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

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

[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 for 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

• Yongye International (NASDAQ:YONG[24]): Up 17.1% (82 cents) to $5.61.
• Star Scientific (NASDAQ:STSI[25]): Up 8.6% (27 cents) to $3.40.
• Sycamore Networks (NASDAQ:SCMR[26]): Up 7.1% (37 cents) to $5.57.

Three Down

• Sonic Automotive (NYSE:SAH[27]): Down 8% ($1.55) to $17.91.
• Illumina (NASDAQ:ILMN[28]): Down 6% ($3.09) to $48.07.
• Celsion (NASDAQ:CLSN[29]): Down 6.2% (31 cents) to $4.67.

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.

Source URL: https://investorplace.com/2012/10/stocks-rise-on-good-economic-news-mondays-ip-market-recap/

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