Stocks Gain for the Week; Dow Near 13,000 (AAPL, BAC, BIDU, FCX, FSLR, GM, M, MSFT, NTAP, NVDA, XLY)

Published on Saturday, 18 February 2012 09:01 Written by TradersHuddle Staff

Weston, February 18^th (Tradershuddle.com) – Stocks posted a weekly gain, with both the Dow and the NASDAQ trading at multiyear highs, as solid economic data and hopes that the Greek bailout will be resolved soon helped eased earlier jitters over lackluster retail sales and worries that Greece was heading to a messy default.

For the week the Dow climbed 1.16%, while the NASDAQ jumped 1.65% and the S&P 500 gained 1.38%.

At the start of the week, stocks gained on the session, with the S&P 500 closing above the key level of 1350. News that Greece approved a new package of austerity measures coupled with a slow flow of other economic news helped spur participants into equities. Meanwhile Apple momentum continued with shares closing above $500 per share.

The Industrial SPDR ETF (NYSE: XLI) gained 1.22% to $37.42, extending its year to date gain that places the ETF among the 3 top sectors for the year. The advance in the sector was propel by W.W. Grainger (NYSE: GWW) after it reported January sales jumped 17% year over year. Grainger rallied 4.15% to $208.46 after posting a new all-time high of $209.57.

Another stock with sizeable gains was Ingersoll-Rand (NYSE: IR). The stock gained 2.5% on news Bernstein upgraded it to Outperform from Market Perform.

Financials also moved to the upside, as the sector benefited from investor interest following the progress in the Greek debt crisis. Banks were the biggest gainers in the Dow Jones Industrial Average, with Bank of America (NYSE: BAC) jumping 2.2% and JPMorgan (NYSE: JPM) advancing 1.8%. BofA jumped to $8.25 after trading as high as $8.31, the highest level since August 2011. Bank of America extended its year to date rally to an impressive 48.4%.

Consumer discretionary stocks also saw increased interest. Priceline.com (NASDAQ: PCLN), the name your own price travel site, surged to the top of the sector, with shares rallying 4.79% to $571.15 after posting a new 52-week high of $573.13. The improved picture in Europe due to the signing of the austerity package in Greece seems to have helped the stock with big European exposure.

On the flip side in the sector, TripAdvisor (NASDAQ:TRIP) tumbled 4.83% to $28.59, posting the second biggest decline in the broad market index. Last week the stock tumbled sharply after results missed expectations and it was downgraded to a Hold at The Benchmark Company and to a Neutral at Lazard.

Technology had an unimpressive gain amid an S&P downgrade to the sector from Overweight to Market Weight due to the year to date outperformance. However the big story in the space was Apple (NASDAQ: AAPL). The tech giant continued to move higher, posting a new all-time high of $503.83. Apple gained 1.86% to $502.60, closing above the $500 per share psychological level for the first time ever.

Apple raised the ante against Samsung, asking a federal court to block the sale of some Galaxy smartphones alleging patent infringement in what is seen as a shot across the bow for Google (NASDAQ: GOOG), who is provider of the Android OS and as the Internet search giant waited for imminent approval from U.S. regulators of its Motorola Mobility acquisition.

NVIDIA (NASDAQ: NVDA) also helped the sector higher, with shares jumping 1.6% to $16.15 after it was upgraded to Outperform from Market Perform at FBR Capital. The firm set its target price at $20.

On the losing end, shares of First Solar (NASDAQ: FSLR) tumbled to the bottom of the S&P 500 after it was downgraded to a Hold at Brigantine. The firm downgraded the stock based on valuation and citing installation rates in Germany in December and in the first quarter of the year have slowdown dramatically.

On Tuesday, the market started with modest losses after mixed retail sales data in the U.S. weighed on sentiment. Participants had largely shrugged off another round of credit rating downgrades in the euro zone after better than expected German sentiment.

Early losses were broad, but not steep. That trend took stocks to session lows late in the day on positive news coming out of Greece, where the Greek conservative leader is expected to deliver a letter of commitment to lenders Wednesday. Among the S&P 500 sectors it was a mixed bag. Materials and financials posted the biggest declines, while healthcare, consumer staples, technology, and utilities gained.

U.S. Steel (NYSE: X) tumbled close to 4%, posting the biggest percentage decline in the materials sector on concern over demand following the worse than expected retail sales figures weighed on sentiment amid concerns over future demand. The euro weakening versus the Dollar and trading below the $1.32 level also weighed on the sector and on metal prices. Freeport McMoRan (NYSE: FCX) fell 3.8% to $42.96, as lower copper prices weighed on the world’s largest publicly traded copper producer.

Financials were also under pressure amid the downgrades in the European sovereign and concerns over weak economic data. Bank of America (NYSE: BAC) pulled back from its recent run up rather sharply, posting the biggest decline in the blue chip index. Shares of BofA tumbled 3.3% to $7.98, closing below $8 per share and below its 200day moving average at $8.03. Citigroup downgraded the stock to a Hold from Buy, which gave participants another reason to pare back positions.

Meanwhile shares of Citigroup (NYSE: C) fell 2.43% to $32.08, cutting its year to date jump to just below 22%. Morgan Stanley (NYSE: MS) also slid more than 2% amid concerns over Europe, economic data and after President Obama’s proposed budget considers a $61 billion tax on banks to help pay for bailouts and help to struggling homeowners facing foreclosure.

In tech land, Apple (NASDAQ: AAPL) defied weakness amid reports that it could be facing an import and export ban for its iPad in China after Proview, a Chinese company, won a court ruling regarding the iPad trademark in China. Shares jumped 1.36% to $509.46 after posting a new all-time high of $509.56.

But weighing negatively on the sector, were shares of First Solar (NASDAQ; FSLR). The solar panel maker tumbled the most in the sector, as shares fell 6% to $39.21, extending ithis week decline. And Yahoo (NASDAQ: YHOO) lost 4.7% to $15.365 on reports that Alibaba and Softbank have called off talks over sales of the search-engine company's Asian assets.

Mid week, stocks fell, with the Dow logging its biggest decline in the year, amid renewed concerns over Greece fueled by lingering concerns about if and when the next round of bailout funds will arrive to the country. The decline came amid a sharp pull back on Apple shares after hitting new all-time highs and despite better than expected economic growth in the euro zone and solid manufacturing data in the U.S.

The first half of the session was mostly mixed with the S&P 500 chopping along with a modest gain, the Dow down because of lackluster action among blue chips, and the tech heavy NASDAQ gaining aided by technology stocks. The biggest source of support and lift was from Apple (NASDAQ: AAPL) due to its weight on the indices. The stock surged to a fresh all-time high of $526.29, propelled by fresh speculation over a possible divided and the potential for an iTV.

CEO Tim Cook at an investor conference yesterday said that the company is in very active discussions at the board level about what to do with its cash. At the same appearance he also hinted that Apple was working on something big, which many saw it as a reference to the iTV. However the surge was short lived, as Apple pulled back sharply to fall more than 2% and close below the $500 per share mark on rumors that the NASDAQ could rebalance its indices to reduce Apple’s weight.

At the end of the session, industrials, financials, and technology posted the biggest declines, while materials edged higher. Railroads in the industrial sector weighed, as transports had the biggest decline amid 24 S&P 500 industries. Norfolk Southern (NYSE: NSC) tumbled 3.64% to $67.87 and CSX Corp. (NYSE: CSX) lost 2.9% to $21.19. Yesterday, news that coal shipments were down 11% year to date weighed on the railroads.

In the financial sector, Bank of America (NYSE: BAC) tumbled 2.51% to $7.78, extending its decline below the 200day moving average. BofA posted the biggest decline in the Dow Jones Industrial average, but still maintained its title of best performing Dow component in the year with a 39.9% gain.

Tech stocks followed Apple shares on the reversal. At one point it was jumping more than 1% to end the session with a loss of 0.53%. Juniper Networks (NASDAQ: JNPR), the provider of Internet infrastructure solutions, posted the biggest gain in the sector, with shares jumping 7% to $24.16, on a research note from Jefferies. The firm speculated that capital spending by the big telcos would increase, benefiting North American equipment vendors, but especially Juniper.

Elsewhere in the consumer discretionary space, Abercrombie & Fitch (NYSE: ANF) surged 8.32% to $48.3, posting one of biggest gain in both the sector and the broad market index. The company missed its earnings by $0.03 per share on revenues that climbed 15.7% year over year but also fell short of expectations. Abercrombie reaffirmed its fiscal 2013 guidance, but said in the conference call that its assumptions are conservative. The company also acknowledged that it made big bets on cold weather gear, and with the mild winter in the U.S., it clearly didn’t paid off.

And in the staples area, food stocks were on fire, with Dean Foods (NYSE: DF) soaring more than 10%, logging the biggest gain in the broad market index. Dean Foods beat earnings expectations on revenues that were inline with consensus. The company also issued inline guidance for the quarter and the year, despite continued fluid milk category weakness and industry pricing pressures.

And Kellogg (NYSE: K) jumped 5.11% to $52.87 on news that it will acquire the Pringles business unit from Procter & Gamble for $2.7 billion.

On Thursday, The market started on a positive note following the weekly jobless claims that showed the lowest amount of unemployment claims filed in four years. Additionally, housing starts were better than expected, while the PPI came in at 0.1%. Futures had been lower ahead of the data amid Greek woes and data that showed a decline in foreign investment in China.

Additional data from the Philadelphia Fed Survey also came above expectations, with stocks climbing steadily after its release. The market was able to hold to gains and actually close near session highs as the euro ended with a 0.6% gain against the Dollar on news that the European central banks will exchange their existing Greek bond holdings to help eased the crisis in the indebted nation.

Material stocks got a lift from the upbeat economic data in the U.S. and the Dollar weakness, which helped the price of the underlying commodities. United States Steel (NYSE: X) rallied to the top of the sector with a 4.3% gain to $28.81.

Freeport McMoRan (NYSE: FCX), the world’s largest publicly traded copper producer, was also among the outperformers, as shares rallied 3.4% to $43.84. Copper prices rebounded from four week lows after the encouraging data in both the housing and labor fronts in the U.S., the world’s second largest consumer of the industrial base metal.

Financials benefited from the economic news, with Bank of America (NYSE: BAC) recovering its footing after a couple of sharp declines in the past sessions. The stock jumped 3.98% to $8.09, posting the second biggest gain in the Dow Jones Industrial Average and closing once again above its key 200day moving average. Rival Citigroup (NYSE: C) rallied more than 3% to $32.71.

The tech heavy NASDAQ outperformed, as technology saw also outsize bids. NetApp (NASDAQ: NTAP) surged to the top of the S&P 500, as shares rallied more than 7% in the session on positive reaction to its quarterly results, which were able to meet expectations. NetApp also issued inline guidance, while the ISI Group bumped its target price to $50 from $47.

Microsoft (NASDAQ: MSFT) rallied 4.11% to $31.28, posting the biggest percentage gain in the blue chip index. The stock reacted positively to comments made by its CFO at the Goldman Technology Conference regarding dividends and capital allocation.

Even NVDIA (NASDAQ: NVDA), which traded as low as $15 after it disappointed investors with a gloomy revenue outlook, was able to rebound and finish with a gain of 1.73% to $16.45. The company also presented at the Goldman Technology Conference..

Meanwhile, Apple (NASDAQ: AAPL) underperformed the broad market index, but was able to regain its footing after yesterday’s sharp reversal that took the stock below the $500 mark. Apple climbed 0.91% to $502.21 amid reports that more Chinese cities have been asking retailers to stop ordering iPads amid a worsening dispute between Apple and Chinese company Proview over trademark infringement in China on the popular device.

Elsewhere, Amazon (NASDAQ: AMZN) and J.M. Smucker (NYSE: SJM) pressured the consumer related sectors. Amazon tumbled 2.5% to $179.93 after it was downgraded to Equal Weight from Overweight at Morgan Stanley, while J.M. Smucker plunged to the bottom of the S&P 500 after posting results that missed expectations and cutting its earnings outlook for the year.

On the flip side, General Motors (NYSE: GM) rallied close to 9% to $27.17 after participants bid the stock higher on news that it posted its highest yearly profit ever, although its quarterly results missed expectations amid losses in Europe and South America.

At the end of the week, stocks fell, posting their biggest single session loss of the year, as uncertainty over the Greek bailout rose amid calls for further conditions and cuts in order for the country to access new bailout funds. Both the NASDAQ and the S&P 500 snapped a five winning streak. Adding to the woes, S&P cut it’s rating on almost all of the Italian banks, citing worries over the banking industry and economic risks.

The Consumer Discretionary SPDR ETF (NYSE: XLY) gained 0.92% to $42.98 after posting a new all-time high of $43.02. The sector received support from retailers Urban Outfitters (NASDAQ: URBN) and Macy’s (NYSE: M).

Urban Outfitters rallied to the top of the sector, with shares jumping 3.7% to $28.48. The company gained last week after it reported preliminary fourth quarter sales that showed 9% over the same quarter last year to $731 million. And Macy’s gained 2.7% to $36.25, trading near its multiyear high of $36.37. The department store operator is scheduled to report its quarterly results on Tuesday before the opening bell. On average analysts expect a profit of $1.65 per share on revenues of $8.7 billion. Last quarter, Macy’s posted a 100% upside surprise.

But weighing on the sector was Nordstrom (NYSE: JWN). The luxury department store operator fell 2% to $51.14 after the company issued downside earnings guidance for its fiscal 2013. The company beat earnings expectations for the past quarter on revenues that were inline with estimates. The stock was downgraded to Underperform from Buy at Credit Agricole. After the closing bell, the board of directors authorized an $800 million share repurchase program, while increasing its dividend by 17%.

Other consumer related stocks were also in focus following better than expected earnings from Heinz (NYSE: HNZ) and Campbell Soup (NYSE: CPB). Both stocks jumped to the top of the staples sector.

In the Healthcare sector, the biggest drag was Gilead Sciences (NASDAQ: GILD). The stock tumbled to the bottom of the S&P 500, as shares plunged 14.25% to 47 on negative news on its experimental hepatitis C drug.

But it was technology with its weighing that limited the gains the most in the session. Google (NASDAQ: GOOG) fell 0.31% to $604.64 amid news that the company was violating privacy policy of Apple’s Safari users, by tracking surfing behavior, despite the privacy setting. The stock also suffered some residual weakness from Baidu. Shares of Baidu (NASDAQ: BIDU) tumbled more than 3% despite beating earnings expectations, as Morgan Stanley said that its growth rate will likely slowdown this year.

Meanwhile, First Solar (NASDAQ: FSLR) surged to the top of the S&P 500, with shares rallying more than 7% after Collins Stewart said that it sees problem with permits to be resolved and expects that Department of Energy funds to start flowing to the AVSR project.

And Apple (NASDAQ: AAPL) edged 0.02% lower to $502.12, as the stock stabilize following the sharp volatility of the prior sessions. Oppenheimer bumped its target price to $570 from $510, reflecting increases to both their iPhone and iPad estimates. The firm's iPhone checks suggest only a small post-holiday slowdown in iPhone 4S demand, while iPad demand has fallen more post-holiday, although it believes this in part reflects the expectation of a new iPad 3.