PROACTIVE US NEWS SNAPSHOT: Wells Fargo, Chevron, Merck, Marriott, Supervalu, Boeing and others
Wells Fargo & Co. (NYSE:WFC) Thursday agreed to pay $125 million to settle an investigation into allagations of discrimination on the basis of race and national origin in its mortgage lending practices.
The settlement, which needs approval from a judge, would end the investigation into whether the fourth largest U.S. bank between 2004 and 2009 knowingly targeted minorities for risky mortgages that came with higher costs, according to documents filed in the U.S. District Court for the District of Columbia.
Oil major Chevron (NYSE:CVX) late Wednesday said it expects second quarter profits to be higher than they were in the first quarter, thanks to improved refining margins.
"Downstream earnings in the second quarter are expected to be significantly higher," the company said in a statement.
Magnum Hunter Resources (NYSE:MHR) provided Thursday an update on its shut-in production in the Appalachia region due to a severe thunderstorm that hit the area almost two weeks ago.
The Texas-based company said that loss of electricity in the region has resulted in it experiencing gas production curtailments at the tailgaite of its pipeline into Dominion Transmission at its Hastings processing facility located in Hastings, West Virginia.
Global healthcare company Merck & Co (NYSE:MRK) saw its shares rise Thursday, a day after reporting that its phase III trial for osteporosis drug odanacatib met primary efficacy outcomes at the first planned interim analysis, and is being concluded early.
The Data Monitoring Committee (DMC) completed the analysis and recommended that the study be closed early due to "robust efficacy and a favourable benefit-risk profile", the company said. Merck is now taking steps to close the trial.
Hotel operator Marriott International (NYSE:MAR) said late Wednesday that fiscal second-quarter earnings were in line with analyst expectations, though revenues fell.
The Bethesda, Maryland-based company runs and franchises hotels under 17 brands such as: Marriott Hotels & Resorts, The Ritz Carlton, Fairfield Inn & Suites, and has roughly 300,000 employees.
Grocery chain Supervalu’s (NYSE:SVU) stock nosedived in pre-market trade Thursday after the company reported a dismal first quarter profit well below analysts’ expectations and withdrew its prior full year forecast.
The company also suspended its dividend and launched a strategic review process.
Business software giant SAP AG (FFT:SAP, NYSE:SAP) reported its best ever second quarter, with software revenue rising 26 percent from the same period last year to €1.06 billion, driven by double digit growth in all regions where it operates.
Total revenue in the period, which adds software-related service revenue, rose 18 percent from the second quarter of 2011 to €3.9 billion.
Golf equipment maker Callaway Golf (NYSE:ELY) said late Wednesday that it plans to cut its workforce by 12% as it looks to streamline operations and focus on its core product lines.
Callaway now sees a full-year pro forma loss of 55 cents to 75 cents per share. In April, the company said it expected a "significant improvement" in 2012 from the year-earlier pro forma loss of 63 cents a share.
The Boeing Company (NYSE:BA) reported Thursday that United Air Lines, a subsidiary of United Continental Holdings (NYSE:UAL), has placed an "historic" order for 150 737 airplanes.
The order of 100 737 MAX 9 aircraft and 50 Next Generation 737 900ERs has a list price of $14.7 billion, and bringing the 737 family to over 10,000 orders overall.
Fastenal Co. (NASDAQ:FAST) said fiscal second-quarter earnings popped nearly 20 per cent on higher sales, though margins narrowed.
Catalyst Pharmaceutical Partners (NASDAQ:CPRX) said Thursday that it now expects to report "top-line data" from its phase II clinical trial for CPP-109, a treatment for cocaine addiction, earlier than previously anticipated.
IT services provider NetSol Technologies (NASDAQ:NTWK) increased its fourth quarter and full year financial guidance Thursday, causing shares to rise more than 13 per cent as the company said it expects its best quarter in company history amid a number of new contracts.
NetSol boosted its fourth quarter forecast for the three months that ended June 30, now anticipating revenue of roughly $11.6 to $12.6 million, compared to its previous expectation of $8.6 to $10.1 million.
