Last Call: Google Announces Stock Split, Wall Street Goes Bananas

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Banana split for my baby
A glass of plain water for me.
Banana split for my baby
A glass of plain water for me.
Dispenser Man, if you please

-“Banana Split for My Baby” - Louis Prima

Below, Google announces a stock split and Wall Street goes bananas.

Market Musings (Robert Hum)

  • Best day for Dow in 1 month
  • Best day for S&P 500, Nasdaq since March 26
  • Broadest rally of the year: highest number of advancing stocks since December 20
  • Best 2-day rally for Dow, S&P 500 this year

A Black CAT on Friday the 13th?

Since April 1987 (the first available price quotes for Caterpillar ), we’ve typically seen a Black CAT on Friday the 13th. Caterpillar has been “in the black” on Friday the 13th, rising on average 0.30%. Number of Friday the 13ths since April 1987 — 39 occurrences:

Black CAT: Caterpillar up on Friday the 13th — 21 times (54% of the time)

Red CAT: Caterpillar down on Friday the 13th — 14 times (36% of the time)

White CAT: Caterpillar “unchanged” on Friday the 13th — 4 times (10% of the time), note the number is probably high because of past stock splits.

What People Are Talking About Tonight

GOOGLE’S STOCK SPLIT COULD TRIGGER SELLING: PRO TRADER/CNBC - Lee Brodie: "On Thursday after the bell Google stunned the Street with a 2 for 1 stock split, but a split that was by no means conventional. The new shares have no voting rights. “The move says to me founders Larry Page and Sergey Brin control this company and if you don’t like that as a shareholder you can only vote with your feet,” says top BGC analyst Colin Gillis on Fast Money." “I don’t know why they just don’t take the company private,” adds the obviously aggravated trader Mike Murphy. “If I were a shareholder — this would be my exit point.”

GOOGLE INVESTORS: NOT DIVIDEND WE WANTED/CNBC - Bob Pisani: "In response to demands that the company pay a dividend, Google. In a long "2012 Founders' Letter", Larry Page and Sergey Brin blunted stated that the dual-class voting structure they have had from the beginning was designed to "make it harder for outside parties to take over or influence Google." But they have been concerned about dilution from equity-based employee compensation and other forms of dilution, so they are announcing plans to create a new class of non-voting capital stock, which will be listed on NASDAQ."

GOOGLE FOUNDERS GET OUT THE VOTE/WSJ - Rolfe Winkler: “Google founders Larry Page and Sergey Brin have decided to change the company's share structure to, in effect, consolidate their control. That is the idea behind the company's proposed stock split, which will grant investors a share of non-voting stock for every A or B share they currently own. Messrs. Page and Brin will be able to use this new class of "C" shares for "corporate uses" like employee stock compensation as well as acquisitions. But that won't dilute their control, through super-voting B shares, which along with Executive Chairman Eric Schmidt stood at 66% at the end of last year.”

BEST BUY PROBES CEO RELATIONSHIP/WSJ - Miguel Bustillo, Joann S. Lublin and Ann Zimmerman: "Best BuyCo.'s investigation into the personal conduct of former Chief Executive Brian Dunn is exploring whether he misused company assets in the course of an alleged relationship with a female subordinate, people familiar with the matter said. The electronics retailer declined to discuss any details of its continuing investigation Thursday, saying it planned a full airing of its findings once the inquiry by the board's audit committee is complete. It declined to disclose whether the woman, a 29-year-old who worked in a leadership training institute at the company's Richfield, Minn., headquarters, was still employed by the company, or to detail her exact duties. As of Thursday, her Facebook page still listed her as a member of the company network."

‘SHOVE IT’ INDICATOR: MORE PEOPLE NOW QUIT THAN GET FIRED/CNBC - John Melloy: "The number of people quitting their jobs in February outnumbered the amount of workers that were laid off by companies for the first time since this economic recovery began, a sign that consumer confidence may be higher than investors currently believe."

BRIGHTSOURCE CANCELS IPO; COULD HIT GREEN TECH OUTLOOK/Investor's Business Daily - Brian Deagon: "The bankruptcy of solar energy firm Solyndra seven months ago and the negative press that followed helped fuel Thursday's cancellation of an initial public offering of BrightSource Energy — and put other cleantech IPOs in doubt. So says Sheeraz Haji, CEO of research firm Cleantech Group, and Francis Gaskins, founder of research firm "It has hurt in a significant way," Haji said. "Investors lost a lot of money in Solyndra. Along with the political environment, it's created an aversion to solar that's difficult to overcome."

VIDEO GAME SALES CONTINUE SLIDE IN MARCH/LA Times – Ben Fritz: “March was another brutal month for sales of video game discs and consoles as total revenue dropped 25% in the U.S. from the same month last year, according to research firm NPD Group. It was the fourth straight month that video game industry sales have dropped and comes after revenue fell 8% in 2011. However, the data include only sales of physical games and consoles and excludes the fast-growing but still smaller market for digital downloads, social and mobile video games.”

Tonight's Tweet

@HarvardBiz: The expression "supply and demand" was first coined as "demand and supply"


Google - The search-engine giant reported first-quarter earnings of $10.08 a share, outstripping expectations for $9.65 a share. Meanwhile, revenue was in line with estimates at $8.14 billion, according to a consensus estimate from Thomson Reuters. The company also announced plans to create a new class of non-voting capital stock, which will be listed on the Nasdaq. The shares will be distributed via a stock dividend to all existing stockholders.

Coinstar — The firm boosted its first-quarter outlook on strong demand at its Redbox DVD rental kiosks. Shares soared almost 20 percent following the news.

Dow Chemical — The firm boosted its quarterly dividend by 28 percent to $0.32 from $0.25.

Click herefor more movers.

Tomorrow's Economic Data

830 Mar CPI

955 Apr(pre) Consumer sentiment

Tomorrow's Earnings

Before the bell:

JPMorgan Chase (approx. 7a), Wells Fargo (approx. 8a)

Infosys (430a cc, 830a cc), Shaw Comm. (11a cc)

Tomorrow On CNBC

700am ET, Squawk Box — Anne Mulcahy, Fmr. Xerox Chairman & CEO, Guest Host 7-9a

730am ET, Squawk Box — Sen. Bob Corker, (R) Tennessee, Senate Banking Committee Member

200pm ET, Street Signs — Donald Straszheim, ISI Group, Senior Managing Director

315pm ET, Closing Bell — Timothy Sloan, Wells Fargo, CFO

400pm ET, Closing Bell — Henry McVey, KKR & Co., Head of Global Macro & Asset Allocation

Follow Tom Rotunno on Twitter: @tomrotunno

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