Ultimate Market Recap: Chipotle Goes South, AT&T to Spend Billions in Buybacks

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Stocks BUZZING Before the Bell: Google and Microsoft Climb Higher, AMD and Intuitive SINK

Google (NASDAQ:GOOG) shares jumped 2.43 percent this morning in pre-market trading. The search giant reported that second-quarter earnings came in at $2.79 billion ($8.42 per share). Excluding items, earnings were $10.12 per share, beating analyst estimates of $10.04 per share. “Google standalone had a strong quarter with 21 percent year-on-year revenue growth, and we launched a bunch of exciting new products at I/O – in particular the Nexus seven tablet, which has received rave reviews,” said Larry Page, CEO of Google. “This quarter is also special because Motorola is now part of the Google family, and we’re excited about the potential to build great devices for users.”

Advanced Micro Devices (NYSE:AMD) shares are down 3.70 percent after the company announced second-quarter financial results. Net income for the company dropped 39.3 percent to $37 million (5 cents per share), compared to 61 million (8 cents per share) a year earlier. Revenue also declined 10.4 percent to $1.41 billion, falling in line with estimates.

Shares of Microsoft (NASDAQ:MSFT) popped 1.09 percent in early trading. However, the company reported a net loss of $492 million (6 cents per share), compared to a net gain of $5.87 billion (69 cents per share) a year earlier. It was the first net loss the Windows-maker since going public in 1986. Excluding the massive write down for aQuantive, the company earned 67 cents per share, topping analyst estimates of 62 cents per share.

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Intuitive Surgical (NASDAQ:ISRG) shares dropped 5 percent in early trading, despite yesterdayreporting a 31.9 percent rise in earnings. Net income for the second-quarter came in at $154.9 million ($3.75 per share), compared to $117.4 million ($2.91 per share) a year earlier. Commenting on the announcement, Dr. Gary Guthart, President and CEO of Intuitive Surgical, said, “Our solid second-quarter revenue and earnings performance is the result of robust US gynecologic and general surgery procedure growth offset by pressure in Europe and US prostatectomy.”

E*TRADE Financial (NASDAQ:ETFC) shares are down 1.28 percent this morning after the company reported a 16.1 percent decrease in earnings. The company posted net income of $39.5 million (14 cents per share) for the second-quarter, compared to $47.1 million (16 cents per share) in the same quarter last year.

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Microsoft (NASDAQ:MSFT) reported a fiscal fourth quarter net loss of $492 million as compared to a $5.87 billion net profit from the previous year; this came from a $6.2 billion writedown of its 2007 aQuantive acquisition. On a positive note, the company saw an adjusted earnings per share of $0.73 and a seven percent revenue increase to $18.6 billion, beating estimates. Microsoft’s Windows business and consumer sales did not fare well in the quarter.

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Google’s (NASDAQ:GOOG) adjusted earnings per share increased to $10.12 from $8.74 in the previous year; this exceeded analysts’ estimates while revenue rose 21 percent to $8.36 billion, slightly missing estimates. Google site and ad-network revenue reported strong gains, but ad-click prices dropped 16 percent. Motorola lost $233 million from $1.245 billion of sales. According to the New York Times, analysts called this “frightening.”

In the second quarter, GE’s (NYSE:GE) profit from continuing operations increased 2.5 percent to $3.66 and revenue rose two percent to $36.5 billion. Good U.S. demand for equipment used in energy production balanced out the effect of the challenged European economy. While revenue missed estimates, the $0.38 earnings per share exceeded expectations. GE Capital earned $2.1 billion (+31%) and returned $3 billion of it to the parent company; it then increased 2012 operating cash expectations between $17 billion to $19 billion from GE Capital dividend’s restart.

Yahoo’s (NASDAQ:YHOO) new CEO Marissa Mayer could make up to $141 million of compensation during the next five years, including a $1 million-a-year base salary and a combination of performance bonuses, restricted stock units, and options. Bloomberg reported the story of Mayer’s hiring: two secret meetings held off of Yahoo’s campus with a second one including activist investor Dan Loeb and the remainder of Yahoo’s board sealing the deal.

DirecTV (NASDAQ:DTV) will restore Viacom’s (NYSE:VIA) networks to its 20 million U.S. subscribers after reaching a long-term agreement. This comes after a more than a week-long programming blackout from an argument over fees. The details were not disclosed.

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Early BUZZERS: GE Pops 1%, Chipotle Gets BURNED

General Electric (NYSE:GE) shares gained 1 percent this morning. The company reported that net income for the second-quarter increased 6.3 percent to $4 billion (34 cents per share), compared to $3.76 billion (35 cents per share) a year earlier. “Today’s results demonstrate that we are executing on our growth strategy in the midst of a still volatile global economy,” said GE Chairman and CEO Jeff Immelt. “GE Capital’s strong operating performance and capital position allowed it to return a $3 billion dividend to the parent, and our Industrial segments delivered another quarter of double-digit organic revenue growth.”

Shares of Microsoft (NASDAQ:MSFT) were down about 1 percent in morning trading after the company reported a net loss of $492 million (6 cents per share), compared to a net gain of $5.87 billion (69 cents per share) a year earlier. It was the first net loss the Windows-maker since going public in 1986. Excluding the massive write down for aQuantive, the company earned 67 cents per share, topping analyst estimates of 62 cents per share.

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Google (NASDAQ:GOOG) shares popped 2.75 percent this morning. The search giant reported that second-quarter earnings came in at $2.79 billion ($8.42 per share). Excluding items, earnings were $10.12 per share, beating analyst estimates of $10.04 per share. “Google standalone had a strong quarter with 21 percent year-on-year revenue growth, and we launched a bunch of exciting new products at I/O – in particular the Nexus seven tablet, which has received rave reviews,” said Larry Page, CEO of Google. “This quarter is also special because Motorola is now part of the Google family, and we’re excited about the potential to build great devices for users.”

Shares of Chipotle Mexican Grill (NYSE:CMG) plummeted nearly 23 percent in morning trading. The company reported that net income jumped 61.2 percent to $2.56 per share, beating the mean analyst estimate of $2.30 per share. However, revenue of $690.9 million fell short of the $707.1 million average estimate. Furthermore, sales at restaurants open at least one year increased 8 percent, below expectations of 10.1 percent. Due to the results, Chipotle was removed from Goldman Sachs’ (NYSE:GS) Conviction Buy List and Deutsche Bank (NYSE:DB) downgraded shares to Hold from Buy.

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Five Below SURGES 49% and 3 Hot Stocks Grabbing Investor Attention

Chipotle Mexican Grill, Inc. (NYSE:CMG) Q2 results caused Buffalo Wild Wings and Panera to fall. Shares of Chipotle Mexican Grill, Inc. are trading 22.84%  lower  today.

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Five Below Inc (NASDAQ:FIVE) rose 49 percent to $25.30 following the pricing of its initial public offering of 9.62 million shares at $17 per share. The retailer who is based in Philadelphia sells everything form soccer balls to mini-lockers to teens and pre-teens, for $5 or under. The company claims it expects to receive proceeds totaling nearly $72 million. Shares of Five Below Inc are trading 2.60% higher today.

Cepheid (NASDAQ:CPHD) Q2 earnings dropped 38 percent since the biological testing systems have been harmed by increased costs which masked strong revenue growth. The company’s full-year earnings estimates were also reduced. Shares of Cepheid are trading 24.01% lower today.

Microsoft Corporation (NASDAQ:MSFT) named Mark Penn as new corporate VP of strategic and special projects, according to the Seattle Times. Penn, currently CEO of PR firm Burston-Marsteller, will have emphasis on important Microsoft customer initiatives. Shares of Microsoft Corporation are trading 1.11% lower today.

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GE to RESTRUCTURE into 3 and 4 Hot Stocks Rounding Out the Week

NVR, Inc. (NYSE:NVR):  NVR Inc.’s (NVR) second-quarter profit improved due to an increase in home sales. However, it was their revenue as well as higher cancellation rate that grabbed investor attention. Shares of NVR, Inc. are trading 2.82% higher today.

Baker Hughes Incorporated (NYSE:BHI): CEO Martin Craighead made this comment:  “If commodity prices remain at current levels, we believe onshore activity in the U.S. should remain stable, and as International markets as well as those in the Gulf of Mexico expand, we expect to see continuing improvement.” Shares of Baker Hughes Incorporated, are trading at 8.89% higher today.

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Snap-on Incorporated (NYSE:SNA): Snap-On Incorporated (NYSE:SNA) reported revenues of $737.9 million for the second quarter of 2012, they are up 1.5%. Shares of Snap-on Incorporated are trading at 0.39% higher today.

General Electric Company (NYSE:GE):   GE will reorganize their Energy business into three separate companies, effective in the fourth quarter. The new firms will report directly to Jeff Immelt, General Electric CEO and Chairman, and Steve Bolze, Senior Vice President and CEO of Power and Water. They will provide, full, life cycle solutions for power generation customers, as well as renewable energy, and water processing technologies. Dan Heintzelman, Senior Vice President and CEO of Oil and Gas, will provide pipeline equipment, including turbo-machinery and services for all segments of offshore and onshore drilling.  Finally, Energy Management, led by Senior Vice President and Energy Management CEO, Daniel Janki, will consist of technology solutions for the delivery, management, conversion, and optimization of electrical power for customers across multiple energy intensive industries. The company’s infrastructure includes approximately 100,000 employees, who will, during the fiscal year 2012, have revenues of approximately $50B. The energy headquarters organizational layer is expected to be phased out in 2012.  Shares of General Electric Company are trading at 2.58% higher today

Piedmont Natural Gas Company Inc. (NYSE:PNY): Shares of Piedmont Natural Gas Company Inc. are trading at 2.53% lower today.

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Bank of America (NYSE:BAC):  According to The Financial Times, the United Kingdom’s Financial Services Authority is set to expand its London Inter-bank Offered Rate (Libor), rigging investigation, following reports of more institutions possibly being implicated. Until now, Libor has only focused on seven financial institutions. Shares of Bank of America are trading at 2.07% lower today.

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Apple Inc. (NASDAQ:AAPL):  Ahead of a patent trial, scheduled to begin July 30, Apple and Samsung received victories as well as defeats this week in court. Samsung Electronics (SSNLF) confirmed that in the next few weeks, they plan to launch their digital music service, Music Hug, in the U.S. However, they declined to disclose the pricing or launch date for the stateside debut. . Samsung is expected to compete with Pandora (NYSE:P), Spotify and others, reported The Los Angeles Times. Shares of Apple Inc. are trading at 1.11% lower today.

Facebook, Inc. (NASDAQ:FB):  Mark Zuckerberg, Facebook, Inc.’s Chief Executive, is about to add the biggest retail players to his list of friends.  He and his senior management team spent two days at Wal-Mart Store’s Bentonville, Arkansas, home office, and met with executives of the world’s largest retailer, to discuss ways to “deepen” their relationship. Shares of Facebook, in care, trading are unchanged today.

AT&T, Inc. (NYSE:T):  With Verizon’s (NYSE:VZ), stocks, up 22%, and AT&T’s (NYSE:T), up 19.5%, they both have traded, almost in lockstep, over the past year. AT&T said they would spend $9B to buy back nearly 5% of outstanding shares, as opposed to Verizon who has not been actively purchasing stocks.  AT&T could have the edge going forward, as their dividends are expected to continue growing. In addition to seeing their wireless base grow to 103.9M, during the last quarter,  they also saw a growth of tablet sales, which increased their consumer’s desire for data. So, while their stock is unlikely to skyrocket, Barron’s contends that investors, looking for a defensive dividend play, should take note of AT&T. Verizon Wireless also said that it added 1.2M subscribers in the second quarter, for a total of 94.2M.  Shares of AT&T, Inc. are trading at 0.56% lower today.

Nokia Corporation (NYSE:NOK): Fitch downgraded Nokia’s Long-term Issuer Default Rating and senior unsecured rating from “BB+ to ‘BB-”. The Outlook on the Long-term IDR, is Negative. Fitch stated that Nokia will receive a negative rating action, if they are unable to show a stabilization in their revenue declines, or generate a positive, single digit operating margin, in their Devices and Services Division.  According to the rating agency, the release of Nokia’s second quarter results indicate that the company is currently not near this position. Shares of Nokia Corporation are trading at 8.65% lower today.

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