Top 10 News Items 7/20-7/24: Apple (AAPL) Stomps on Q3 Expectations, Microsoft (MSFT) Misses and Dow Crosses 9,000

July 24, 2009 4:09 PM EDT

Here is a recap of the top news items from this week on Wall Street:

1. Apple (Nasdaq: AAPL) once again surpassed lofty quarterly results this week, underscoring its continued dominance in the tech sector. The company reported Q3 EPS of $1.35, beating the analyst estimate by 18 cents, on sales of $8.34 billion. Apple also issued quarterly guidance, which has been notoriously conservative, of $1.18-$1.23 on earnings and sales of $8.7-$8.9 billion. During the quarter, Apple said it sold more than 5.2 million iPhones, blowing out the Street's expectations. Apple shares finished the week 5% higher.

2. Microsoft (Nasdaq: MSFT) disappointed once again, continuing a recent trend which has left shareholders hoping for something... anything. The company reported Q4 EPS of $0.34, versus the analyst estimate of $0.36. Revenue for the quarter was $13.1 billion, versus the consensus of $14.37 billion. Shares of Microsoft tumbled more than 8% on Friday.

3. Given generally better-than-expected corporate results so far this earning season, stocks have slowly began climbing. Thursday, the Dow Jones Industrial Average broke above the 9,000 level, marking it's highest level in 2009. Notably, since March 6, when the Dow hit a multi-year low of 6,470, the index has risen about 40%.

4. Falling more than 70% last week on news that a bankruptcy filing may be just around the corner, shares of CIT Group (NYSE: CIT) took back gains this week as, Monday, the company announced that bondholders would come to the rescue, and the company would most likely avoid bankruptcy. Tuesday, the reports were confirmed with a $3 billion loan facility from a major holder. However, the stock gave up some gains as reports came out saying bankruptcy could still be an option. The stock finished the week about 12%.

5. Tech earnings were in focus this week, especially considering Apple and Microsoft's differing reports. Elsewhere in the group: Yahoo! (Nasdaq: YHOO), AMD (NYSE: AMD), QUALCOMM (Nasdaq: QCOM), Amazon (Nasdaq: AMZN), eBay (Nasdaq: EBAY), Baidu (Nasdaq: BIDU) and Broadcom (Nasdaq: BRCM).

6. Elsewhere on the earnings front: Coke (NYSE: KO), Caterpillar (NYSE: CAT), Wells Fargo (NYSE: WFC), Pfizer (NYSE: PFE), Morgan Stanley (NYSE: MS), Bristol-Myers Squibb (NYSE: BMY), AT&T (NYSE: T), McDonald's, (NYSE: MCD), American Express (NYSE: AXP) and Starbucks (Nasdaq: SBUX).

7. Wednesday Amazon announced that it has reached an agreement to acquire Zappos.com for approximately 10 million shares of Amazon common stock, equal to approximately $807 million based on the average closing price for the 45 trading days ending July 17, 2009. In addition, Amazon will provide Zappos employees with $40 million in cash and restricted stock units.

8. Shares of Human Genome Sciences (Nasdaq: HGSI) skyrocketed more than 300% this week (from $3.32 to $14.64 by the end of the week) on the back of news that a trial of BENLYSTA met its primary endpoint.

9. Bankrate, Inc. (Nasdaq: RATE) announced that it will be acquired by Apax Partners for $28.50 per share in cash, followed by a merger to acquire all remaining outstanding Bankrate shares at the same price paid in the tender offer. The stock finished this week 12% higher;

10. Fed Chairman Ben Bernanke testified in front of Congress Tuesday, issuing the semiannual report on monetary policy. Among the highlights, Bernanke said demand shows tentative signs of stabilization, regulators are expecting to keep rates exceptionally low for an extended time and he has urged prompt attention to reining in budget deficit.

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• Ben S. Bernanke
• Morgan Stanley
• Apax Partners
• StreetInsider.com Top 10 News Items for the Week
• Bankruptcy

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