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

by Alyssa Oursler | October 15, 2012 4:37 pm

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

IPMarketRecap Stocks Rise on Good Economic News    Mondays IP Market Recap[1]Promising economic news[2] 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[3]) saw shares skyrocket even more today after Softbank (PINK:SFTBY[4]) finally announced plans to acquire a 70% stake in Sprint Nextel (NYSE:S[5]). Clearwire’s value has doubled over the last five days on anticipation of such a deal. Today alone, CLWR climbed 16%.

Citigroup (NYSE:C[6]) continued the earnings parade, announcing that it made $1.06 per share[7] — 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[8]) and Morgan Stanley (NYSE:MS[9]) fared after they failed to meet Wall Street’s high expectations[10] last week.

The news wasn’t as great forĀ Gannett (NYSE:GCI[11]) and Charles Schwab (NYSE:SCHW[12]), which also both reported before the bell. The newspaper company beat earnings estimates[13] on record quarterly broadcast revenue, but shares slid slightly. Schwab managed to increase earnings by 12%[14], but missed revenue estimates. The stock ended barely in the black.

Biotech stocks Cyclacel Pharmaceuticals (NASDAQ:CYCC[15]) 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[16]) and Aegerion Pharmaceuticals (NASDAQ:AEGR[17]) upwards.

After last week’s coal stock boom, James River Coal (NASDAQ:JRCC[18]) and Alpha Natural Resources (NYSE:ANR[19]) also continued their climb, gaining 25% and 7%, respectively. Tech company Workday (NYSE:WDAY[20]), which pulled off a highly successful IPO last week[21], kept rising as well, with gains of 7%.

Finally, big names Sirius XM Radio (NASDAQ:SIRI[22]) and Abbott Laboratories (NYSE:ABT[23]) each reached 52-week highs.

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. Promising economic news: http://investorplace.com/2012/10/market-movers-u-s-retail-sales-jump-good-news-in-china/
  3. CLWR: http://studio-5.financialcontent.com/investplace/quote?Symbol=CLWR
  4. SFTBY: http://studio-5.financialcontent.com/investplace/quote?Symbol=SFTBY
  5. S: http://studio-5.financialcontent.com/investplace/quote?Symbol=S
  6. C: http://studio-5.financialcontent.com/investplace/quote?Symbol=C
  7. it made $1.06 per share: http://investorplace.com/2012/10/citigroup-tops-estimates-on-lower-q3-profit/
  8. JPM: http://studio-5.financialcontent.com/investplace/quote?Symbol=JPM
  9. MS: http://studio-5.financialcontent.com/investplace/quote?Symbol=MS
  10. Wall Street’s high expectations: http://investorplace.com/2012/10/jpmorgan-wells-fargo-no-match-for-great-expectations-jpm-wf/
  11. GCI: http://studio-5.financialcontent.com/investplace/quote?Symbol=GCI
  12. SCHW: http://studio-5.financialcontent.com/investplace/quote?Symbol=SCHW
  13. beat earnings estimates: http://investorplace.com/2012/10/gannett-shares-slide-on-higher-q3-results/
  14. increase earnings by 12%: http://investorplace.com/2012/10/charles-schwab-beats-q3-earnings-estimates/
  15. CYCC: http://studio-5.financialcontent.com/investplace/quote?Symbol=CYCC
  16. SRPT: http://www.thestreet.com/quote/SRPT.html
  17. AEGR: http://studio-5.financialcontent.com/investplace/quote?Symbol=AEGR
  18. JRCC: http://studio-5.financialcontent.com/investplace/quote?Symbol=JRCC
  19. ANR: http://studio-5.financialcontent.com/investplace/quote?Symbol=ANR
  20. WDAY: http://studio-5.financialcontent.com/investplace/quote?Symbol=WDAY
  21. highly successful IPO last week: http://investorplace.com/ipo-playbook/workday-floats-higher-on-huge-ipo-cloud/
  22. SIRI: http://studio-5.financialcontent.com/investplace/quote?Symbol=SIRI
  23. ABT: http://studio-5.financialcontent.com/investplace/quote?Symbol=ABT
  24. YONG: http://studio-5.financialcontent.com/investplace/quote?Symbol=YONG
  25. STSI: http://studio-5.financialcontent.com/investplace/quote?Symbol=STSI
  26. SCMR: http://studio-5.financialcontent.com/investplace/quote?Symbol=SCMR
  27. SAH: http://studio-5.financialcontent.com/investplace/quote?Symbol=SAH
  28. ILMN: http://studio-5.financialcontent.com/investplace/quote?Symbol=ILMN
  29. CLSN: http://studio-5.financialcontent.com/investplace/quote?Symbol=CLSN

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