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

by Marc Bastow | October 24, 2012 5:21 pm

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

IPMarketRecap No Gloom, But No Rally    Wednesday's IP Market Recap[1]A 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[2]), whose stock jumped nearly 20% on the day after posting solid revenue and earnings numbers[3] Tuesday afternoon.

The defense and aerospace sector[4] — including Lockheed Martin (NYSE:LMT[5]), General Dynamics (NYSE:GD[6]) and Northrop Grumman (NYSE:NOC[7]) — had a mixed earnings bag, with LMT and GD managing to gain roughly 2% for the day.

Biotech stocks Gilead Sciences (NASDAQ:GILD[8]), Amgen (NASDAQ:AMGN[9]), and Questcor Pharmaceuticals (NASDAQ:QCOR[10]) all reported earnings[11] 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[12], with only VMware (NYSE:VMW[13]) on the positive end of earnings, revenues and forward guidance among EMC (NYSE:EMC[14]), Juniper Networks (NYSE:JNPR[15]), and Broadcom (NASDAQ:BRCM[16]). WMware finished up just over 2% while Juniper Networks was crushed, down 9%.

AT&T (NYSE:T[17]) also reported earnings[18] 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[19] on the day included good news from Boeing (NYSE:BA[20]), which posted Street-beating earnings on matching revenues. However, BA shares closed fractionally down.

Lumber Liquidators (NYSE:LL[21]) continued a magic run[22], 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[23]) watched its stock surge nearly 15% in after-hours trading following the announcement it would enter the online gambling arena[24].

The earnings machine cranks up again on Thursday with a host of big names, including Apple (NASDAQ:AAPL[25]), Amazon (NASDAQ:AMZN[26]) and Sprint (NYSE:S[27]).

Three Up

Three Down

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

Endnotes:
  1. [Image]: http://www.investorplace.com/hot-topics/investorplace-market-recap/
  2. FB: http://studio-5.financialcontent.com/investplace/quote?Symbol=FB
  3. posting solid revenue and earnings numbers: http://investorplace.com/ipo-playbook/facebook-gets-mobile-juice/
  4. defense and aerospace sector: http://investorplace.com/2012/10/defense-stocks-move-higher-on-mixed-earnings/
  5. LMT: http://studio-5.financialcontent.com/investplace/quote?Symbol=LMT
  6. GD: http://studio-5.financialcontent.com/investplace/quote?Symbol=GD
  7. NOC: http://studio-5.financialcontent.com/investplace/quote?Symbol=NOC
  8. GILD: http://studio-5.financialcontent.com/investplace/quote?Symbol=GILD
  9. AMGN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMGN
  10. QCOR: http://studio-5.financialcontent.com/investplace/quote?Symbol=QCOR
  11. all reported earnings: http://investorplace.com/2012/10/biotechs-beat-q3-earnings-revenue-estimates/
  12. grouping of companies reporting: http://investorplace.com/2012/10/weak-q4-forecasts-send-tech-shares-down/
  13. VMW: http://studio-5.financialcontent.com/investplace/quote?Symbol=VMW
  14. EMC: http://studio-5.financialcontent.com/investplace/quote?Symbol=EMC
  15. JNPR: http://studio-5.financialcontent.com/investplace/quote?Symbol=JNPR
  16. BRCM: http://studio-5.financialcontent.com/investplace/quote?Symbol=BRCM
  17. T: http://studio-5.financialcontent.com/investplace/quote?Symbol=T
  18. reported earnings: http://investorplace.com/2012/10/att-falls-short-on-q3-revenue-subscribers/
  19. deluge of earnings releases: http://investorplace.com/2012/10/earnings-roundup-wednesday-october-24/
  20. BA: http://studio-5.financialcontent.com/investplace/quote?Symbol=BA
  21. LL: http://studio-5.financialcontent.com/investplace/quote?Symbol=LL
  22. continued a magic run: http://investorplace.com/2012/10/lumber-liquidators-mops-up-ll-hd-bldr-shld/
  23. ZNGA: http://studio-5.financialcontent.com/investplace/quote?Symbol=ZNGA
  24. would enter the online gambling arena: http://investorplace.com/ipo-playbook/good-news-from-zynga-finally/
  25. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  26. AMZN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMZN
  27. S: http://studio-5.financialcontent.com/investplace/quote?Symbol=S
  28. MNST: http://studio-5.financialcontent.com/investplace/quote?Symbol=MNST
  29. YELP: http://studio-5.financialcontent.com/investplace/quote?Symbol=YELP
  30. DOW: http://studio-5.financialcontent.com/investplace/quote?Symbol=DOW
  31. Read more here: http://investorplace.com/2012/10/dow-chemical-closes-factories-cuts-jobs/
  32. NFLX: http://studio-5.financialcontent.com/investplace/quote?Symbol=NFLX
  33. Read more here: http://investorplace.com/2012/10/netflix-on-red-alert-yet-again/
  34. BWLD: http://studio-5.financialcontent.com/investplace/quote?Symbol=BWLD
  35. GLW: http://studio-5.financialcontent.com/investplace/quote?Symbol=GLW

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