Ultimate Market Recap: Airline Shares Fly Higher, RealNetworks Sells Goods to Intel

Thursday Morning’s Top Stories

Shares of Netflix Inc. (NASDAQ:NFLX) jumped almost 20 percent in early trading.  The company reported positive earnings late Wednesday, as the company beat estimates on earnings and revenue. Citigroup (NYSE:C) now has a buy rating on the media company, with a price target of $130 per share. Shares of Amazon.com Inc. (NASDAQ:AMZN) andGoogle Inc. (NASDAQ:GOOG) edged slightly higher.

Jetblue Airways Corp. (NASDAQ:JBLU) shares increased 3.5 percent after announcing fourth quarter earnings. Net income almost tripled to $23 million (8 cents per share), compared to the prior year.  Analysts were only expecting earnings of 4 cents per share.  Shares of Southwest Airlines Co. (NYSE:LUV) also increased 1.4 percent.

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Time Warner Cable Inc. (NYSE:TWC) gained 4.5 percent after reporting a 44 percent jump in profits. The company is the second-biggest U.S. cable provider behind Comcast Corp. (NASDAQ:CMCSA).

ETrade Financial Corp. (NASDAQ:ETFC) dropped more than 8 percent this morning. Goldman Sachs (NYSE:GS) cut shares from a buy rating to neutral.  The Federal Reserve’s continuation of low interest rates are likely to pressure the firm’s net interest margins.  Shares of Charles Schwab Corp. (NYSE:SCHW) only fell .66 percent.

3M Co. (NYSE:MMM) shares gained 1.05 percent after the tech company reported a 2.8 percent increase in fourth quarter net income.  The company earned $954 million ($1.35 per share), compared to $928 million ($1.28 per share) in the prior year.

Shares of Caterpillar Inc. (NYSE:CAT) increased more than 4 percent after reporting a 60 percent surge on profits.  Fourth quarter profits came in at $1.55 billion ($2.25 per share).

Potash Corp. (NYSE:POT) shares bounced 1.15 percent, despite missing earnings. The company earned $683 million (78 cents per share), but estimates were 88 cents per share.  “We view the current year as the reverse of 2011, which started quickly but ended with weakened demand,” the company said in its earnings statement.

Nokia Corp. (NYSE:NOK) is shaking off a fourth quarter loss, as shares jumped 2.6 percent Thursday.  The company reported a loss of 1.07 billion euros, or .29 euro a share.

AT&T (NYSE:T) beat revenue estimates with the help of Apple’s (NASDAQ:AAPL) iPhone 4S. However, shares fell 2 percent in morning trading.  The company still reported a net loss of $6.7 billion for the quarter.  Shares of Verizon (NYSE:VZ) traded slightly higher on the news.

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Thursday Morning Hot Stocks

3M Company (NYSE:MMM): Says Electronics industry still adjusting inventories; toughest optical film comps in Q1. Says Western Europe continues to contract,China growth slower in 1H, re-accelerates in 2H. Estimating Q1 early retirement/restructuring costs of (4c) per share; reflected in EPS guidance. Says well positioned for a successful 2012. Comments from slides that will be presented on the Q4 earnings conference call. Shares of 3M Company are trading 1.17% higher today.

SanDisk Corporation (NASDAQ:SNDK): Morgan Stanley views SanDisk’s guidance as conservative and would use weakness as a buying opportunity. Shares are Overweight rated with a $70 price target. Shares of SanDisk Corporation are trading 10.21% lower today.

Symantec Corporation (NASDAQ:SYMC): CLSA downgraded Symantec citing headwinds from developed market PC weakness, FX, and competition. Price target lowered to $20 from $24. Shares of Symantec Corporation are trading 1.05% lower today.

Under Armour Inc (NYSE:UA): The company had seen 2012 revenue growth at the high-end of 20%-25% view. Shares of Under Armour Inc are trading 5.02% lower today.

Monster Worldwide, Inc. (NYSE:MWW): Sees Q1 revenue down 3%-7% compared to 1Q11′s $253M vs. consensus $262.41M. Shares of Monster Worldwide, Inc. are trading 17.37% lower today.

Thursday’s Trending Stocks

Time Warner Cable Inc. (NYSE:TWC): Netflix (NASDAQ:NFLX) is much more concerned about TV Everywhere (CMCSA, TWC) and similar services than over-the-top pure players like Amazon Prime (NASDAQ:AMZN) and Hulu Plus, according to a letter to shareholders sent following its Q4 earnings, reported The Next Web.  Shares of Time Warner Cable Inc. are trading 7.08% higher today.

Caterpillar Inc. (NYSE:CAT): The company said, “Prospects for economic growth have improved over the past quarter, and we expect the world economy to grow about 3.3% in 2012, a small improvement from about 2.8% in 2011. In response to economic concerns, some central banks began easing policies late in 2011. Underpinning our growth expectations for 2012, we expect this easing to continue and contribute to the improvement in growth…Our outlook assumes most commodity prices will increase slightly in 2012 and continue at levels that encourage investment. We expect that copper will average over $4 per pound, Central Appalachian coal about $75 per ton and West Texas Intermediate crude oil about $100 per barrel.” Shares of Caterpillar Inc. are trading 3.33% higher today.

RealNetworks Inc. (NASDAQ:RNWK): RealNetworks (NASDAQ:RNWK) announced that it has signed an agreement to sell a significant number of its patents and its next generation video codec software to Intel (NASDAQ:INTC) for a purchase price of $120M. Under terms of the sale, RealNetworks retains certain rights to continue to use the patents in current and future products. In addition to the sale of the patents and next-generation video codec software, RealNetworks and Intel signed a memorandum of understanding to collaborate on future support and development of the next-generation video codec software and related products. Shares of RealNetworks Inc are trading 33.03% higher today.

Micromet Inc. (NASDAQ:MITI): Amgen (NASDAQ:AMGN) and Micromet (NASDAQ:MITI) announced that the companies have entered into a definitive merger agreement under which Amgen will acquire Micromet, a biotechnology company founded in Germany with its research and development center in Munich and headquarters in Rockville, Md., for $11 per share in cash. The transaction, which values Micromet at approximately $1.16B, was unanimously approved by both the Amgen and Micromet Boards of Directors. The acquisition includes blinatumomab, a Bispecific T cell Engager, or BiTE, antibody in Phase 2 clinical development for acute lymphoblastic leukemia, or ALL. Blinatumomab is also in clinical development for the treatment of non-Hodgkin’s lymphoma, or NHL, and could have applications in other hematologic malignancies. The tender offer is not subject to a financing condition. The transaction is expected to close in Q1. Shares of Micromet Inc. are trading 31.88% highertoday.

Market Recap

Bank of America Corporation (NYSE:BAC): Bank of America and Citigroup (NYSE:C) are among lenders that may find it more difficult to increase profits and capital after the Fed said it would keep its benchmark interest rate low until at least late 2014, Bloomberg reports. Shares of Bank of America Corporation are trading 0.14% lower today.

Toyota Motor Corporation (NYSE:TM): Toyota Managing Officer Kazuo Ohara says the automaker is looking to sell about 510,000 of its Lexus cars globally in 2012, the Nikkei reports. Sales of the luxury vehicles were limited to about 404,000 units last year due to parts shortages. Shares of Toyota Motor Corporation are trading 0.38% higher today.

After Hours Radar Stocks

Starbucks Corp. (NASDAQ:SBUX) shares fell 2 percent, despite reporting a 10 percent increase in first quarter profits.  The coffee giant earned $382.10 million (50 cents per share).  “Starbucks is firing on all cylinders and taking full advantage of the many global opportunities that lie ahead,” Schultz added,” CEO Howard Schultz said.  The company gave guidance of $1.78 to $1.82 per share for the full year, just short of analyst expectations of $1.83.  Shares of McDonald’s Corp.(NYSE:MCD) and Dunkin Brands Group Inc. (NASDAQ:DNKN) edged lower on the news.

Shares of Juniper Networks Inc. (NYSE:JNPR) dropped more than 8 percent after the networking company fell short of estimates.  For the fourth quarter, net income came in at $96.2 million (18 cents per share), compared to estimates of 28 cents per share.  Shares of Cisco Systems Inc. (NASDAQ:CSCO) also dropped nearly 1 percent on the news.

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Motorola Mobility Holdings Inc. (NYSE:MMI) increased .18 percent in late market trading.  The company reported a net loss of $80 million (27 cents per share) for the fourth quarter.  The company is in the process of being acquired by Google (NASDAQ:GOOG).

Amgen Inc. (NASDAQ:AMGN) shares bounced almost 1 percent after the closing bell.  The company reported a decrease in net income from $1.02 billion to $934 million, but said it expects revenue in 2012 between $16.1 billion and $16.5 billion, above estimates of $15.5 billion.

Shares of KLA-Tencor Corp. (NASDAQ:KLAC) popped 3.4 percent in extended trading hours.  The company reported a fiscal second-quarter profit of $111 million (66 cents per share), compared to $185 million ($1.09 per share) in the previous year quarter.

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To contact the reporter on this story: Stella Mariz at staff.writers@wallstcheatsheet.com

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