Last Call: Monster Mashed

Cans of Monster Beverage Corp. energy drinks are arranged for a photograph in San Francisco, California, U.S., on Monday, April 30, 2012. Monster Beverage Corp. surged the most in almost eight years after the Wall Street Journal reported Coca-Cola Co. is in talks to buy the maker of energy drinks.
Bloomberg via Getty Images
Cans of Monster Beverage Corp. energy drinks are arranged for a photograph in San Francisco, California, U.S., on Monday, April 30, 2012. Monster Beverage Corp. surged the most in almost eight years after the Wall Street Journal reported Coca-Cola Co. is in talks to buy the maker of energy drinks.

From my laboratory in the castle east
To the master bedroom where the vampires feast
The ghouls all came from their humble abodes
To get a jolt from my electrodes

- “Monster Mash”, Bobby Pickett

— Below, Monster Beverage is mashed after an earnings miss

Market Musings With CNBC Market Guru Robert Hum

  • Recap: Dow +7.04 (+0.05%) at 13175.64, S&P +0.87 (+0.06%) at 1402.22, Nasdaq -4.61 (-0.15%) at 3011.25
  • Little direction for stocks as major averages teeter between gains and losses for most of the day
  • Dow, S&P 500 up for 4th day in a row
  • Oil reversal: crude oil can’t hold 3-month high, settles lower
  • 10-year note yield hits over 1-month high after disappointing Treasury auction

Bonus Musing:

  • Worst Dow stocks from Dow's May 1 high through July 31: Hewlett-Packard and Cisco Systems – both were down over 20%
  • Best Dow stocks this month: Hewlett-Packard and Cisco Systems – both are up more than 6% month-to-date

The Word on the Street Tonight

Monster Beverage Gets Cheaper But Loses Glow/WSJ – Paul Ziobro & David Benoit: “Monster Beverage shares were getting punished after the energy-drink maker’s sales and earnings miss estimates, stoking fears that the high-flying company’s best-growth days are in the rearview mirror. The stock dropped 13% to $59 in after-hours trading, which would be the lowest point they’ve traded since March.”

News Corp Earnings Match Forecast; Revenue Misses/ w/ Reuters: “News Corp reported quarterly earnings that matched Wall Street's expectations but its revenue felt shy of what analysts had been expecting on Wednesday. After the earnings announcement, the company's shares fell in after-hours trading.”

Zynga's Chief Operating Officer Quits After Demotion/Reuters: “Zynga's chief operating officer John Schappert has resigned, the company said on Wednesday, days after announcing the former Electronic Arts executive will no longer oversee gaming development. The social gaming company behind “FarmVille,” and one of several Internet start-ups that debuted with fanfare in late 2011, shuffled its top management ranks this month as its stock continued to slide.”

Ex-UBS Traders Offered Deal by U.S. in Rate Probe/WSJ – Jean Eaglesham & Joe Palazzolo: “U.S. prosecutors have agreed to shield several former UBS AG employees from criminal charges in return for their cooperation with the escalating investigation of suspected interest-rate manipulation, according to a person close to the probe. The leniency deal was offered to former traders and other employees who had relatively junior-level jobs at the Swiss bank, the person said.”

Borrowing from Google, Yahoo CEO Begins Makeover/WSJ - Amir Efrati: “Yahoo Inc.'s rookie chief executive Marissa Mayer has made one thing clear to employees at the outset of her bid to revive the Internet company: Product comes first. Since taking over Yahoo three weeks ago, the former Google Inc. executive has talked with Yahoo's product leaders about how to reverse the declining usage of the company's search and email service, said people with knowledge of the matter.”

Standard Chartered begins fightback on Iran allegations/Reuters: Lesley Wroughton & Steve Slater: “Cowboy local regulator or the exposer of lax federal bureaucrats? That's the key question being asked about New York banking regulator Benjamin Lawsky after his explosive charge that London's Standard Chartered bank abetted $250 billion of money-laundering transactions with Iran. Standard Chartered won help Wednesday from Britain's central bank governor, who portrayed Lawsky as marching to his own tune, and marching out of step with federal regulators in Washington. "One regulator, but not the others, has gone public while the investigation is still going on," the Bank of England's Mervyn King said at a news conference in London.”

Traders Watch to See If 'Most Hated Rally' Can Get Lift Off From 1,400/CNBC – Patti Domm: “Traders are watching to see if the S&P 500 can break meaningfully above 1,400, a three-month high water mark for the stock market, which could help propel it toward a new high for the year.”

Now, It Is Man vs. Machine/WSJ – Aaron Lucchetti & Brett Philbin: “In a move to repair its flagging bond-trading business, Morgan Stanley is scrambling to replace some of its well-paid bond traders with computers. The New York company is hiring programmers and technology specialists to help it trade bonds electronically and handle client orders in the hope of exploiting an expected shift in the way bonds and other fixed income products are traded. While the effort represents only a part of what the firm is doing to boost low returns in the business, the shift already has reduced the ranks of interest-rate and foreign-exchange traders on some desks by 10% to 20%."

Economic Data

830am et Initial Claims

830am et Jun International Trade

1000am et Jun Wholesale Inventories

1300pm et 30-Yr Bond Auction

1630pm et Fed Balance Sheet

1630pm et Money Supply


Before the Bell:

Advanced Auto Parts, Canadian Natl. Resources, Kohl's, Tim Hortons, Windstrea, AMC Networks

After the Bell:

Carefusion, Magna Intl., Nordstrom, Nvidia, Air Lease, DeVry, Lions Gate Ent., Scott's Miracle-Gro

Key Guests

John Woods, Citi Private Bank, Chief Investment Strategist, (4am)

Peter Moore, Electronic Arts, COO (5:14am)

David Rosenberg, Gluskin Sheff + Associates, Chief Economist (6:15am)

Shannon Miller, Former Olympian, (6:50am)

Barry Knapp, Barclays, Head of U.S. Equity Portfolio Strategy (7am)

Denise Shull, TraderPsyches, Founder (7:40am)

John Paul Dejoria, Co-founder Paul Mitchell, Patron Spirits, (8am)

John Engler, Business Roundtable, President (8:15am)

Douglas Bergeron, Verifone, Chairman & CEO(9am)

Paul Palmieri, Milennial Media, President, CEO & co-Founder (9:40am)

Deborah Weinswig, Citi Investment Research, Retail Analyst (10am)

Richard Sandor, Chicago Climate Exchange, Chairman & CEO (11:20am)

Jim McCaughan, Principal Global Investors, CEO (12pm)

David Menlow, President (12:30pm)

Bart Chilton, CFTC Commissioner, (1pm)

Robert Olstein, Olstein All Cap Value Fund, Pres & CIO (2pm)

Michael Gibbs, Raymond James, Senior Vice President, (3pm)

Scott Wren, Wells Fargo Advisors, Senior Equity Strategist, (4pm)

Follow Tom Rotunno on Twitter: @tomrotunno

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