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

by Marc Bastow | July 18, 2012 5:22 pm

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

IPMarketRecap Tech Takes Over the Market    Wednesday's IP Market Recap[1]U.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[2], setting the stage for a broad rally.

Intel‘s (NASDAQ:INTC[3]) earnings release after the bell[4] 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[5]) for a 4% ride. The tide lifted all boats, as Cisco (NASDAQ:CSCO[6]) rose more than 3%, while titans Microsoft (NASDAQ:MSFT[7]) and IBM (NYSE:IBM[8]) and recently struggling Hewlett-Packard (NYSE:HPQ[9]) 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[10]) 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[11]) 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[12]) reported strong quarterly results[13] — EPS came in at a Street-beating 19 cents per share on revenue of just more than $22 billion — but the market reacted negatively[14] 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[15]. Morgan Stanley (NYSE:MS[16]) sank more than 2% on the day, while Citigroup (NYSE:C[17]) and Goldman Sachs (NYSE:GS[18]) lost over 1.5%. U.S. Bancorp (NYSE:USB[19]) 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[20]) 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[21]) managed to pop nearly 6% despite an earnings drop and lowered expectations[22] for the remainder of the year, while Abbott Laboratories (NYSE:ABT[23]) was down fractionally on disappointing earnings that narrowly beat estimates[24].

Thursday unleashes a torrent of earnings reports, including Nokia (NYSE:NOK[25]), Microsoft, Morgan Stanley, Philip Morris International (NYSE:PM[26]) and Travelers (NYSE:TRV[27]).

Three Up

Three Down

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

Endnotes:
  1. [Image]: http://investorplace.com/hot-topics/investorplace-market-recap/
  2. housing report that both surprised and delighted: http://investorplace.com/2012/07/housing-starts-jump-6-9-in-june/
  3. INTC: http://studio-5.financialcontent.com/investplace/quote?Symbol=INTC
  4. earnings release after the bell: http://investorplace.com/2012/07/intel-is-getting-its-mojo-back-intc-earnings/
  5. TXN: http://studio-5.financialcontent.com/investplace/quote?Symbol=TXN
  6. CSCO: http://studio-5.financialcontent.com/investplace/quote?Symbol=CSCO
  7. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  8. IBM: http://studio-5.financialcontent.com/investplace/quote?Symbol=IBM
  9. HPQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=HPQ
  10. EBAY: http://studio-5.financialcontent.com/investplace/quote?Symbol=EBAY
  11. QCOM: http://studio-5.financialcontent.com/investplace/quote?Symbol=QCOM
  12. BAC: http://studio-5.financialcontent.com/investplace/quote?Symbol=BAC
  13. reported strong quarterly results: http://investorplace.com/2012/07/bank-of-america-posts-2-5b-q2-profit-shares-slide/
  14. the market reacted negatively: http://investorplace.com/2012/07/should-i-buy-bank-of-america-3-pros-3-cons/
  15. investors try to make sense of the slew of earnings: http://investorplace.com/2012/07/even-a-profitable-bofa-shows-bankings-risks/
  16. MS: http://studio-5.financialcontent.com/investplace/quote?Symbol=MS
  17. C: http://studio-5.financialcontent.com/investplace/quote?Symbol=C
  18. GS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GS
  19. USB: http://studio-5.financialcontent.com/investplace/quote?Symbol=USB
  20. AXP: http://studio-5.financialcontent.com/investplace/quote?Symbol=AXP
  21. SWK: http://studio-5.financialcontent.com/investplace/quote?Symbol=SWK
  22. earnings drop and lowered expectations: http://investorplace.com/2012/07/stanley-black-decker-falls-short-of-q2-expectations/
  23. ABT: http://studio-5.financialcontent.com/investplace/quote?Symbol=ABT
  24. disappointing earnings that narrowly beat estimates: http://investorplace.com/2012/07/abbott-beats-forecast-on-strong-humira-sales/
  25. NOK: http://studio-5.financialcontent.com/investplace/quote?Symbol=NOK
  26. PM: http://studio-5.financialcontent.com/investplace/quote?Symbol=PMI
  27. TRV: http://studio-5.financialcontent.com/investplace/quote?Symbol=TRV
  28. VMW: http://studio-5.financialcontent.com/investplace/quote?Symbol=VMW
  29. GWW: http://studio-5.financialcontent.com/investplace/quote?Symbol=GWW
  30. JDSU: http://studio-5.financialcontent.com/investplace/quote?Symbol=JDSU
  31. URI: http://studio-5.financialcontent.com/investplace/quote?Symbol=URI
  32. DAL: http://studio-5.financialcontent.com/investplace/quote?Symbol=DAL
  33. MAKO: http://studio-5.financialcontent.com/investplace/quote?Symbol=MAKO

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