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4:10 PM, Jun 18, 2010 --

  • DJIA up 16.47 (+0.16%) to 10,450.64
  • S&P 500 up 1.47 (+0.13%) to 1,117.51
  • Nasdaq up 2.64 (+0.1%) to 2,309.80

GLOBAL SENTIMENT

  • Hang Seng up 0.74%
  • Nikkei down 0.04%
  • FTSE down 0.06%

UPSIDE MOVERS

(+) TSO upgraded.

(+) MDW says company funded to advance Pan Gold Resource in Nevada.

(+) AAPL initiated at Outperform at Cowen.

(+) WMB added to Goldman Sachs Conviction Buy list.

(+) BBVA gaining on positive bank stress test.

(+) CVS, WAG ink new PBM network pharmacy pact.

(+) ABK sets debt for equity exchange.

DOWNSIDE MOVERS

(-) SNY down as questions raised over Lantus cancer risk.

(-) FST downgraded.

(-) BP Moody's cuts credit rating; gets one analyst downgrade, one
upgrade.

MARKET DIRECTION

The major U.S. indices closed with modest gains in Friday's regular session, sticking to tight trading ranges on a mixed bag of news. Caterpillar (NYSE:CAT) was a boost for bulls as the company disclosed a strong jump in industrial machinery sales in Asia for the month of May. Gains were tempered by continuing concerns over debt worries in the eurozone. The dollar saw some tentative strength against the euro. Crude firmed near $77 a barrel while gold broke to record levels.

Looking out to next week, traders will see a bump in earnings-related news as several names come due with quarterly reports. Sonic Corp. (NASDAQ:SONC) posts numbers Monday, followed by Adobe (NASDAQ:ADBE), Jabil (NYSE:JBL) and Red Hat (NYSE:RHT) on Tuesday. Bed Bath & Beyond (NASDAQ:BBBY), Nike (NYSE:NKE) and Paychex (NASDAQ:PAYX) report financials on Wednesday, followed by Accenture (NYSE:ACN) and Oracle (NYSE:ORCL) on Thursday.

On the economic front, existing home sales data will be released on Tuesday. New home sales, crude inventories and the FOMC rate decision are slated for Wednesday. Durable orders and initial claims will be distributed on Thursday, followed by GDP data and University of Michigan sentiment on Friday.

In today's market, BP Plc (NYSE:BP) lost its early day gains. The company has reportedly collected 25,000 barrels of oil from the leaking Gulf of Mexico well, according to a Reuters report, citing Coast Guard Admiral Thad Allen. Meanwhile, Moody's cut BP's senior unsecured debt rating by three notches to "A2" from "Aa2." The move was meant to reflect the "worsening impact expected from the oil pouring into the Gulf of Mexico," according to a Barron's report. Earlier in the day, BP had been upgraded to "buy" from "hold" at Societe Generale.

Meanwhile, CVS Caremark Corp. (NYSE:CVS) signed a deal with Walgreen Co. (NYSE:WAG) to keep Walgreen in CVS's pharamacy benefit management network for existing, new, or renewal plans. Details of the agreement between the two retailers were not disclosed. Earlier this month, Walgreen said that it would not participate in any new or renewal plans awarded to CVS's pharmacy benefit management program. CVS in turn said that it would end Walgreen's participation in CVS networks so CVS participants would not be able to fill perscriptions at Walgreen.

Shares of Citigroup (NYSE:C) were near flat after news that the bank plans to raise more than $3 billion for its private equity and hedge funds, according to Bloomberg. Citi Capital Advisors is seen looking to raise $1.5 billion for private equity and $750 million for hedge funds this year.

Shares of Sanofi-Aventis (NYSE:SNY) were down after a new study published in Diabetes Care suggested Lantus, Sanofi's cancer drug, raises the risk of cancer versus other insulins," Sanford C. Bernstein analysts told MarketWatch.

Apple Inc.'s (NASDAQ:AAPL) launch next week of its new iPhone could be a "2 mln - 3 mln iPhone event" Susquehanna Financial's Jeff Fidacaro told Fortune. Elsewhere in the tech space, Amazon.com (NASDAQ:AMZN) made it as high as $127.49 before profit takers stepped in, following a Citigroup price target cut and lowered EPS estimates on euro weakness. Analyst Mark Mahaney this morning stuck with his "buy" rating, but dropped his target $5 to $175 and is now calling for 2010 EPS of $2.76, compared with $2.89 and 2011 EPS of $4 compared with $4.07.

Crude-oil for July delivery settled 0.5% higher, or $0.39, to $77.18 a barrel on the New York Mercantile Exchange.

In other energy futures, heating oil fell 0.85%, or $0.02, to $2.12 a gallon while natural gas fell 3.16%, or $0.16, to $4.99 per million British thermal units.

Meanwhile, gold for August delivery rose $9.60, or 0.8%, to $1,258.30 an ounce. In other metal futures, silver rose 2.07%, or $0.39, to $19.17 while copper fell 0.48%, or $0.01 to $2.91 a pound.

Source: Equities End Week in the Green