Tech Takes Over the Market — Wednesday’s IP Market Recap

Nasdaq gains more than 1% despite warning from Intel


IPMarketRecap Tech Takes Over the Market    Wednesdays IP Market RecapU.S. markets kept one eye on Fed Chairman Ben Bernanke as he testified in front of Congress for a second day, but its mind was focused squarely on earnings releases and a housing report that both surprised and delighted, setting the stage for a broad rally.

Intel‘s (NASDAQ:INTC) earnings release after the bell on Tuesday included a warning about future earnings and growth. However, investors likely had already baked the news in, and INTC shares gained 3.5% on the day, helping to lead a strong tech rally that carried along chip-maker Texas Instruments (NYSE:TXN) for a 4% ride. The tide lifted all boats, as Cisco (NASDAQ:CSCO) rose more than 3%, while titans Microsoft (NASDAQ:MSFT) and IBM (NYSE:IBM) and recently struggling Hewlett-Packard (NYSE:HPQ) finished over 2%.

The tech rally carried the Nasdaq to a 1.12% gain to end at 2,942, while the Dow rose 0.8% to 12,908 and the S&P managed a 0.67% gain to finish at 1,372.

Tech’s reign continued after the bell Wednesday. eBay (NASDAQ:EBAY) reported strong second-quarter results to lift the stock around 5% in after-hours trading. IBM shares rose another 1.75% on lower revenues but higher earnings. And Qualcomm (NASDAQ:QCOM) was tacking 2% more onto the day’s nearly 3% gain despite predictions of lower revenues and earnings in Q4.

Also Wednesday, Bank of America (NYSE:BAC) reported strong quarterly results — EPS came in at a Street-beating 19 cents per share on revenue of just more than $22 billion — but the market reacted negatively to the news, sending shares down over 4% on the day. 

The banking sector as a whole struggled as investors try to make sense of the slew of earnings. Morgan Stanley (NYSE:MS) sank more than 2% on the day, while Citigroup (NYSE:C) and Goldman Sachs (NYSE:GS) lost over 1.5%. U.S. Bancorp (NYSE:USB) bucked the trend, however, finishing up more than 1% after topping analyst estimates for earnings and showing an increase in revenues. After the bell, American Express (NYSE:AXP) announced a miss on revenues, and shares were about 1% lower in early after-market trading.

In other earnings news, Stanley Black & Decker (NYSE:SWK) managed to pop nearly 6% despite an earnings drop and lowered expectations for the remainder of the year, while Abbott Laboratories (NYSE:ABT) was down fractionally on disappointing earnings that narrowly beat estimates.

Thursday unleashes a torrent of earnings reports, including Nokia (NYSE:NOK), Microsoft, Morgan Stanley, Philip Morris International (NYSE:PM) and Travelers (NYSE:TRV).

Three Up

  • VMware (NYSE:VMW): Up 12.1% ($9.69) to $89.98.
  • W.W. Grainger (NYSE:GWW): Up 11.4% ($21.60) to $210.57.
  • JDS Uniphase (NASDAQ:JDSU): Up 7.7% (66 cents) to $9.29.

Three Down

  • United Rentals (NYSE:URI): Down 13.9% ($4.77) to $29.66.
  • Delta Air Lines (NYSE:DAL): Down 5.3% (57 cents) to $10.23.
  • MAKO Surgical (NASDAQ:MAKO): Down 4.3% (61 cents) to $13.49.

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

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