Retail Results Spoil the Day — Monday’s IP Market Recap

by Marc Bastow | July 16, 2012 5:18 pm

Retail Results Spoil the Day — Monday’s IP Market Recap

IPMarketRecap Retail Results Spoil the Day    Monday's IP Market Recap[1]All it took for U.S. stocks to open lower Monday was a surprise drop in June retail sales and some concerns over corporate earnings reports due this week. 

Meanwhile retail sales for June were weak[2], dropping 0.5% from the previous month and lower than economists’ expectations for a 0.2% increase. Nearly every sector took a hit, from furniture and electronics shops to gas stations and sporting goods stores.

Citigroup (NYSE:C[3]) didn’t do much to assuage investors, opening the day announcing lower second-quarter revenues and earnings[4] compared to last year, though earnings per share came in better than expected.

Investors scared off by the retail and earning news fled to U.S. treasury securities, as the 10-year note fell to a record low 1.44% before settling in at 1.46% by day’s end.

All was not a total loss, though, as the Dow managed to climb back from just under 12,700 at the start to finish down 0.39% at 12,727. The Nasdaq finished down 0.4% at 2,896, while the S&P 500 rallied to finish down 0.23% at 1,354.

M&A was alive and kicking Monday. GlaxoSmithKline (NYSE:GSK[5]) upped the ante in its buyout bid[6] for biopharmaceutical company Human Genome Sciences (NASDAQ:HGSI[7]) to $14.25 per share, with HGSI accepting. The biotech’s stock jumped 4.5% in response, while GSK rose less than 1% on the news. Pharmaceutical companies Pfizer (NYSE:PFE[8]), Teva (NYSE:TEVA[9]) and Roche (PINK:RHHBY[10]) all were up more than 1% on the heels of the GSK agreement.

Shares of financial services companies Visa (NYSE:V[11]) and MasterCard (NYSE:MA[12]) gained more than 2% after announcing the settlement of a antitrust case with merchants over the weekend.

Nokia (NYSE:NOK[13]) shares fell more than 2% after announcing it was slashing the price of its smartphone[14] in the United States. The cost of the Lumia 900 will drop to $49.99 as NOK tries to catch up with the more popular Apple (NASDAQ:AAPL[15]) iPhone and Google (NASDAQ:GOOG[16]) Android models. Good luck with that[17].

Tuesday looms large on the earnings front, as Charles Schwab (NYSE:SCHW[18]), Goldman Sachs (NYSE:GS[19]), Coca-Cola (NYSE:KO[20]) and Johnson & Johnson (NYSE:JNJ[21]) all report before the open, and Intel (NASDAQ:INTC[22]), Yahoo (NASDAQ:YHOO[23]) and CSX (NYSE:CSX[24]) all report after the bell.

Three Up

Three Down

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

Endnotes:
  1. [Image]: http://investorplace.com/hot-topics/investorplace-market-recap/
  2. retail sales for June were weak: http://investorplace.com/2012/07/u-s-retail-sales-defy-forecasts-and-drop-in-june/
  3. C: http://studio-5.financialcontent.com/investplace/quote?Symbol=C
  4. lower second-quarter revenues and earnings: http://investorplace.com/2012/07/citigroup-earnings-and-revenue-fall-beat-estimates/
  5. GSK: http://studio-5.financialcontent.com/investplace/quote?Symbol=GSK
  6. upped the ante in its buyout bid: http://investorplace.com/2012/07/hgsi-hold-out-proves-profitable-for-bagels-hgsi-gsk/
  7. HGSI: http://studio-5.financialcontent.com/investplace/quote?Symbol=HGSI
  8. PFE: http://studio-5.financialcontent.com/investplace/quote?Symbol=PFE
  9. TEVA: http://studio-5.financialcontent.com/investplace/quote?Symbol=TEVA
  10. RHHBY: http://studio-5.financialcontent.com/investplace/quote?Symbol=RHHBY
  11. V: http://studio-5.financialcontent.com/investplace/quote?Symbol=V
  12. MA: http://studio-5.financialcontent.com/investplace/quote?Symbol=MA
  13. NOK: http://studio-5.financialcontent.com/investplace/quote?Symbol=NOK
  14. slashing the price of its smartphone: http://investorplace.com/2012/07/whoa-nokia-drastically-drops-price-of-smartphone/
  15. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  16. GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG
  17. Good luck with that: http://investorplace.com/2012/06/is-nokia-dialing-up-a-buyout-nok/
  18. SCHW: http://studio-5.financialcontent.com/investplace/quote?Symbol=SCHW
  19. GS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GS
  20. KO: http://studio-5.financialcontent.com/investplace/quote?Symbol=KO
  21. JNJ: http://studio-5.financialcontent.com/investplace/quote?Symbol=JNJ
  22. INTC: http://studio-5.financialcontent.com/investplace/quote?Symbol=INTC
  23. YHOO: http://studio-5.financialcontent.com/investplace/quote?Symbol=YHOO
  24. CSX: http://studio-5.financialcontent.com/investplace/quote?Symbol=CSX
  25. SVU: http://studio-5.financialcontent.com/investplace/quote?Symbol=SVU
  26. FSLR: http://studio-5.financialcontent.com/investplace/quote?Symbol=FSLR
  27. S: http://studio-5.financialcontent.com/investplace/quote?Symbol=S
  28. GMCR: http://studio-5.financialcontent.com/investplace/quote?Symbol=GMCR
  29. FB: http://studio-5.financialcontent.com/investplace/quote?Symbol=FB
  30. CIEN: http://studio-5.financialcontent.com/investplace/quote?Symbol=CIEN

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