“US mobile operator AT&T has found itself the subject of a lawsuit filed by the United States over government claims that it improperly billed the Federal Communications Commission (FCC) over its provision of Internet Protocol (IP) Relay services, theJustice Department announced today.

Read more

Full report

Full article

Full article

“Neiman Marcus Group Inc. (NMG/A), the luxury chain owned by Warburg Pincus LLC and TPG, said it will invest $28 million in a closely held Hong Kong e-commerce company in its first move into China’s luxury market.

Neiman Marcus plans to launch an e-commerce website in China with Glamour Sales Holding by the end of 2012, according to an e-mailed statement from the company today.

Karen Katz, who became CEO about 18 months ago, is turning to the world’s fastest-growing luxury-goods market to help the Dallas-based retailer recover its pre-recession sales volume. Besides the China venture, she has opened more U.S. stores, particularly discount outlets, and expanded the retailer’s social media marketing to attract younger customers….”

Read more

Source

Ciena Corp. (CIEN) : The maker of fiber-optic networking equipment was rated buy in new coverage at Nomura International Plc.

Costamare Inc. (CMRE) fell 9.9 percent to $13.96. The Athens, Greece-based owner of container ships said it will sell 7.5 million shares in a secondary public offering, and may use the proceeds to acquire vessels and repay debt.

FuelCell Energy Inc. (FCEL) : The manufacturer of fuel- cell power plants said it will sell shares in a public offering without specifying the amount, and that it will use the proceeds for growth capital and general corporate purposes.

Herman Miller Inc. (MLHR) : The maker of ergonomically designed furniture reported third-quarter sales of $399.8 million, falling short of the average analysts’ estimate of $409.7 million.

Shoe Carnival Inc. (SCVL) : The footwear retailer forecast first-quarter sales of at least $219 million, exceeding the average analyst estimate of $207.3 million.

Sonic Corp. (SONC) dropped 3.7 percent to $7.75. The operator of drive-in restaurants reported second-quarter revenue of $115.1 million, missing the average analyst estimate of $116.8 million.

Gapping up

OXF +13.4%, RGR +11.1%, LUB +9.7%, SCVL +9.4%, SWHC +5.8%, RTN +1.4%,

DG +2.2%, POZN +22.9%, GALE +4.7% , DISH +6.6%, RTN +0.8% , WDC +1.5%

Gapping down

GOLD -13.9%, CMRE -8.7%, FCEL -8.5%, AVII -6.2%, SONC -5.6%, RIO -3.6%, MT -3.4%,

MLHR -3.2%, GRT -3.1%, BBL -2.7%, BHP -2.2%, INTU -1.9%, BP -1.7%, DMND -1.6%, HCP -1.1,

FCEL -10.2%, AVII -6.2% , GRT -3.1%,  CMRE -9.6% , GLNG -2.5% ,  MCD -0.7%,  FHN -2.1% ,

RAX-1.9% ,  NVO -2.6%,  FHN -2.1%, NLY -0.6%

In Play

On the Wires

Loopholes…

“SAO PAULO (AP) — Seventeen oil company executives face probable criminal charges Wednesday for an oil leak in the Atlantic, a legal action that has prompted debate about whether it could slow Brazil’s effort to develop its massive offshore finds.

At least 110,000 gallons (416,000 liters) of oil seeped through cracks on the ocean floor near a Chevron Corp. appraisal well off the Rio de Janeiro coast in November. The well drilled byTransocean Ltd. has since been sealed, but a small amount of seepage reappeared in recent days, raising concern the damage is not yet over.

Paulo Alexandre Ferreira, a spokesman for the federal prosecutors’ office in Rio de Janeiro state, said the charges “most likely” will be put before courts on Wednesday. A judge will then decide if the executives will face trial, which would be a lengthy process given the number of defendants, the complexity of the case and the Brazilian legal system’s room for numerous appeals….”

Read more

“It’s hard not to think it’s a big deal when a branch of the Federal Reserve system calls for the breakup of major American banks.

The bank has just released its annual report, and the title of the letter is: Choosing the Road to Prosperity Why We Must End Too Big to Fail—Now.

Here’s the full letter from Dallas Fed President Richard Fisher, generally known as one of the most hawkish and conservative Fed Presidents.

Letter from the
President
If you are running one of the “too-big- to-fail” (TBTF) banks—alternatively known as “systemically important financial institutions,” or SIFIs—I doubt you are going to like what you read in this annual report essay written by Harvey Rosenblum, the head of the Dallas Fed’s Research Department, a highly regarded Federal Reserve veteran of 40 years and the former president of the National Association for Business Economics.

Memory fades with the passage of time. Yet it is important to recall that it was in recog- nition of the precarious position in which the TBTF banks and SIFIs placed our economy in 2008 that the U.S. Congress passed into law the Dodd–Frank Wall Street Reform and Consumer Protection Act (Dodd–Frank). While the act established a number of new macroprudential features to help promote financial stability, its overarching purpose, as stated unambiguously in its preamble, is ending TBTF.”

Read more: 

Source 

“NEW YORK (AP) — One of Yahoo’s major investors is urging shareholders to vote its four nominees on to the Internet company’s board, launching a potentially nasty fight to transform its direction.

Hedge fund Third Point LLC, which has a 5.8 percent stake in Sunnyvale, Calif.-based Yahoo Inc., said it thinks the struggling company would fare better if its representatives were in the boardroom helping overhaul Yahoo.

Third Point’s letter, released in a regulatory filing Wednesday, comes a week after the hedge fundsaid it would launch a campaign to get its four nominees on the board if the Yahoo’s management didn’t accept them.

The proposed directors are Daniel Loeb, the hedge fund’s manager; former NBC Universal CEO Jeff Zucker; former MTV Networks executive Michael Wolf and turnaround specialist Harry Wilson.

The company’s board is in the midst of changes. Of the 11 directors, four, including Chairman Roy Bostock, have said they will step down at Yahoo’s annual meeting, which is usually held in late June. The departures are part of an attempt to placate shareholders frustrated with a long-running financial funk that has depressed the company’s stock price.

The company also appointed two new directors to its board last month.

But Third Point’s letter said that the appointed directors were not in the best interests of Yahoo, and the board still lacked expertise in the media and entertainment industries, as well as in corporate restructurings.

Yahoo shares added 8 cents to $15.49 in premarket trading Wednesday. Shares have ranged from $11.09 to $18.84 in the past 12 months.”

Source

Baker Hughes Inc. (BHI) fell 4.3 percent to $45.75. The oilfield contractor said operating profit before tax for the first quarter is expected to be lower than the fourth quarter of 2011 because of “rapidly changing” market conditions.

FSI International Inc. (FSII) : The maker of equipment for chip factories reported second-quarter earnings of 9 cents a share, exceeding the average analyst estimate by 4 cents.

Hartford Financial Services Group Inc. (HIG) rose 6.6 percent to $23.15. The insurer being pressed to break up by its biggest shareholder said it will wind down its individual annuities business and seek a buyer for part of its life unit.

Hercules Offshore Inc. (HERO) : The Houston-based offshore drilling company will sell as many as 20 million shares in a secondary offering. Half of the proceeds will be used to repay debt and another portion will be used to buy a rig. The company was also raised to market perform from underperform at FBR Capital Markets, meaning that its stock will neither beat nor trail its peers over the next 12 months.

Jabil Circuit Inc. (JBL) : The U.S. contract electronics manufacturer reported second-quarter earnings of 58 cents a share, matching the average analyst estimate.

Krispy Kreme Doughnuts Inc. (KKD) : The doughnut chain reported fourth-quarter revenue of $102 million, beating the $101.4 million projected by analysts on average. Same-store sales climbed 8.3 percent during the period, the Winston-Salem, North Carolina-based company said.

LinkedIn Corp. (LNKD) (LNKD US) gained 5.5 percent to $96.87. The biggest professional-networking website was raised to buy from neutral at Goldman Sachs Group Inc.

On Assignment Inc. (ASGN) : The provider of temporary workers to technology and health-care companies agreed to purchase information technology staffing firm Apex Systems Inc. for $600 million. The deal is expected to “significantly” add to earnings this year, the Calabasas, California-based company said.

Oracle Corp. (ORCL) increased 2.6 percent to $30.88. The largest maker of database software reported fiscal third-quarter profit and new license sales that topped analysts’ estimates as the company sold more databases and business applications.

SAIC Inc. (SAI) : The defense contractor forecast earnings from continuing operations in 2013 will be no more than $1.36 a share, falling short of the average analyst estimate of $1.38. The McLean, Virginia-based company initiated a quarterly dividend of 12 cents a share and said it may buy back 40 million shares.

Gapping up 

ASGN +24.3%, FSII +14.1%, LXRX +9.1%, CVBF +4%, KKD +3.7%, LGF +3.4%, HIG +3.2%,

ORCL +2%, NLY +1.3%, LNKD +6.4%, OPEN +3.9% , ARUN +2.7%, ACN +0.7%,  NI +1.1% ,

OMN +11.8%, USG +7.5%, KKD +3.7%,  SAI +0.6%, ATU +0.5% ,LLEN +16% ,

YPF +10.1%, CHL +3.9%, MU +1.8%, CAT +0.4% ,MILL+2.2%,

Gapping down

CXS -8.9%, ARIA -3.7%, HERO -3.1%, JBL -2.6%, YGE -2.3%, PWRD -3.5%,

NLSN -0.4%, PHG -3.3%, AGO -4.4%,  BHI -5.1%, JBL -2.6%, GIS -0.7%,

BBL -1.4%, BHP -1%, RIO -0.7%, MT -0.6%, HAL -2.1%, SPN -1.3%, WFT -1.2%,

E -0.8%, STO -0.7%, SLB -0.7%,

In Play 

On the Wires 

Chinese solar burritos had a decent rally yesterday as tariffs set upon them fell short of expectations.  

Source 

“Instinet Inc., a New York-based alternative trading-venue operator, and JPMorgan Chase & Co. (JPM), have agreed to link their Asia-Pacific (MXAP) dark pools, giving clients access to each other’s platforms in Hong Kong, Japan and Australia.

Instinet’s clients can access 22 dark pools, private trading venues that don’t publicly display prices, in Asia, including 13 from individual brokers, Glenn Lesko, chief executive officer in Asia for Instinet told Bloomberg News in a telephone interview March 20. JPMorgan spokeswoman Marie Cheung confirmed the contents of an Instinet press release announcing the agreement.

Less than 2 percent of transactions in Asia occur through dark pools, according to Investment Technology Group Inc. (ITG), a New York-based brokerage. Dark pools account for 13.5 percent of trading in the U.S. and 4.6 percent of shares changing hands in Europe, according to data compiled by Rosenblatt Securities Inc.

“There is proliferation of new pools in the region,” Lesko said. “JPMorgan is one of the bigger brokers with lots of liquidity in Asia that’s getting their dark pool going. We’re looking to help them by providing our flow into there and reciprocally, we we would benefit from their liquidity.”

Earlier this month, Instinet announced that it would introduce another of its electronic-trading platforms, VWAP Cross, into Hong Kong and Europe. The tool uses the so-called volume-weighted average price, in which orders are matched from buyers and sellers who are willing to wait for the market to generate a price over time.”

In an effort to restructure HP will merge two divisions to allow for more oversight and to unlock shareholder value….

Good for them. The bankers no doubt gave up commissions to entice more money to flow under management…