by Marc Bastow | August 14, 2012 4:58 pm
[1]Markets broke any hopes of a broad rally as late-day trading reined in early gains, despite encouraging news from Europe and U.S. economic indicators.
In Europe, France and Germany released second-quarter gross domestic product figures that beat analysts’ expectations. However, according to estimates from Eurostat, eurozone GDP overall was down 0.2% between April and June.
In the U.S., the Census Bureau reported that retail sales climbed[2] for the first time in four months, up 0.8% in July, better than the 0.2% increase anticipated by economists. In addition, according to the Bureau of Labor Statistics, producer prices increased[3] 0.3% just over expectations of a o.2% rise.
Many stocks that started up on the news finished lower, while the Dow Jones Industrials managed to hang on to gains. For the day, the Dow picked up a fraction to finish up at 13,172, while the S&P fell even more fractionally at 1,403, and the Nasdaq lost 0.18% to end at 3,017.
On the corporate news watch, in the what-else-can-go-wrong-category, shares of Groupon (NASDAQ:GRPN[4]) touched a 52-week low, after the company announced results last night that missed revenue estimates[5] and continuing to confound analysts trying to figure out how to resolve Groupon’s accounting issues. Shares managed to avoid the low but were still down 26% on the day. Oh, and in the same category, with two days to go before the IPO lockup period expires, Facebook (NASDAQ:FB[6]) shares dipped 5.65% to finish at just over $20 per share.
Earnings once again took a big role, as retailer Michael Kors (NYSE:KORS[7]) rocketed ahead nearly 17% after posting revenues and earnings ahead of estimates[8] and increasing guidance[9] for the remainder of the year.
Fragrance and hair-care prodcts maker Estee Lauder (NYSE:EL[10]) rose just south of 10% on the day after posting earnings that beat Street estimates by 1 cent per share and despite a mild warning[11] on future growth and profit.
Home Depot (NYTSE:HD[12]) crushed earnings [13]during the quarter, with EPS rising 12% over last year despite a drop in revenues. Same-store sales improved, and the home improvement retailer provided upbeat guidance for the remainder of the year. Shares rose over 3% on the day
to hit a 52-week high[14].
Not so lucky was Dick’s Sporting Goods (NYSE:DKS[15]), which saw a nearly 4% drop in share price after second-quarter earnings were down[16] from last year despite beating Street estimates by 1 cent per share. The company increased its outlook for the reminder of the year[17], but not by enough to make analysts happy.
Earnings releases continue on Wednesday, with notables including InvestorPlace Dependable Dividend[18] Target (NYSE:TGT[19]), Deere (NYSE:DE[20]) and Cisco (NASDAQ:CSCO[21]).
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing he does not hold a position in any of the aforementioned securities.
Source URL: https://investorplace.com/2012/08/markets-just-barely-back-on-track-tuesdays-ip-market-recap-grpn-fb-kors-el-dks-hd/
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