Wall Street Watch: Google’s Stealth Safari, Microsoft’s New Equity Highs

Entering the weekend, Greece rumors continue swirling that the euro zone finance ministers will approve the bailout package on Monday, with the debt swap deal to be finished this weekend. According to the Financial Times, on Thursday, Greece found the additional EUR 325 million in savings as required by the Troika.

Don’t Miss: Google’s Reputation Takes Another Hit.

Positive remarks by Morgan Stanley analyst Adam Holt boosted Microsoft (NASDAQ:MSFT) to high levels last seen in 2010. Holt thinks the company’s S&P 500 weighting could rise in the fall. Also adding to Microsoft’s rising share price were comments by CFO Peter Klein on Thursday. He said Microsoft could increase its dividend if taxes change for offshore cash, according to Bloomberg. Klein added that at some point, aged Windows apps could be rewritten for ARM-based (NASDAQ:ARMH) systems.

Google Inc. (NASDAQ:GOOG) and other ad companies have continued going around privacy settings of millions of people who use Apple’s (NASDAQ:AAPL) Safari browser on iPhones and computers, according to The Wall Street Journal. The companies allegedly use special computer codes that deceives the Safari software into allowing the monitoring of users. In response to the paper’s notification, Google disabled the code.

In other news, German sources shot down talk of a bridge loan to Greece after the March 20 debt redemption date, but a possible escrow account to assure bailout money repays the debt is still part of the conversation. If Greece’s deal is settled, a list of 24 “prior actions” must be completed by the country by month’s end to get its funding.

Germany’s President Christian Wulff has been forced to resign over a home loan scandal. While the role is symbolic, this is the second president to resign during German Chancellor Angela Merkel’s tenure. Wulff’s exit is seen as blow to Merkel, who promoted his candidacy and will now have to deal with this domestic problem along with the Greece’s debt drama.

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Google’s Reputation Takes Another Hit

9 Buzzing Stocks: First Solar Surges 7%, While Gilead Sciences Plummets 16%

Applied Materials Inc. (NASDAQ:AMAT) shares jumped more than 6 percent in morning trading.  The company reported fiscal first quarter adjusted earnings of 18 cents per share, while analysts had only expected 12 cents per share.

Shares of First Solar Inc. (NASDAQ:FSLR) surged 7 percent before the opening bell.  The company reportedly settled the permit issues that delayed the completion of funding for the Antelope Valley Solar Ranch project, intended for Exelon Corp. (NYSE:EXC).

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Gilead Sciences Inc. (NASDAQ:GILD) shares dropped more than 16 percent this morning.  The company announced unsuccessful results with its hepatitis C GS-7977 drug, which it acquired last month from the $11 billion purchase of Pharmasset Inc.  Big pharmaceuticals such as Pfizer Inc. (NYSE:PFE) and Bristol-Myers Squibb (NYSE:BMY) climbed higher.

Despite reporting a 77 percent increase in profits late Thursday, shares of Baidu Inc. (NASDAQ:BIDU) edged lower.  Fourth quarter profits totaled $326 million, while revenue surged 83 percent.  Shares of Google Inc. (NASDAQ:GOOG) also edged slightly lower in early trading.

Investor Insight: Google’s Reputation Takes Another Hit

Campbell Soup Company (NYSE:CPB) shares jumped 5.5 percent after reporting results for the second quarter.  Net income fell to 64 cents per share, but analyst only expected earnings of 62 earnings per share.

5 Most Active Stocks: H.J Heinz Surges 4% as Campbell Soup Rises 3%

H.J. Heinz Company (NYSE:HNZ): Guidance excludes the charges for productivity initiatives. Included in this range is an expected benefit from foreign exchange of approximately 5c. Heinz continues to expect constant currency growth within its original range of 7%-8% on sales and 6-%8%, excluding special items but including the incremental spending on Project Keystone. Heinz still expects strong operating free cash flow of approximately $1.15B for FY12 excluding special items and around $1B on a reported basis. Shares of H.J. Heinz Company are trading 4.15% higher today.

Campbell Soup Company (NYSE:CPB): U.S. Soup sales declined 2 percent compared to the year-ago quarter. Sales for Global Baking and Snacking were $526M. Sales for International Simple Meals and Beverages were $402M. Sales for U.S. Beverages were $187M. Shares of Campbell Soup Company are trading 3.68% higher today.

Gilead Sciences, Inc. (NASDAQ:GILD): Gilead Sciences announced that the majority of hepatitis C genotype 1 patients with a prior null response to an interferon-containing regimen enrolled in the ongoing ELECTRON study experienced viral relapse within four weeks of completing 12 weeks of treatment with GS-7977 plus ribavirin. Ten patients were randomized to this arm of the ELECTRON study and data are available for eight of the 10 patients at this time. Among these eight patients, six have experienced viral relapse. Two patients have not relapsed; however, they have only reached the two week post-treatment time point. Shares of Gilead Sciences, Inc. are trading 14.64% lower today.

FreightCar America, Inc. (NASDAQ:RAIL): Reports Q4 revenue $187.1M vs. consensus $126.83M. Results may not be comparable to consensus. FreightCar reported EPS (29c) on revenue $51M in the year-ago period. The Company delivered 2,489 railcars to customers in the fourth quarter of 2011, of which 2,153 were new cars, 62 were used cars and 274 were leased cars. Shares of FreightCar America, Inc. are trading 24.88% higher today.

BRIGHTCOVE INC (NASDAQ:BCOV): The company’s IPO was set at $11 per share. The stock is exploding higher with demand in its first day of public trading. Shares of BRIGHTCOVE INC are trading 35% higher today.

EOG, Applied Materials, General Mills, Nordstrom, Aruba High Demand Stock Movers Feb. 17th

EOG Resources, Inc. (NYSE:EOG): EOG Resources Inc. reported adjusted net income of $1.15 per share. By that measure, the company beat the mean estimate of 89 cents per share. It beat the average revenue estimate of $2.52 billion. Shares of EOG Resources, Inc. are trading 0.82% lower today.

Applied Materials, Inc. (NASDAQ:AMAT): Stifel Nicolaus raised its target on Applied Materials after the company reported stronger than expected Q1 results. The firm was encouraged by the company’s decision to implement further cost cutting measures at its weaker units, and it maintains a Buy rating on the stock. Shares of Applied Materials, Inc. are trading 2.27% higher today.

General Mills, Inc. (NYSE:GIS): General Mills cuts FY12 adjusted EPS view to $2.53-$2.55 from $2.59-$2.61. Consensus is $2.60. Adjusted diluted EPS excludes the effects of mark-to-market valuation of certain commodity positions, and integration costs for the Yoplait international acquisition completed July 1, 2011. General Mills says that weak volume performance across U.S. retail food categories in December and January will affect the company’s results for the quarter ending February 26, 2012. Shares of General Mills, Inc. are trading 3.47% lower today.

Nordstrom, Inc. (NYSE:JWN): CLSA downgraded Nordstrom based on conservative guidance and increased ecommerce investment costs. Price target lowered to $55 from $60. Shares of Nordstrom, Inc. are trading 1.67% lower today.

Aruba Networks, Inc. (NASDAQ:ARUN): Aruba Networks added over 1,500 new customers in Q2. Shares of Aruba Networks, Inc. are trading 5.6% lower today.

Market Recap: Stocks Mixed as Brightcove Debuts

Markets closed mixed on Wall Street today: Dow +0.35%, S&P +0.23%, Nasdaq -0.27%, Oil +1.18%, Gold -0.26%.

On the commodities front, Oil (NYSE:USO) rose to $103.52 a barrel. Precious metals were down, with Gold (NYSE:GLD) falling to $1,723.90 an ounce while Silver (NYSE:SLV) fell 0.25% to settle at $33.22.

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Today’s markets were mixed because:

1) Economy. The Consumer Price Index rose 0.2 percent in January after holding steady for two consecutive months, according to a Bureau of Labor Statistics report today, while core inflation rose 0.2 percent, and the Conference Board’s Leading Economic Indicators index ticked up 4 percent.

2) Germany. The one righteous stalwart remaining in the euro zone, Germany took a hit today when President Christian Wulff unexpectedly resigned. Though the German presidency is largely symbolic, Chancellor Angela Merkel must now undergo what could prove to be a politically divisive search for Wulff’s replacement, just when European leaders are meant to be hammering out a bailout deal with Greece.

3) Companies. H.J. Heinz (NYSE:HNZ) and Campbell Soup (NYSE:CPB) shares edged higher after beating earnings estimates, while Nordstrom (NYSE:JWN) went the opposite direction as yearly profits missed targets. Baidu (NASDAQ:BIDU) beat estimates, but shares declined as the company issued a poor revenue outlook for the current quarter. Brightcove (NASDAQ:BCOV) shares rocketed as high as 35 percent today in the stock’s market debut, with shares initially priced at $11 in its IPO rising above $15, but it was a bad day for drugmakers Gilead Sciences (NASDAQ:GILD), and Johnson & Johnson (NYSE:JNJ), which both closed the day lower after the former said the majority of patients involved in a hepatitis C treatment experienced a relapse within four weeks, while the latter had to recall more than half a million bottles of Infants’ Tylenol because of consumer complaints about the difficulties of using the dosing system.

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To contact the reporter on this story: Lindsey Grossman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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