Dell Dumped, HPQ Hoisted — Wednesday’s IP Market Recap

by Marc Bastow | May 23, 2012 5:31 pm

Dell Dumped, HPQ Hoisted — Wednesday’s IP Market Recap

IPMarketRecap Dell Dumped, HPQ Hoisted    Wednesday's IP Market Recap[1]The tsunami of selling that Dell (NASDAQ:DELL[2]) unleashed after last night’s earnings[3] washed over the entire tech sector until a modest afternoon rally helped stem the tide, and markets rallied enough to produce mixed results by the end of the day.

Dell shares gave up 17% Wednesday and continued to fall fractionally in after-hours trading.

Climbing out from the day’s muck was Facebook (NASDAQ:FB[4]), whose shares rose 3.2% on the day to finish at $32 despite a slew of news concerning its recent IPO, including a lawsuit filed by three Facebook investors[5] who say that analysts at the underwriters’ banks — including lead underwriter Morgan Stanley (NYSE:MS[6]) — did not properly disclose any changes to forecast earnings or revenues.

For the day, the Dow gave up 0.05% to close at 12,496, the S&P eked out a gain of 0.17% to 1,319, and the tech-heavy Nasdaq recovered from early losses to finish up 0.39% at 2,850.

Dell’s disappointing earnings and forecast cast a pall over the industry early, taking down Dow stocks Microsoft (NASDAQ:MSFT[7]) and Intel (NASDAQ:INTC[8]) by 2% on the day. Apple (NASDAQ:AAPL[9]) managed to buck the tech trend, rising 2.4% on the day.

Hewlett-Packard (NYSE:HPQ[10]) was down more than 3% during the day as investors braced for its afternoon earnings release. HPQ released better-than-anticipated results, with earnings of 98 cents per share beating Wall Street expectations of 91 cents, while sales came in at $30.7 billion, ahead of the $29.9 billion consensus.

HPQ also announced that as part of a restructuring plan, it expects approximately 27,000 (8% of total) employees to leave by the end of fiscal year 2014. The news sent HPQ shares soaring more than 10% after the bell.

Bank stocks rallied on stronger-than-expected news[11] on housing. Bank of America (NYSE:BAC[12]) rose 2% Wednesday, and JPMorgan (NYSE:JPM[13]) and Citigroup  (NYSE:C[14]) each gained about 1%.

On the earnings front, Toll Brothers (NYSE:TOL[15]), Papa John’s (NASDAQ:PZZA[16]), and Cheesecake Factory (NASDAQ:CAKE[17]) were all down early in the day[18] on disappointing earnings news. However, Toll rallied behind the housing news to finish ahead 2.6%, while Papa John’s and Cheesecake Factory also found their footing as the day went on, with both finishing up over 2%.

Earnings releases scheduled for Thursday include Costco (NASDAQ:COST[19]), H.J. Heinz (NYSE:HNZ[20]), and Tiffany & Co. (NYSE:TIF[21]).

Three Up

Three Down

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he was long MSFT, AAPL and INTC.

Endnotes:
  1. [Image]: http://investorplace.com/hot-topics/investorplace-market-recap/
  2. DELL: http://studio-5.financialcontent.com/investplace/quote?Symbol=DELL
  3. last night’s earnings: http://investorplace.com/2012/05/dell-shares-plunge-on-weak-earnings-outlook/
  4. FB: http://studio-5.financialcontent.com/investplace/quote?Symbol=FB
  5. lawsuit filed by three Facebook investors: http://investorplace.com/ipo-playbook/tricky-issues-in-the-facebook-lawsuits/
  6. MS: http://studio-5.financialcontent.com/investplace/quote?Symbol=MS
  7. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  8. INTC: http://studio-5.financialcontent.com/investplace/quote?Symbol=INTC
  9. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  10. HPQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=HPQ
  11. stronger-than-expected news: http://investorplace.com/2012/05/new-home-sales-prices-rise-in-april/
  12. BAC: http://studio-5.financialcontent.com/investplace/quote?Symbol=BAC
  13. JPM: http://studio-5.financialcontent.com/investplace/quote?Symbol=JPM
  14. C: http://studio-5.financialcontent.com/investplace/quote?Symbol=C
  15. TOL: http://studio-5.financialcontent.com/investplace/quote?Symbol=TOL
  16. PZZA: http://studio-5.financialcontent.com/investplace/quote?Symbol=PZZA
  17. CAKE: http://studio-5.financialcontent.com/investplace/quote?Symbol=CAKE
  18. were all down early in the day: http://investorplace.com/2012/02/post-earnings-losers-dell-tol-pzza-cake/
  19. COST: http://studio-5.financialcontent.com/investplace/quote?Symbol=COST
  20. HNZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=HNZ
  21. TIF: http://studio-5.financialcontent.com/investplace/quote?Symbol=TIF
  22. PETM: http://studio-5.financialcontent.com/investplace/quote?Symbol=PETM
  23. CPWR: http://studio-5.financialcontent.com/investplace/quote?Symbol=CPWR
  24. EXPE: http://studio-5.financialcontent.com/investplace/quote?Symbol=EXPE
  25. NOK: http://studio-5.financialcontent.com/investplace/quote?Symbol=NOK
  26. JNPR: http://studio-5.financialcontent.com/investplace/quote?Symbol=JNPR
  27. RHT: http://studio-5.financialcontent.com/investplace/quote?Symbol=RHT

Source URL: http://investorplace.com/2012/05/wednesdays-ip-market-recap-dell-fb-ms-msft-intc-hpq-aapl/
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