Ultimate Market Recap: Apple Shares Squash Nasdaq, Greece Erupts

This Morning’s Top Stories

Apple (NASDAQ:AAPL) shares are down nearly 5% in early market trading.  The tech giant reported its first earnings miss since 2004.  Net income for Apple Inc. rose to $6.62 billion ($7.05 per share) vs. $4.31 billion ($4.64 per share) in the same quarter a year earlier. This marks a rise of 53.7% from the year earlier quarter.  Apple fell short of the mean analyst estimate of $7.30 per share. It also fell short of the average revenue estimate of $29.45 billion.

Investing Insights: Apple Earnings: iPhone Sales Disappoint.

Freeport McMoRan Copper & Gold (NYSE:FCX) jumped 1% before the opening bell.  The company said its earnings fell to $1.1 billion, or $1.10 a share, from $1.2 billion, or $1.24 a share, in the year-ago period. Revenue increased slightly to $5.2 billion, from $5.15 billion.  Rueters reports that Freeport’s threat to close its Grasberg mine in Indonesia would hurt the company’s bottom line and could further tighten global copper (NYSE:JJC) supplies and drive up the metal’s price.  ”Any shutdown will have a serious impact on the prices and market psychology,” Terry Ortslan, a mining analyst said on Tuesday.

Like Citigroup (NYSE:C) and JP Morgan (NYSE:JPM), Morgan Stanley (NYSE:MS) reported better-than expected earnings because of accounting tricks.  Net income for the investment brokerage rose to $2.2 billion ($1.15 per share) vs. a loss of $91 million (7 cents per share) in the same quarter a year earlier.  Results for the quarter included revenue of $3.4 billion ($1.12 per share) due to the famous debt valuation adjustment.  Shares are up nearly 3% in early trading. Investing Insights: Morgan Stanley Earnings Cheat Sheet: Swing to a Profit.

The Travelers Companies (NYSE:TRV) reported that profit fell 67% to $333 million due to severe weather in the third quarter.  Operating income of $332 million (79 cents per share) missed the consensus estimate of 71 cents per share.  “We are very pleased with our progress to date,” Chief Executive Officer Jay Fishman said. “Overall, we have produced three sequential quarters of improving quarter-over-quarter renewal price gains.”

Shares of Abbott Laboratories (NYSE:ABT) are popping more than 6% after announcing a plan to split the company into two publicly traded companies.  The health care company announced a 66% drop in third quarter earnings due to litigation.  Net income for Abbott Laboratories fell to $303 million (19 cents per share) vs. $890.7 million (57 cents per share) a year earlier.

Early Morning Hot Stocks

AMR Corporation (NYSE:AMR) is trading nearly 8% lower at the open.  The company reported a third-quarter loss of $162 million (48 cents per share).  A 40% increase in fuel costs and exchange rates played a role.  Southwest Airlines (NYSE:LUV) and JetBlue Airways (NASDAQ:JBLU) are also trading lower.

St. Jude Medical Inc. (NYSE:STJ) is up 2.8% this morning after reporting third quarter results.   Net income for St. Jude Medical Inc. rose to $226.5 million (69 cents per share) vs. $208.4 million (63 cents per share) in the same quarter a year earlier. This marks a rise of 8.7% from the year earlier quarter.  Other medical plays include Boston Scientific Corp (NYSE:BSX) and Johnson & Johnson (NYSE:JNJ).

Shares of The Bank of NY Mellon (NYSE:BK) are popping 1.4% after announcing a 4.7% rise in net income.  Net income for the financial services company rose to $651 million (53 cents per share) vs. $622 million (51 cents per share) in the same quarter a year earlier.  The company competes with State Street (NYSE:STT), which is also trading higher on strong earnings.

Visa (NYSE:V) is down 1.3% after increasing its dividend by 47%.  It is the third consecutive year in which Visa has increased its dividend.  The stock now yields a dividend close to 1%.  Some major credit card issuers recently posted increases in the number of credit card payments that were at least 30 days late in September, following a steady decline in delinquency rates since early 2009.  Other credit card investment plays include American Express (NYSE:AXP), Capital One (NYSE:COF), and Mastercard (NYSE:MA).

This Afternoon’s Trending Stocks

As the Dow Jones Industrial Average trades at 11,493 and the S&P 500 Index trades at 1,209 during the heart of earnings season, we reveal information about 10 hot stocks that have hit our trading screens today:

  1. Abbott Laboratories (NYSE:ABT): Shares of Abbott Laboratories are trading higher today following a strong quarterly earnings performance released this morning. Abbott Laboratories discovers, develops, manufactures, and sells a broad and diversified line of health care products and services. The Company’s products include pharmaceuticals, nutritional, diagnostics, and vascular products. Abbott markets its products worldwide through affiliates and distributors.
  2. Intel Corporation (NASDAQ:INTC): Shares of Intel Corporation are trading higher today after reporting double digit net income and revenue growth last quarter. Intel Corporation designs, manufactures, and sells computer components and related products. The Company’s major products include microprocessors, chipsets, embedded processors and microcontrollers, flash memory products, graphics products, network and communications products, systems management software, conferencing products, and digital imaging products.
  3. Intuitive Surgical, Inc. (NASDAQ:ISRG): Shares of Intuitive Surgical, Inc. are trading higher today after a delivering a scorching quarterly earnings report showing double-digit growth. Intuitive Surgical, Inc. design, manufactures and markets surgical systems. The Company’s surgical system controls Intuitive Surgical endoscopic instruments, including rigid endoscopes, blunt and sharp endoscopic dissectors, scissors, scalpels, forceps/pickups, needle holders, endoscopic retractors, electrocautery, ultrasonic cutters, and accessories during surgical procedures.
  4. Comerica Incorporated (NYSE:CMA): Shares of Comerica Incorporated are trading lower today after disappointing shareholders with its latest quarterly earnings release this morning. Comerica Incorporated is the holding company for business, individual, and investment banks with operations in the United States, Canada, and Mexico. The Company’s subsidiaries provide services such as corporate banking, international finance, treasury management, community banking, private banking, small business and individual lending, investment services, and institutional trust.
  5. BlackRock, Inc. (NYSE:BLK): Shares of BlackRock, Inc. are trading lower today as investors are taking profits following the company’s latest quarterly report this morning. BlackRock, Inc. provides diversified investment management services to institutional clients and to retail investors through various investment vehicles. The Company offers the BlackRock Funds and Blackrock Liquidity Funds, and also provides risk management services to fixed income institutional investors.
  6. Agnico-Eagle Mines Limited (NYSE:AEM): Shares of Agnico-Eagle Mines Limited are trading significantly lower today. Did the BOE Just Confirm the Long-Term Picture for Precious Metals? Agnico-Eagle Mines Limited is a gold producer with operations primarily in Quebec, Canada. The Company also conducts exploration and development activities in Ontario, Canada, and Nevada in the United States. Agnico-Eagle’s gold production is primarily from underground mining operations.
  7. The Travelers Companies, Inc. (NYSE:TRV): Shares of The Travelers Companies, Inc. are trading higher today after releasing its latest quarterly earnings report. The Travelers Companies, Inc. provides commercial property casualty insurance and asset management services to businesses, government units, associations and individuals. The Company underwrites homeowners and auto insurance through independent agents.
  8. Checkpoint Systems, Inc. (NYSE:CKP): Shares of Checkpoint Systems, Inc. are trading lower today after a major reduction on its annual outlook. Checkpoint Systems, Inc. manufactures and markets labeling systems and label solutions for a diverse customer base across many industries. The Company provides RF source tagging, barcode labeling systems, electronic article surveillance, handheld labeling systems, and retail merchandising systems for several applications within the automatic identification industry.
  9. Apollo Group, Inc. (NASDAQ:APOL): Shares of Apollo Group, Inc. are trading higher today after a big profit jump in its latest quarterly earnings release this morning. Apollo Group, Inc. provides higher education programs for working adults. The Company provides educational programs and services at the high school, undergraduate, and graduate levels online and on-campus through subsidiaries.
  10. Cree, Inc. (NASDAQ:CREE): Shares of Cree, Inc. are trading lower today a big earnings outlook reduction today for the remainder of the year. Cree, Inc. develops and manufactures semiconductor materials and electronic devices made from silicon carbide (SiC). The Company uses proprietary technology to make enabling compound semiconductors such as blue and green light emitting diodes, SiC crystals used in the production of unique gemstones, and SiC wafers that are sold for device production and research.

Market Recap

Markets closed down on Wall Street today: Dow -0.63%, S&P -1.26%, Nasdaq -2.01%, Oil -2.6%, Gold -0.6%.

On the commodities front, Oil (NYSE:USO) dropped to $86.04 a barrel. Precious metals had a bad day too as Gold (AMEX:GLD) fell to $1,641 an ounce while Silver (AMEX:SLV) dipped 2.27% to $31.08.

Hot Feature: Sign of the Times: Washington Wealthier than Capital of Entrepreneurism.

Today’s markets were down because:

1) Greece. While the world awaits the EU’s next step, Greeks are taking to the streets after another announcement for more austerity.

2) Sarkozy is Stuck. We told you. Yesterday was an “EU is saved!” day, so today had to be the opposite. French President Nicolas Sarkozy (NYSE:EWQ) said the EU bailout talks had stalled, and the risk off bet was back on.

3) Apple. Apple (NASDAQ:AAPL) simply weighed on the Nasdaq (NASDAQ:QQQ) despite Yahoo (NASDAQ:YHOO) and Intel (NASDAQ:INTC) both announcing great quarters and having a great day in the markets.

BONUS: Did the BOE Just Confirm the Long-Term Picture for Precious Metals?

After Hours Radar Stocks

eBay (NASDAQ:EBAY) is down nearly 4% in late trading after the company reported third-quarter results.  Net income rose to $490.5 million (37 cents per share) vs. $431.9 million (33 cents per share) in the same quarter a year earlier. This marks a rise of 13.6% from the year earlier quarter.

Wynn (NASDAQ:WYNN) is not exactly winning in after-hours as shares trade down 5%.  The Casino company announced that third-quarter adjusted earnings were $1.05 per share, but analysts were expecting $1.17 per share.  MGM Resorts International (NYSE:MGM) and Las Vegas Sands Corp. (NYSE:LVS) are both trading lower on the news as well.

American Express (NYSE:AXP) is trading 1.4% lower after reporting a third-quarter profit of $1.2 billion ($1.03 per share), compared to $1.1 billion (90 cents per share) last year.  The company also said its bottom-line improved across all business segments, with cardmember spending surging 16% to all-time highs. Competitors to watch include Visa (NYSE:V) and Mastercard (NYSE:MA).

After reporting a surprise earnings miss yesterday, shares of Apple (NASDAQ:AAPL) closed 5.5% lower today.  After the closing bell, Apple is only recovering by .10%.  The pullback in shares caused Apple to fall to the number two position in terms of market capitalization, Exxon Mobil (NYSE:XOM) regained the top spot.  Stepping up the competition against Apple, Samsung has unveiled the first smartphone running on the latest version of Google’s (NASDAQ:GOOG) Android operating system named Ice Cream Sandwich. The system combines software used in tablets and smartphones.

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