Ultimate Market Recap: Europe and Exxon Steal the Show
Thursday Morning’s Top Stories
Euro-zone leaders agreed at the final hour to the rescue plan’s missing piece of the puzzle: a voluntary 50 percent hair cut by private investors on Greek debt holdings. A financial crisis plan will be implemented, with summit leaders also agreeing to a higher than expected eurozone rescue fund of EUR 1 trillion ($1.4 trillion) and a requirement for banks to increase their Tier 1 capital by EUR 106 billion.
Another component of the rescue fund is the hope by European leaders that China will provide some funding. Meetings will begin on Friday in Beijing between senior Chinese (NYSE:FXI) finance officials and the head of the EFSF.
United Continental Holdings (NYSE:UAL) reported its third-quarter profit dropped to $653 million ($1.69 per share) from $852 million ($2.16 per share) from the previous year. Operating revenue increased 9 percent to $10.17 billion, along with a 33 percent rise in fuel costs to $3.37 billion for the quarter. The company earned $2 a share (excluding special items), below analysts’ expectations of $2.08 a share.
Sony Corp. (NYSE:SNE) plans a EUR $1.05 billion ($1.45 billion) takeover of Sony Ericsson (NASDAQ:ERIC) mobile phones joint venture. This will enable Sony to take ownership of some Ericsson handset patents, broaden its products and content reach, and compete with Apple(NASDAQ:AAPL) and Samsung in the growing smartphone and tablet market.
Super Hot Feature: Is This Nokia’s Apple Killer?
Thai flooding is starting to affect production for major automakers including Toyota (NYSE:TM) and Honda Motor Company (NYSE:HMC). The companies have started decreasing production due to a decline in suppliers’ parts available in flood-affected areas. This comes as bad timing with Toyota recovering from Japan’s March earthquake. In addition to the automakers, Japanese electronics makers are also feeling the flood’s effects in the region including Sony Corp.(NYSE:SNE), Canon Inc. (NYSE:CAJ) and Toshiba Corp (NYSE:TYO). So are international companies producing in Thailand including Dell (NASDAQ:DELL), Western Digital (NYSE:WDC) and Fabrinet (NYSE:FN).
Thursday Morning Hot Stocks
Exxon Mobil (NYSE:XOM) is up 1.3% in early trading after the company reported strong earnings for the third quarter. Profits climbed 41% to $10.33 billion ($2.13 per share), compared to $7.35 billion ($1.44 per share) last year. Chevron Corp.(NYSE:CVX) and ConocoPhillips (NYSE:COP) are also trading higher by 2%.
Investing Insights: Exxon Mobil Corp Earnings Cheat Sheet: Profits Climb By Double Figures Again.
Procter & Gamble (NYSE:PG) is edging lower in pre-market trading. The consumer products giant reported a 1.9% decrease in net income. Net income fell from $3.08 billion to $3.02 billion in the latest quarter. High commodity costs damaged profit margins and slowed growth. CompetitorKimberly-Clark (NYSE:KMB) is up more than 1.6%.
Investing Insights: Procter & Gamble Co. Earnings Cheat Sheet: Snaps Strong Streak with Profit Drop.
Now that an actual Eurozone plan has emerged, financial stocks are seeing a surge. Bank of America (NYSE:BAC) and Citigroup (NYSE:C) jumped more than 7% in before the opening bell. Morgan Stanley (NYSE:MS), who many thought had the greatest exposure to the Eurozone debt crisis, surged more than 8%. Goldman Sachs (NYSE:GS) increased more than 3%, while JP Morgan (NYSE:JPM) popped nearly 8%. Warren Buffett favorite Wells Fargo (NYSE:WFC) popped 5%.
Thursday Afternoon’s Trending Stocks
The Dow Jones Industrial Average is explosing higher 267 points and the S&P 500 is currently up 2.5% to 2,272, while the Nasdaq is up over 2% to 2,711. Here are the most buzzing stocks we’re seeing among investors, shareholders and traders on Wall Street today:
- Avon Products, Inc. (NYSE:AVP): Shares of Avon Products, Inc. are trading lower 18% today after releasing its latest quarterly earnings report that disappointed investors. Avon Products, Inc. manufactures and direct sells beauty and related products. The Company markets its products to consumers worldwide through independent sales representatives. Avon’s product line includes beauty, fashion and home.
- Time Warner Cable Inc. (NYSE:TWC): Shares of Time Warner Cable Inc. are trading lower over 7% today following the delivery of its most recent quarterly earnings report that bummed shareholders. Time Warner Cable Inc. offers cable television subscription services. The Company also offers Internet access and voice over Internet protocol telephone services.
- Exxon Mobil Corporation (NYSE:XOM): Shares of Exxon Mobil Corporation are tradinghigher today after delivering a strong display of profitable growth and double-digit revenue growth. Exxon Mobil Corporation operates petroleum and petrochemicals businesses on a worldwide basis. The Company’s operations include exploration and production of oil and gas, electric power generation, and coal and minerals operations. Exxon Mobil also manufactures and markets fuels, lubricants, and chemicals.
- McDermott International (NYSE:MDR): Shares of McDermott International are tradinglower over 30% today after lowering earnings guidance to shareholders today. McDermott International, Inc. is a worldwide energy services company. The Company and its subsidiaries provide engineering, fabrication, installation, procurement, research, manufacturing, environmental systems, project management, and facility management services to a variety of customers in the energy and power industries, including the U.S. Department of Energy.
- IMAX Corporation (NYSE:IMAX): Shares of IMAX Corporation are trading higher over 7% today as investors are lifting shares in anticipation of a stronger than expected upcoming quarterly earnings report. Imax Corporation designs and manufactures projection and sound systems for giant-screen theaters and designs custom attractions, including motion simulation theaters, for both large-scale attractions and smaller venues. The Company also manufactures digital image delivery systems in the form of digital projectors.
- Citrix Systems, Inc. (NASDAQ:CTXS): Shares of Citrix Systems, Inc. are trading higher15% today after issuing a strong performance to shareholders in its latest quarterly report. Citrix Systems, Inc. designs, develops, and markets technology solutions that allow applications to be delivered, supported, and shared on-demand. The Company develops and markets comprehensive solutions across all dimensions of application, server and desktop virtualization as well as application and network optimization.
- Cheniere Energy, Inc. (AMEX:LNG): Shares of Cheniere Energy, Inc. are trading higher4% today following the success of its landmark deal with BG Group to export liquefied natural gas is touching shares of other LNG-related companies in early trading. Cheniere Energy, Inc., through subsidiaries, develops liquefied natural gas terminals, and explores for oil and natural gas. The Company explores for oil and gas in the Gulf of Mexico.
- Aetna Inc. (NYSE:AET): Shares of Aetna Inc. are trading higher almost 3% todayfollowing the release of its latest quarterly earnings statement. Aetna Inc. is a diversified health care benefits company that provides healthcare and related benefits, serving health care members, dental members, and group insurance customers. The Company offers medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities and health care management services for Medicaid plans.
- Quality Systems, Inc. (NASDAQ:QSII): Shares of Quality Systems, Inc. are trading lowerover 10% today. Analysts have been speculating Dell is looking for a deal and QSII was a possible target. Is the buzz fizzling after today’s drop? Quality Systems, Inc. develops and markets healthcare information systems. The Company’s systems automate medical and dental group practices, physical hospital organizations, management service organizations, community health centers, and dental schools.
- Visa Inc. (NYSE:V): Shares of Visa Inc. are trading higher today after delivering double-digit revenue growth in its latest quarterly release. Visa Inc. operates a retail electronic payments network and manages global financial services. The Company also offers global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses and government entities.
Markets closed up on Wall Street today: Dow +2.86%, S&P+3.43%, Nasdaq +3.32%, Oil +4.1%, Gold +0.74%.
On the commodities front, Oil (NYSE:USO) shot the moon to $93.90 a barrel. Precious metals were up, with Gold(NYSE:GLD) climbing to $1,735.50 an ounce while Silver(NYSE:SLV) gained $1.80 to settle at $35.11.
Hot Feature: Witness the Mind Blowing Future According to Microsoft.
Today’s markets were up because:
1) Europe, Europe, Europe.In case you were visiting another planet today, the EU has taken steps toward an all-out bailout. Clearly, the global financial system hinges on such a plan carrying forward. Greek bond holders will take a hit, but hey, that’s the risk of investing in the first place. Here’s How European Leaders Agreed to Combat Debt Crisis.
2) GDP. The U.S. economy grew at its fastest pace — 2.5% — in a year in the third quarter as consumers and businesses alike stepped up spending, creating momentum that could carry them through the holiday shopping season. It’ll most likely be revised lower later, so for now just celebrate the EU bailout!
3) Industrials. General Electric (NYSE:GE), 3M (NYSE:MMM), and Caterpillar (NYSE:CAT) were off to the races in the “world might not come to an end” trade. But Alcoa (NYSE:AA) led the leaders, pasting on 9.46%. Wow. Even Exxon (NYSE:XOM) managed to pipe in a gain after earnings only brought in $125.33 billion in revenues. Poor them.
After Hours Radar Stocks
Shares of Hewlett-Packard (NYSE:HPQ) are edging slightly higher in late trading after the company announced it has decided to keep its personal computer business after-all. Many investors are wondering why the company did not analyze the decision sooner. Shares of Dell (NASDAQ:DELL) and Apple(NASDAQ:AAPL) are also trading slightly higher.
Trending Now: Witness the Mind Blowing Future According to Microsoft.
Advanced Micro Devices (NYSE:AMD) is trading more than 5% higher after the closing bell. The company reported a third quarter profit of $97 million (13 cents per share), compared to a loss of $118 million (17 cents per share) last year.
Motorola Mobility (NYSE:MMI) is falling in extended trading. After the close, the company reported a net loss of $32 million (11 cents per share), compared to a net loss of $34 million (12 cents per share) last year. The company is currently in the process of being bought byGoogle (NASDAQ:GOOG).
Video game publisher Electronic Arts (NASDAQ:ERTS) is trading down after reporting a loss. The company’s loss widened to $340 million ($1.03 per share), compared to $201 million (61 cents per share) last year. ”We are pleased with our results with digital growing at 30% year-over-year,” said Eric Brown, Chief Financial Officer. “We are raising our fiscal 2012 non-GAAP revenue guidance, our digital revenue guidance, and the midpoint of our EPS guidance.” Earlier in the day, Nintendo (NTDOY) announced it was expecting its first full-year loss in 30 years.
Baidu, Inc. (NASDAQ:BIDU) is up 7% after reporting earnings results above Wall Street expectations. Net income for Baidu, Inc. rose to $295 million (84 cents per share), a rise of 80% from the year earlier quarter. Revenue rose 85% to $654.7 million from the year earlier quarter.
Don’t Miss: Baidu Inc. Earnings Cheat Sheet: Big Profit Rise.