Moving the Market

Look for the following companies to report before the open:

• AEO, AINV, BMO, BIG, CAE, EV, GCO, HGG, HRL, LTXC, STP, SCMR, TOL, TSL, and ZLC.

Trina Solar (TSL $5.06 -0.27) reported first quarter loss of $0.42 per share, $0.12 worse than the Capital IQ consensus of ($0.30), while revenues fell 36.5% year/year to $349.9 million versus the $389.72 million consensus. Solar module shipments were ~380 MW for the first quarter of 2012, compared to the Company's previous guidance of between 400 MW to 430 MW, representing a decrease of 10.6% sequentially. Gross margin was 5.8% in the first quarter of 2012, compared to the Company's previous guidance of low teens in percentage terms, compared to 7.1% in the fourth quarter of 2011 and 27.5% in the first quarter of 2011.

The sequential decrease in gross margin was due primarily to anti-dumping and countervailing duty provisions offsetting reduced costs, while the year-on-year decrease in gross margin was due primarily to module average selling price declines in excess of reduced costs. Guidance: For Q2, the Company expects to ship between 500 MW to 520 MW of PV modules. The co believes its overall gross margin for the second quarter, including the impact of provisions for potential countervailing and anti-dumping duties, will be ~10%. This figure takes into account wafer and cell requirements outsourced to third party suppliers to meet demand in excess of its internal capacity. Such guidance is based on the exchange rate between the Euro and U.S. dollar as of May 23, 2012. For the full year 2012, the co expects total PV module shipments between 2.0 to 2.1 GW, representing an increase of 32.5% to 39.1%, respectively, from 2011.

PETsMART (PETM $61.07 +5.40) reported first quarter earnings of $0.85 per share, $0.12 better than the Capital IQ Consensus of $0.73, while revenues rose 7.3% year/year to $1.6 billion versus the $1.6 bln consensus. The company issued in-line guidance for the second quarter with EPS of $0.61-0.65 versus the $0.64 consensus.

The company issued upside guidance for fiscal year 2013 with EPS of $3.19-3.31 versus the $3.consensus and up from prior guidance of $3.02-$3.16. "As a reminder, 2012 contains a 53rd week. For all of 2012, we anticipate comparable store sales growth in the mid-single digit range, and total sales growth in the 9% to 10% range. The impact of the extra week is estimated to be $120 million in sales and $0.16 in EPS."

Take-Two (TTWO $12.01 +0.85) reported fourth quarter loss of $0.60 per share, excluding non-recurring items, $0.05 worse than the Capital IQ Consensus of ($0.55), while revenues fell 18.8% year/year to $148.1 million versus the $142.45 million consensus. The company issued guidance for the first quarter with EPS of ($0.75)-($0.60), may not be comparable to $0.22 Capital IQ Consensus. The company sees first quarter revenues of $225-275 million versus the  $322.73 million consensus.

The comapny issued guidance for fiscal year 2013 with EPS of $2.00-2.25, may not be comparable to $2.83 Capital IQ Consensus Estimate; sees FY13 revs of $1.75-1.85 bln vs. $1.82 bln Capital IQ Consensus Estimate. The Company's Non-GAAP net income (loss) per diluted share outlook includes the negative impact from an expected one-time payment in June of $15 million, or $0.18 per diluted share for the first quarter ending June 30, 2012 and $0.13 per diluted share for the fiscal year ending March 31, 2013. "Fiscal 2013 kicked off with the successful launch of Max Payne 3, which received outstanding reviews and promises to be another hit for Rockstar Games. We have a fantastic lineup of upcoming releases for the balance of the year and the strongest development pipeline in the Company's history." Grand Theft Auto V planned release listed as TBA.

The consumer discretionary group is slightly outperforming the broader market in early trade. The retail group is mixed with the Retail HOLDRS Trust (RTH) -0.1% and the SPDR S&P Retail ETF (XRT) 0.1%. Trading higher following earnings/guidance: ZLC +12.9%, PETM +8.7%, GES +7.5%, MOV +5.9%, HRL +2.3%, GCO +1.5%, AEO +1%, TOL +0.9%... Trading lower following earnings/guidance: WTSLA -6.3%, XUE -2%, HLF -1.5%... Near unchanged mark following earnings/guidance: PSS, BAMM, BIG. Other notable mentions: M flat (signs commercial and investment agreements with China's VIPStore), AMZN flat (announces licensing agreement with Paramount Picutres), Leaders: DMND 3.2% (secures $225 million investment from Oaktree Capital Management)... Laggards: MMM -0.8% (settles lawsuit over Cogent - Bloomberg.com), LINTA -0.7% (announces extraordinary cash distribution on 3.5% senior exchangeable debentures due 2031 resulting from Motorola Mobility acquisition), RAH -3.4% (closes Petri Baking Products acquisition; deal will deliver $0.05 of GAAP accretion and $0.08 of cash accretion to adjusted EPS in the first year of ownership), CAAS -2.6% (announces sale of Zhejiang steering pump business), HWD -1% (lower despite Barron's discussing positive view on Harry Winston Diamond's valuation), BBY -1.5% (Barron's reviews cautious view on Best Buy despite better than expected earnings). ]

Analyst related: Upgrades: ARO 0.5% (upgraded to Outperform from In-line at Imperial Capital), SBUX 1.5% (upgraded to Buy from Neutral at BofA/Merrill ), TV flat (upgraded to Overweight from Neutral at JPMorgan)... Downgrades: PSO -2% (downgraded to Neutral from Buy at BofA/Merrill)... Misc: FB 3.1% (initiated with a Buy at Needham), CCE -0.3% (initiated with a Hold at Societe Generale).

The S&P Energy Sector -1.1% is trading below the the broader market at -0.7% July crude oil is -0.8% at $91.18/barrel, June natural gas is -1.2% at $2.67/MMBtu, July RBOB is -0.8% at $2.84/gallon, and July heating oil is -0.8% at $2.84/gallon. Trading higher following earnings/guidance: GASS (-0.7%). Sector News: RCON (+79.2%) Recon Technology announced that one of its variable interest entities, Nanjing Recon Technology, signed a contract with the China National Petroleum Corp.'s Sichuan Petroleum Administration Bureau to provide the latter with the Emerson PCS & SIS Systems in its South Yolotan Gas Field Project located in Turkmenistan. The total contract value exceeds RMB19 mln ($3.02 mln), PCX (+10.6%) Patriot Coal disclosed it sent a letter to its employees: 'operations are performing well', GDP (+1.2%) Goodrich Petroleum announced its participation in and the completion of the Encana - Anderson 17H-1 well with a 72-hour production rate of 1,082 barrels of oil equivalent per day, WG (-2.1%) Willbros Group awarded construction contract for hydrogen pipeline by Praxair; terms not disclosed, TLLP (-1.7%) Tesoro Logistics LP filed for a $500 mln common unit shelf offering, RDS.A (-1.1%) Royal Dutch Shell's offer for explorer Cove Energy has been topped by a $1.9 bid by Thailand's PTT Exploration, according to reports, REXX (-1.0%) Rex Energy announced the appointment of Michael L. Hodges as Chief Financial Officer. Broker Calls: PCX (+10.6%)

Patriot Coal downgraded at Deutsche Bank, TOT (-1.2%) Total S.A.: heard upgraded at Canaccord, WPZ (-1.0%) Williams Partners upgraded at Wells Fargo, BP (-0.7%) BP: Heard upgraded at Canaccord.