Despite numerous engrossing corporate stories filling the news, U.S. markets
this week were little more than a mood-o-meter of the constantly fluctuating
European debt crisis, with the focus shifting from Greece to Italy the past few
days. With every big headline came a subsequent big move. For instance: Tuesday
afternoon: Italian Prime Minister Silvio Berlusconi announces he will resign
pending the approval of a budget law, including austerity measures. The Dow
Jones gained about 150 points in the afternoon and ends the day up about 100.
Wednesday morning: Berlusconi insists on elections rather than an interim
government in his stead. This was seen by many as threatening economic reform,
and Italian bonds surged past the critical 7% mark . The Dow dropped almost 200
points after the opening bells. Wednesday afternoon: The European Union
announces it doesn't have plans for an Italian bailout. The Dow drops another
200 points. A notable victim of the day was General Motors (NYSE: GM ), which
saw its stock drop 11% by day's end despite a solid earnings report . Thursday
and Friday played out similarly, with positive news from Italy and progress on
its economic reform package sending the Dow back up about 100 and 250 points on
the respective days. Throughout the chaos, at least a few companies were able to
make or break their own fates based on the actual realities of their own
business. Earnings Winners and Losers A couple of the biggest-name winners this
week were Disney (NYSE: DIS ) and Cisco (NASDAQ: CSCO ). After the bell
Wednesday, Cisco announced earnings of 43 cents per share , which beat out
analyst estimates of 39 cents per share. It did slip year-over-year in total
profit ($2.4 billion to $2.3 billion), but a 5% sales boost pleased investors,
as did increased guidance. Cisco's second-quarter forecast increased to EPS of
42 to 44 cents, with analysts estimating 42 cents. In two trading days since
then, CSCO shares have gained about 8% to finish the week at $19.02.
Multi-industry giant Disney followed up Cisco's act with its own good news
after the bell Thursday, announcing a 30% increase in profit for its fourth
quarter . Disney reported EPS of 59 cents, beating out Wall Street expectations
of 55 cents, much of its success coming on the strength of its TV operations, as
well as its parks and resorts. DIS stock ended Friday up about 6% at $36.70.
Green Mountain Coffee Roasters (NASDAQ: GMCR ) was the biggest earnings flop of
the week despite not flopping much on its quarterly report. GMCR's earnings
per share of 47 cents for the fourth quarter missed expectations by just a
penny, but an investor community already negative on the stock led by hedge
fund manager David Einhorn's short-selling crusade sent the stock down 40%
Thursday. As of the close of Friday's trading, Green Mountain shares at
$43.68 have lost almost 60% of their value in three months. Gold Somehow left
in the background amid Europe's troubles was gold, once itself a center of
attention. After reaching then falling from a peak above $1,900 in September,
gold has been regaining territory and nearing the $1,800 mark. Economic crises
throughout Europe have been good for the yellow metal, as well as associated
funds. The SPDR Gold Shares (NYSE: GLD ) ETF gained about 2% this week and has
been on a steady rise since mid-October, up almost 9% in that period. The Market
Vectors Gold Miners ETF (NYSE: GDX ) is up almost the same amount in the past
month, and the Market Vectors Junior Gold Miners ETF (NYSE: GDXJ ) is up about
5%. Three Up Friday Royal Bank of Scotland (NYSE: RBS ): Up 6.3% (43 cents) to
$7.25. Staples (NASDAQ: SPLS ): Up 6.12% (89 cents) to $15.43. Research In
Motion (NASDAQ: RIMM ): Up 5.18% (91 cents) to $18.49 Three Down Friday
HollyFrontier Corp. (NYSE: HFC ): Down 4.37% ($1.30) to $28.47. Valero (NYSE:
VLO ): Down 3.28% (84 cents) to $24.77. ConAgra Foods (NYSE: CAG ): Down 2.21%
(56 cents) to $24.77. As of this writing, Kyle Woodley did not own a position in
any of the aforementioned stocks. Check out our list of previous IP Market
Recaps .
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