Stocks to Watch: HPQ, CSCO, ADP & More
Take a look at some of Friday’s morning movers:
Hewett-Packard - The stock has been downgraded to "neutral" from "buy" at Sterne Agee, saying the headwinds faced by the company are likely secular and structural in nature. The firm said it fears further downside surprises, even after the stock tumbled to a 9 1/2 year low this week.
Cisco Systems - The networking equipment company promoted executives Rob Lloyd and Gary Moore, naming them co-presidents. Analysts see the two as possible successors to CEO John Chambers when he eventually steps down.
ADP - Goldman Sachs has upgraded the payroll service provider's shares to "buy" from "neutral," pointing to strong earnings power, superior capital allocation, and the type of structure that may make it a good defensive play in difficult economic times.
Zynga - The social network game maker has cut its full-year outlook. Sentiment surrounding Zynga has already been hurt by a number of executive departures, and the company said the current quarter is “challenging” due to poorer-than-expected performance for certain games.
Facebook - A panel of judges has approved a Facebook request that several dozen lawsuits against it, Nasdaq, and underwriters regarding its initial public offering be consolidated in New York’s Southern District. Separately, JPMorgan Chase is cutting earnings estimates for Facebook, based on Zynga's earnings announcement.
Toyota Motor - The automaker reported its sales in China fell about 40 percent in September from a year earlier, opposite the trend that its rivals have seen. Analysts say Japanese brands have taken a hit in China because of territorial disputes between the two countries.
JPMorgan Chase - JPMorgan executive Barry Zubrow is expected to leave his current job, according to a report in this morning’s Wall Street Journal. Zubrow is head of corporate and regulatory affairs, although the paper reported it’s possible he’ll remain with the bank in an advisory role.
Dish Network - The satellite television provider could lose programming from Gannett, which has threatened to pull its channels if Dish does not block the ad-skipping feature known as “AutoHop” on its digital video recorders.
Sony - Sony has stopped sales of its Xperia tablet computers because of a manufacturing defect that can make the devices subject to water damage. The tablet went on sale in the U.S. on Sept. 7. Sony plans to fix the tablets already sold and said it doesn’t expect any significant impact on earnings.
Owen-Illinois - Goldman Sachs has upgraded the glass container company's stock to "buy" from "neutral," citing the company's free cash flow and its new focus on debt reduction.
Morgan Stanley- Chief Executive Officer James Gorman told the Financial Times that more job cuts and lower bonuses are in store next year, as the company deals with profit pressures.
Wet Seal - The specialty retailer has reached an agreement with major shareholder Clinton Group, with four Wet Seal directors resigning and being replaced by Clinton Group nominees.
Constellation Brands - The spirits maker reported fiscal second-quarter profit of $0.71 per share, well above estimates of $0.54. Its fiscal year outlook was also above current projections. Revenue did come up somewhat short of consensus.
—By CNBC’s Peter Schacknow
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