S&P 500 Week in Review: Netflix Draws Investing Demand, E-Trade Under Pressure

Monday

Netflix (NASDAQ:NFLX) was hit hard pre-market by Wedbush’s lack of confidence. Wedbush believes that Q1 earnings will be poor, and 2012 consensus estimates ill drop a buck a share. Piper Jaffray, for what it’s worth, is optimistic about Netflix, as they think the customer base will stabilize and ultimately grow again.

Don’t Miss: Netflix’s Streaming Service Comes Up Short for Movie Buffs.

Halliburton’s (NYSE:HAL) results came in this morning, and although EPS and revenues beat estimates, the higher expectations of the market were not met. Interesting tidbit: unconventional oil drilling has twice as much activity as unconventional gas drilling.

Amgen (NASDAQ:AMGN): The entire pharmaceutical sector is being downgraded, and Amgen is no exception. Its stock has been downgraded to underweight by JP Morgan.

Earnings Report: PetMed Express Inc. Earnings: Shrinking Margins for Fifth Consecutive Quarter, Net Income Falls.

Sears Holdings Corporation (NASDAQ:SHLD): The performance of this stock has been remarkable: up 69% year to date, the stock jumped by 8% before coming down close to where it started at the beginning of trading. Some believe Sears is now in a classic short squeeze.

Southwestern Energy Co. (NYSE:SWN) popped along with other natural gas producers because the spike of prices and Chesapeake’s planned cuts in production.

Chesapeake Energy Corporation (NYSE:CHK): After sinking overnight to $2.20, natural gas futures jumped 6.4% in a matter of minutes. Apparently there were too many short-sellers in the natural gas market, and the market has taken care of them for the time being.

Tuesday

Zions Bancorporation (NASDAQ:ZION) 4Q report was disappointing, primarily because loan volume is so sluggish. CEO Harris Simmons says that stabilizing loan prices will improve results for the company in 2012. Zion is down 7.39%.

Don’t Miss: Is This the Secret Wall Street Fraternity that Rules the World?

Alpha Natural Resources (NYSE:ANR): Peabody Energy (NYSE:BTU) readjusted their results, and it has sent the entire energy sector down. A recent Motley Fool article pointed out that while 2011 was a miserable year for this coal giant, ANR is uniquely positioned to price coal for the ever-increasing consumption of electricity and steel in China and India.

CSX (NYSE:CSX) Q4 report came in at the end of trading yesterday, and the market has responded with a sharp drop at the beginning of trading. Revenue is flat, and more ominously, margins turned negative for the first time since 2009.

Earnings Report: NextEra Energy Inc. Fourth Quarter Earnings Sneak Peek.

Waters Corp. (NYSE:WAT): On a day when earnings largely disappointed, Waters has bucked the trend. EPS were $1.56 per share, six cents higher than expected. Growth in international markets was offset by instability in the foreign currency markets.

Investing Insights: Microsoft and Verizon Shares Pullback Among High Volume Stocks Jan. 24th.

Coach’s (NYSE:COH) direct sales to consumers increased by 17% to $1.2 billion. Sales in China remain torrid. Coach’s F2 report can’t help but impress.

Western Digital (NYSE:WDC): Needham’s Richard Kugele has converted WDC to Buy status. He believes any damage from the Thai flooding has been contained, and the purchase of Hitachi’s storage division will go through. The company’s guidance on FQ2 earnings also painted a rosy picture for FQ3 earnings.

Don’t Miss: IFPI Says Digital Music Growth Up 8% Globally.

Wednesday

Textron Inc. (NYSE:TXT) is up big after a very positive Q4 report. The firm expects an EPS between $1.80 and $2.00 for the year, as opposed to the $1.66 consensus. The company expects most of its 2012 growth to come from Bell and Cessna.

CA (NASDAQ:CA) EPS for its FQ3 report came in at $0.65, which was 11 cents above the consensus. The company announced plans to increase its dividend from 20 cents a share to $1 a share by 2014.

Apple (NASDAQ:AAPL) continues to inspire superlatives with its earning results. Apple is once again the biggest company in the world based on market capitalization, edging out Exxon Mobil. One way of looking at Apple is that Jobs’ vision of integrated products with both elegant function and form was finally fulfilled, as technology finally caught up to this vision. Hudson has set a price target of $700, and if Apple TV delivers the goods, who knows?

Investing Insights: Piper Jaffray: Apple Should Trade Above $600 a Share

Xerox (NYSE:XRX): Ouch. Q4 results were in line with expectations, but Q1 2012 is supposed to be affected by servicing business costs. Specifically, CEO Ursula Burns says servicing new businesses “put near-term pressure on gross margins as Xerox makes initial investments to implement new contracts.” The market response has been brutal.

Don’t Miss: Apple-nomics Trickles Down to Suppliers.

Corning (NYSE:GLF): Earnings have come in for Corning, and it isn’t pretty: sales are down 9% quarter over quarter. Corning has been hurt by the steep drop in the price of glass, with now growth in the core display glass business and no end in sight.

TE Connectivity Inc. (NYSE:TEL): Both earnings and guidance from TE Connectivity were negative, and the company said FQ2 would look like FQ1. TE has been experiencing lower demand across their product line.

Thursday

Netflix (NASDAQ:NFLX): Boom goes the dynamite. The Q4 results shows the customer base stabilizing after the Quickster debacle. Even better, video streaming customers are way up, which bodes well for Netflix’s future. Some analysts remain skeptical about Netflix’s ability to withstand future competitors like Amazon.

J.C. Penney (NYSE:JCP): The more CEO Rob Johnson lays out his plans for J.C. Penney, the higher the stock goes. The company projected 2012 EPS to be better than 2010. The company will seek predictability in pricing, with less sales, which is a good strategy in and of itself in fostering customer loyalty.

LSI Corporation (NYSE:LSI) beat the consensus estimate by 3 cents. What really helps LSI today is the company’s guidance for FQ1. Avian has moved LSI into positive status, and Think Equity set the new price target at $10.

Don’t Miss: JC Penney Reinventing Itself in Apple’s Image?

E-Trade (NASDAQ:ETFC) experienced unexpected losses in the 4th quarter, and that’s why the stock is the worst performer on the S&P Board. To add salt to the wound, Goldman Sachs downgraded E-Trade from Buy to Neutral.

Don’t Miss: Stocks Move Within Shooting Distance of Previous Highs.

SanDisk (NASDAQ:SNDK) Q4 results were so disappointing, it brought the entire tech sector down today. SanDisk’s 2012 revenue forecast was below the consensus.

Zion Bancorporation (NASDAQ:ZION): It appears that the housing crisis is as intractable as ever, as 2011 was the worst year for home sales…ever. Lenders like Zion were badly hit on the news, and that stock was already reeling from poor earnings and tepid loan volume this week.

To contact the reporter on this story: Scott Gillette at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com