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Jabil shares volatile on weak fourth-quarter outlook

Shares of Jabil Circuit Inc. were volatile in Wednesday’s extended session after the Apple supplier released a weak outlook for the fourth quarter. Jabil reported its third-quarter earnings shrank to $5.8 million, or 3 cents a share, from $72.4 million, or 37 cents a share, a year earlier. The tech products maker earned 17 cents a share, excluding charges. Revenue slipped to $4.3 billion from $4.36 billion. Analysts surveyed by FactSet had forecast earnings of 16 cents a share on revenue of $4.18 billion. In the fourth quarter, Jabil expects adjusted EPS of 15 cents to 35 cents and revenue of $4.15 billion to $4.35 billion. That is significantly below Wall Street’s EPS forecast of 53 cents and $4.66 billion revenue. Separately, the company also said it will buy back up to $400 million in shares. Jabil shares were most recently down 0.1%.

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FireEye jumps after report of acquisition attempts

FireEye Inc. stock suddenly jumped more than 4% Wednesday afternoon following a Bloomberg News report of acquisition interest in the company. The security company, previously rumored to be a target for Cisco Systems Inc. , rebuffed interest from multiple suitors earlier this year after hiring Morgan Stanley to gauge interest, anonymous sources told Bloomberg. The only company named in the report was Symantec Corp., a legacy security company that has struggled to keep up with next-generation competitors like FireEye. Symantec announced the $4.7 billion acquisition of Blue Coat Inc. earlier this week in an effort to boost its offerings. After Symantec’s attempt was dropped in February, FireEye negotiated with an unnamed potential buyer well into March before calling an end to those talks and dropping the sale process, Bloomberg reported. FireEye announced in May that Chief Executive David DeWalt would move to an executive chairman role and cede his CEO role to Kevin Mandia. Shares jumped from about $15.60 to more than $16 immediately after the report was published slightly before 3 p.m. Eastern time Wednesday; Bloomberg reported that FireEye was seeking $30 or more per share in a potential merger.

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Oil futures settle lower for a fifth-straight session

Oil futures fell on Wednesday as economic uncertainty raised concerns over energy demand ahead of the U.K. referendum next week. Prices failed to get much of a boost from a weekly decline in U.S. crude supplies and the Federal Reserve’s decision to stand pat on interest rates. July WTI crude settled at $48.01 a barrel on the New York Mercantile Exchange, down 48 cents, or 1%, for the session.

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Chase a Strong Jumbo Originator

A new report highlights JPMorgan Chase Bank, N.A.’s, strength in originating prime jumbo home loans, though there is some room for improvement.

During the past five years, the residential origination division of the New York-based company has originated more than 90,000 prime jumbo mortgages.

The jumbo loans were either originated through the retail/consumer-direct channel or acquired through financial institution’s correspondent channel.

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SEC charges hedge fund managers and former FDA official in insider-trading scheme

The Securities and Exchange Commission filed insider-trading charges on Wednesday against Sanjay Valvani and Christopher Plaford, portfolio managers at Visium Asset Management, and their alleged source Gordon Johnston, a former deputy director of the United States Food and Drug Administration’s Office of Generic Drugs. Johnston concealed a paid role as a consultant to the hedge fund and obtained confidential information about anticipated FDA approvals for companies to produce enoxaparin, a generic drug that helps prevent the formation of blood clots, according to the SEC’s complaint. Valvani allegedly traded in advance of public announcements concerning FDA approvals for companies such as Momenta Pharmaceuticals , Watson Pharmaceuticals , and Amphastar Pharmaceuticals and tipped off Plaford. Valvani allegedly earned nearly $32 million in unlawful profits and Plaford allegedly made approximately $300,000. In a separate complaint, the SEC charged another manager at Visium Asset management, Stefan Lumiere, with perpetrating a fraudulent scheme to falsely inflate the value of securities held by a hedge fund advised by the firm. The fund reported artificially inflated returns and monthly net asset values, which resulted in more than $5.9 million in inflated management and performance fees being paid to its investment adviser. The U.S. Attorney’s Office for the Southern District of New York filed parallel criminal charges on Wednesday against Valvani, Johnston, Lumiere, and Plaford.

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