Techs Mellanox, Datalink Riding High

Stocks are swinging into the green this morning on news that Europe will permit Greece to default on its sovereign debt under a bond buyback program that involves a debt swap but no new bank taxes. On this optimism, combined with upbeat second-quarter reports, a number of stocks are pushing their way to 52-week highs, including tech companies Mellanox Technologies (NASDAQ:MLNX) and Datalink Corp. (NASDAQ:DTLK). Further boosting stocks is positive data from the July Philly Fed Index, which came in at 3.2, far better than the zero expected and a vast improvement from last month’s -7.7.

However, rising jobless numbers show there still is sluggishness in the economy. Last week, unemployment claims rose 10,000 to a seasonally adjusted 418,000, from 405,000 the prior week. High unemployment is impacting the performance insurer Genworth Financial (NYSE:GNW) and airline carrier AMR Corp. (NYSE:AMR).

At the market’s close, second-quarter reports from AT&T (NYSE:T) and Microsoft (NYSE:MSFT) could further tip the bullish or bearish scales.

A detailed report follows below.

Stocks hitting 52-week highs

Sino-Global Shipping America (NASDAQ:SINO): The global shipping agent that operates primarily in mainland China is riding over 86% higher this morning on news that it reached a strategic cooperation agreement with COSCO Container Shipping Agency.

Datalink Corp.: The data center solutions company is up over 17% this morning after releasing better-than-expected second-quarter results and forecasting a strong third quarter thanks to high demand for its data storage solutions.

Mellanox Technologies: The specialized semiconductor company whose products enable better data communication between servers received a 12% boost this morning after the company reported record second-quarter revenue growth of 59%.

Stocks hitting 52-week lows

Genworth Financial: The insurance and financial solutions company has shed about 16% so far this morning after reporting weak second-quarter results because of “worsening trends” in its home mortgage business, as more U.S. homeowners default or fall behind on their mortgage payments.

AMR Corp.: The parent corporation of air carrier American Airlines has dropped about 6% this morning after investment firm Ticonderoga Capital downgraded the stock from “neutral” to “sell,” citing high industry costs and weaker revenue than its competitors.

Semiconductor Manufacturing International (NYSE: SMI): An investment holding company that produces integrated circuits has lost about 2% so far this morning. The company has been falling since last week when its CEO abruptly resigned, following the death of the company’s chairman in June.

As of this writing, Deborah O’Malley did not own a position in any of the stocks named here.

Article printed from InvestorPlace Media,

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