Ultimate Market Recap: Europe Delays Endgame, Microsoft Falls Short

This Morning’s Top Stories

Draft guidelines for the European Financial Stability Facility, the euro zone’s bailout fund, has been presented to German lawmakers. The €440 billion ($605.44 billion) fund will provide EFSF with the ability to buy sovereign debt directly from the countries by either issuing new bonds or on the open market. Despite yesterday’s belief, German Finance Minister Wolfgang Schaeuble said Germany (NYSE:EWG) and France (NYSE:EWQ) fully agree on the euro zone’s bailout facility.

Don’t Miss: Did the BOE Just Confirm the Long-Term Picture for Precious Metals?.

Greece may have trouble getting its next payment from the European Union, the International Monetary Fund, and the European Central Bank. Negotiations between the three bodies has been more difficult than expected, according to German Deputy Finance Minister Steffen Kampeter. He added the requisite report from them hasn’t come through and without it, Greece will not receive any funds and may incur a debt cut.

Yahoo Inc.’s (NASDAQ:YHOO) buyout talks are advancing. The private-equity firm Silver Lake Partners, the Canada Pension Plan Investment Board and Microsoft Corp. (NASDAQ:MSFT) are supposedly putting together a proposal to buy Yahoo. Microsoft would put up the bulk of funding, several billion dollars, and banks would provide additional financing. The deal could reach $20 billion. The news seems a bit odd given Microsoft CEO Steve Ballmer’s negative comments about Yahoo just yesterday.

AT&T Corp (NYSE:T) reported its third quarter profit dove 71 percent to $3.62 billion (61 cents a share) versus 12.3 billion ($2.07 a share) from the previous year. Earnings rose to 61 cents a  share from 54 cents a  share but revenue dropped 0.3 percent to $31.5 billion. Analysts had forecast 61 cents a share earnings from $31. 6 billion revenue.

Investing Insights: AT&T Earnings Cheat Sheet: Revenue Sees Decline After Four Consecutive Quarters of Increases, Net Income Falls.

Apple Inc’s (NASDAQ:AAPL) iPhone 4S will support Russia’s Glonass GPS navigation system. Russian Prime Minister Vladimir Putin, who is expected to become Russia’s next president, supports the technology and a possible ban on mobile devices that don’t include it as an effort to protect the country’s national interests. Additional smart phone manufacturers are expected to adopt Glonass.

Early Morning Hot Stocks

Shares of The New York Times Co. (NYSE:NYT) are attracting attention early Thursday as the company reports third-quarter earnings.  The media company reported earnings of $15.7 million (10 cents per share), compared to a loss of $4.3 million (3 cents per share) last year.  Shares are 4% higher at the open.

Union Pacific Corp (NYSE:UNP) reported a 16% increase in third-quarter earnings early this morning.  The company reported earnings of $904 million ($1.85 per share), an increase from last year’s $778 million ($1.56 per share).  Shares are up more than 3% at the open.  CSX Corporation (NYSE:CSX) is also trading higher.

Southwest Airlines (NYSE:LUV) is popping 1.3% in early trading, despite reporting a third-quarter loss.  Rising traffic helped earnings in the face of rising fuel costs.  Southwest reported a loss of $140 million (18 cents per share), compared to a $205 million profit (27 cents per share) last year.  AMR Corporation (NYSE:AMR) is trading slightly lower on the news.

AT&T (NYSE:T) is falling more than 1% in early trading after reporting a 71% decline in third-quarter earnings.  Last year’s earnings release included a large tax gain.  The telecom giant lost exclusivity to Apple’s (NASDAQ:AAPL) popular iPhone earlier this year.  Sprint (NYSE:S) and Verizon (NYSE:VZ) both offer the iPhone.

Investing Insights: AT&T Earnings Cheat Sheet: Revenue Sees Decline After Four Consecutive Quarters of Increases, Net Income Falls.

Microsoft (NASDAQ:MSFT) and Yahoo! (NASDAQ:YHOO) are both trading higher after reports are coming out that Microsoft is trying to buy Yahoo, again.  Under the deal, Microsoft would kick in the most money, while private-equity firm Silver Lake Partners and the Canada Pension Plan Investment Board would pitch in too.

This Afternoon’s Trending Stocks

As the DJIA trades higher at 11,531 and the S&P 500 Index trades at 1,213 today, here the stocks buzzing on our radar today:

  1. Polycom, Inc. (NASDAQ:PLCM): Shares of Polycom, Inc. are trading lower 25% today following a dismal quarterly earnings report that missed analyst expectations. Polycom, Inc. develops, manufactures, and markets a line of video, voice, data and web conferencing collaboration solutions. The solutions include enterprise video and voice communications end-points, network infrastructure, management products, product maintenance and other professional services.
  2. eBay Inc. (NASDAQ:EBAY): Shares of eBay Inc. are trading lower over 3% today as investors take profits following a very strong quarterly earnings report delivering double-digit growth.eBay Inc. operates an online trading community. The Company’s service is used by buyers and sellers for the exchange of products and services such as coins, collectibles, computers, memorabilia, stamps and toys, as well as concert and sporting tickets. eBay also offers, through a subsidiary, secure online payment services.
  3. Nokia Corporation (NYSE:NOK): Shares of Nokia Corporation are trading higher over 5% today after beating sales estimates but delivering a drop in profit in the company’s latest earnings release. Nokia Corporation is a player in the mobile industry. The Company makes a range of mobile devices with services and software that enable people to experience music, navigation, video, television, imaging, games, business mobility and more. Nokia also provides equipment, solutions and services for communications networks.
  4. Riverbed Technology, Inc. (NASDAQ:RVBD): Shares of Riverbed Technology, Inc. are trading higher today after delivering a very impression earnings release. Riverbed Technology, Inc. manufactures and markets appliances used to connect computers in wide area networks.
  5. American Express Company (NYSE:AXP): Shares of American Express Company are trading flat today after issuing profit growth and revenue growth in its latest quarter earnings release. American Express Company is a global payment and travel company. The Company’s principal products and services are charge and credit payment card products and travel-related services offered to consumers and businesses around the world.
  6. Western Digital Corp. (NYSE:WDC): Shares of Western Digital Corp. are trading higher today as investors were satisfied with the company’s latest quarterly results. Western Digital Corporation designs and manufactures hard drives for desktop computers and home entertainment applications.
  7. Fifth Third Bancorp (NASDAQ:FITB): Shares of Fifth Third Bancorp are trading higher over 8% today as the bank almost doubled its profits in its latest quarter report. Fifth Third Bancorp is a diversified financial services company that operates banking centers in the Midwestern and Southeastern regions of the United States. The Company’s principal businesses include retail banking, commercial banking, investment advisory, and data processing.
  8. Core Laboratories N.V. (NYSE:CLB): Shares of Core Laboratories N.V. are tradinglower today as shareholders are selling shares following its latest quarterly release. Core Laboratories N.V. provides reservoir description, production enhancement, and reservoir management services. The Company’s customers include major, national, and independent oil and gas producers. Core also manufactures and sells petroleum reservoir rock and fluid analysis instrumentation and other integrated systems.
  9. Abbott Laboratories (NYSE:ABT): Shares of Abbott Laboratories are trading higher today after delivering double-digit revenue growth in its latest quarterly earnings release. 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.
  10. Newfield Exploration Co. (NYSE:NFX): Shares of Newfield Exploration Co. are trading lower 14% today following the release of its latest quarterly report. Newfield Exploration Company is an independent oil and gas company which explores, develops, and acquires oil and natural gas properties. The Company operates in the Gulf of Mexico, in the onshore United States Gulf Coast, within the North Sea, within Malaysia, and in the Bohai Bay in China.
Market Recap
Markets closed mixed on Wall Street today: Dow +0.32%, S&P +0.46%, Nasdaq -0.21%, Oil -0.77%, Gold -2.25%.

On the commodities front, Oil (NYSE:USO) moved down to $85.45 a barrel. Precious metals also felt the wrath as Gold (AMEX:GLD) dumped to $1,609 an ounce while Silver (AMEX:SLV) fell 2.81% to $30.37.

Hot Feature: 5 Stocks Winning Despite Record Misery Levels.

Today’s markets mixed down because:

1) EU Summit Delay. If you love bipolar action, the EU resolution has sure been your thing. Every day this week has been a “bailout on” or “bailout off” day. Today’s binary switch started in the off position after news the EU Summit would not reach a final resolution this weekend. However, investors switched to “on” mode once they realized next Wednesday is not eons away.

2) Bank of America. Talk about your whipping boy. Bank of America (NYSE:BAC) had it bad today on new speculation the troubled bank might be preparing to file for Chapter 11 bankruptcy. To make matters worse, the California Attorney General liked the timing to launch an investigation into the bank and its Countrywide Financial subsidiary fraudulently sold risky mortgages to investors in California. Strangely, shares recovered with the general market rally and ended the day in the green.

3) Microsoft and Yahoo. Yahoo (NASDAQ:YHOO) was the talk of the town today as Microsoft (NASDAQ:MSFT) CEO Steve Ballmer bashed the company yesterday and is reportedly wooing Yahoo today. Is it me, or isn’t that a red flag for the future relationship should they wed? Other big news had Intel (NASDAQ:INTC) down 2.6% after traders booked profits from the huge gain on earnings yesterday and floods in Thailand may affect key partner Dell (NASDAQ:DELL).

After Hours Radar Stocks

Microsoft (NASDAQ:MSFT) is trading 1% lower in extended trading.  After the closing bell, the tech giant reported first quarter results. Net income rose to $5.74 billion (68 cents per share) vs. $5.41 billion (62 cents per share) in the same quarter a year earlier. This marks a rise of 6.1% from the year earlier quarter.  Earnings of 68 cents per share were inline with estimates. The company competes with Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG).

Investing Insights: Microsoft Earnings Cheat Sheet: Third Straight Quarter of Rising Profit.

Shares of Chipotle Mexican Grill (NYSE:CMG) are trading nearly 3% higher after the close.  The company reported higher profit for the third quarter as revenue showed growth.  Net income for the restaurant rose to $60.4 million ($1.90 per share) vs. $48.2 million ($1.52 per share) in the same quarter a year earlier. This marks a rise of 25.3% from the year earlier quarter. Competitors McDonald’s (NYSE:MCD) and Yum! Brands (NYSE:YUM) are also trading higher in late trading.

SanDisk Corporation (NASDAQ:SNDK) is popping 1.65% after announcing third quarter results.  Earnings declined, but adjusted net income for the quarter came in ahead of estimates.  Net income for the semiconductor company fell to $233.3 million (96 cents per share) vs. $322.1 million ($1.34 per share) a year earlier. This is a decline of 27.6% from the year earlier quarter.

Capital One Financial (NYSE:COF) is edging higher after reporting a boost in profit.  Net income for Capital One Financial Corporation rose to $813 million ($1.77 per share) vs. $803 million ($1.76 per share) in the same quarter a year earlier. This marks a rise of 1.2% from the year earlier quarter.  The credit card company competes with Visa (NYSE:V), Mastercard (NYSE:MA), and American Express (NYSE:AXP).

Don’t Miss: 5 Stocks Winning Despite Record Misery Levels.