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From Briefing.com: Weekly Recap - Week ending 20-Jan-12The S&P 500 poked into positive territory in the final minutes of the session to book its best closing level since summer. Although it made for only an incremental gain, the broad market measure has now finished in higher ground for four straight sessions. That helped the broad market book a 2.0% weekly gain, which marked its third consecutive weekly climb.
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Action was mostly muddled today, but financials made a late emergence to score a 0.7% gain and give the stock market a helpful lift. The sector had spent most of the session mired near the neutral line as participants processed quarterly reports from regional lenders Comerica (CMA 29.58, +0.90) and Fifth Third Bancorp (FITB 13.18, -0.38) and financial services outfit American Express (AXP 50.04, -0.91). Fifth Third was the only one that came short of the consensus earnings estimate.

A raft of heavy hitters from the tech sector was out with results, too. Between Google (GOOG 586.00, -53.57), IBM (IBM 188.52, +8.00), Microsoft (MSFT 29.71, +1.59), and Intel (INTC 26.38, +0.75), Google was the only one that failed to generate the earnings that Wall Street had expected. The sector settled with a narrow gain of 0.2%.

Not to be overlooked, blue chip conglomerate General Electric (GE 19.15, +0.00) posted an upside earnings surprise of its own. It was subjected to early pressure, but overcame the selling to settle at the flat line.

Plenty of market action in recent weeks has been driven by the dollar-euro dynamic, given the tacit signals about economic health and financial sentiment conveyed by the currencies. Relative to a collection of competing currencies, the greenback mustered an incremental gain after three straight slides that resulted in a weekly loss of about 1.7%. The euro slipped just 0.2% against the greenback, but still settled the week with a 2.0% gain at $1.29.

Economic data was limited to December existing home sales, which hit an annualized rate of 4.61 million units. That bested the rate of 4.55 million units that had been generally expected.

The combination of earnings reports from several widely-held names and monthly options expirations helped lift share volume above recent levels, but the final tally on the NYSE remained less than 1 billion.

Leading up to the week's end, trade on Thursday saw stocks score varied gains as participants digested a deluge of data and a raft of earnings reports. Overall consumer prices were unchanged during December, but core prices increased by 0.1% when both had been expected to increase by 0.1%. As for weekly initial jobless claims, they made a surprisingly sharp drop to a multi-year low of 352,000. Housing starts for December were somewhat disappointing since they fell to an annualized rate of 657,000, which is less than the rate of 673,000 units that had been expected. The Philadelphia Fed Survey for January hit 7.3, but that was still shy of the 10.0 that had been expected among many economists.

Earnings in focus on Thursday featured upside surprises from eBay (EBAY 31.92, +0.41), United Health (UNH 52.27, -0.05), Union Pacific (UNP 112.84, +0.66), Freeport McMoRan (FCX 43.10, -1.27), and Morgan Stanley (MS 18.39, +0.11). Bank of America (BAC 7.07, +0.11) actually came short of the bottom line consensus. Eastman Kodak (EK 0.31, +0.01) came into focus for its declaration of bankruptcy.

Trade on Wednesday took Goldman Sachs (GS 108.74, +1.06) sharply higher after the investment bank and brokerage outfit posted an upside earnings surprise. Yahoo! (YHOO 15.96, -0.16) also got a bid when it was learned that co-founder Jerry Yang will leave the company.

Data was limited to news that producer prices for December slipped by 0.1%, but core producer prices increased by 0.3%. Many economists had expected that each price measure to increase by 0.1%. Separately, industrial production during December increased by 0.4%, which is only slightly less than the 0.5% increase that had been broadly anticipated.

There was some mid-week buzz about the International Monetary Fund wanting to expand its lending capacity, reportedly in the range of $600 billion to $1 trillion, in order to be able to meet a perceived financing shortfall. That same day the World Bank lowered its global growth forecast to reflect 2012 growth of 2.5% and 2013 growth of 3.1%.

Since domestic markets were closed on Monday in observance of Martin Luther King Day, the week started on Tuesday with traders encouraged by news that China's fourth quarter GDP climbed 8.9% from the prior year. Even though that marked a deceleration from the 9.1% annual rate posted in the prior month, it proved better than what had been anticipated by many. The country also reported that retail sales and industrial production for December climbed at a double-digit clip from one year ago.

Although they would offer leadership later in the week, financials faltered Tuesday as participants responded to an earnings miss from Citigroup (C 29.64, +0.31) and in-line results from Wells Fargo (WFC 30.54, +0.39)

...Nasdaq 100 -0.2%. ..S&P Midcap 400 +0.0%. ..Russell 2000 +0.3%.

 
 Index	 Started Week  Ended Week   Change  % Change  YTD % 
 DJIA	    12422.06	12720.48    298.42     2.4    4.1 
 Nasdaq	     2710.67	 2786.70     76.03     2.8    7.0 
 S&P 500	     1289.09     1315.38     26.29     2.0    4.6 
 Russell 2000  764.20	  784.62     20.42     2.7    5.9

11:00AM Intel names Brian Krzanich COO (INTC) 26.08 +0.45 : Co has promoted Brian Krzanich to chief operating officer, reporting to Paul Otellini, president and CEO. Krzanich had previously been a senior vice president in charge of Intel's worldwide manufacturing. In his new role, Krzanich will continue to oversee manufacturing and also take on responsibility for internal IT and human resources, functions that previously reported into Bryant. Co also announced Kirk Skaugen, Intel vice president and head of Intel's data center business, will become the new head of the PC Client Group, succeeding Intel Vice President Mooly Eden, and reporting to Perlmutter.

6:42AM General Electric beats by $0.01, misses on revs (GE) 19.15 : Reports Q4 (Dec) earnings of $0.39 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.38; revenues fell 7.9% year/year to $37.97 bln vs the $40.08 bln consensus, +4% ex-NBCU impact. Revenues were negatively impacted by lower Ending Net Investment (ENI) at GE Capital, FX and slower growth in Europe. GE's Q4 Industrial segment revenues were $26.8 billion, up 10%. Industrial sales of $26.7 billion increased 11% ex-NBCU and were down 7% YoY. Industrial segment organic revenue was up 5% for the quarter. Industrial emerging market revenues were up 25%, driven by double-digit growth in Brazil, Russia, China, India and the ASEAN region. GE Capital Services revenues of $11.6 billion were down 9% YoY. GE Capital's Q4 earnings were $1.6 billion, up 58% from the prior year. GE Capital made significant strides during Q4 in achieving its strategic objectives of generating attractive returns, diversifying its funding base and positioning the business for long-term growth. Infrastructure orders for the quarter were $28.6 billion, up 15% from the prior year. Organic orders grew 9% in Q4, marking the seventh consecutive quarter of positive growth, and Industrial emerging market orders were up 26%. Equipment book-to-bill was 1.23 for the quarter and 1.14 for the year. Strong Energy and Aviation orders led the growth. GECC/GECS Tier 1 Common Ratios of 11.4%/9.9%. Backlog at record $200 bln.

Last Night, Google (GOOG $585.05) reported fourth quarter earnings of $9.50 per share, excluding non-recurring items, $0.95 worse than the Capital IQ consensus of $10.45, while revenues rose 27.6% year/year to $8.13 billion versus the $8.41 billion consensus. Revenues from outside of the United States totaled $5.60 billion, representing 53% of total revenues in the fourth quarter of 2011, compared to 55% in the third quarter of 2011 and 52% in the fourth quarter of 2010. Q4 Paid Click quarter over quarter 17%, year over year 34%; Cost-per Click quarter over quarter -8%, year over year -8%.

Last Night, IBM (IBM $185.30 +4.78) reported fourth quarter earnings of $4.71 per share, $0.09 better than the Capital IQ consensus of $4.62, while revenues rose 1.6% year/year to $29.49 billion versus the $29.73 billion consensus. IBM Gross Margin 49.9% vs 49.86% estimates. The company issued upside guidance for fiscal year 2012 with EPS of $14.85 versus the $14.81 Capital IQ Consensus. Co also reaffirmed that they are well on track toward their long-term roadmap for operating earnings per share of at least $20 in 2015. The company reported Software rev up 9%; Global Technology Services revenue up 3%; Global Business Services revenue up 3%, 2 percent adjusting for currency; Services backlog of $141 billion, up $4 billion as reported, up $5 billion adjusting for currency, quarter to quarter; and Systems and Technology revenue down 8%.

Last night, Microsoft (MSFT $29.00 +0.88) reported second quarter earnings of $0.78 per share, $0.02 better than the Capital IQ consensus of $0.76. while revenues rose 4.7% year/year to $20.89 billion versus the $20.91 billion consensus. "Coming out of the Consumer Electronics Show, we're seeing very positive reviews for our new phones and PCs, and a strong response to our new Metro style design that will unify consumer experiences across our phones, PCs, tablets, and television in 2012... The Microsoft Business Division reported $6.28 billion in second quarter revenue, a 3% increase from the prior year period, and a 7% increase excluding the prior year recognition of deferred revenue for the Office 2010 technology guarantee program." Microsoft is revising operating expense guidance downward to $28.5 billion to $28.9 billion for the full year ending June 30, 2012.

Last night, Intel (INTC $25.79 +0.16) reported fourth quarter non-GAAP earnings of $0.68 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $0.64, while revenues rose 22% year/year to $13.9 billion versus the $13.72 bln consensus. Co reported GAAP EPS of $0.64. Co issues in-line guidance for Q1, sees Q1 revs of $12.3-13.3 bln vs. $12.78 bln Capital IQ Consensus Estimate; Sees first quarter gross margin percentage of 63% and 64% Non-GAAP, both plus or minus a couple percentage points; Q1 R&D plus MG&A spending of approximately $4.4 billion. Sees amortization of acquisition-related intangibles of approximately $75 million; no impact of equity investments and interest and other. The company sees Q1 depreciation of approximately $1.5 billion and it sees 2012 gross margin of 64% and 65% Non-GAAP (excluding amortization of acquisition-related intangibles), both plus or minus a few percentage points.

Last night, Skyworks (SWKS $20.38 +1.16) reported first quarter earnings of $0.51 per share, ex non-recurring items, $0.02 better than the Capital IQ Consensus of $0.49, while revenues rose 17.5% year/year to $393.7 million versus the $389.56 million consensus. The company issued guidance for the second quarter with EPS of $0.40, may not be comparable to $0.40 consensus and revenues of $360 million, including a partial contribution from AATI, may not be comparable to $349.63 mln consensus.

09:22 am Texas Instruments downgraded to Hold at Needham: . Needham downgrades TXN to Hold from Buy saying they do not anticipate there to be much upside in store for investors when Q4 earnings are reported on Monday; rather they expect an in line print for Q4 and the 1.5% Q/Q consensus revenue decline may in fact turn out to be flat Q/Q or, optimistically, flat to up 2%. Firm says this is not enough, and believe investors will be selling on the news.

09:22 am ON Semiconductor downgraded to Hold at Needham: . Needham downgrades ONNN to Hold from Buy saying they believe that the recent boost in share price and investor sentiment in their universe is applicable to select names and not the overall Analog/Mixed Signal group. Specifically in the case of ONNN they do not anticipate Q1 revenue guidance provided on their Q4 earnings print (likely in two weeks) will exceed the consensus estimates of essentially flat at $761 mln.