TradingMarkets 7 Stocks You Need to Know for Tuesday

Stocks started strong and finished even stronger as home builder optimism and better than expected news from home improvement retailer Lowe’s encouraged buying from open to close. The Nasdaq Composite closed back above its 200-day moving average.

The Dow gained 235.44. The Nasdaq Composite closed higher by 52.22. And the S&P 500 ended the day up 26.83.

Here are 7 Stocks You Need to Know for Tuesday.

The biggest earnings announcement on Tuesday may be the one from Hewlett-Packard
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, which is expected to report EPS of 86 cents after the close. HPQ closed up more than 2% and is increasingly overbought below its 200-day moving average.

Among the companies reporting quarterly earnings before the bell Tuesday morning, Home Depot
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is expected to announce EPS of 29 cents, while analysts are expecting per share earnings loss of 0.24 from upscale clothing retailer Saks
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. Home Depot rallied by more than 6% while Saks, which trades below its 200-day moving average, soared by a whopping 22%.

Goldman Sachs
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moved Northrop Grumman
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to its “conviction sell” list as part of an overall downgrade of the defense sector. Trading below its 200-day moving average, NOC opened at its lows and rallied by more than 3% on the day.

Along with Goldman Sachs, both Morgan Stanley
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and JP Morgan Chase
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have applied for permission to repay a combined total of $45 billion in TARP capital borrowed. MS and JPM both trade above their 200-day moving averages and were up more than 8% and 6%, respectively.

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