by Marc Bastow | July 25, 2012 5:15 pm
[1]The markets were a mixed mess Wednesday as earnings once again ruled the day.
The Dow managed to snap a three-day string of losses thanks to banner results released by components Boeing (NYSE:BA[2]) and Caterpillar (NYSE:CAT[3]). On the flip side, the Nasdaq fell in response to Apple‘s (NASDAQ:AAPL[4]) disappointing results offered up after the bell on Tuesday. All the earnings news was balanced by a report showing that new home sales fell 8.4%[5] in June after reaching a two-year high in May.
The Dow finished up 0.47% to 12,676, while the Nasdaq fell 0.31% to 2,854. The S&P split the difference, finishing down marginally at 1,337.
Caterpillar, one of the Dow’s most heavily weighted stocks, started the day by beating earnings and revenue numbers[6] and providing rosy guidance figures for the remainder of the year. Boeing followed suit[7] by announcing better than expected results and also calling for improved numbers the remainder of the year. Boeing gained 3%, while CAT finished up more than 1%.
Netflix (NASDAQ:NFLX[8]) continued to take a beating dropping 25% during the day as investors kept up their selling despite upbeat earnings released on Tuesday[9]. The stock is down more than 70% for the year, and said the upcoming Olympics will hurt short-term viewership numbers. RadioShack (NYSE:RSH[10]) also took a bath, dropping 29% on the day after announcing a big loss and suspending its dividend[11].
PepsiCo‘s (NYSE:PEP[12]) revenue and earnings[13] came in below last year’s quarterly figures, but adjusted net income topped Street estimates. Pepsi blamed cost-cutting, unfavorable foreign currency exchange rates[14] and restructuring charges, and despite the news the stock traded up over 2% during the day.
Ford‘s (NYSE:F[15]) Q2 profit dropped 57%, mostly due to losses in its European and Asian divisions[16] as domestic sales continued to improve. Ford also acknowledged it will not exceed last year’s $8.7 billion operating profit; shares fell 1% Wednesday.
AOL (NYSE:AOL[17]) surprised everyone by turning a solid profit for the second quarter against a loss last year, as ad revenue increased and the company got a big cash boost from a $1.05 billion patent sale to Microsoft. AOL shares jumped up more than 7%.
In after-hours earnings news, Zynga (NASDAQ:ZNGA[18]) was pummeled by almost 40% in early post-market trading after the company reported a second-quarter loss and slashed full-year earnings estimates to 4 to 9 cents per share from its April forecast of 23 to 29 cents per share. Zynga’s big-time partner Facebook (NASDAQ:FB[19]), which announces earnings tomorrow, was down 7% on the news.
Meanwhile, Whole Foods (NASDAQ:WFM[20]) reported results[21] that topped Street estimates and raised full year guidance, and investors drove shares up 12% after the bell.
Thursday’s earnings announcements include 3M (NYSE:MMM[22]), O’Reilly Auto (NASDAQ:ORLY[23]) and Goodyear Tire (NYSE:GT[24]).
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he was long INTC, AAPL and AOL.
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