U.S. stocks traded higher Thursday, as the Dow Jones Industrial Average recently gained 3.3% to 11072, the Standard & Poor's 500 added 3.6% to 1161 and the Nasdaq Composite rose 3.6% to 2467. Among the companies whose shares are actively trading in the session are Cisco Systems Inc. (CSCO), AOL Inc. (AOL) and Sara Lee Corp. (SLE).
Cisco's ($16.02, +$2.29, +16.68%) outlook for its fiscal first quarter was lower than analyst expectations, but cost controls put in place following a change in the company's strategy impressed investors.
AOL's ($11.73, +$1.51, +14.77%) board authorized the Internet company to repurchase up to $250 million of outstanding shares.
Sara Lee's ($16.90, -$0.42, -2.40%) fiscal fourth-quarter earnings slid 41%, though core earnings came in line with analyst expectations, as the packaged foods company saw continued cost pressure on its bottom line. Looking ahead, Sara Lee's forecast for fiscal 2012 net sales from continuing operations fell short of analysts' expectation.
Brinker International Inc. (EAT, $23.67, +$3.09, +15.01%) fiscal fourth-quarter profit fell 34% as the year-ago period benefited from an additional operating week, though comparable-restaurant sales increased. Results beat expectations and the company gave a positive outlook for the new fiscal year.
Advance Auto Parts Inc.'s (AAP, $54.63, +$4.53, +9.04%) fiscal second-quarter profit rose a stronger-than-expected 12% as continued growth in commercial sales drove higher earnings.
Other Stocks In Focus:
Aegean Marine Petroleum Network Inc.'s (ANW, $4.20, -$0.10, -2.33%) second-quarter earnings plunged 73% amid sharply weaker margins as the Greek shipping-fuel supplier recorded higher operating costs.
Life insurer Aegon NV (AEG, $4.14, -$0.09, -2.13%) Thursday reported a 2% drop in second-quarter net profit, as the weaker dollar and financial charges at its operations in the Netherlands and the U.K. hurt the bottom line, adding that the current economic environment poses serious challenges.
AMC Networks Inc.'s (AMCX, $34.00, +$3.72, +12.29%) second-quarter profit jumped 23% as higher advertising demand helped it report bigger revenue growth than analysts expected.
American Superconductor Corp. (AMSC, $5.78, -$0.21, -3.51%) said it has reduced the power-technology company's work force by 30% and its annualized expenses by $30 million since the end of March, as it aims to better align costs with the company's revenue expectations.
Goldman Sachs raised its stock-investment rating on Anadarko Petroleum Corp. (APC, $70.63, +$5.01, +7.63%) to buy from neutral, saying despite market volatility the firm continues to believe that oil spare capacity will remain tight, driving Brent prices higher. The firm encouraged investors to use the recent market correction to add shares of Anadarko to their portfolios.
General Motors Co. (GM, $25.23, +$1.31, +5.48%) said it has awarded a production contract to A123 Systems Inc. (AONE, $4.55, +$1.38, +43.53%), a maker and seller of advanced lithium-ion batteries and battery systems, for batteries to be used in future GM electric vehicles to be sold in select global markets.
Briggs & Stratton Corp. (BGG, $12.69, -$2.30, -15.34%) swung to a fourth-quarter loss on an impairment charge, with its engine and power product segments also showing lower profits. Shares of Briggs, which makes small gasoline engines that run lawn equipment and other machines found in home garages, fell as results missed expectations and the company issued a weak outlook.
Wells Fargo raised its stock-investment rating on Capital One Financial Corp. (COF, $43.48, +$2.43, +5.92%) to outperform from market perform, saying the bank's recently announced acquisitions of ING Direct's and HSBC's credit card portfolio greatly improves earnings-per-share visibility through 2013. It noted that recent volatility, particularly in bank stocks, also provides investors a good entry point into Capital One's shares.
Covidien PLC's (COV, $48.15, +$3.45, +7.72%) board authorized the company to repurchase up to $2 billion in ordinary shares.
LED lighting adoption is accelerating and Cree Inc. (CREE, $35.91, +$1.83, +5.37%) is winning with high-quality products, says Morgan Stanley, which upgraded its stock-investment rating to overweight from underweight and lifted its price target to $40 from $28.
Darden Restaurants Inc. (DRI, $48.34, +$3.29, +7.30%) will expand its Red Lobster, Olive Garden and The Capital Grille brands to Mexico under an area-development agreement with CMR S.A.B. de C.V. (CPMXF).
U.S. agricultural-machinery makers gained after Thursday's bullish USDA corn crop report points to a fading harvest, elevating prices and higher disposable farm income for tractors and fertilizer. Deere & Co. (DE, $73.58, +$5.59, +8.22%), AGCO Corp. (AGCO, $38.85, +$2.69, +7.44%) and fertilizer makers CF Industries Holdings Inc. (CF, $164.21, +$15.02, +10.07%) and Intrepid Potash Inc. (IPI, $29.06, +$2.74, +10.41%) all rose.
Cowen upgraded its stock-investment rating on game maker Electronic Arts Inc. (ERTS, $19.10, +$1.48, +8.40%) to outperfrom from neutral, saying preorder analysis suggests 'Star Wars' is on track for strong unit sales and there are few execution risks in the near term.
Elizabeth Arden Inc.'s (RDEN, $29.93, +$3.29, +12.35%) fiscal fourth-quarter earnings more than doubled, absent year-earlier charges, as the beauty-products company's sales and margins continued to benefit from strong demand in North America.
Gilead Sciences Inc. (GILD, $36.39, +$1.05, +2.97%) said the U.S. Food and Drug Administration has approved Complera, a single-tablet HIV treatment for patients new to therapy.
Duncan-Williams upgraded its stock-investment rating on Healthcare Services Group Inc. (HCSG, $13.82, +$0.96, +7.47%) to buy from hold, based on valuation. The firm said the company is a core holding for investors wanting to participate in the outsourcing trend among healthcare providers, citing its high customer retention, strong balance sheet and history of raising dividends.
Jaguar Mining Inc. (JAG, $5.48, +$0.33, +6.41%) swung to a second-quarter profit as the mining and exploration company benefited from high prices and demand for gold.
Eastman Kodak Co.'s (EK, $1.96, +$0.19, +10.73%) recent decision to implement a "poison pill" was motivated by a private equity firm's interest in buying a large stake in the company, according to a Wall Street Journal report. The company's already battered stock had taken a particular beating in recent days.
EnerSys Inc.'s (ENS, $19.30, -$2.63, -11.99%) fiscal first-quarter earnings rose 46% as the industrial battery maker reported revenue climbed amid volume growth and got a boost from currency fluctuations, acquisitions and price hikes. However, EnerSys projected fiscal second-quarter per-share earnings far below analysts' estimates.
Wunderlich Securities initiated coverage of Entropic Communications Inc. (ENTR, $3.94, +$0.37, +10.36%) with a stock-investment rating of buy, saying the large sell-off on high trading volume suggests investors have given up on the fundamentals and priced in structural changes in Entropic's competitive position and end market potential, which it thinks remains intact.
Goodyear Tire & Rubber Co. (GT, $12.38, +$0.52, +4.38%) now expects to offset most of its raw material costs during the next three months, opening the possibility the company may achieve another highly profitable quarter.
Military shipbuilder Huntington Ingalls Industries Inc. (HII, $28.19, +$0.18, +0.64%) swung to a smaller-than-expected second-quarter profit as lower volume hurt sales.
Jack in the Box Inc. (JACK, $20.05, +$1.16, +6.14%) reported Wednesday its fiscal third-quarter earnings fell 23% on a slim revenue drop and weaker margins, but the company reported stronger-than-expected comparable sales growth at its namesake locations.
