U.S. Stock Futures Rise As EU Plan Is Agreed Upon. Stocks to Watch: BCSI, FLOW, AAPL, AMZN, THQI, TM

As investors anxiously await U.S. economic data, there is somewhat of a sigh of relief as 23 European Union nations have agreed upon tighter fiscal constraints in the wake of the sovereign debt crisis. Britain is among four nations disagreeing with the plan.

Germany and France, the two biggest economies in the euro zone, had hoped to persuade all 27 members of the European Union to back a change to the EU treaty that would impose tight fiscal rules on its members. However, Britain and three others refused to join in.

Futures on the Dow Jones Industrial Average rose 100 points to 12,112 and those on the Standard & Poor’s 500 index climbed 12.10 points to 1,242.3.
Nasdaq 100 futures gained 20.25 points to 2,301.7.

After overnight talks in Brussels, Belgium at the European Union headquarters, 23 European nations agreed to participate in a new inter-governmental agreement on tougher fiscal rules. Hungary, Sweden and the Czech Republic have reportedly not committed yet.
The euro rose against the dollar to $1.3402. European markets were slightly higher, with the Stoxx Europe 600 index up 1.2% to 240.60.

The rising futures are following stock indexes higher in Europe, though they were down from their daily peaks. Germany’s DAX is up 1.5 % at 5,963 while the CAC-40 in France rose 1.7% to 3,148. The FTSE 100 index of leading British shares is 1.1% lower at 5,484.

Japan’s Nikkei 225 fell 1.5% to close at 8,536.46 while South Korea’s Kospi sank 2% to close at 1,874.75. Hong Kong’s Hang Seng tumbled 2.7% to end at 18,586.23.

Benchmark oil for January delivery rose 16 cents to $98.50 a barrel in electronic trading on the New York Mercantile Exchange.

Stocks to watch this morning include Blue Coat Systems, Inc. (NASDAQ:BCSI), Flow International Corporation (NASDAQ:FLOW), Apple Inc. (NASDAQ:AAPL), Inc. (NASDAQ:AMZN), THQ Inc. (NASDAQ:THQI) and Toyota Motor Corporation (NYSE:TM).

Blue Coat Systems, Inc. (NASDAQ:BCSI) is up 44.62% this morning at $17.48. BCSI has traded 1.5 million shares in pre market trading, already above its daily average for the day. Blue Coat announced it has agreed to be acquired by private equity frim Thoma Bravo for $1.3 billion. The company has a market cap of 748.18 million.

Flow International Corporation (NASDAQ:FLOW) is up 28.10% in pre market trading at $3.10. Flow International posted a better than expected profit for the second quarter late yesterday. FLOW posted EPS of $0.06, higher than the expected $0.01. FLOW trades 198 thousand shares a day on average. The company has a market cap of 115.48 million.

Apple Inc. (NASDAQ:AAPL) is up 0.55% in pre market trading at $392.78. AAPL trdaes on average 14.59 million shares a day. AAPL saw a decent jump in intraday trading yesterday reaching a high of $394 before settling back down to around $390. Apple has a market cap of 363.08 billion. Inc. (NASDAQ:AMZN) is up 0.80% in pre market trading at $192.00. AMZN trades 6.71 million shares a day on average. Retailers are in an uproar with Amazon after the company released a price check app that allows for in-store price comparison. Amazon has a market cap of 86.62 billion.

THQ Inc. (NASDAQ:THQI) is up 5.44% in pre market trading at $0.949. THQI trades 1.94 million shares a day on average. THQI has taken a massive hit the past few days after cutting its revenue forecast for the current quarter by 25%. This caused THQI stock to fall from around $1.70 to below a $1 in two days. THQ has a market cap of 61.51 million.

Toyota Motor Corporation (NYSE:TM) is down slightly in pre market trading at $67.08. TM trades 605 thousand shares a day on average. Toyota cut its full-year earnings forecast this morning blaming a strong yen and Thai floods. The company expects net profit of 180 billion yen, down from 390 billion yen they projected a few months ago. Toyota has a market cap of 105.25 billion.

Nightly Wrap Up – Europe Agrees to Disagree

If you asked a hundred traders what would be the best thing that could come out the the EU summit tomorrow – I know what wouldn’t be on it. A flash across the wires is reporting that participants have agreed to reexamine the issue in March of 2012. An EU diplomat reportedly said that the EU will reexamine the ceiling of the ESM bailout fund in March of 2012. Also treaty changes will be discussed on the same date due to the failure to garner full backing.

That translates to either the summit is one epic failure or the S&P is bluffing and won’t downgrade. I’m going with failure on this one. The sovereign debt contagion is spreading into the core and needs to be addressed sooner rather than later. But then again who knows. Maybe Merkozy can pull a trillion euros out of the hat tomorrow.

Asian markets are mostly negative due to the ongoing EU concern. China did release promising inflation numbers as their CPI dropped 1.3%. Wholesale prices saw a steeper decline. With inflationary concerns easing this gives the central Chinese bank more room for monetary easing. In the midterm this should work to form up the Asian markets thanks to falling food and commodity prices.

In the US, markets ended the day down substantially over the growing EU concern. The Dow shed nearly 200 points in trading today, while the Nasdaq gave back 53 points and the S&P finished off nearly 27.

It is increasingly obvious that the recent rally in equities is subject to a steep sell-off if the EU crisis is not resolved in such a way that the markets have faith in it.

Top gainers in after-hours include Flow International Corporation (NASDAQ:FLOW), U.S. Energy Corp. (NASDAQ:USEG), Boyd Gaming Corp. (NYSE:BYD), Calix, Inc. (NYSE:CALX) and Graphic Packaging Holding Company (NYSE:GPK)

Flow International Corporation (NASDAQ:FLOW) was up 27.27% in after hours trading at $3.08. FLOW posted a better than expected profit for its fiscal second quarter. The company eraned $2.8 million, or $0.06 a share. Analysts had expected profit of $0.01 per share. Flow International has a market cap of 115.48 million.

U.S. Energy Corp. (NASDAQ:USEG) closed the day down 8.28%, but jumped more than 9% in after hours trading. USEG traded 130 thousand shares today, just short of its daily average volume of 170 thousand shares. The company has a market cap of 72.55 million.

Boyd Gaming Corp. (NYSE:BYD) closed Thursday down 7.91% at $6.17. In after hours trading however it jumped 8.59% at $6.70. BYD traded 1.2 million shares on Thursday, slightly below its daily average of 1.5 million shares. Boyd Gaming has a market cap of 532.58 million.

Calix Inc. (NYSE:CALX) finished the day down nearly 7%, but rose 7.5% in after hours trading to $7.21. CALX traded 558 thousand shares today, about 60 thousand more shares than it trades on average. Calix has a market cap of 317.35 million.

Graphic Packaging Holding Company (NYSE:GPK) closed Thursday down 4.46% at $4.07. GPK jumped up 8.11% in after hours trading to $4.40. GPK traded 539 thousand shares today and trades 805 thousand shares a day on average.

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