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No Gloom, But No Rally — Wednesday’s IP Market Recap

A mixed bag of earnings buries strong news on housing

   

IPMarketRecap No Gloom, But No Rally    Wednesday's IP Market RecapA day that started with some small positive momentum muddled close to breaking even before sliding into negative territory Wednesday — this despite some good earnings news and a report that new home sales for September climbed 5.7% to hit a 2-year high.

Tthe S&P led the way down, off 0.31% to 1,408.75, the Nasdaq dropped 0.29% to 2,981.70 and the Dow settled in down 0.19% at 13,077.34.

Unlike Tuesday’s almost-immediate selloff on disappointing earnings news, early-morning corporate news on Wednesday was positive, led by continued gains in Facebook (NASDAQ:FB), whose stock jumped nearly 20% on the day after posting solid revenue and earnings numbers Tuesday afternoon.

The defense and aerospace sector — including Lockheed Martin (NYSE:LMT), General Dynamics (NYSE:GD) and Northrop Grumman (NYSE:NOC) — had a mixed earnings bag, with LMT and GD managing to gain roughly 2% for the day.

Biotech stocks Gilead Sciences (NASDAQ:GILD), Amgen (NASDAQ:AMGN), and Questcor Pharmaceuticals (NASDAQ:QCOR) all reported earnings on the day, with all three beating both top and bottom line estimates. Gilead shares profited the most from the news, climbing over 5% on the day, with Amgen up marginally and Questcor down a fraction.

The tech sector was also hit with a grouping of companies reporting, with only VMware (NYSE:VMW) on the positive end of earnings, revenues and forward guidance among EMC (NYSE:EMC), Juniper Networks (NYSE:JNPR), and Broadcom (NASDAQ:BRCM). WMware finished up just over 2% while Juniper Networks was crushed, down 9%.

AT&T (NYSE:T) also reported earnings that topped market expectations and said cash flow this year will be better than previously expected, but the stock failed to gain any ground, closing down nearly 1% on the day.

A deluge of earnings releases on the day included good news from Boeing (NYSE:BA), which posted Street-beating earnings on matching revenues. However, BA shares closed fractionally down.

Lumber Liquidators (NYSE:LL) continued a magic run, gaining over 11% after blowing out third quarter revenue and earnings estimates and providing strong guidance for the remainder of the year. LL is up over 200% on the year.

Lastly, after the bell Wednesday, gamemaker Zynga (NASDAQ:ZNGA) watched its stock surge nearly 15% in after-hours trading following the announcement it would enter the online gambling arena.

The earnings machine cranks up again on Thursday with a host of big names, including Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN) and Sprint (NYSE:S).

Three Up

  • Monster Beverage (NASDAQ:MNST): Up 16.77% ($6.89) to $47.37
  • Yelp (NYSE:YELP): Up 7.38% ($1.77) to $25.77
  • Dow Chemical (NYSE:DOW): Up 4.66% ($1.33) to $29.88 (Read more here)

Three Down

  • Netflix (NASDAQ:NFLX): Down 11.87% ($8.10) to $60.12 (Read more here)
  • Buffalo Wild Wings (NASDAQ:BWLD): Down 10.5% ($8.76) to $74.70
  • Corning (NYSE:GLW): Down 9.4% ($1.26) to $12.15

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


Article printed from InvestorPlace Media, http://investorplace.com/2012/10/no-gloom-but-also-no-rally-wednesdays-ip-market-recap-fb-aapl-lmt-noc-gd-t-ba/.

©2014 InvestorPlace Media, LLC

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