Earnings Season Could Bring Clarity to Markets (NTCT, BLUD, AMN, NOV, JOE, EXK, IMAX)

After last week’s monumental run, stocks ended the day mixed. Given that Moody’s downgraded Portugal’s debt and the market quickly recovered, we’d say the bulls are still in charge. We were looking for a fall rally, so we’ll see if it has come early or whether the recent gains will melt away in the summer heat. Earnings season is right around the corner, which should help dictate the market’s direction.

The Canadian Mining Stocks Index was the top performing tickerspy Index on the day, led by Endeavour Silver (EXK) with a 12% gain. The Photographic Equipment Stocks Index was the day’s worst performing tickerspy Index, with Imax (IMAX) down 8%.

Stocks ended the day mixed, with the Nasdaq up 10 points to 2,826. The Dow fell -13 points to 12,570, while the S&P fell back -2 points to 1,338. Oil rose $1.95 to $96.89 a barrel, while gold jumped $30.10 to $1,512.70 an ounce.

In economic news, the U.S. Census Bureau reported that factory orders jumped 0.8% in May, falling short of the 1.0% increase economists were expecting. Excluding transportation items, orders rose 0.2%. Orders have increased in six of the past seven months.

In earnings news, shares of NetScout Systems (NTCT) plunged -19.1% after the provider of network performance reports said it expects a fiscal first-quarter profit of 4-6 cents a share. On an adjusted basis, the company expects to earn 11-13 cents a share on sales of $62-$64 million. Analysts were expecting a profit of 20 cents on revenue of $71.7 million. NetScout forecast a full-year adjusted profit of $1.07-$1.19 a share on revenue of $300-$315 million. Analysts were expecting a profit of $1.17-$1.23 a share on revenue of $326-$333 million.

Shares of blood-testing equipment maker Immucor (BLUD) surged 30.2% after the company received a $1.97 billion takeover offer from private equity firm TPG Capital. The offer values Immucor at $27 a share, a 30.3% premium to the stock’s most recent closing price. Three pros counted Immucor among their top holdings at the end of Q1 and more than 80 tickerspy members own the stock in their portfolios.

Shares of Ameron International (AMN) soared 28.4% after National Oilwell Varco (NOV) offered to buy the maker of fiberglass pipe used to transport oil for $772 million in cash. National Oilwell Varco, the world’s largest provider of oilfield equipment, is offering $85 a share for California-based Ameron, a 28% premium to the stock’s July 1st closing price. More than 100 pros held National Oilwell Varco in their portfolios at the end of Q1 and 940 tickerspy members own the stock in their portfolios.

Shares of St. Joe (JOE), the Florida-based real estate developer, dropped -9.1% after the company said it is being investigated by the Securities and Exchange Commission for a variety of matters including anti-fraud provisions in federal securities laws and compliance of public reporting standards by holders of more than 5% of the company’s shares. In January, St. Joe announced it was being investigated by the SEC for matters pertaining to the impairment of real estate assets.

Tags: AMN, BLUD, EXK, IMAX, JOE, NOV, NTCT