Kindle Keeps the Markets on Fire — Friday’s IP Market Recap

by Marc Bastow | April 27, 2012 5:02 pm

Kindle Keeps the Markets on Fire — Friday’s IP Market Recap

IPMarketRecap Kindle Keeps the Markets on Fire    Fridays IP Market RecapAmazon (NASDAQ:AMZN[1]) came rocketing out of the gate today and finished up more than 15% on the heels of Thursday night’s blockbuster earnings[2] release, and the broader markets fended off disappointing economic news [3]and a downgrade of Spanish debt to end the week on a winning note.

For the day, the Dow Jones Industrial Average edged up 0.19% at 13,229 and the S&P 500 gained 0.24% to 1,403, marking the fourth day in a row of increases for both. The Nasdaq ended up 0.61% to 3,069.

The Dow’s gains came amid sell-offs in Proctor & Gamble (NYSE:PG[4]) and Ford (NYSE:F[5]) after each reported significant earnings declines.

P&G announced that third-quarter earnings dropped by 16%[6] because of higher costs for raw materials and restructuring costs, and reduced 2012 guidance due to volume declines in several markets. While Procter & Gamble beat out EPS estimates by a cent, shares traded down 3.6% to $64.44. Meanwhile, Ford reported a 45% plunge in quarterly profit[7] because of losses in Europe and a slight dip in sales. The automaker also managed to beat expectations, but the stock slid early and finished down 2.3% to $11.6%.

Goodyear Tire & Rubber (NYSE:GT[8]) also was punished[9] by 5% after its first earnings loss.

On the positive side of the spectrum, travel site Expedia (NASDAQ:EXPE[10]) rode growth in its Hotels.com unit to crush revenue and EPS expectations. Revenues of $816.5 million were higher than the estimates of $790.1 million, and adjusted EPS of 26 cents exceeded 14-cent-per-share estimates. Investors rewarded EXPE with a 24% run-up.

Also Friday, Johnson & Johnson (NYSE:JNJ[11]) joined a host of blue chips to recently announce a dividend hike[12], upping its payout by 7% to 61 cents per share — good for a hefty 3.7% yield on current prices.

Three Up

Three Down

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing he is long JNJ

Endnotes:
  1. AMZN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMZN
  2. Thursday night’s blockbuster earnings: http://investorplace.com/2012/04/amazon-kills-the-shorts/
  3. disappointing economic news : http://investorplace.com/2012/04/gold-silver-up-on-positive-but-slow-u-s-gdp/
  4. PG: http://studio-5.financialcontent.com/investplace/quote?Symbol=PG
  5. F: http://studio-5.financialcontent.com/investplace/quote?Symbol=F
  6. third-quarter earnings dropped by 16%: http://investorplace.com/2012/04/pg-shares-fall-4-as-outlook-declines/
  7. 45% plunge in quarterly profit: http://investorplace.com/2012/04/ford-earnings-beat-estimates-despite-europe-slowdown-f-gm/
  8. GT: http://studio-5.financialcontent.com/investplace/quote?Symbol=GT
  9. also was punished: http://investorplace.com/2012/04/forget-goodyear-loss-gt-will-keep-rolling/
  10. EXPE: http://studio-5.financialcontent.com/investplace/quote?Symbol=EXPE
  11. JNJ: http://studio-5.financialcontent.com/investplace/quote?Symbol=JNJ
  12. host of blue chips to recently announce a dividend hike: http://investorplace.com/2012/04/25-companies-increasing-dividends/
  13. FBHS: http://studio-5.financialcontent.com/investplace/quote?Symbol=FBHS
  14. LOGI: http://studio-5.financialcontent.com/investplace/quote?Symbol=LOGI
  15. TRIP: http://studio-5.financialcontent.com/investplace/quote?Symbol=TRIP
  16. WDC: http://studio-5.financialcontent.com/investplace/quote?Symbol=WDC
  17. ZNGA: http://studio-5.financialcontent.com/investplace/quote?Symbol=ZNGA
  18. Read more about Zynga here.: http://investorplace.com/ipo-playbook/zyngas-earnings-are-no-fun-for-investors/
  19. STX: http://studio-5.financialcontent.com/investplace/quote?Symbol=STX

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