Stock Futures Higher on Greek Bailout Deal. Stocks to Watch: AAPL, BAC, DELL, HD, KFT, SLW, WMT, WYNN

Published on Tuesday, 21 February 2012 07:44 Written by Christopher Lynn

New York, February 21^st (TradersHuddle.com) – Stock futures were pointing to higher open amid mixed performance in overseas markets following news that euro zone finance ministers have agreed to provide Greece with a second round of financial aid. Participants were returning from a long holiday weekend ahead of the Chicago Fed National Activity Index.

In Asia, stocks struggled despite the announcement of the deal to provide a second bailout to Greece, which will help avoid a messy default. In Japan, the Nikkei slipped 0.2%, while in China, the Shanghai Composite gained 0.75%, ending at it s highest level in nearly 2 months, as strength in financial shares following the Greek bailout deal helped buoyed the index.  

In Europe, equity markets were falling from near seven-month highs, as news of the Greek second bailout failed to inspire participants, amid concern that it’s a short-term fix due to the bleak outlook for the Greek economy. Euro zone finance ministers agreed to the 130 billion financial aid package after long negotiations in which they demanded a new round of austerity measures and deep budget cuts, while persuading private bondholders to take deeper cuts in their positions.

The euro was sliding 0.17% against the Dollar, trading above the $1.32 level. Crude oil was jumping 1.27% to $104.55 per barrel. Also in the energy complex, natural gas was losing 1.79%, trading at $2.636 per MMBtu. Gold was climbing 0.74% to $1738.7 an ounce and silver was gaining 1.43% to $33.69 an ounce. Meanwhile, copper was jumping 2%.

Today’s Stocks to watch: Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), Dell (NASDAQ:DELL), Home Depot (NYSE: HD), Kraft Foods (NYSE: KFT), Silver Wheaton (NYSE: SLW), and Wal-Mart (NYSE: WMT), Wynn Resorts (NASDAQ: WYNN).

Apple (NASDAQ: AAPL), the maker of iPads and iPhones, was gaining 0.19% to $503.09 in pre-market on reports the company has signed an agreement with China Telecom for it to start selling Apple’s iPhone next month. China Telecom now joins China Unicom, as Apple looks to recruit China’s biggest wireless carriers to sell the iPhone. China Mobile, China’s largest wireless carrier has been negotiating with Apple for it to carry the iPhone, but its current network does not support the iPhone. The carrier is upgrading to 4G, so it might start selling iPhones, when Apple launches the new iPhone with 4G capabilities. Last week, the stock surged to an all-time high of $526.29 before making a sharp reversal that took the stock briefly below $500 per share. Apple had reacted positively to news that suggested the iPad 3 might launch as soon as early March. Also last week, the tech giant struggled amid reports that more cities in China are banning sales of the iPad amid a worsening trademark dispute with Proview, a Chinese company that is claiming it owns the iPad name in China. Additionally, Oppenheimer is the latest brokerage house to bump its target price on the stock. The firm raised it to $570 from $510, reflecting increases to both their iPhone and iPad estimates.

Bank of America (NYSE: BAC) was climbing 0.62% to $8.07 in pre-market, amid the positive news out of the euro zone. The stock was able to close above its 200day moving average on Friday, despite the increased volatility in the week. Year to date, BofA is the best Dow component following a dismal performance in 2011, posting the biggest decline in the blue chip index and the financial sector. The stock has calculated support at $7.66 and resistance at $8.35.

Dell (NASDAQ:DELL), the third largest PC maker, will be in focus in the session, as participants adjust positions ahead of the company reporting its quarterly results after the close. On average analysts expect a profit of $0.51 per share on revenues of $15.93 billion. Last quarter, the company posted a 15% upside earnings surprise as it earned $0.54 per share. Last Friday, Maxim Group initiated coverage on Dell with a Buy and a target price of $23, saying the company might benefit in the near-term from falling PC component prices and enterprise refresh cycle.

Home Depot (NYSE: HD), the biggest home improvement retailer, was gaining 1.78% to $47.54 after the company posted better than expected quarterly results, while it provided upside earnings and revenue guidance for fiscal 2013. Home Depot said it earned $0.50 per share, $0.07 better than consensus, on revenues that climbed 5.9% year over year to $16 billion versus consensus of $15.47 billion. Earnings Guidance for fiscal 2013 is $2.79 per share, $0.03 better than consensus, on revenues that are expected to rise by 4% to $73.21 billion. The stock is trading above the 52-week high of $46.72, which was posted just last Friday.

Kraft Foods (NYSE: KFT), the maker of Velveeta cheese and Oreo cookies, was sliding 0.58% to $37.79 after posting inline quarterly results, while providing guidance for fiscal 2012. The company said that it earned $0.57 per share, excluding non-recurring items, on revenues that climbed 6.6% year over year to $14.69 billion. The company expects to deliver Organic Net Revenue growth of about 5%, including a negative impact of up to one percentage point from product pruning in North America; meanwhile Operating EPS is expected to grow at least 9% on a constant currency basis, despite a higher effective tax rate and a 4 percentage point headwind from higher pension costs. Kraft also said that will incur one-time restructuring, transition and transaction costs of $1.6 billion to $1.8 billion as it prepares to separate into two companies later this year.

Silver Wheaton (NYSE: SLW), the largest metal streaming company in the world, will be in focus amid a jump in silver prices. The price of the silver bullion was trading above $33 per ounce, following the gold bullion higher following news of the second Greek bailout. Tensions in the Middle East also have been spurring demand for precious metals. Silver Wheaton ended about flat last week. The stock has calculated support at $34.56 and resistance at $37.25.

Wal-Mart (NYSE: WMT), the world’s largest retailer, was falling 1.57% to $61.50 in pre-market after its quarterly results fell short of estimates. The company earned $1.44 per share, excluding some items, $0.01 worse than consensus, on revenues of $122.3 billion versus consensus of $123.52 billion. Wal-Mart reported U.S. Q4 comparable store sales of +1.5%, while it guided for range of flat to +2%. For the current quarter, the company expects EPS of $1.01 to $1.06 versus consensus of $1.05, while for Fiscal 2013 it expects EPS of $4.72 to $4.92 versus consensus of $4.91.

Wynn Resorts (NASDAQ: WYNN), the luxury casino operator, will be in focus after the company accused Kazuo Okada, Steve Wynn’s former business partner, of violating foreign corruption laws and forcibly buying back its 20% stake on Wynn Resorts. According to a Wynn’s investigation Mr. Okada made improper payments to foreign gaming regulators. Okada and Steve Wynn were close friends and business partners for 12 years before their relationship turned sour. Universal Entertainment Corp, in which Okada is chairman, said that it would take necessary legal steps to protect its investment in Wynn Resorts amid the ongoing battle between gaming moguls.