Big tech names set to report next week include Intel Corp and Yahoo Inc on Tuesday; The tech sector has the highest projected earnings growth rate among the 10 S&P sectors for the second quarter at 12.3 percent, its best quarter since the first quarter of 2012. Goldman Sachs analysts wrote in a note that the information technology sector "appears to be the most undervalued sector," giving investors more reasons to be bullish on tech stocks. The implied earnings-per-share growth for the tech sector has been 5.4 percentage points above the S&P 500 on average over the past 10 years, but it is now just 1.0 percentage point above the benchmark index, according to the Goldman Sachs note.
Swiss-based chocolate maker Lindt & Spruengli is in advanced discussions to acquire family-owned U.S. candy business Russell Stover, and the two companies could announce an agreement as early as next week, the Financial Times reported on Saturday. Russell Stover, known for its boxed chocolates, is the third-largest U.S. candy company by sales. Lindt is the Swiss-based maker of Lindor chocolate balls and gold foil-wrapped chocolate bunnies. A deal with Russell Stover would enable Lindt to diversify further beyond the European market, where it gets a big chunk of its revenues, and get a strong presence in the U.S. market.
(Reuters) - A debate is intensifying among the Federal Reserve's regional bank presidents about whether to push interest rates up from zero sooner than planned because of recent improvements in the U.S. job market, the Wall Street Journal reported. Most Fed officials at June's policy meeting didn't see rate increases until 2015, according to projections made before the Labor Department reported on July 3 that the jobless rate fell to 6.1 percent in June, the Journal said in an article posted late on Friday. Fed officials hadn't expected unemployment to fall to near 6.1 percent until the end of this year. "We have made more progress toward our unemployment goals than we would have thought" earlier this year, San Francisco Federal Reserve President John Williams told the Journal.
Phil Falcone's governmentPartners has filed suit against the U.S. government, accusing it of reneging on an agreement regarding bankrupt Harbinger-backed wireless company LightSquared LP, the Wall Street Journal reported. Harbinger, in a suit filed on Friday in the U.S. Court of Federal Claims in Washington, said global positioning systems companies unlawfully used spectrum owned by LightSquared, the Journal said. The GPS companies and advocacy groups warned that LightSquared's network could interfere with GPS. The U.S. Federal Communications Commission's decision in 2012 to heed those warnings and stop LightSquared from deploying its network was a breach of the regulatory agency's agreement to allow Harbinger to buy LightSquared, according to the lawsuit.