Will These 3 Companies Reignite the Market Rally?

JP Morgan (NYSE:JPM): The banking leader reported second quarter earnings today. Net income for JPMorgan Chase & Co. rose to $5.43 billion ($1.27 per share) vs. $4.79 billion ($1.09 per share) in the same quarter a year earlier. This marks a rise of 13.3% from the year earlier quarter. Revenues were also up 7% to $27.4 billion from the year earlier quarter. The company beat the mean estimate of $1.21 per share. Estimates ranged from $1.09 to $1.36 per share. Analysts were expecting $25.13 billion in revenue.

CEO Jamie Dimon commented, “Our second-quarter earnings reflected solid performance across most of our businesses. The Investment Bank delivered strong earnings across most products and maintained its #1 ranking in Global Investment Banking Fees. Commercial Banking reported record revenue and continued loan growth for the quarter. Retail Financial Services demonstrated good underlying performance in Retail Banking but continued to experience high losses for mortgage-related issues.” JPM closed up 1.84%.

Competitors to Watch: Bank of America Corp. (NYSE:BAC), Wells Fargo & Company (NYSE:WFC), Citigroup Inc. (NYSE:C), Goldman Sachs Group, Inc. (NYSE:GS), Deutsche Bank AG (NYSE:DB), Morgan Stanley (NYSE:MS), U.S. Bancorp (NYSE:USB), SunTrust Banks, Inc. (NYSE:STI), UBS AG (NYSE:UBS), and KeyCorp (NYSE:KEY).

Google (NASDAQ:GOOG): Silicon Valley’s search engine leader was in with a very positive 2Q earnings report today. Net income for Google Inc. rose to $2.5 billion ($7.68 per share) vs. $1.84 billion ($5.71 per share) in the same quarter a year earlier. This marks a rise of 36.1% from the year earlier quarter, while revenues also rose 32.3% to $9.03 billion from the year earlier quarter. GOOG reported adjusted net income of $8.74 per share. By that measure, the company beat the mean estimate of $7.86 per share. Estimates ranged from $6.98 per share to $8.34 per share. It beat the average revenue estimate of $6.55 billion.

CEO Larry Page noted, “We had a great quarter, with revenue up 32% year on year for a record breaking over $9 billion of revenue. I’m super excited about the amazing response to Google+ which lets you share just like in real life.” GOOG is up over 10% in after hours trades.

Competitors to Watch: Microsoft Corporation (NASDAQ:MSFT), Yahoo! Inc. (NASDAQ:YHOO), Baidu.com, Inc. (NASDAQ:BIDU), Apple Inc. (NASDAQ:AAPL), AOL, Inc. (NYSE:AOL), Amazon.com, Inc. (NASDAQ:AMZN), Adobe Systems Incorporated (NASDAQ:ADBE), Demand Media Inc (NYSE:DMD), and IAC/InterActiveCorp (NASDAQ:IACI).

Cubist Pharmaceuticals, Inc (NASDAQ:CBST): The company swung to a second quarter loss, reporting a net income loss of $20.6 million (34 cents per diluted share) in the quarter. The pharmaceutical company had net income of $28.1 million or 45 cents per share in the year earlier quarter. Revenues rose 4.9% to $176.8 million from the year earlier quarter. CBST reported adjusted net income of 59 cents per share. By that measure, the company topped the mean analyst estimate of 41 cents per share. Estimates ranged from 27 cents per share to 52 cents per share. Analysts were expecting revenue of $174.8 million.

CEO Michael Bonney added, “This was truly an outstanding quarter in what we see as a transformational year for Cubist. In addition to our strong financial performance, driven in large measure by robust sales of CUBICIN, we reached a favorable settlement with Teva, announced a new strategic partnership with Optimer Pharmaceuticals, and continued to advance our exciting pipeline through positive top-line data emanating from Phase two studies on CXA-201 and CB-183,315.” CBST ended the day down -1.13%.

Competitors to Watch: Merck & Co., Inc. (NYSE:MRK), Teva Pharmaceutical Industries Ltd (NASDAQ:TEVA), Pfizer Inc. (NYSE:PFE), Novartis AG (NYSE:NVS), and Abbott Laboratories (NYSE:ABT).