Market Wrap for Thursday Feb 3, 2011

Major Corporate & Economic Events, Feb 4

FRIDAY, Feb. 4

Extended-Hours Earnings: ACET, AET, ABC, AON, AIV, AVID, CLX, FO, MGI,
CHUX, BPOP, PHM, SIRO, SRI, TSN, WY, YRCW.

Economic Data: 8:30 a.m. Unemployment Data.

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NYSE up 16.5 (+0.2%) to 8,289.05
DJIA up 20.29 (+0.2%) to 12,062
S&P 500 up 3 (+0.2%) to 1,307
Nasdaq up 4.32 (+0.2%) to 2,754

GLOBAL SENTIMENT

Hang Seng up 1.8%
Nikkei down 0.25%
FTSE down 0.28%

UPSIDE MOVERS

HNSN inks fiber optic deal.
GMCR continues evening gain that followed upbeat guidance.
BJ weighing alternatives, including sale.
MRNA reports bladder cancer development partnership.
SCON continues early week gain on new product.
GSK swings to loss but sets buyback.
FRG sold to Newmont.
NLST reports Intel server compatibility.

DOWNSIDE MOVERS

CVI prices stock offering.
OTIV prices stock offering.
MRK beats with earnings but disappoints with guidance.
CVS beats by a penny but guidance straddles Street view.
RDN reports wider-than-expected loss.
ISIL continues evening slide that followed Q4 miss, disappointing
guidance.
ENTR continues evening gain that followed upbeat earnings.

MARKET

Wall Street turned positive in afternoon action as gains for consumer
stocks eventually yanked the broader market higher. Retailers on Thursday
largely reported upbeat January same-store sales results. Cisco's (CSCO)
gains helped elevate the DJIA. Stocks wavered early on, with Wall Street
showing some reluctance to extend early-week gains ahead of Friday's jobs
report. Concern over new violence in Egypt tempered generally positive
corporate earnings and retailer's same-store sales figures.

Federal Reserve Chairman Ben Bernanke said in a speech Thursday that the
job recovery will have to strengthen before a real U.S. rebound takes
hold.

According to Bernanke, the economy is strengthening, and will likely grow
at a faster pace this year as more confident consumers and companies
spend more, he said in prepared remarks to the National Press Club, as
reported by the AP. But he warned that the growth won't be strong enough
to quickly drive down high unemployment, and it could take several years
before it returns to more normal levels.

His remarks suggest the Fed will stick with its program to prime the
economy by purchasing $600 billion of Treasury bonds by the end of June.

Before the bell, new data from the Labor Department showed weekly jobless
claims fell 42,000 to 415,000 with the four-week moving average rising
1,000 to 430,500.

Also, factory orders rose 0.2% in December, much stronger than the 0.4%
decline expected by economists. This is the fifth increase in the past
six months. Orders for durable goods fell 2.3% in December, better than
the 2.5% drop estimated a week ago, Marketwatch.com reports. Orders for
nondurable goods offset this weakness, rising 2.3% in the month.

GlaxoSmithKline plc (GSK) and Theravance, Inc. (THRX) reported progress
in two clinical development programs focused on new treatments for
chronic obstructive pulmonary disease patients. The companies initiated
Phase III program for the once-daily LAMA/LABA dual bronchodilator
GSK573719/vilanterol, among other progress made. GlaxoSmithKline shares
are up 2.62% to trade at $37.95 last check.

Tesoro (TSO) reports the US refiner said that a fire last month at the
company's 58,000 barrel per day refinery in North Dakota had a minimal
impact on production. The refinery has reportedly run beyond its planned
rates and repairs are expected to finished in March, the report said.

Apple (AAPL) and Verizon (VZ) shares are down even as the two begin
taking pre-orders for the iPhone designed for use with the Verizon
Wireless network. The move marks the end of AT&T's (T) exclusive contract
with Apple to sell the iPhone.

Merck & Company Inc. (MRK)reported it swung to a loss in Q4 of $531
million, or 17 cents a share, from a year-earlier profit of $6.94
billion, or $2.35 a share. But adjusted earnings in the quarter were 88
cents a share, higher than the Street consensus forecast of 83 cents.
Also, Bloomberg reported that the company's vaccine for preventing the
HPV in women also reduces the rate of infection in men, according to a
study in the New England Journal of Medicine.

J. C. Penney (JCP) today posted its comparable store sales for the four-
week period ended Jan. 29, which decreased 1.2%. Strong sales during the
first two months of the quarter resulted in quarterly sales coming in
above the company's expectations, according to the company.

Nordstrom (JWN) reported that for January, its comparable-store sales saw
an increase of 4.8% while total sales increased 11.8% to $607 million.

Ross Stores (ROST) says January same-store sales grew 3%. Q4 sales were
$2.145 billion, more than the Thomson Reuters mean for $2.1215 billion.

Gap (GPS) reported its January 2011 net sales increased 6% compared with
last year.

Saks (SKS) reported that its sales totaled $163.6 million for the four
weeks ended January 29, 2011 compared to $158.9 million for the four
weeks ended January 30, 2010, seeing a 3% increase. Comparable store
sales were up 4.4% for the month.

Kohl's (KSS) reported that its January sales rose 3.4% compared to the
same period in 2010. On a comparable store basis, January sales increased
1.4%. For the full year, total sales increased 7.1% and comparable store
sales increased 4.4%.

AutoNation (AN) announced that its fourth-quarter net income increased 9%
on stronger sales of new vehicles.

Blackstone Group (BX) says Q4 sales rose to $1.084015 billion from a year
ago. Net loss was $0.03 per common unit.

MasterCard (MA) reports Q4 EPS of $3.16 per share, better than the
analyst consensus of $3.04 per share on Thomson Reuters. Revenue was $1.4
bln, in line with expectations.

Kellogg (K) says Q4 sales were $2.9 billion, above the Thomson Reuters
mean for $2.85 billion. It earned a net $0.51 per share, meeting
estimates.

ADRs of Sony Corp. (SNE) posted an operating profit of 137.52 billion yen
or $1.68 billion compared with an average estimate of 127 billion yen in
a poll of eight analysts by Thomson Reuters.

Visa Inc. (V) reporting its 2011 Q1 net income came in at $884 million,
or $1.23 per share. That compares to net income of $763 million, or $1.03
per share, a year earlier. Net operating revenue was $2.2 billion, up 14%
from the prior-year period driven by strong double-digit growth in
service revenues, data-processing revenues and international transaction
revenues. Analysts were expecting profit of $1.20 a share and revenue of
$2.22 billion, according to FactSet.

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