Among the companies whose shares are expected to actively trade in Friday's session are J.P. Morgan Chase & Co. (JPM), Royal Bank of Scotland (RBS), and ING Groep NV (ING, INGA.AE).
J.P. Morgan's fourth-quarter earnings fell 23% as revenue from its investment banking arm declined. As the first major bank to report for the fourth quarter, J.P. Morgan's results offer a glimpse into what is largely expected to again be a bleak quarter for the nation's largest financial institutions. Revenue at the bank missed expectations, and shares slipped 2.5% to $35.93 in premarket trading.
As thousands of employees at Royal Bank of Scotland's investment bank are told that their job has been put at risk--as part of a large-scale restructuring announced Thursday morning--nine senior directors will be keeping one eye on the troubled U.K. bank's share price. Should the bank--which is majority-owned by the U.K. taxpayer--be able to hit analyst expectations and increase its share price by 50% by the end of the year, the nine directors could stand to gain more than GBP20 million, according to analysis by Financial News. Shares were up 3.4% to $7.41 premarket.
Dutch financial services company ING Groep may sell more of its banking assets if it is to repay the state aid it received during the financial crisis, Chief Executive Jan Hommen said Friday. ING Groep also said it will take more time to repay state aid as it seeks to protect its capital base amid current market turmoil and, in another sign of worsening conditions, scaled down the financial targets for its banking unit. The Amsterdam-based group, which previously aimed to return the state funds by May, said it may now repay the money in 2013. SNS Securities feels comfortable with its buy rating on ING Groep as in the brokerage's view, the fundamental attractiveness of the share will remain in the medium term, it says. However, news that the company would postpone the repayment of state aid is disappointing, the brokerage says. Shares fell 2.8% to $7.77 in premarket trading.
Slot-machine maker International Game Technology (IGT) confirmed plans to acquire social-media developer Double Down Interactive LLC for up to $500 million, placing another big bet on the future revenue potential of online gamers. Shares edged slightly higher 0.3% to $17.84 in premarket trading.
Metabolix Inc. (MBLX) announced that Archer Daniels Midland Co. (ADM) was terminating its Telles joint venture with the bio-science company. Shares plunged 48% to $3.10 in premarket trading.
After surging in the first half of the week, Thursday's decline in Eastman Kodak Co. (EK) shares is picking up steam premarket as Bloomberg reports the imaging company "is in advanced discussions" with Citi (C) to provide bankruptcy financing, citing people familiar with the matter. Eastman Kodak may seek bankruptcy protection "within weeks" and then sell its patent portfolio at auction, Bloomberg reports. The added detail to last week's Wall Street Journal reporting about a possible filing has investors jittery anew. Shares declined 27% to $0.49 premarket.
Shutterfly Inc. (SFLY) said its financial chief was departing to "pursue a personal passion" with a medical technology company, saying its chief executive and top accounting executive would split his duties until it names a successor. The pending departure is another reason to be skittish about the online-photo company at the moment, says Roth Capital. It contends the move will pressure shares "near-term and give investors pause in regards to the duration of the enhanced competitive environment the company began experiencing" in the fourth quarter. Last month, the company cut guidance as it blamed heavy competitor discounting to contributing to a revenue shortfall. Meanwhile, Janney highlights the potential of "even more-conservative guidance" from Shutterfly. Shares fell 9% to $21.90 premarket.
Cardica Inc. (CRDC) suspended enrollment in a European clinical trial of its MicroCutter Xpress 30 surgical cutting device because in a subset of uses it didn't perform satisfactory in thicker tissue.
CPI Corp. (CPY) said its same-store holiday sales sank amid weakness in its PictureMe Portrait Studio and Sears Portrait Studio brands. The company runs about 3,000 portrait photography studios, with most of its locations in Sears Holdings Corp. (SHLD) and Wal-Mart Stores Inc. (WMT) stores. Sears last month said it plans to close about 100 stores in a bid to revitalize its business and reduce expenses.
Denbury Resources Inc. (DNR) agreed to sell some of its Gulf Coast-area property to privately held producer Petro Harvester Oil and Gas for $155 million, continuing its plan to shed noncore assets this year.
Standard & Poor's Ratings Services upgraded Enterprise Products Partners LP's (EPD) investment-grade ratings by a notch, citing the pipeline company's increased scale and diversity and its high proportion of fee-based revenue.
Genesee & Wyoming Inc.'s (GWR) fourth-quarter traffic rose 7.9%, though the railroad operator's December traffic edged up just 0.6% as the company continued to report fewer coal shipments.
JDA Software Group Inc. (JDAS) issued a cautious fourth-quarter revenue view Thursday as the supply-chain company's software and subscription revenue declined in the Americas.
New York & Co. (NWY) expects to post a fourth-quarter loss amid a bigger-than-anticipated decline in same-store sales and weaker margins caused by significantly higher levels of promotions.
Moody's Investors Service and Standard & Poor's Ratings Services put Raymond James Financial Inc. (RJF) on review for possible downgrade after the wealth manager agreed to buy brokerage Morgan Keegan from Regions Financial Corp. (RF), citing worries about debt burden and integration risks. On Wednesday, Raymond James's bid to take over the regional brokerage succeeded over a competing offer from Stifel Financial Corp. (SF). Moody's said Thursday that the acquisition would increase Raymond James's debt burden and cash flow leverage, a departure from the firm's historic financial profile.
Thoratec Corp. (THOR) said Thursday it received a warning letter from U.S. drug regulators for filing two reports about California manufacturing plants late.
-Edited by Maya Pope-Chappell and Ian Thomson; write to firstname.lastname@example.org and email@example.com