Jobs Don’t Provide Much Jolt — Thursday IP Market Recap

by Alyssa Oursler | October 11, 2012 5:08 pm

Jobs Don’t Provide Much Jolt — Thursday IP Market Recap

IPMarketRecap Jobs Dont Provide Much Jolt    Thursday IP Market Recap[1]Thursday kicked off with a little bit of good news on the employment front. While economists had been expecting an increase in jobless claims, first-time claims actually dropped 30,000 to a seasonally adjusted 339,000 — the lowest since February 2008.

The markets jumped on the news early but the boost fizzled by day’s end. The S&P 500 was the only index that managed to break the week’s losing streak, eking out a measly 0.02% gain to 1,432.84. The Nasdaq fell 0.08% to end at 3,049.38, while the Dow followed its triple-digit Wednesday loss with a drop of 0.03% to 13,341.13. The major indices remain on pace for their biggest weekly drop in four months.

Grocer Safeway (NYSE:SWY[2]) continued earnings season Thursday morning, with profits beating estimates[3] but revenue falling slightly. Investors were unimpressed and sent shares down nearly 4% on the day. Winnebago Industrials (NYSE:WGO[4]) shares also slipped marginally on news that it missed earnings estimates.

Discount retailer Dollar Tree (NASDAQ:DLTR[5]) also took a hit after announcing that its Q3 earnings should come in near the lower end of its forecast. Shares sunk around 8%.

The day wasn’t without its silver lining, though.

IPOs were a bright spot, for one, as a few stormed onto the market. Online photo marketplace Shutterstock (NYSE:SSTK[6]) gained more than 27%[7], leading residential real-estate services company Realogy (NYSE:RLGY[8]) climbed around 25%[9], and Kythera Biopharmaceuticals (NASDAQ:KYTH[10]) — focusing on a drug to reduce double chins[11] — gained around 22% in its debut. Including the 29% jump by Intercept Pharmaceuticals (NASDAQ:ICPT[12]), Thursday marked the first time in a dozen years that four public offerings each gained 20%[13] on their first day of trading.

Sprint (NYSE:S[14]) soared on the day, jumping 14% on the news that Japan’s Softbank[15] is looking to make a substantial investment, or possibly an acquisition, of the company. The move could help the No. 3 telecom provider as it struggles to compete with AT&T (NYSE:T[16]) and Verizon (NYSE:VZ[17]).

Coal stocks continued to climb on an analyst’s prediction of an uptick in Chinese demand[18]. James River Coal (NASDAQ:JRCC[19]), Alpha Natural Resources (NYSE:ANR[20]) and Arch Coal (NYSE:ANI[21]) led the way with gains over 15%, while Peabody Energy (NYSE:BTU[22]) and Consol Energy (NYSE:CNX[23]) were each in the black around 8%.

Barnes & Noble (NYSE:BKS[24]), which climbed around 8% Wednesday, also continued to surge thanks to its record number of pre-orders for the Nook HD. Shares gained another 8%, boosting its year-to-date gains into double digits.

Finally, billionaire activist investor Carl Icahn offered to buy specialty vehicle maker Oshkosh (NYSE:OSK[25]) for around $3 billion, sending shares upward to the tune of more than 11%. Icahn already is the company’s largest investor with a 9.5% stake.

Three Up

Three Down

Alyssa Oursler is an Editorial Assistant at InvestorPlace.com. As of this writing, she did not hold a position in any of the aforementioned securities.

Endnotes:
  1. [Image]: http://investorplace.com/hot-topics/investorplace-market-recap/
  2. SWY: http://studio-5.financialcontent.com/investplace/quote?Symbol=SWY
  3. profits beating estimates: http://investorplace.com/2012/10/safeway-beats-profit-forecasts-shares-fall/
  4. WGO: http://studio-5.financialcontent.com/investplace/quote?Symbol=WGO
  5. DLTR: http://studio-5.financialcontent.com/investplace/quote?Symbol=DLTR
  6. SSTK: http://studio-5.financialcontent.com/investplace/quote?Symbol=SSTK
  7. gained more than 27%: http://investorplace.com/ipo-playbook/shutterstock-makes-a-picture-perfect-ipo/
  8. RLGY: http://studio-5.financialcontent.com/investplace/quote?Symbol=RLGY
  9. climbed around 25%: http://investorplace.com/ipo-playbook/realogys-ipo-shows-real-estate-is-back/
  10. KYTH: http://studio-5.financialcontent.com/investplace/quote?Symbol=KYTH
  11. drug to reduce double chins: http://investorplace.com/ipo-playbook/kythera-big-business-in-double-chins/
  12. ICPT: http://studio-5.financialcontent.com/investplace/quote?Symbol=ICPT
  13. four public offerings each gained 20%: http://blogs.wsj.com/marketbeat/2012/10/11/four-ipos-four-20-pops/
  14. S: http://studio-5.financialcontent.com/investplace/quote?Symbol=S
  15. on the news that Japan’s Softbank: http://investorplace.com/2012/10/rumors-sprint-could-be-bought-for-12-8b/
  16. T: http://studio-5.financialcontent.com/investplace/quote?Symbol=T
  17. VZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=VZ
  18. an uptick in Chinese demand: http://buzz.money.cnn.com/2012/10/11/coal-china-stocks/
  19. JRCC: http://studio-5.financialcontent.com/investplace/quote?Symbol=JRCC
  20. ANR: http://studio-5.financialcontent.com/investplace/quote?Symbol=ANR
  21. ANI: http://studio-5.financialcontent.com/investplace/quote?Symbol=ANI
  22. BTU: http://studio-5.financialcontent.com/investplace/quote?Symbol=BTU
  23. CNX: http://studio-5.financialcontent.com/investplace/quote?Symbol=CNX
  24. BKS: http://studio-5.financialcontent.com/investplace/quote?Symbol=BKS
  25. OSK: http://studio-5.financialcontent.com/investplace/quote?Symbol=OSK
  26. CLWR: http://studio-5.financialcontent.com/investplace/quote?Symbol=CLWR
  27. TC: http://studio-5.financialcontent.com/investplace/quote?Symbol=TC
  28. JCP: http://studio-5.financialcontent.com/investplace/quote?Symbol=JCP
  29. KITD: http://studio-5.financialcontent.com/investplace/quote?Symbol=KITD
  30. SWC: http://studio-5.financialcontent.com/investplace/quote?Symbol=SWC
  31. GLUU: http://studio-5.financialcontent.com/investplace/quote?Symbol=GLUU

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