Ultimate Market Recap: Greece Strongholds the EU, Markets Rally
Wednesday Morning’s Top Stories
Euro-zone leaders are expected to announce some sort of plan today for increasing the EFSF’s weapons, Greece’s debt, and recapitalizing Europe’s banks (NYSE:KBE). One unresolved issue slowing down the vote is a disagreement on the potential hit Greece government bond holders will have to take.
Super Hot Feature: 5 Wall Street Crisis Films to Watch Now.
Nokia Corp (NYSE:NOK) officially unveiled their inaugural Windows (NASDAQ:MSFT) operating smartphone offerings: the Nokia Lumia 800 and Nokia Lumia 710. In a speech at Nokia World, Chief Executive Stephen Elop said of the launch,
“It’s a new dawn for Nokia. “Eight months ago, we shared our new strategy and today we are demonstrating clear progress of this strategy in action,” he said. “We’re driving innovation throughout our entire portfolio, from new smartphone experiences to ever smarter mobile phones.”
Boeing Co (NYSE:BA) reported a 31 percent third quarter earnings rise to $1.1 billion ($1.46 a share), up from $837 million ($1.12 a share) as compared to the previous year. Revenue increased 4 percent to $17.73 billion, up from $16.07 billion. Analysts had forecast earnings per share of $1.10 a share on $17.79 billion sales.
Sprint Nextel Corp (NYSE:S) saw its third quarter net loss narrow on a 2.2 percent revenue increase. The company reported a $301 million loss (10 cents a share), as compared to $911 million (30 cents) from the previous year with a revenue increase to $8.33 billion from $8.15 billion. Analysts had estimated a 22 cent per share loss from $8.38 billion revenue. While the products launched this quarter, Sprint said the recent response to their iPhone 4S and iPhone 4 sales has exceeded expectations.
Investing Insights: Sprint Nextel Earnings Cheat Sheet: Margins Shrink For Fifth Straight Quarter.
Yahoo, Inc (NASDAQ:YHOO) has resumed their CEO search after letting it take a temporary back seat. The company continues to shop around its core business to numerous suitors — including Google (NASDAQ:GOOG) and Microsoft (NASDAQ:MSFT) — which may affect its ability to find top talent due to the company’s uncertainty.
Wednesday Morning Hot Stocks
After getting crushed yesterday, shares of First Solar (NASDAQ:FSLR) are rebounding 8% in early trading after reporting third quarter earnings. Net income came in at $196.5 million ($2.25 per share), compared to $176.9 million ($2.04 per share) last year. Analysts were expecting earnings of about $2.55 per share.
Shares of Freeport McMoRan Copper & Gold (NYSE:FCX) are popping 3%. The world’s second largest copper miner declared force majeure, which frees it from some contractual obligations.
Super Hot Feature: 5 Wall Street Crisis Films to Watch Now.
Amazon.com (NASDAQ:AMZN) shares are down more than 10% before the opening. Late Tuesday, the company reported disappointing earnings. Net income fell to $63 million (14 cents per share), compared to $231 million (51 cents per share) a year earlier. This is a decline of 72.7% from the year earlier quarter. The online retailer giant competes with eBay (NASDAQ:EBAY) and Barnes & Noble (NYSE:BKS). Investing Insights: Amazon.com Inc. Earnings Cheat Sheet: Bad Luck Continues.
Sprint Nextel Corp. (NYSE:S) is down more than 2% in early trading. On Wednesday, the company reported a loss of $301 million (10 cents per share), compared to a loss of $911 million (30 cents per share) last year. The wireless carrier benefited from 1.3 million new subscribers and increased revenue per user. Sprint competes with AT&T (NYSE:T) and Verizon (NYSE:VZ). Investing Insights: Sprint Nextel Earnings Cheat Sheet: Margins Shrink For Fifth Straight Quarter.
Shares of Nasdaq OMX Group (NASDAQ:NDAQ) are edging higher after reporting an 8.9% increase in third quarter profit. Trading volume improved on the recent volatility in the market. Nasdaq reported earnings of $110 million (61 cents per share), compared to $101 million (50 cents per share) last year.
Ford (NYSE:F) is falling 2.4% in early trading. Third quarter earnings declined to $1.65 billion (41 cents per share), compared to $1.69 billion (43 cents per share), last year. Shares of General Motors (NYSE:GM) and Honda Motor Co. (NYSE:HMC) are both trading higher.
Investing Insights: Ford Motor Company Earnings Cheat Sheet: Two Straight Quarters of Falling Profit.
Wednesday Afternoon’s Trending Stocks
Wall St. Watchdog reveals information about 10 hot stocks that have hit our trading screens here at Wall St. Watchdog in the morning:
- Cheniere Energy, Inc. (AMEX:LNG): Shares of Cheniere Energy, Inc. are trading higher over 56% today. 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.
- Panera Bread Company (NASDAQ:PNRA): Shares of Panera Bread Company are trading higher 15% today. Panera Bread Company owns and franchises bakery cafes. The Company’s bakeries operate under the Panera Bread and Saint Louis Bread Co. names. Panera operates throughout the United States and offers free broadband Wi-Fi network.
- Broadcom Corporation (NASDAQ:BRCM): Shares of Broadcom Corporation are trading lower over 2% today. Broadcom Corporation provides integrated silicon solutions that enable broadband digital data transmission of voice, data, and video content to the home and within the business enterprise. The Company designs, develops, and supplies integrated circuits for cable set-top boxes, cable modems, high-speed networking, direct satellite and digital broadcast, and digital subscriber line.
- MF Global Holdings Ltd (NYSE:MF): Shares of MF Global Holdings Ltd are trading lower 24% today. MF Global Holdings Ltd. provides execution and clearing services for exchange-traded and OTC derivative products, non-derivative foreign exchange products and securities in the cash market.
- Amazon.com, Inc. (NASDAQ:AMZN): Shares of Amazon.com, Inc. are trading lower over 11% today. Amazon.com, Inc. is an online retailer that offers a wide range of products. The Company’s products include books, music, videotapes, computers, electronics, home and garden, and numerous other products. Amazon offers personalized shopping services, Web-based credit card payment, and direct shipping to customers.
- RadioShack Corporation (NYSE:RSH): Shares of RadioShack Corporation are tradinglower over 12% today. RadioShack Corporation operates a chain of retail consumer electronics goods and services stores located throughout the United States and Mexico, along with wireless phone kiosks in the US, and dealer outlets worldwide. The Company offers consumers wireless phone and other electronic products and services from national brands and exclusive private brands and wireless carriers.
- Valassis Communications, Inc. (NYSE:VCI): Shares of Valassis Communications, Inc. are trading lower over 12% today. Valassis Communications, Inc. is a media and marketing services company serving a wide range of industries. The Company and its subsidiaries offer products and services to mass or targeted audiences by mail, in newspapers and stores, and online. Valassis also offers coupon redemption and management; promotion and sweepstakes security; and frequent shopper data collection and analysis.
- WellPoint, Inc. (NYSE:WLP): Shares of WellPoint, Inc. are trading higher over 3% today. WellPoint Inc. is a health benefits company. The Company provides health benefits, dental and vision benefits, pharmacy benefits, life insurance, and life and disability insurance benefits. WellPoint operations include Blue Cross and Blue Shield plans.
- Tupperware Brands Corporation (NYSE:TUP): Shares of Tupperware Brands Corporation are trading higher over 2% today. Tupperware Brands Corporation is a portfolio of global direct selling companies which sell products across multiple brands and categories through an independent sales force. The Company’s product brands and categories include food preparation, storage, and serving solutions for the kitchen and home. Tupperware Brands Corp also sells beauty and personal care products.
- Thermo Fisher Scientific Inc. (NYSE:TMO): Shares of Thermo Fisher Scientific Inc. are trading lower over 9% today. Thermo Fisher Scientific, Inc. manufactures scientific instruments, consumables, and chemicals. The Company offers analytical instruments, laboratory equipment, software, services, consumables, reagents, chemicals, and supplies to pharmaceutical and biotech companies, hospitals and clinical diagnostic labs, universities, research institutions, and government agencies.
Markets closed up on Wall Street today: Dow +1.38%, S&P+1.05%, Nasdaq +0.46%, Oil -2.54%, Gold +1.25%.
Hot Feature: Oil Rises to 12-Week High, Enters Bullish Territory
Today’s markets were up because:
1) Europe. Stocks rallied this afternoon after European leaders, holding a summit today in Brussels, hinted that they might be nearing a compromise on how to shore up the region’s finances and combat the contagion of the sovereign debt crisis from spreading. European government leaders have pledged to unveil a comprehensive plan to address the region’s debt crisis at the end of the summit.
2) Tech. Markets began the day lower after a disappointing earnings report from Amazon (NASDAQ:AMZN) dragged down the technology sector. In its report yesterday, Amazon forecast that its operating results in the next quarter would range from a loss of $200 million to a profit of $250 million. The news brought down Cisco (NASDAQ:CSCO) and Microsoft (NASDAQ:MSFT) in early trading, but they soon shook off the slump as Europe continued to drive trading.
3) Boeing. With markets starting the day lower, dragged down by heavyweights like Cisco and Microsoft, Boeing almost single-handedly held up the Dow after reporting better-than-expected earnings and announcing the completion of the first successful commercial flight of its new 787 Dreamliner. Joining Boeing in what has so far proved to be a fairly exclusive club this earnings season was Lockheed Martin (NYSE:LMT), which reported earnings that beat Wall Street’s expectations, as did Northrop Grumman (NYSE:NOC). Despite falling revenue General Dynamics Corporation (NYSE:GD) also managed to boost profit in the third quarter.
After Hours Radar Stocks
Shares of Chevron Corp (NYSE:CVX) are edging slighting higher in late trading. The company announced a 3.8% increase in its quarterly dividend. CEO John Watson said, “Dividend increases are a very important way to share Chevron’s success with its shareholders.” Shares of Exxon Mobil (NYSE:XOM) also ticked higher after the close.
Visa (NYSE:V) is falling more than 2% after reporting a fourth quarter profit of $880 million ($1.27 per share), compared to $774 million ($1.06 per share) last year. Visa reported a 12% rise in revenue to $2.38 billion, but analysts were expecting $2.39 billion. Mastercard (NYSE:MA) is also trading lower, while American Express (NYSE:AXP) is up .20%.
Investing Insights: Visa Inc. Earnings Cheat Sheet: Fifth Consecutive Quarter of Double-Digit Growth.
Symantec Corp (NASDAQ:SYMC) reported a fiscal second quarter profit of $182 million (24 cents per share), compared to $136 million (17 cents per share) last year. Shares are down more than 3% in extended hours.
Despite a 33% fall in earnings, shares of Novellus Systems (NASDAQ:NVLS) are popping 2% in late hours. Net income for the semiconductor equipment and materials company fell to $51.1 million (73 cents per share), compared to $76.3 million last year. The company said, “The current global market volatility has affected capital intensive business investment but we are optimistic that the underlying demand for technology products will enable us to profitably ride through this period of uncertainty.”
Akamai Technologies, Inc. (NASDAQ:AKAM) is surging nearly 13% after reporting a 6.5% gain in net income for the third quarter. The company also announced that president and board member David Kenny has resigned, and CEO Paul Segan will assume the role.