by Marc Bastow | May 21, 2012 5:42 pm
Markets managed to shake off the effects of last week’s brutal weekly loss and the continued slide of Facebook (NASDAQ:FB) shares to start the week off with a broad rally.
The end result was a gain of 1.09% to 12,504 for the Dow Jones Industrial Average — its biggest gain in more than a month. The 1.6% increase in the S&P 500 to 1,316 represented its best performance in nearly two months, and a robust 2.46% move by the Nasdaq to finish at 2,847 was the index’s best gain of the year.
Facebook’s shares continued to trend down after Friday’s IPO, finishing the day down 11% at $34.03 per share — about $4 below the initial IPO pricing.
Last week’s concerns about the situation in Greece and its possible effect on the stability of the eurozone were soothed over the weekend as the Group of Eight nations met and reaffirmed their commitment to keeping Greece in the eurozone. European markets were up ahead of the U.S. markets’ opening bell, with momentum gaining throughout the morning.
Blue chips Boeing (NYSE:BA, +3.8%) and Caterpillar (NYSE:CAT, +3.7%) led the gains for the Dow, while Apple (NASDAQ:AAPL) and Oracle (NASDAQ:ORCL) rebounded a respective 5.8% and 2.5% to power the Nasdaq’s rally.
On the earnings front, Krispy Kreme (NYSE:KKD) reported earnings that plunged 34% but still topped estimates, sending shares up 10% on the day. Not so lucky were Campbell’s (NYSE:CPB, more here) and Lowe’s (NYSE:LOW, more here), both of whom announced declining earnings and lowered their outlooks and forecasts for the remainder of the year. LOW shares were clobbered by more than 10% Monday, while CPB lost about 2%.
Other movers today included Yahoo (NASDAQ:YHOO), which gained about 1% on news it reached a $7.1 billion deal to sell half its 40% stake in China’s Alibaba Group. Meanwhile, JPMorgan (NYSE:JPM) lost about 3% as estimates now have the firm’s trading losses pegged to a range of $5 billion to $7 billion, vs. a May 10 announcement of about $2 billion in losses.
Tomorrow’s earnings releases include Best Buy (NYSE:BBY), Dell (NASDAQ:DELL), Medtronic (NYSE:MDT) and Williams-Sonoma (NYSE:WSM).
Marc Bastow is an Assistant Editor at Investorplace.com. As of this writing, he was long AAPL.
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