Ultimate Market Recap: EU Bailout Rumors, Apple Disappoints

This Mornings Top Stories

Bank of America (NYSE:BAC) reported its third quarter profit increased to $6.2 billion (56 cents a share) vs a $7.3 billion loss (77 cents a share) from a year ago. The company saw its adjusted revenue rise to $28.7 billion vs $27 billion. The company’s earnings exceeded Wall Street analysts expectations of 28 cents a share earnings on revenue of $25.75 billion.

Investing Insights: Bank of America Earnings Cheat Sheet: Swing to a Profit, Beating Estimates.

Harley Davidson (NYSE:HOG) announced its third quarter profits doubled from the previous year to $183.6 million (78 cents a share) vs. $88.8 million (38 cents a share). This slightly exceeded analysts expectations of 76 cents a share from $1.3 billion sales. The company’s revenues also increased to $1.23 billion from $1.09 billion. Don’t Miss: Harley-Davidson Inc. Earnings Cheat Sheet: Increase in Profit Year Over Year.

Over in Europe, investors remain gloomy after German Chancellor Angela Merkel’s negative remarks about hopes for an impending euro-zone debt resolution. Adding to the region’s woes is Monday’s warning byMoody’s (NYSE:MCO) that France’s (NYSE:EWQ) triple-A credit rating may be at risk in the next three months. This comes from a potential toll on the government’s balance sheet from additional monetary support for the crisis.

China’s (NYSE:FXI) economy grow 9.1 percent in the third quarter from the previous year, representing its slowest growth since 2009. Economists had estimated a 9.3 percent growth. Stocks declined on concerns that the European debt crisis is affecting a global recovery.

The Commodities Futures Trading Commission will vote today on whether to curb speculative trading on commodities (NYSE:RJI) that include oil (NYSE:OIL), wheat and gold (NYSE:GLD), limiting the number of contracts a firm can hold. The proposal comes from a provision in the last year’s Dodd-Frank Reform Act that gave the CFTC authority to limit trading in over-the-counter commodity swaps and exchange-traded futures.

Early Morning Hot Stocks

After selling off 4% yesterday, shares of  VMware Inc (NYSE:VMW) are 1% higher in pre-market trading.  Goldman Sachs (NYSE:GS) added VMware to its conviction buy list, saying expectations are reasonable.  The company reported third quarter earnings of $178 million (41 cents per share), compared to earnings of $85 million (20 cents per share) last year.  Analysts were expecting earnings of 50 cents a share on revenue of $929.7 million.

Bank of America (NYSE:BAC) is trading more than 4% higher before the opening bell.  The bank said its third quarter profit increased due to several large, one-time gains from accounting methods and asset sales.

Don’t Miss: 4 Bank Stocks Bucking the Downward Trend.

Despite reporting a loss, Goldman Sachs (NYSE:GS) is trading 1.4% higher Tuesday morning.  The bank reported a loss of 84 cents per share, only the second quarterly loss in the history of the company.  Last year, Goldman earned $2.98 per share. Other big banks such as Citigroup (NYSE:C) and JP Morgan (NYSE:JPM) are also trading higher.

AMR Corporation (NYSE:AMR) is down 5% in early trading after shares were halted yesterday.  Morningstar believes the recent volatility in AMR is due to the carrier’s deal with pilots.  ”If there is no deal, that increases the likelihood it is going to look at bankruptcy or some other means to renegotiate those contracts.”

IBM (NYSE:IBM) is weighing on the Dow Jones Industrial Average (NYSE:DIA) as shares sink more than 4% at the open.  The largest computer services company reported weaker than expected third quarter results.  Sales came in at $26.2 billion, but analysts were expecting $26.3 billion.  It is the second time in nine quarters that the company missed revenue estimates. Don’t Miss: IBM Earnings Cheat Sheet: Positive Earnings Streak.

Soft drink giant Coca-Cola (NYSE:KO) opened slightly lower as the company reports better-than expected earnings in the third quarter.  Net income was $2.22 billion (95 cents per share), an increase from last year’s $2.06 billion (88 cents per share). Shares of rival Pepsi (NYSE:PEP) are trading slightly higher.

Investing Insights: Coca-Cola Earnings Cheat Sheet: Revenue and Profits Rise.

Johnson & Johnson (NYSE:JNJ) is relatively flat at the open.  The world’s second biggest seller of health care products reported a decrease of 6.4% in profits for the third quarter.  The company spent more money to promote new drugs, but also lost sales due to competition from generic brands.

This Afternoon’s Trending Stocks

As the DJIA approaches 11,500 on an upside surge and the S&P 500 is above 1,210 today, here are buzzing stocks to watch from our trading radar today:

  1. Crocs, Inc. (NASDAQ:CROX): Shares of Crocs, Inc. are trading lower over 37% today after the company significantly reduced its guidance for the third quarter. Crocs, Inc. designs and manufactures shoes. The Company produces soft, lightweight, non-marking, slip- and odor-resistant shoes made of closed-cell resin material. Crocs manufactures men’s, women’s, and children’s shoes and markets them to retail chains.
  2. International Business Machines Corp. (NYSE:IBM): Shares of International Business Machines Corp. are tradinglower today after investors took profits on shares consistently hitting 52-week highs recently. The company reported its quarterly earnings yesterday evening and grew both profits and revenues by 7% year-over-year. International Business Machines Corporation (NYSE:IBM) provides computer solutions through the use of advanced information technology. The Company’s solutions include technologies, systems, products, services, software, and financing. IBM offers its products through its global sales and distribution organization, as well as through a variety of third party distributors and resellers.
  3. Harley-Davidson, Inc. (NYSE:HOG): Shares of Harley-Davidson, Inc. are trading lowertoday after the company’s quarterly results were not enough to satisfy shareholders. Harley-Davidson, Inc. designs, manufactures, and sells motorcycles. The Company’s products include heavyweight touring, custom, and performance motorcycles, as well as a line of motorcycle parts, accessories, and general merchandise. Harley-Davidson also provides motorcycle floor planning and parts and accessories financing to its North American and European dealers.
  4. VMware, Inc. (NYSE:VMW): Shares of VMware, Inc. are trading higher today following an impressive earnings report delivering over 30% revenue growth. VMware, Inc. provides virtualization solutions from the desktop to the data center. The Company’s solution products addresses a range of IT problems, which includes cost and operational inefficiencies, business continuity, software lifecycle management and desktop management.
  5. Check Point Software Technologies Ltd. (NASDAQ:CHKP): Shares of Check Point Software Technologies Ltd. are trading higher today. Check Point Software Technologies Ltd. develops, markets and supports a range of software and hardware products and services for information technology security and offers its customers a network and gateway security solutions, data and endpoint security solutions and management solutions.
  6. Goldman Sachs Group, Inc. (NYSE:GS): Shares of Goldman Sachs Group, Inc. are trading higher today as investors think the future has better days ahead for investment bank following a dismal quarterly earnings release this morning. The Goldman Sachs Group, Inc., a bank holding company, is a global investment banking and securities firm specializing in investment banking, trading and principal investments, asset management and securities services. The Company provides services to corporations, financial institutions, governments, and high-net worth individuals.
  7. UnitedHealth Group Inc. (NYSE:UNH): Shares of UnitedHealth Group Inc. are tradinglower today following an earnings release that disappointed shareholders. UnitedHealth Group Incorporated owns and manages organized health systems in the United States and internationally. The Company provides employers products and resources to plan and administer employee benefit programs. UnitedHealth also serves the health needs of older Americans, provides specialized care services, and provides health care information and research to providers and payers.
  8. Halozyme Therapeutics, Inc. (NASDAQ:HALO): Shares of Halozyme Therapeutics, Inc. are trading higher today as JMP Securities upgraded its rating on this company from Mkt Perform to Mkt Outperform. Halozyme Therapeutics, Inc. develops and commercializes recombinant human enzymes for the infertility, ophthalmology, and oncology communities. The Company’s product portfolio is based on intellectual property covering the family of human enzymes known as hyaluronidases. Halozyme’s products offer an alternative to slaughterhouse-derived extracts that carry contamination risks.
  9. Parker-Hannifin Corporation (NYSE:PH): Shares of Parker-Hannifin Corporation are trading higher today after the company delivered double digit top line growth. Parker Hannifin Corporation manufactures motion control products, including fluid power systems, electromechanical controls, and related components. The Company also produces fluid purification, fluid flow, process instrumentation, air conditioning, refrigeration, and electromagnetic shielding and thermal management products.
  10. EMC Corporation (NYSE:EMC): Shares of EMC Corporation are trading higher today after delivering 18% revenue growth in its latest quarterly report. EMC Corporation provides enterprise storage systems, software, networks, and services. The Company’s products store, retrieve, manage, protect, and share information from all major computing environments and mainframe platforms. EMC operates offices around the world.

Market Recap

Markets closed up on Wall Street today: Dow +1.58%,S&P +2.04%, Nasdaq +1.63%, Oil +2.36%, Gold -1.06%.

On the commodities front, Oil (NYSE:USO) popped to $88.37 a barrel. Precious metals didn’t fare as well, with Gold(NYSE:GLD) dropping to $1,657 an ounce while Silver(NYSE:SLV) spilled 3.51% to $30.67.

Hot Feature: Apple Earnings: iPhone Sales Disappoint, Shares Down.

Today’s markets were up because:

1) France and Germany. Yesterday Germany dashed Friday’s hopes of a big EU bailout, but today there are reports France (NYSE:EWQ) and Germany (NYSE:EWG) will throw $2 trillion into a European Bailout fund. Hoorah! Risk on! The world is saved … until tomorrow when we learn it’s a hedge fund rumor.

2) Chinese Growth and Spain Downgrade. Before the story about France and Germany, slowing Chinese (NYSE:FXI) economic growth had markets concerned in morning trading. Then, after the bell Moody’s (NYSE:MCO) downgraded Spain (NYSE:EWP) two levels. Again, this was all before the report France and Germany flew in from the heavens. Oh yeah, Goldman Sachs (NYSE:GS) and Bank of America (NYSE:BAC) had weak reports but still caught a bid early on.

3) Apple. Apple (NASDAQ:AAPL) delivered a rare earnings miss after the bell. The company fell short on iPhone sales expectations — weird since iPhone 4 and 4S sales are all record-setting. On the other hand, Yahoo (NASDAQ:YHOO) and Intel (NASDAQ:INTC) both announced solid quarters and sent their stocks flying high.

BONUS: Goldman Employee Compensation in Slash and Burn Mode.

After Hours Radar Stocks

Shares of Apple (NASDAQ:AAPL) are falling from the all-time high tree.  Shares are down more than 5% in late trading after 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 Inc. Earnings Cheat Sheet: Revenue Strengthens Again by Double-Digits.

Intel Corporation (NASDAQ:INTC) is 4.6% higher in late trading after reporting a 17% increase in earnings.  The company reported a third-quarter profit of $3.47 billion (65 cents per share), compared to a profit of $2.96 billion (52 cents per share) last year.

Yahoo! (NASDAQ:YHOO) shares are up 3% after the closing bell as the company releases better-than-expected earnings.  The internet portal reported a third quarter profit of $293 million (23 cents per share).  The street was only expecting about 17 cents per share.  “We’re pleased that revenue, operating income and EPS were all above consensus this quarter,” said Tim Morse, CFO and Interim CEO,Yahoo!. “My focus, and that of the whole company, is to move the business forward with new technology, partnerships, products, and premium personalized content — all with an eye toward growing monetization.”