The Wall Street Journal-20080214-Costco- Target Rise- Wynn Falls

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Costco, Target Rise; Wynn Falls

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Stocks rallied as Costco Wholesale climbed on an upbeat retail sales report, Applied Materials gained after its quarterly results, while Dean Foods was beaten down on concerns about commodity prices.

Some retailers rose after the Commerce Department reported an unexpected rise in retail sales in January. Target added 60 cents, or 1.1%, to $54.51; Costco Wholesale (Nasdaq) gained 1.42, or 2.2%, to 65.68. Not all retailers benefited. Macy's fell 36 cents, or 1.5%, to 24.43.

"The retail report was the major plus, and there is some optimism that the consumer is OK," said Michael Metz, chief investment strategist at Oppenheimer & Co. Still, he doesn't share that optimism, partly because lenders are still risk-averse. "I don't think we've seen the end of the credit crisis. We've just touched the tip of the iceberg," he said.

Applied Materials (Nasdaq) rose 1.84, or 10%, to 19.91. The company guided for higher profit in its second quarter, based on more optimism about its business of selling raw materials to makers of solar panels.

Coca-Cola fell 53 cents, or 0.9%, to 59.39. The beverage company's fourth-quarter profit exceeded Wall Street's projections, but its key North American business came under pressure as cash-strapped consumers spent less on eating out.

Genentech gained 93 cents, or 1.3%, to 70.85. The biotechnology company reported positive preliminary results from a late-stage study of Avastin in advanced breast cancer.

Wynn Resorts (Nasdaq) dropped 8.93, or 7.5%, to 110.91. While the casino company swung to a fourth-quarter profit, helped by its recently opened Wynn Macau resort and strong results in Las Vegas, net casino revenues dropped in the fourth quarter. And, on a conference call, company executives made cautious comments about market trends in Las Vegas.

Dean Foods fell 1.70, or 6.3%, to 25.23. Fourth-quarter net income decreased 55%, in part because of high dairy-commodity costs.

Airline stocks got a bump up. Southwest Airlines gained 32 cents, or 2.5%, to 13.08; Continental Airlines rose 74 cents, or 2.5%, to 30.04; and Delta added 18 cents, or 1%, to 17.71.

First Solar (Nasdaq) jumped 52.90, or 30%, to 228.46. The maker of solar cells reported fourth-quarter net income surged amid falling manufacturing costs and soaring demand. Another solar stock, Suntech Power Holdings, gained 6.87, or 15%, to 52.79.

UnitedHealth Group fell 1.30, or 2.7%, to 46.97. New York Attorney General Andrew Cuomo said he intends to sue health-care billing provider Ingenix Inc. and its parent UnitedHealth Group as part of an industry-wide probe into alleged manipulation of health insurance reimbursement rates.

Deere fell 94 cents, or 1.1%, to 85.54. Fiscal first-quarter net income ballooned 55% on strong earnings at its agricultural-equipment unit, particularly in the international sector. However, it predicted second-quarter net income slightly below analysts' expectations.

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Ben Charny, Andrew Edwards and John Flowers contributed to this article.