Ultimate Market Recap: DJIA Up 2.3%, General Electric and Europe Take Center Stage

Friday Morning’s Top Stories

The euro (NYSE:FXE) dropped lower as Sunday’s summit with euro-zone leaders will now represent the first of two meetings for the euro-zone debt crisis plan. On Thursday, German (NYSE:EWG) Chancellor Angela Merkel and French (NYSE:EWQ) President Nicolas Sarkozy said a second meeting with the group will take place by Wednesday to finalize plans. The delay shows a divisiveness over issues, including how to leverage the European Financial Stability Facilityweapons to fight the crisis.

Honeywell International Inc (NYSE:HON) reported its third-quarter profit rose 44 percent to $862 million ($1.10 a share), up from $598 million (76 cents a share) from the previous year. Sales increased to $9.3 billion from $8.14 billion. Analysts had estimated 96 cents a share on $9.26 billion sales.

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General Electric (NYSE:GE) also saw strong third quarter earnings with a 57 percent profit rise to $3.22 billion from $2.06 million from the previous year. Net earnings per share increased to 22 cents from 18 cents. Revenue came in at $35.37 billion. Analysts had forecast 31 cents a share earnings with revenue at $34.84 billion.

Last year’s hacking of Nasdaq’s (NASDAQ:NDAQ) computer systems has been deemed more serious than initially thought. Malicious software had installed in the exchange’s systems, enabling hackers to spy on directors from publicly-held companies. The stolen information remains unknown and the investigation continues.

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Groupon Inc.’s initial public offering will raise less money than its initial $750 million plan. The company has been plagued with challenges including a weak stock market, executive turnover and concerns about its accounting and business practices. The company said in a regulatory filing that it will sell 30 million shares, priced between $16 and $18 each; this will raise between $480 million to $540 million.

Friday Morning Hot Stocks

McDonald’s Corporation (NYSE:MCD) is surging 3% in early trading after reporting third-quarter earnings.  The company reported a profit of $1.51 billion ($1.45 per share), compared to $1.39 billion ($1.29 per share) last year.  Revenue increased 14%, while global same-store sales rose 5%.  Other companies to watch in the food industry include Yum! Brands (NYSE:YUM) and Chipotle Mexican Grill (NYSE:CMG).

Investing Insights: McDonald’s Corp. Earnings Cheat Sheet: Positive Earnings Streak.

Shares of General Electric (NYSE:GE) are down more than 1.5% before the opening bell.  The company reported third-quarter earnings that failed to beat estimates for the first time since late 2008.  GE reported adjusted earnings of 31 cents per share, compared to 28 cents per share last year. Don’t Miss:General Electric Earnings Cheat Sheet: Another Quarter of Rising Profit.

Schlumberger (NYSE:SLB) is down nearly 1% this morning after releasing an earnings miss.  Third quarter earnings came in at 98 cents per share, compared to estimates of $1.01 per share.

Verizon Communications (NYSE:VZ) is edging lower in pre-market trading.  The company reported that wireless subscriber growth was slower than expected.  Verizon’s earnings for the quarter rose to $$1.38 billion (49 cents per share), compared to $659 million (23 cents per share) last year.  Earlier this week, AT&T (NYSE:T) also reported poor subscriber numbers due to people waiting to buy the new Apple (NASDAQ:AAPL) iPhone 4S.

Honeywell International (NYSE:HON) is popping more than 3% on strong third-quarter earnings.  Net income for the aerospace/defense products and services company rose to $862 million ($1.10 per share) vs. $598 million (76 cents per share) in the same quarter a year earlier. This marks a rise of 45% from the year earlier quarter.  Competitors to watch includeGeneral Electric (NYSE:GE), The Boeing Company (NYSE:BA), and Lockheed Martin Corp (NYSE:LMT).

Friday Afternoon’s Trending Stocks

The markets are surging higher today to round out a positive week on Wall Street. The Dow Jones Industrial Average is up 226 points to 11,768 and the S&P 500 is up 19 points to 1,234. Here are the stocks buzzing on our trading screens today:

  1. Verizon Communications Inc. (NYSE:VZ): Shares of Verizon Communications Inc. are trading flat today following its latest quarterly earnings release. Verizon Communications Inc. is an integrated telecommunications company that provides wire line voice and data services, wireless services, Internet services, and published directory information. The Company also provides network services for the federal government including business phone lines, data services, telecommunications equipment and payphones.
  2. Seagate Technology PLC (NASDAQ:STX): Shares of Seagate Technology PLC are trading higher today after issuing a dominating quarterly earnings report and receiving an upgrade from analysts. Seagate Technology PLC designs, manufactures, and markets rigid disc drives for enterprise, personal computer, and consumer electronics applications.
  3. McDonald’s Corporation (NYSE:MCD): Shares of McDonald’s Corporation are tradinghigher today after pleasing shareholders with a solid quarterly earnings report and hitting a new 52-week price high. McDonald’s Corporation operates and franchises fast-food restaurants worldwide. The Company’s franchised and company operated fast food restaurants offer a variety of low price fast foods in locations around the world.
  4. Microsoft Corporation (NASDAQ:MSFT): Shares of Microsoft Corporation are tradingflat today after the tech giant released its latest quarterly earnings after the bell yesterday. Microsoft Corporation develops, manufactures, licenses, sells, and supports software products. The Company offers operating system software, server application software, business and consumer applications software, software development tools, and Internet and intranet software. Microsoft also develops video game consoles and digital music entertainment devices.
  5. Harman International Industries Inc./DE/ (NYSE:HAR): Shares of Harman International Industries Inc./DE/ are trading higher today after beating the street’s estimates with an impressive quarterly earnings report. Harman International Industries, Incorporated designs, manufactures, and markets audio and electronic systems. The Company’s Automotive segment designs, manufactures and markets audio, electronic and infotainment systems for vehicle applications and its Consumer segment designs, manufactures and markets audio and electronic systems for home, mobile and multimedia applications.
  6. Altera Corporation (NASDAQ:ALTR): Shares of Altera Corporation are trading highertoday following the company’s latest earnings report to investors and shareholders. Altera Corporation designs, manufactures, and markets programmable logic devices and associated development tools. The Company’s products, include a variety of programmable logic devices and hardcopy application-specific integrated circuits.
  7. Honeywell International Inc. (NYSE:HON): Shares of Honeywell International Inc. are trading higher today following the release of its latest quarterly performance. Honeywell International Inc. is a diversified technology and manufacturing company with operations around the world. The Company provides aerospace products and services, control technologies, automotive products, and power generation systems. Honeywell also provides specialty chemicals, fibers, plastics, and electronic and advanced materials.
  8. SanDisk Corporation (NASDAQ:SNDK): Shares of SanDisk Corporation are tradinghigher today after delivering double-digit revenue growth in its latest quarterly report. SanDisk Corporation supplies flash data storage products. The Company designs, manufactures, and markets industry-standard, solid-state data, digital imaging, and audio storage products using its patented, high-density flash memory and controller technology.
  9. IDEXX Laboratories, Inc. (NASDAQ:IDXX): Shares of IDEXX Laboratories, Inc. are tradingup today after boosting its outlook for the remainder of the year. IDEXX Laboratories, Inc. provides diagnostic, detection, and information systems for veterinary, food, and water testing applications. The Company also operates an international network of veterinary reference laboratories. IDEXX offers its products to customers worldwide.
  10. Tempur-Pedic International Inc. (NYSE:TPX): Shares of Tempur-Pedic International Inc. are trading higher today after Raymond James boosting its rating on the company’s shares following it quarterly release. Tempur-Pedic International Inc., through its primary subsidiary Tempur World, manufactures and markets foam mattresses, pillows, and miscellaneous products under the Tempur-Pedic and other brand names.

Market Recap

Markets closed up on Wall Street today: Dow +2.31%,S&P +1.88%, Nasdaq +1.49%, Oil +1.7%, Gold +2.49%.

On the commodities front, Oil (NYSE:USO) jumped up to $87.53 a barrel. Precious metals also caught a bid as Gold(AMEX:GLD) leaped to $1,652 an ounce while Silver(AMEX:SLV) spiked 3.35% to $31.28.

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Today’s markets up down because:

1) EU … Again. The bipolar action continues. Apparently, investors and traders now believe the EU will have some resolution in the next week or two. Thus, people are repricing the market to match expectations that the EU does not implode.

2) DJIA. The Dow Jones Industrials were on fire today. 28 of the 30 components were in the green — only General Electric (NYSE:GE) and Bank of America (NYSE:BAC) were in the red. The moves were heavily driven by solid earnings from Honeywell (NYSE:HON), McDonald’s (NYSE:MCD), and Verizon (NYSE:VZ).

3) Precious Metals. After a four-day losing streak, gold (AMEX:GLD) prices finally broke to the upside as the US dollar (NYSE:UDN) weakened. Silver also caught a nice bid as investors are salivating over what’s perceived to be a huge EU bailout sure to further deteriorate the value of paper currencies.

After Hours Radar Stocks

After closing 1.78% higher during regular trading hours, shares of Intel Corporation (NASDAQ:INTC) continue to edge higher in late trading.  The street has been impressed with Intel’s latest earnings, which saw net income increase 17% and revenue surge 29%.  Competitors Texas Instruments (NYSE:TXN) andAdvanced Micro Devices (NYSE:AMD) are trading lower.Super Hot Feature: This Famous Hedge Fund Manager Hates These 6 Stocks.

Shares of Apple (NASDAQ:AAPL) continue to struggle to regain the $400 price level.  Shares are down .14% to $392.33 after the closing bell.  The company competes with Microsoft(NASDAQ:MSFT) and Google (NASDAQ:GOOG).

Although General Electric (NYSE:GE) shares closed 1.92% lower on Friday, they are rebounding .40% in extended trading. On Friday, the company reported third-quarter earnings.  Net income for General Electric Company rose to $3.22 billion (22 cents per share) vs. $2.06 billion (18 cents per share) in the same quarter a year earlier. This marks a rise of 57% from the year earlier quarter.  Competitors include: Siemens AG(NYSE:SI), 3M Company (NYSE:MMM), Hitachi, Ltd. (NYSE:HIT), United Technologies Corp. (NYSE:UTX).

Investing Insights: General Electric Earnings Cheat Sheet: Another Quarter of Rising Profit.

Shares of WebMD (NASDAQ:WBMD) are attracting attention as legendary investor Carl Icahn discloses that he owns about 8% of the online medical company.  Shares are popping more than 5% as Icahn says the company is undervalued.