In the news for Tuesday: Walgreen beats earnings estimates, Walmart is opening two new fulfillment centers for online orders, Wells Fargo settles mortgage-quality issues with Freddie Mac, a JP Morgan insider is reportedly helping the Justice Department in a probe of the megabank and Google is close to reaching an anti-trust settlement with European Union regulators.
Drug-store chain Walgreen (WAG) reported earnings of 69 cents per share, or 73 cents on an adjusted basis for its fourth fiscal quarter. Revenue was $17.94 billion. Analysts had expected the company to earn 72 cents per share on $17.95 billion in revenue.
Mega retailer Walmart (WMT) plans to open two new distribution centers to fill online orders. The centers, in Forth Worth, Texas and Bethlehem, Pa., are a response to the company's rapidly growing online business and will help with a broad expansion of product offerings. The Texas center opened shipping orders last week while the Pennsylvania facility will open during the company's first fiscal quarter.
Banking giant Wells Fargo (WFC) will pay $780 million in cash to resolve claims related to mortgages the bank sold to Freddie Mac in the run-up to the financial crisis. The settlement should remove most of the repurchase liabilities Wells was facing with regard to loans sold to Freddie Mac.
The Wall Street Journal is reporting this morning that an insider at JP Morgan (JPM) is helping the Justice Department with its investigation into the bank's sale of mortgage-backed securities. The cooperating person has reportedly provided evidence, including emails, that indicate the bank overstate the quality of mortgages it packaged and sold. It is not clear whether or not the source is still employed at the bank.
Search engine giant Google (GOOG) is reportedly close to an anti-trust settlement with the European Union. Joaquin Almunia, the EU's competition chief,said the company has offered a set of concessions that address accusations that it unfairly uses its search service to promote other Google services. Almunia believes a settlement is a better outcome for consumers than a formal legal proceeding and potential fine.