Alcoa, Yum Kick Off Q3 Earnings — Tuesday’s IP Market Recap

by Alyssa Oursler | October 9, 2012 5:18 pm

Alcoa, Yum Kick Off Q3 Earnings — Tuesday’s IP Market Recap

IPMarketRecap Alcoa, Yum Kick Off Q3 Earnings    Tuesday's IP Market Recap[1]Alcoa (NYSE:AA[2]) kicked off the official earnings season with a beat after the bell Tuesday, sending shares higher in after-hours trading. The company also held strong to its forecast for doubling aluminum demand between 2010 and 2020, though AA shares only crawled slightly higher in early after-market trading.

Earnings and revenue both grew year-over-year for Yum! Brands (NYSE:YUM[3]) as well. The company beat EPS estimates by 2 cents and raised its full-year earnings guidance, sending YUM up 4% after hours.

U.S. stocks fell during normal trading hours, though, as investors braced themselves for the start of what is still expected to be a gloomy quarter overall. The IMF also recently warned[4] that the global slowdown is worsening. The news came on the heels of similarly glum warnings from economic bellwethers including Caterpillar (NYSE:CAT[5]) and FedEx (NYSE:FDX[6]).

For the day, the Nasdaq was sent 1.5% in the red to 3,065.02, the S&P dropped just under 1% to 1,441.49 and the Dow slid 0.9% to 13,473.99.

Tech stocks in particular fueled the markets’ downward movement on Tuesday — especially for the Nasdaq. Apple (NASDAQ:AAPL[7]) for one, entered correction territory, trading down 10% from its all-time high and receiving a rating of “neutral” from Nomura. Intel (NASDAQ:INTC[8]) also reached a 52-week low with a loss of 2.7% on the day thanks to two negative analyst calls.

Energy stocks also saw solid gains. James River Coal (NASDAQ:JRCC[9]) climbed by double digits, Alpha Natural Resources (NYSE:ANR[10]) was up over 7% and Arch Coal (NYSE:ACI[11]), Gulfport Energy (NASDAQ:GPOR[12]), Newfield Exploration (NYSE:NFX[13]), Peabody Energy (NYSE:BTU[14]) and countless others finished in the black.

Netflix (NASDAQ:NFLX[15]) shares continued their wild ride[16] as well, dropping nearly 9% after an analyst cut the video streaming company’s stock to “underperform” from “buy.” The fall erased the company’s double-digit Monday gains.

RadioShack (NYSE:RSH[17]) was able to shake the downward trend by soaring more than 12% after an Bank of America (NYSE:BAC[18]) Merrill Lynch analyst upgraded the stock to “buy” from “underperform.”[19]

In gaming news, Glu Mobile (NASDAQ:GLUU[20]) plummeted just under 20% even after announcing a partnership with Probability PLC, a gambling operator based in the U.K. The company has been suffering collateral damage from the struggles of rival[21] Zynga (NASDAQ:ZNGA[22]).

Finally, Spectrum Brands (NYSE:SPB[23]) gained nearly 12% after announcing its plans[24] to purchase Stanley Black & Decker’s (NYSE:SWK[25]) hardware and home improvement business for $1.4 billion.

Three Up

Three Down

Alyssa Oursler is an editorial assistant at InvestorPlace.com. As of this writing, she did not own a position at any of the aforementioned securities.

Endnotes:
  1. [Image]: http://www.investorplace.com/hot-topics/investorplace-market-recap/
  2. AA: http://studio-5.financialcontent.com/investplace/quote?Symbol=AA
  3. YUM: http://studio-5.financialcontent.com/investplace/quote?Symbol=YUM
  4. IMF also recently warned: http://investorplace.com/2012/10/dire-warning-risk-of-global-recession-is-alarmingly-high/
  5. CAT: http://studio-5.financialcontent.com/investplace/quote?Symbol=CAT
  6. FDX: http://studio-5.financialcontent.com/investplace/quote?Symbol=FDX
  7. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  8. INTC: http://studio-5.financialcontent.com/investplace/quote?Symbol=INTC
  9. JRCC: http://studio-5.financialcontent.com/investplace/quote?Symbol=JRCC
  10. ANR: http://studio-5.financialcontent.com/investplace/quote?Symbol=ANR
  11. ACI: http://studio-5.financialcontent.com/investplace/quote?Symbol=ACI
  12. GPOR: http://studio-5.financialcontent.com/investplace/quote?Symbol=GPOR
  13. NFX: http://studio-5.financialcontent.com/investplace/quote?Symbol=NFX
  14. BTU: http://studio-5.financialcontent.com/investplace/quote?Symbol=BTU
  15. NFLX: http://studio-5.financialcontent.com/investplace/quote?Symbol=NFLX
  16. shares continued their wild ride: http://investorplace.com/2012/10/netflix-shares-go-on-a-wild-ride/
  17. RSH: http://studio-5.financialcontent.com/investplace/quote?Symbol=RSH
  18. BAC: http://studio-5.financialcontent.com/investplace/quote?Symbol=BAC
  19. upgraded the stock to “buy” from “underperform.”: http://investorplace.com/2012/10/leave-radioshack-to-the-pros-and-algos/
  20. GLUU: http://studio-5.financialcontent.com/investplace/quote?Symbol=GLUU
  21. struggles of rival: http://investorplace.com/ipo-playbook/can-zynga-get-back-in-the-game/
  22. ZNGA: http://studio-5.financialcontent.com/investplace/quote?Symbol=ZNGA
  23. SPB: http://studio-5.financialcontent.com/investplace/quote?Symbol=SPB
  24. after announcing its plans: http://investorplace.com/2012/10/spectrum-shares-jump-on-1-4b-black-decker-deal/
  25. SWK: http://studio-5.financialcontent.com/investplace/quote?Symbol=SWK
  26. BSDM: http://studio-5.financialcontent.com/investplace/quote?Symbol=BSDM
  27. AFFY: http://studio-5.financialcontent.com/investplace/quote?Symbol=AFFY
  28. BONT: http://studio-5.financialcontent.com/investplace/quote?Symbol=BONT
  29. EW: http://studio-5.financialcontent.com/investplace/quote?Symbol=EW
  30. VRNG: http://studio-5.financialcontent.com/investplace/quote?Symbol=VRNG
  31. VDSI: http://studio-5.financialcontent.com/investplace/quote?Symbol=VDSI

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