Peter Schacknow, Senior Producer, CNBC Breaking News Desk
Thursday's stock market action looks decidedly bearish - until you compare the close with session lows. The Dow was down as many as 234 points before recovering to finish lower by just under 60 points, and the Nasdaq actually managed to finish the day in positive territory. The late day recovery puts the major averages on pace for a positive week, which would be the second straight for the Dow and S&P following six consecutive weekly losses.
Two fresh economic reports come in advance of the Friday session: May durable goods orders, out at 8:30am ET, are expected to register a 1.6% gain following April's 3.6% decline. And the final tally of first quarter GDP, out at the same time, is seen coming in at a 2.0% annual rate, compared with the prior first quarter estimate of 1.8%.
Oracle (ORCL) tops our stocks to watch list this morning, after falling more than 5% in after-hours trading. Oracle did beat estimates with its latest earnings, but its hardware revenue came in below expectations, sparking fears about weak I-T spending. We'll also watch shares of Micron (MU), which fell about 8% after-hours after results missed estimates and its profit margins continued to slide. And Southern Union (SUG) is now the target of a takeover contest, with Williams Companies bidding $4.9 billion in cash for Southern, which already has a $4.1 billion stock deal in place with Energy Transfer Equity LP (ETE). NBCUniversal parent Comcast (CMCSA) has been added to the Conviction Buy List at Goldman Sachs, with the price target remaining at $31.
Other stocks to watch include Accenture (ACN), which beat estimates with its latest quarterly results, and Campbell Soup (CPB), which has authorized a new $1 billion share buyback program. Blackboard (BBBB) is said to be in buyout talks with private equity firm Providence Equity Partners, according to multiple published reports.
Crude oil has rebounded from 4-month lows this morning, after rising yesterday on the news of the IEA's release of 60 million barrels from world reserves, including 30 million from the U.S. Strategic Petroleum Reserve. The euro initially rose on news of an austerity package deal between Greece and EU leaders, but has given back those gains as the focus returns to next week's crucial vote on that package by the Greek Parliament.
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