Stock Futures Higher on EU data ahead of Jobs Report. Stocks to Watch: APKT, AAPL, BAC, BEAM, CAVM, TSN, WYNN

Published on Friday, 03 February 2012 07:42 Written by Christopher Lynn

New York, February 3^rd (TradersHuddle.com) – Stock futures were pointing to a higher open ahead of non-farm payroll data in the U.S., boosted by better than expected services sector data in both the euro zone and the U.K.

In Asia, stocks struggled, closing mixed after weak non-manufacturing data in China undermined sentiment ahead of U.S. key jobs data that could offer additional clues over the recovery strength of the world’s largest economy. In Japan, the Nikkei fell for the first time in four days, while in China the Shanghai Composite gained 0.8% after reversing earlier losses thanks to strength in financial shares. Chinese service PMI fell from the prior month to 52.9, but still provided some level of comfort to investors, as its reading was above 50, which signify expansion.

In Europe, equity markets were moving to the upside, hitting a 6-month high following strong service PMI figures around Europe. The euro zone's private sector economy snapped a four-month decline in January and expanded, signaling that it might barely escape a recession. Meanwhile, Britain's dominant services sector in expanded at the fastest pace in 10 months.

The euro was adding 0.26% against the Dollar, trading above the $1.31 level. Crude oil was gaining 0.46% to $96.80 per barrel. Also in the energy complex, natural gas was falling 1.8%, trading just about $2.50 per MMBtu. Gold was climbing .15% to $1762 an ounce and silver was dropping 0.06% to $34.155 an ounce. Meanwhile, copper was gaining 0.50%.

On economic news at 8:30 am, the Labor Department will release its Non Farm Payrolls report, with economists expecting 155,000 jobs created by the U.S. economy in January. Economists also expect that private employers created 168,000 jobs and that the unemployment rate will come in at 8.5%. At 10 am, December Factory orders data will be available along with January ISM Services Index, which is expected to gain to 53.1.

Today’s Stocks to watch: Acme Packet (NASDAQ: APKT), Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), Beam (NYSE: BEAM), Cavium (NASDAQ: CAVM) Tyson Foods (NYSE: TSN), and Wynn Resorts (NASDAQ: WYNN).

Acme Packet (NASDAQ: APKT) was plunging 11% to $27.40 in pre-market, trading below its calculated support at $28.70, following negative reaction to earnings that came in at the low end of January's downside preannouncement. The company posted a profit of $0.26 per share, $0.01 worse than consensus, on revenues that jumped 18.2% year over year to $83 million, which is below expectations. Mizuho added to the downward pressure by downgrading the stock to underperform, while cutting its target price to $18 from $25. The firm cited sharp second half of 2011 deceleration and disappointing 10% year over year growth for 2012. Needham also downgraded the stock to a Hold from Buy.

Apple (NASDAQ: AAPL), the maker of iPads and iPhones, was climbing 0.11% to $455.60 in pre-market and ahead of the jobs report, which the market will use to take today’s cues. According to comScore data, Apple continued to strengthen its share of mobile phone subscribers in the U.S. Among all of the equipment makers, Samsung remained at the top with 25.3% share, followed by LG with 20%, and Motorola with 13.3%, meanwhile Apple strengthen the fourth position to 12.4%, and Research In Motion ended with a 6.7% share. Apple received a lift thanks to its strong holiday quarter in which it saw strong demand for the iPhone 4S. Yesterday, a German court rejected Apple's request to ban sales of Samsung's Galaxy Tablet 10.1 N and the Galaxy Nexus smartphone in the country. Apple had claimed that Samsung used its patented touch screen technology. Piper Jaffray analyst Gene Munster said on CNBC’s Fast Money that the firm’s proprietary research found that Apple has been reaching out to TV component suppliers, which makes the analyst believe that Apple will likely unveil the iTV towards the end of this year.

Bank of America (NYSE: BAC) was climbing 0.81% to $7.51 in pre-market, trading just above its calculated resistance at $7.50. The move was ahead of the key employment report for January, which will provide additional clues regarding the recovery in the labor market. Due to its outsize exposure to the U.S. consumer, the stock will likely see a big reaction to the figures. A better than expected report coupled with the stock breaking above resistance could bode well for gains during the session. Year to date, BofA has jumped 34%, making the stock the best Dow component in 2012.

Beam (NYSE: BEAM), the largest U.S.-based spirits company and fourth largest premium spirits Company in the world, will be in focus following reaction to its quarterly results. The company said it earned $0.69 per share, $0.02 better than consensus, on revenues that climbed 1.2% year over year to $637.5 million, basically inline with expectations. Beam said that it sees high single digit earnings growth in 2012.

Cavium (NASDAQ: CAVM) was falling 0.87% to $33 in pre-market. The company posted earnings of $0.17 per share, $0.05 better than consensus, on revenues that fell 5.9% year over year to $56.3 million. Cavium issued downside guidance for the quarter, saying that it sees EPS in the range of $0.06 to $0.07 versus consensus of $0.12. It added that it sees revenues as flat sequentially. According to the company, Cisco was its top customer, representing 24% of its sales. Mizuho raised its target price on Cavium to $30 from $27, while Wunderlich lowered its target price to $20 from $23.

Tyson Foods (NYSE: TSN), the chicken and pork producer, will be in focus on reaction to its better than expected earnings report. The company said that profit was $0.42 per share, $0.08 better than consensus, on revenues of $8.33 billion. Tyson said that it expects fiscal 2012 revenues to exceed $34 billion.

Wynn Resorts (NASDAQ: WYNN), the luxury casino operator, will be in focus after the stock tumbled 3% in extended hours on reaction to its quarterly results. Wynn posted earnings of $1.55 per share, $0.27 better than consensus, on revenues that climbed 8.6% year over year to $1.34 billion, basically inline with expectations. The company noted that it seeing competitive pressures in Macau, where the company generates more than 75% of its adjusted EBITDA. The stock traded below its 200day moving average of $124.31.