Last Call: RIM Keeps Playing Through the Heavy Stuff

RIM Headquarters
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RIM Headquarters

Golfer: Nice shot, Bishop. You must have made a deal with the devil!

Bishop: You know, theoretically, I could break the Club record.

Golfer: You better come in until this blows over.

Bishop: So what do you think?

Carl: I'd keep playing. I don't think the heavy stuff will come down for a while.

— RIM warns of a Q1 loss & hires bankers to review “options”, but says the Blackberry 10 is still on schedule.

Robert Hum’s Market Musings

  • Strong start to week as major averages rise 1 percent
  • S&P 500 rises for the 5th time over last 6 days
  • Dow up for just the 5th time this month
  • Stocks still on pace for worst month since September
  • Euro below $1.25, hovers at a 2-year low

Bonus Musing: Since its first close of $38.23, Facebook shares are down 24%. In that time, no stock on the Dow Industrials, S&P 500 or Nasdaq 100 has performed more poorly since then. Since the close on May 18 (Facebook’s first trading day). the worst performer in the Dow is Pfizer (down 1.8%) and the worst performer in both the S&P 500 and Nasdaq 100 is Dell (down 13.94%).

What Wall St. Is Talking About Tonight

FACEBOOK FACES EXTENDED U.S. REVIEW OF INSTAGRAM DEAL/Reuters – Diane Bartz: “Facebook has received notice that U.S. antitrust regulators will give its proposed purchase of the popular photo-sharing app maker Instagram a lengthy investigation, an industry source told Reuters on Tuesday. Facebook has received a "second request" from the Federal Trade Commission, essentially a request for relatively large amounts of faces extended U.S. review of Instagram deal.”

GROUPON ACQUIRES BREADCRUMB TO MAKE REDEEMING DEALS ON THE IPAD EASIER/All Things D – Tricia Duryee: “Groupon has acquired Breadcrumb, a small company that was building a point-of-sale solution for the iPad. … This is more than an “acqhire” because Breadcrumb will continue to serve new and existing clients. Also, Groupon said merchants using Breadcrumb will be able to significantly improve the process of redeeming a Groupon.”

SALESFORCE SET TO SNAP UP FACEBOOK FRIEND BUDDY MEDIA FOR MORE THAN $800 MILLION/All Things D – Peter Kafka: “Enterprise, meet social: Cloud-computing pioneer is close to a deal to acquire Buddy Media, the five-year-old company that helps brands manage their Facebook presence. Sources say the two companies have agreed to terms that will value Buddy Media at more than $800 million, but that the transaction hasn’t closed yet. People familiar with the deal say Buddy Media chose Salesforce’s offer over a competitive bid from Google. Both Buddy Media and reps declined to comment.”

ECB REJECTS SPAIN’S BANKIA RECAP PLAN: FT/Marketwatch – Wallace Witkowski: “Spain will have to come up with another plan to recapitalize Bankia SA after the European Central Bank reportedly torpedoed a proposal to use government debt. The ECB said Spain’s plan to use 19 billion euros ($24 billion) in sovereign bonds to recapitalize the bank was in danger of violating a ban forbidding the central bank to finance governments, the Financial Times reported in its online edition late Tuesday, citing European officials.”

ROCKEFELLERS AND ROTHSCHILDS UNITE/FT - Daniel Schafer: “Two of the best-known business dynasties in Europe and the US will come together after Lord Jacob Rothschild’s listed investment trust and Rockefeller Financial Services agreed to form a strategic partnership. RIT Capital Partners is to buy a 37 per cent stake in the Rockefeller’s wealth advisory and asset management group for an undisclosed sum, giving Lord Rothschild’s London-listed trust a much sought-after foothold in the US.”

BIG SPENDERS PUSH AD LINE, BUT FACEBOOK HOLDS GROUND/Ad Age – Cotton Delo: “GM wanted to brand Facebook. And Facebook wasn't selling. In a now-notorious meeting between General Motors Global CMO Joel Ewanick and other top marketing brass and Facebook sales executives, the automaker's team asked whether it was possible to run bigger, higher-impact ad units than the current offering, according to people familiar with the discussion. Advertising on Facebook has always been subtle. But GM wanted to do something bigger. To GM, Facebook's audience was interesting; its ad formats were not.”

Tomorrow’s Economic Data

1000AM ET Apr Pending Home sales

Tomorrow’s Earnings

Before the bell:

Booz Allen Hamilton, Fresh Market

After the bell:

Lions Gate, TiVo

Tomorrow’s Guests

Marc Lasry, Avenue Capital CEO (700a)

Lawrence Bossidy, Fmr Honeywell CEO (700a)

Thomas Stemberg, Highland Consumer Funds Managing General Partner (730a)

Thomas Hoenig, Fmr. Federal Reserve Bank of Kansas City CEO (800a)

Bruce Bartlett, Fmr Deputy Assistant Secretary for Economic Policy (815a)

Shawn Matthews, Cantor Fitzgerald CEO (1000a)

Peter Cohen, Cowen Group CEO (1100a)

Jeffrey Solomon, Cowen & Company CEO (1100a)

Bill Gurley, Benchmark Capital General Partner (1210p)

Danielle Hughes, Divine Capital CEO (100p)

Darren Julien, Julien's Auctions President (130p)

Anthony Chan, JPMorgan Private Wealth Management Chief Economist (330p)

Mark Jordahl, US Bancorp Wealth Management President (400p)

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