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Net Net: Promoting innovation and managing change

Last Call: Chiquita Hedges Against the Euro

Chiquita Banana

QUIZ TIME: How many bananas does the average American eat per year?

A. 7 pounds worth

B. 19 pounds worth

C. 27 pounds worth

D. 56 pounds worth

-Below, Chiquita hedges against the euro.

Market Musings With CNBC Market Guru Robert Hum

  • Some gains are better than no gains: stocks end slightly higher after falling at the open
  • Natural gas settles at a 5-month high
  • Euro closes back below $1.25 for first time in 2 weeks
  • 3 days left in the month, major averages cling to small gains: Dow up 1.1 percent, S&P up 0.7 percent, Nasdaq up 1.0 percent

The Word on the Street Tonight

APPLE LOOKING TO OPEN FACILITIES IN DOWNTOWN RENO, EAST OF SPARKS AS PART OF $1B, 10-YEAR INVESTMENT/Reno Gazette Journal - Brian Duggan:  “Apple is planning on opening a data center to house its cloud computing service east of Sparks as well as a business and purchasing center in downtown Reno, part of a $1 billion investment the company plans to spend in Northern Nevada over the next 10 years.”

OBAMA PICKS UP SUPPORT IN SWING STATES: NBC-WSJ POLL/CNBC-John Harwood: “President Barack Obama and Mitt Romney remain locked in a close race for the White House, but Obama has improved his standing in the swing states both candidates are targeting, according to a new NBC News/Wall Street Journal poll. The poll shows Obama leading Romney by 47 percent  to 44 percent nationally, virtually unchanged from his margin in May. But among Americans in a dozen battleground states, the Democratic incumbent holds a more substantial 8-point edge, reflecting an uptick in those states since earlier this year.”

US CORN CROP AT RISK: NEXT TWO WEEKS CRITICAL/CNBC-Patti Domm: “Corn is facing the worst crop conditions in two decades and the next two weeks will be critical in determining the size and quality of the U.S. crop. But unusual heat and lack of rain across the heart of the Midwest corn belt threatens this year’s crop yield and has put a fire under futures prices. Higher corn prices affect everything from cereal to sweeteners to animal feed and the ethanol in gasoline.”

SEC AND FALCONE SET FOR SHOWDOWN/WSJ: Jean Eaglesham & Juliet Chung: “The U.S. Securities and Exchange Commission has voted to file a civil lawsuit against hedge-fund manager Philip Falcone and his firm Harbinger Capital Partners LLC, according to people close to the investigation. The lawsuit could be filed as soon as this week, the people said. "I plan on vigorously contesting it," Mr. Falcone wrote in an email, responding to request for comment on the possible suit.”

O'REILLY SEES 2ND-QUARTER EARNINGS AT LOW END OF VIEW, CUTS SAME-STORE SALES GUIDANCE/Dow Jones – Nathalie Tadena: "O'Reilly Automotive Inc. (ORLY) said it expects its second-quarter earnings to be at the low end of its prior estimates, as the auto-parts retailer also lowered its same-store sales guidance. Shares slumped 5.6% to $91 after-hours Tuesday.  O'Reilly said it expects per-share earnings to be in the lower end of its April estimates of $1.13 to $1.17. It now sees same-store sales growth of 2% to 2.5% for the quarter, down from its prior view of 3% to 5%. Chief Executive Greg Henlsee said the company's earlier outlook reflected the slow start to the quarter in April as early spring weather in many of markets shifted some business into the first quarter. Mr. Henslee said the company had expected sales trends would stabilize as the quarter progressed and noted same-store sales improved in May, though June sales missed its expectations.”

YAHOO TUNES INTO SPOTIFY/LA Times – Alex Pham: “Yahoo on Tuesday tapped Spotify to fill the gap left open when the Silicon Valley Internet media company killed its Yahoo Music Unlimited digital on-demand streaming service in 2008. The deal lets Yahoo distribute Spotify's popular music service to the 700 million people who visit its site each month.”

SABA'S WEINSTEIN EXITS BET AGAINST JPMORGAN/Reuters - Katya Wachtel: "Hedge fund manager Boaz Weinstein, who was one of the first traders to call attention to a derivatives bet that cost JPMorgan Chase at least $2 billion recently exited from the trade, booking a tidy profit, according to sources familiar with the trade. Weinstein, a former Deutsche Bank trader, was one of the early proponents of a trade that involved buying Investment Grade Series 9 10-Year Index CDS, discussing it at the Harbor Investment Conference in February. Ironically, the conference was held at JP Morgan's Madison Avenue offices."

NORA EPHRON, WRITER-FILMMAKER, DIES AT 71/AP - Hillel Italie: "Nora Ephron, the Oscar-nominated filmmaker and director behind such hits as "When Harry Met Sally" and "Sleepless in Seattle" dies at age 71."

CHIQUITA HEDGES AGAINST EURO EXPOSURE/Press release: “…As part of the Company`s continued efforts to mitigate its risk exposure and in order to provide a level of protection from the risk of a devaluing euro, Chiquita also announced that it has entered into option collar hedge transactions (involving average rate euro put and call options) to hedge approximately half of its euro-based revenue exposure through the balance of 2012 and for all of 2013."

Quiz Answer: C. 27 pounds worth

Economic Data

830AM ET      May     Durable Goods

1000PM ET    May     Pending Home Sales

1300PM ET    5-Yr Note Auction


Before the bell:

General Mills, Lennar, McCormick, Monsanto

After the bell:


Key Guests

Kenneth Feinberg, Feinberg Rozen LLP (700a)

Roger Altman, Evercore Partners Chairman (710a)

Henry Blodget, Business Insider CEO (740a)

Neal Wolin, US Treasury Deputy Secretary (830a)

J. Clifford Hudson, Sonic Corp CEO (840a)

Jim Skinner, McDonald's CEO (1000a)

Matt Cohler, Benchmark Capital (1110a)

Temo Chalasani, Cinemagram CEO (1140a)

Adam Patti, IndexIQ CEO (200p)

Thomas Belesis, John Thomas Financial CEO (300p)

Scott Cutler, NYSE Euronext Head of Listing (310p)

Gov. Bob McDonnell, R-VA (700p)

Howard Lutnick, Cantor Fitzgerald CEO (700p)

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