Q2: Second Verse, Just Like the First — Monday’s IP Market Recap

by Kyle Woodley | April 2, 2012 5:20 pm

[1]After a rip-roaring, record-setting first quarter[2], the markets took a timid step into the beginning of the second quarter Monday.

The S&P 500, which got off to a yawning morning start, eventually perked up by midday and finished Monday trading up about 10 points to 1,148. Similarly, the Nasdaq and Dow also finished with gains of less than 1% after taking morning stumbles. Most of the credit was being given to positive manufacturing reports on both the U.S. and Chinese fronts.

Tech stocks had a strong day Monday, with some of the more notable gainers including Apple (NASDAQ:AAPL[3]), which rose 3.2%, as well as Chinese Internet company Youku.com (NASDAQ:YOKU[4], +4.2%), Seagate Technology (NASDAQ:STX[5], +3.7%) and Broadsoft (NASDAQ:BSFT[6], +9%).

Groupon (NASDAQ:GRPN[7]), however, wasn’t in their ranks.

The daily-deals site watched shares fall almost 17% as the day progressed — the fallout of Friday’s announcement that the company had to restate its fourth-quarter earnings[8] because of higher-than-expected customer refunds. Revenues ended up being more than $14 million worse than originally restated, and earnings were about $22 million lower. The news also sparked a host of options trading[9].

Heading in the opposite direction was Avon Products (NYSE:AVP[10]), which gained more than 17% on news that it declined a $1 billion buyout bid from private beauty company Coty. The offer was for $23.25 per share, about a 20% premium from Friday’s closing price. AVP shares finished Monday trading at $22.70.

Three Up

• DangDang (NASDAQ:DANG[11]): Up 9.6% (78 cents) to $8.88.
• Smith & Wesson (NASDAQ:SWHC[12]): Up 9.3% (72 cents) to $8.47.
• Sirius XM Radio (NASDAQ:SIRI[13]): Up 3.9% (9 cents) to $2.40.

Three Down

• YPF (NYSE:SPF[14]): Down 15.5% ($4.40) to $24.01.
• Amylin Pharmaceuticals[15] (NASDAQ:AMLN[16]): Down 5.5% ($1.36) to $23.60.
• Lions Gate Entertainment (NYSE:LGF[17]): Down 4.5% (62 cents) to $13.30.

Kyle Woodley[18] is the assistant editor of InvestorPlace.com[19]. As of this writing, he did not hold a position in any of the aforementioned securities. Check out recaps from previous trading days here[20].

Source URL: http://investorplace.com/2012/04/q2-second-verse-just-like-the-first-mondays-ip-market-recap/
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