S&P 500 Week in Review: Morgan Stanley and eBay Earnings, Sears Holdings Rumors Scare Shorts
The S&P 500 (NYSEARCA:SPY) finished the week trading up 2% to 1,315. Here are the hot stocks that moved on big news:
Morgan Stanley (NYSE:MS) losses were lower than expected, so financials rallied. The Q4 earnings per share came in at -$0.14, instead of -$0.62 as the consensus expected. Investment bank revenues are 40% down year over year. Executive compensation is down only 6%.
Boeing (NYSE:BA): The government approved Boeing as the company to launch two more Wideband Global SATCOM satellites, as part of a $1 billion contract modification.
Netflix (NASDAQ:NFLX): The SOPA legislation pits the New Media of Facebook and Google and Netflix against traditional, Old Media. Netflix has a lot at stake in the outcome of the legislation, and shares popped after legislators decided to take more time to consider the issue.
Union Pacific (NYSE:UNP): All aboard. Union Pacific’s profits jumped more than the 24% than expected and Q4 earnings beat across the board. Increased freight offset higher fuel costs. Looks like the Oracle of Omaha may prove to be right about railroads.
eBay (NASDAQ:EBAY) earnings beat expectations, and eBay is up as a result. But Normura, for one, is not changing its rating of eBay as its volume forecast came in lower than expected. The firm also doesn’t expect Marketplaces’ access to be sustained.
D.R. Horton Inc. (NYSE:DHI): Just when you thought it was safe to consider housing stocks again, housing starts fell by 4.1%. That killed all the momentum that had been generated for the housing sector. D.R. Horton has now been moved by a few analysts from Buy to Neutral.
The Mosaic Company (NYSE:MOS): Susquehanna said the recent volume shortfalls in the fertilizer space should reverse in the spring citing potential for increased plantings due to higher corn exports, the plunge in natural gas prices bringing down production costs, and a tighter supply/demand balance for potash. The firm maintains its Positive rating on Mosaic. The stock has been on an upswing since mid-December.
Hudson City Bancorp (NASDAQ:HCBK) is set to announce their earnings on Wednesday, January 25th. The consensus has continued to sour for the bank, but investors were placing bullish bets to close the week.
Sears Holdings Corporation (NASDAQ:SHLD) shares were climbing on rumors the embattled retailer will be taken private by Eddie Lampert. At the very least, it’s scaring shorts to close their positions.
SunTrust Banks Inc. (NYSE:STI) Q4 profit was held down by $636 million in mortgage repurchase demands, a 45% jump. The bank confirms it is involved in Attorney General settlement talks, but they didn’t book a charge. Sanford Bernstein’s analysts say the repurchase losses were higher than expected, but they are manageable and the results are solid.
Advanced Micro Devices (NYSE:AMD) appears to be following Intel’s lead once again: the chipmaker will reportedly respond to Intel’s much-hyped ultra book initiative by rolling out its own ultra book type platform, called Ultrathin, in May. AMD claims Ultrathin systems, which will be based on its upcoming trinity processors, will cost $100-$200 less than ultra books.
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