Why Deutsche Bank and Nokia Are Rising
Deutsche Bank trading up slightly in U.S. trading. Most traders yesterday felt it was likely DB would indeed issue additional shares — 9 billion euros' worth was mentioned. Complicating the issue is DB's move to get a controlling interest in Postbank — they already own 30 percent of the company and have the option to obtain a majority position by February 2012. So the issue is, how much of Postbank do they want to own? If the bid is minimal, a significant capital raise would go a long way to relieve DB's low core Tier 1 capital position.
1) Texas Instruments narrowed its Q3 guidance. Earnings are now seen between $0.66 and $0.72 (vs. $0.69 consensus), while sales are expected to be between $3.62 billion and $3.78 billion (also inline with $3.69 billion consensus).
Some analysts have speculated that pockets of strength in tech — the iPad for instance, where TI has exposure — might be cannibalizing parts of the PC market.
2) National Semiconductor falls 7 percent after providing disappointing Q2 guidance. Despite better-than-expected Q1 earnings ($0.36 vs. $0.34 consensus) from record margins and robust demand, the chipmaker's Q2 sales outlook of $390 million-$415 million fell short of Street estimates for $421 million.
As bookings in the past quarter fell 10 percent sequentially, CEO Don Macleod also cautioned of "slower growth in our end markets and distribution channel, along with some likely inventory reduction" in the near term.
3) Nokia rises 4 percent after the handset maker announced that Stephen Elop, the head of Microsoft's business division, will become the company's new CEO later this month. He will replace Olli-Pekka Kallasvuo, who is stepping down on September 20.
Shareholders hope the new CEO will help reinvigorate the Finnish cell phone maker, which has recently struggled with slumping demand for its handsets — causing the stock to fall nearly 40 percent since the beginning of April.
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