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February 2012
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Europe’s big banks pass stress tests-tests for stress

Quarterly results: Ford Motor (F, Fortune 500) reported  better-than-expected quarterly sales and earnings that reversed its operating loss from a year ago, building on its return to profitability following several years of weakness. Shares gained 5.2%.

Dow component Verizon Communications (VZ, Fortune 500) posted a quarterly loss due to costs associated with a buyout of 11,000 workers. Excluding those costs, the telecom posted earnings that topped estimates and revenue that missed forecasts. Shares gained 3.8%.

Dow component McDonald’s (MCD, Fortune 500) reported better-than-expected quarterly earnings that rose from a year ago, but reported weaker-than-expected sales at stores open a year or more — a retail metric known as same-store sales. Shares fell 2.1%.

After the close Thursday, fellow Dow component Microsoft (MSFT, Fortune 500) reported higher quarterly sales and earnings that topped estimates, thanks to strong sales of its Windows 7 and an improved personal computer market. Shares ended little changed.

Also after the close Thursday, Dow component American Express (AXP, Fortune 500) reported higher quarterly sales and earnings that topped expectations. The company’s CEO also issued a tepid outlook on the economy. Nonetheless AmEx shares rallied 3.6%.

On Thursday, Amazon.com (AMZN, Fortune 500) reported quarterly sales and earnings that rose from a year ago, but missed some analysts’ projections. Shares fell as much as 11% in pre-market trading and 9% in the morning, but cut losses to 1% by the close.

Deals: Shares of Genzyme (GENZ, Fortune 500) spiked 15.4% on a report that French biotech Sanofi-Aventis (SNY) has informally approached the company about a potential buyout, the Wall Street Journal reported Friday. Sanofi-Aventis’ American Depositary Receipts (ADRs) slipped 4.2%.

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