risk,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.


On Tuesday, the CBOE Volatility Index VIX +6.14% rose 6.1% to 12.27, a day after the gauge of investor uncertainty fell 8.2% to 11.56, its lowest level since February 2007. 

But, looking beyond near-term budget-associated risks, Sandven expects equities to find support longer term. “Year-to-date, the market’s performance has been orderly, unemotional and broad based, which is typical of a market that wants to trend higher.” 

After climbing 31 points and falling 35, the Dow DJIA +0.02%  ended up 2.77 points to close at 14,450.06, its sixth consecutive closing high and eighth rise in as many trading sessions, its longest win streak since Feb. 9, 2011. Read: Protect your portfolio from March Madness. 
 
Drug maker Merck & Co. MRK +3.16%  rallied 3.2%, making it the top gainer in the Dow. 

“This is the 24th bull market since 1890, and the Dow Jones Industrial Average has gone to a new high in 14 of those 24, so it’s not unusual for the Dow to set a new high,” said Hugh Johnson, chairman of Hugh Johnson Advisors LLC in Albany, N.Y. Read a blog post on why the bull run is only so remarkable. 

Watch these three stocks
Matt Jarzemsky lists three stocks that investors and traders will be focused on during Tuesday's session. Photo: Getty Images. 

“It is a little surprising from the point of view of valuation. We did more in three months than I thought we would do in a year,” Johnson added. 

Among individual stock movers, Yum Brands Inc. YUM +1.31%  rose 1.3% after the owner of fast-food chains KFC, Taco Bell and Pizza Hut reported sales in China declined less than estimated in the first two months of the year despite concern over its chicken suppliers. 

CVS Caremark Corp. CVS -1.05%  slipped 1.1% after Goldman Sachs downgraded the drugstore chain to neutral from buy. 

The Nasdaq Composite index COMP -0.32%  declined 10.55 points, or 0.3%, to 3,242.32, with shares of Apple Inc. AAPL -0.03% , the heaviest weighted stock on the index, ending down 2.2% at $428.43
For every two stocks rising, nearly three fell on the New York Stock Exchange, where nearly 620 million shares traded by the close. Composite volume surpassed 3.1 billion.

Capitol concerns


STAN HONDA/AFP/Getty Images Enlarge Image
The New York Stock Exchange trading floor. Dow is set for its longest winning run in more than two years.
House Republicans on Tuesday introduced a plan to cut the deficit to $528 billion in fiscal 2014 and then to $69 billion by 2016, kicking off a debate that is expected to bring a 10-year budget proposal from Senate Democrats on Wednesday. 

Automatic spending cuts began to take effect March 1 after politicians failed to come to an agreement to avoid a process known as sequestration. Economists expect the heavy cuts to dampen the recovery unless lawmakers reach a deal on reducing the deficit. 

“Everybody is concerned about the economy either because of Europe or the sequester. Yes, the sequester will impact the economy, but it will not derail the recovery. It will reduce growth by 0.5% or 0.6% in 2013, depending upon whom you talk to,” said Johnson. 

Kate Gibson is a reporter for MarketWatch, based in New York.


First papal conclave vote does not produce a winner: CBS Breaking News March 12, 2013.


CBS News


March 12, 2013
Black smoke appeared above the Sistine Chapel in the Vatican late Tuesday, indicating that deliberations among the College of Cardinals over a new pope will continue   



First papal conclave vote does not produce a winner

 













  







Breaking News Alert

The Conscience of a Liberal The Eurobeatings Will Continue By Paul Krugman: NYT | Opinion Today March 12, 2013.

The New York Times

March 12, 2013

Opinion Today

Op-Ed Contributor

Defining Bullying Down

By EMILY BAZELON
The word "bullying" is overused - expanding, accordionlike, to encompass both appalling violence or harassment and a few mean words.
Opinionator | Draft

Insomnia and the Poet

By LISA RUSS SPAAR
A dark night of the soul, heartache, remorse, guilt, desire, God-hunger - surely this, and not obstructed airways, is the stuff of poetry.
Letter

Invitation to a Dialogue: Deterring North Korea

A retired Navy commander urges the United States to strengthen its missile defense and not weaken its nuclear arsenal. Readers are invited to respond.
ADVERTISEMENT
Nuclear Neighbors for North Korea?
Room for Debate

Nuclear Neighbors for North Korea?

Will North Korea's threats and continued testing cause more proliferation in the region?
Engendering Law
Latitude

Engendering Law

By LIEN HOANG
Could the treatment of transgenders become the brightest spot in Vietnam's bleak record on human rights?
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Editorial

A Universal Right to Vote

New legal protections are needed to expand the guarantee of ballot access in every state.
Editorial

Unholy Alliance

At a United Nations conference, Iran, Russia and the Vatican are working to block global standards protecting women against violence.
Editorial

The Grim Backlog at Veterans Affairs

A new report paints a distressing portrait of an agency buried helplessly in paperwork.
Editorial

Toxic Threats to Grassland Birds

A Canadian study found that pesticides were four times more likely to be linked with bird losses than any other cause.

The Opinion Pages

Read the full opinion report, including editorials, columns, op-eds and Opinionator. Go to the Section »
Taking Note

The More He Talks About Immigration…

By LAWRENCE DOWNES
Jeb Bush is trying to have it both ways on the "path to citizenship."
The Eurobeatings Will Continue
The Conscience of a Liberal

The Eurobeatings Will Continue

By PAUL KRUGMAN
Nothing learned, nothing changed.
A New York Times Column on Climate and Energy
Dot Earth Blog

A New York Times Column on Climate and Energy

By ANDREW C. REVKIN
The Times launches a new column on global warming and energy.
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4 Reasons to Ignore Dow's New High: MoneyShow Investors Daily Alert March 12, 2013.

INVESTORS DAILY ALERT

Jim Jubak on MoneyShow.com
TOP PROS' TOP PICKS
SELL Apple, Jack Adamo
GURUS' VIEWS & STRATEGIES
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ADVFN III World Daily Markets Bulletin March 12, 2013.


ADVFN III World Daily Markets Bulletin
Daily world financial news Tuesday, 12 March 2013



US Market
Stocks Move Mostly Lower Following Recent Strength
Stocks have moved mostly lower over the course of the trading day on Tuesday, giving back some ground after trending higher in recent sessions. Selling pressure has remained relatively subdued, however, limiting the downside for the .
The major averages have all turned negative, although the Dow is down only 2.61 points or less than a tenth of a percent at 14,444.68 amid a strong gain by Merck . The Nasdaq is down 17.07 points or 0.5 percent at 3,235.80 and the S&P 500 is down 4.05 points or 0.3 percent at 1,552.17.
The modest weakness that has emerged on Wall Street comes as some traders cash in on the recent strength in the markets.
The Dow closed higher in nine out of the ten previous sessions, reaching record highs, while the S&P 500 and the Nasdaq also set multi-year closing highs on Monday.
Nonetheless, traders have seemed reluctant to make any significant moves amid a relatively light on the economic news front.
Trading activity is likely to pick up later in the week amid the release of key reports on retail sales, industrial production and producer and consumer price inflation.
Among individual stocks, shares of Diamond Foods have come under pressure after the snack foods maker reported weaker than expected second quarter results
FuelCell Energy has also shown a notable move to the downside after the company reported a wider than expected first quarter loss.
On the other hand, Verifone is moving sharply higher after announcing that its CEO Douglas Bergeron is stepping down. The company also announced the appointment of Chairman Richard McGinn as CEO on an interim basis.
Sector News
Reflecting the pullback by the broader markets, a majority of the major sectors have moved to the downside on the day.
While selling pressure has remained somewhat subdued, notable weakness is visible among software, financial, and housing stocks.
Meanwhile, gold stocks are seeing continued strength on the day, moving higher along with the price of the precious metal. With gold for April delivery climbing $13 to $1,591 an ounce, the NYSE Arca gold Bugs Index is up by 2.1 percent.
Electronic storage stocks are also holding on to gains, resulting in a 1.5 percent advance by the NYSE Arca Disk Drive Index. Seagate Technology and Western Digital are turning in two of the sector's best performances.




Canadian Market
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Commodities Lift TSX Tuesday Morning - Canadian Commentary
Canadian stocks were extending gains for a third session Tuesday morning even as traders await fresh catalysts. While signs of economic recovery in the U.S helped improve risk appetite, recent data form China continued to weigh on trader sentiment.
Most Asian settled lower overnight weighed down by worries about the Chinese and European stocks were flat amid disappointing French industrial production data and on fears of more debt troubles in Europe in the wake of an Italian credit rating downgrade.
The S&P/TSX Composite Index gained 18.99 points or 0.15 percent to 12,877.48, after adding about 0.25 percent in the past two sessions.
The Global gold Index gained close to 3 percent amid a rebound in bullion prices. The price of gold continued to recover from its recent lows Tuesday morning, with gold for April adding $15.30 to $1,593.30 an ounce.
Among gold plays, Royal gold , Agnico-Eagle Mines , Barrick gold , Goldcorp. , Yamana gold and gaining around 3 percent each. Seabridge gold surged close to 7 percent.
Mexico focused silver miner Endeavour Silver Corp. (EDR.TO) jumped 10 percent after reporting that its fourth-quarter net earnings increased to $14.8 million or $0.15 per share from $16,000 or breakeven per share last year.
In the base metals space, Inmet Mining and Teck Resources gathered around 2 percent each.
The price of Crude oil was steady above $92 Tuesday morning as traders await cues from the US inventories data from the API and EIA. Crude for April edged up $0.91 to $92.97 a barrel.
In the oil patch, Crescent Point Energy (CPG.TO0 and Cenovus Energy were up around 1 percent each.
Dutch oil services company SBM Offshore N.V. (SBFFF. PK, SBFFY.PK) on Tuesday agreed for an upfront settlement payment of $470 million with Talisman Energy Norge AS, a unit of Canadian oil and gas firm Talisman Energy Inc. . Shares of Talisman gained over 2 percent.
Connacher Oil and Gas (CLL.TO) announced the appointment of Christopher Bloomer as its Chief Executive Officer, effective April 11, 2013. The stock was up about 4 percent
Aviation-training and simulation products provider CAE Inc. was up nearly 2 percent after announcing that it has concluded a series of long-term commercial training and services contracts adding to its fourth quarter order intake and valued at about C$245 million.
Meanwhile, pharmaceutical company Aeterna Zentaris (AEZ.TO) dive about 6 percent after it said it is going to discontinue the phase 3 trial of Perifosine for treatment of multiple myeloma after an independent Data Safety Monitoring Board recommended to discontinue it.
Smart phone maker Research In Motion surrendered over 5 percent on profit taking after yesterday's steep rise on take over rumors.
In economic news from the euro zone Germany's EU harmonized inflation for February was confirmed at 1.8 percent, the final data published by the Federal Statistical Office showed. The annual rate eased marginally from 1.9 percent in January. The harmonized index of consumer prices gained 0.8 percent from the prior month, in line with flash estimate.
Meanwhile, U.K.'s industrial production declined unexpectedly by 1.2 percent month-on-month in January, reversing a 1.1 percent rise in December, the Office for National Statistics said Tuesday. Output was forecast to grow 0.1 percent. Similarly, manufacturing output slipped 1.5 percent, offsetting the 1.5 percent increase seen in December. Economists had forecast output to remain flat in January.




European Market
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European Markets Seek Direction
The European are seeking direction down on Tuesday, as investors look for fresh cues that will influence trading. The Asian markets ended lower and the U.S. index point to a weak open.
U.K.'s industrial production declined unexpectedly by 1.2 percent month-on-month in January, reversing a 1.1 percent rise in December, the Office for National Statistics said Tuesday. Output was forecast to grow 0.1 percent
The euro Stoxx 50 index of eurozone bluechip stocks is losing 0.05 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is falling 0.09 percent.
The German DAX is losing marginally. The French CAC 40 and the UK's FTSE 100 are up around 0.1 percent each and Switzerland's SMI is gaining 0.3 percent.
In Frankfurt, Commerzbank is gaining 3.3 percent. Airline Lufthansa is adding around 1 percent.
Fuchs Petrolub is rising 2.7 percent. Cheuvreux raised the stock to ''Outperform'' from ''Underperform.''
RWE is dropping 1.6 percent. Goldman Sachs cut European utilities to ''Neutral'' from ''Attractive.''
Merck is moderately lower. S&P Equity reduced its rating on the stock.
Fraport is losing 2.7 percent. The owner and operator of Frankfurt Airport said its result in 2013 are expected to be lower than the previous year, due to continuing rise in depreciation and financing costs.
In Frankfurt, Safran is losing 1.4 percent and Sanofi is falling 1.1 percent.
Accor is gaining 1.6 percent. UBS raised the stock to ''Buy'' from ''Neutral.''
In London, British Land is declining 3.7 percent and Aggreko is falling 1.8 percent.
Fresnillo, which reported lower pre-tax profit for the year, is dropping 3.6 percent.
St. James's Place is losing 2.1 percent. Lloyds Banking reduced its stake in the firm.
Antofagasta is climbing 4.6 percent. The miner reported a decline in 2012 profit, reflecting higher operating costs, but copper production was ahead of its original forecast of about 700 thousand tonnes.
International Consolidated Airlines and is up 3.4 percent.
InterContinental Hotels was raised to ''Neutral'' from ''Sell'' at UBS. The stock is advancing 2.4 percent.
Whitbread is up 1.3 percent. UBS upgraded the stock.
Ladbrokes is gaining 1.7 percent. JPMorgan raised the stock to ''Neutral'' from ''Underweight.''
SBM Offshore is surging 20 percent in Amsterdam. SBM and Talisman Energy Norge AS have decided to terminate the YME MOPUstor project. Following an extended period of operational and execution delays, this decision was taken to remove the Mobile Offshore Production Unit.
Across Asia/Pacific, markets fell, led by China where Shanghai Composite Index lost 1 percent. Hong Kong's Hang Seng declined 0.9 percent, Australia's All Ordinaries fell 0.6 percent and Japan's Nikkei 225 slid 0.3 percent.
In the U.S., futures point to a lower open on Wall Street. In the previous session, stocks posted modest gains, extending a recent upward move, despite a lack of obvious positive catalysts. The Dow rose 0.4 percent to set another record closing high, while the S&P 500 and the tech-heavy Nasdaq gained 0.3 percent each.
In the commodity space, Crude for April delivery is losing $0.17 to $91.89 per barrel and April gold is adding $4.9 to $1582.9 a troy ounce.




Asia Market
Asian Markets Mostly Trade Higher On Wall Street Cues
Asian stock are trading in positive territory on Tuesday with investors mostly tracking cues from Wall Street, where the major averages extended recent gains and ended on a firm note overnight. Though a few markets are off their earlier highs, the mood remains fairly bullish in the region amid slightly easing worries about the global .
After opening marginally up and surging higher in early trades, the Australian market retreated and is currently - trading weak amid cautious moves by investors.
Financial, information stocks are finding some support, while shares from consumer discretionary, energy, mining and industrial sections are trading weak.
The benchmark S&P/ASX 200 index, which advanced to 5,163.5 in early trades, is currently down 6.9 points at 5,140. The broader All Ordinaries index is down 10.9 points at 5,149.1, around 25 points off the day's high of 5,174.4.
Whitehaven Coal shares are down more than 4 percent. The company said it has won federal environmental approval for the expansion of its Tarrawonga mine in northern NSW. The company, in which former billionaire Nathan Tinkler holds a major stake, plans to expand the mine to increase production from one million tonnes of coal a year to three million tonnes.
Downer EDI, Perseus Mining and Primary Healthcare are down more than 3 percent. Atlas Iron, Arrium, Fortescue Metals, Leighton Holdings, APA Group, Lynas Corp. and Regis Resources are trading lower by 2 to 3 percent.
Iluka Resources, Oz Minerals, Tatts Group, Ramsay Healthcare, Crown, Spark Infrastructure Group and Goodman Group are also trading sharply lower.
Meanwhile, Fairfax Media and Ansell are trading in positive territory, gaining 2.5 percent and 2 percent, respectively.
Among major banks, Commonwealth Bank of Australia and National Australia Bank are up 1.3 percent and 1.5 percent respectively. ANZ Bank is up 0.3 percent and Westpac is trading flat.
In the currency market, the Australian dollar opened higher against the U.S. dollar following a rally in the U.S. stock market overnight. In early trades, the Aussie was quoting at US$1.0270, up 0.5 percent from Monday's close of US$1.0218.
The Japanese market opened on a firm note, buoyed by the overnight positive close on Wall Street and on the U.S. dollar's strong upmove against the yen. Expectations of additional monetary easing from the central bank too contributed to the bright start.
Despite coming off the day's high, the market still remains in positive territory. The benchmark Nikkei 225 index, which rose to around 12,462 in early trades, is currently at 12,401, up 52 points or 0.4 percent from its previous close.
Panasonic Corp. is up more than 7 percent. TDK Corp., Nippon Steel & Sumitomo Metal, Mitsubishi Motors, Kyocera Corp., Yahoo Japan, Amada Co., Advantest Corp. , Canon Inc. , Tokai Carbon and Mitsubishi Chemical Holdings are trading higher by 3 to 6 percent.
All Nippon Airways, Mitsubishi UFJ Financial , Asahi Glass, Nissan Motor, Dainippon Screen Manufacturing, Softbank Corp., JFE Holdings, Komatsu and Citizen Holdings are also up with strong gains.
Meanwhile, Showa Shell Sekiyu KK, Nippon Meat Packers, Toto Ltd., Kirin Holdings, Fast Retailing, Shionogi, Fujikura and Shinsei Bank are trading weak, losing 1 to 3 percent.
On the economic front, an index measuring tertiary industry activity in Japan was down a seasonally adjusted 1.1 percent on month, at 99.0, in January, the Ministry of Economy, Trade and Industry said on Tuesday. The headline figure was well shy of forecasts for a contraction of 0.2 percent following the 1.4 percent increase in December.




Commodities
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Crude Steady Near $92
The price of Crude oil was steady near $92 Tuesday morning as traders await cues from the US inventories data from the API and EIA.
Light Sweet Crude oil futures for April delivery, slipped $0.16 to $91.90 an ounce. Yesterday, oil settled above $92 for the first time in a week after the dollar weakened against a basket of major currencies, with investors weighing some upbeat jobs and employment data from the U.S. last week even as the Federal Reserve expected to continue monetary stimulus through the year.
This morning, the U.S. dollar was hovering around a weekly high versus the euro, while advancing toward a 30-month high against sterling. The buck was trading around its two-and- half year high versus the yen and ticking higher against the Swiss franc.
In economic news from the euro zone Germany's EU harmonized inflation for February was confirmed at 1.8 percent, the final data published by the Federal Statistical Office showed. The annual rate eased marginally from 1.9 percent in January. The harmonized index of consumer prices gained 0.8 percent from the prior month, in line with flash estimate.
Meanwhile, U.K.'s industrial production declined unexpectedly by 1.2 percent month-on-month in January, reversing a 1.1 percent rise in December, the Office for National Statistics said Tuesday. Output was forecast to grow 0.1 percent. Similarly, manufacturing output slipped 1.5 percent, offsetting the 1.5 percent increase seen in December. Economists had forecast output to remain flat in January.
Today after the market hours, the API will release its US Crude oil inventories report for the weekended March 08.