Stocks Rise on Good Economic News — Monday’s IP Market Recap

Strong retail sales help reverse some of last week's losses


IPMarketRecap Stocks Rise on Good Economic News    Mondays IP Market RecapPromising economic news out of the U.S. and China Monday morning gave the markets a much-needed jump after last week’s dismal performance.

The U.S. Commerce Department reported that retail sales grew 1.1% in September. Excluding cars, fuel and construction supplies, sales increased 0.9% — far better than the 0.3% experts were expecting.

In China, consumer prices fell from 2% to 1.9% over the last month, while producer prices tumbled 3.6% from last year. The news tells economists that Beijing’s efforts to stimulate the slowing economy may be having an effect.

The S&P 500 saw the biggest percentage gains as a result, with a 0.81% climb to 1,440.12. The Dow Jones Industrials was close behind, moving up 0.72% to 13,424.3, while the Nasdaq was in the black by 0.66% to 3,064.18.

The good news didn’t end there, though. Clearwire (NASDAQ:CLWR) saw shares skyrocket even more today after Softbank (PINK:SFTBY) finally announced plans to acquire a 70% stake in Sprint Nextel (NYSE:S). Clearwire’s value has doubled over the last five days on anticipation of such a deal. Today alone, CLWR climbed 16%.

Citigroup (NYSE:C) continued the earnings parade, announcing that it made $1.06 per share — up sharply from last year’s EPS of 84 cents and better than the 97 cents analysts were expecting. The stock’s 6% gain was much better than JPMorgan Chase (NYSE:JPM) and Morgan Stanley (NYSE:MS) fared after they failed to meet Wall Street’s high expectations last week.

The news wasn’t as great for Gannett (NYSE:GCI) and Charles Schwab (NYSE:SCHW), which also both reported before the bell. The newspaper company beat earnings estimates on record quarterly broadcast revenue, but shares slid slightly. Schwab managed to increase earnings by 12%, but missed revenue estimates. The stock ended barely in the black.

Biotech stocks Cyclacel Pharmaceuticals (NASDAQ:CYCC) surged by more than 27% Monday on the heels of good news regarding a phase 2 study of its drug Sapacitabine — a treatment for patients with myelodysplastic syndromes. Similar news also sent shares of Sarepta Therapeutics (SRPT) and Aegerion Pharmaceuticals (NASDAQ:AEGR) upwards.

After last week’s coal stock boom, James River Coal (NASDAQ:JRCC) and Alpha Natural Resources (NYSE:ANR) also continued their climb, gaining 25% and 7%, respectively. Tech company Workday (NYSE:WDAY), which pulled off a highly successful IPO last week, kept rising as well, with gains of 7%.

Finally, big names Sirius XM Radio (NASDAQ:SIRI) and Abbott Laboratories (NYSE:ABT) each reached 52-week highs.

Three Up

  • Yongye International (NASDAQ:YONG): Up 17.1% (82 cents) to $5.61.
  • Star Scientific (NASDAQ:STSI): Up 8.6% (27 cents) to $3.40.
  • Sycamore Networks (NASDAQ:SCMR): Up 7.1% (37 cents) to $5.57.

Three Down

  • Sonic Automotive (NYSE:SAH): Down 8% ($1.55) to $17.91.
  • Illumina (NASDAQ:ILMN): Down 6% ($3.09) to $48.07.
  • Celsion (NASDAQ:CLSN): Down 6.2% (31 cents) to $4.67.

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

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