Tech Slides Amid Google’s Goof — Thursday’s IP Market Recap

by Alyssa Oursler | October 18, 2012 5:24 pm

Tech Slides Amid Google’s Goof — Thursday’s IP Market Recap

IPMarketRecap Tech Slides Amid Googles Goof    Thursdays IP Market Recap[1]Google (NASDAQ:GOOG[2]) shook the markets today when the company didn’t just accidentally release an incomplete earnings report just after noon — it accidentally released worse-than-expected numbers[3] just after noon.

The tech giant missed expectations for both earnings and revenue, and shares plummeted 9% before trading was halted. GOOG closed with losses of 8%. Shares of its financial printer R.R. Donnelley (NASDAQ:RRD[4]) — whom Google blamed for the incident — also spiked down before finishing at a more modest fractional loss.

The snafu took its toll on the markets, especially the Nasdaq, which lost 1.01% to close at 3,072.87. The S&P 500 fell for the first time in three days, dropping 0.24% to 1,457.34, and the Dow’s four-day streak of gains ended, as it lost 0.06% to finish at 13,548.

A number of smaller tech names also took significant dives Thursday. Mellanox Technologies (NASDAQ:MLNX[5]) plummeted 20% on a weak Q4 forecast[6], while Align Technology (NASDAQ:ALGN[7]) and CytRx Corp. (NASDAQ:CYTR[8]) slumped similarly.¬†PLX Technology (NASDAQ:PLXT[9]) wasn’t far behind with a 13% drop.

Before Google stole the show, news that jobless claims rose 46,000[10] to 388,000 last week was making headlines. The rise was attributed to seasonal factors, though, while the four-week moving average was down month-over-month.

Good news also came out of China, as more economic data confirmed a soft-landing for the slowing economy. It grew 7.4% year-over-year in September, while retail sales gained 14.4% as well.

Back home, the earnings show continued. Dow insurance representative Travelers (NYSE:TRV[11]) set an earnings record[12] by more than doubling its income, sending shares 4% skyward, while¬†Southwest Airlines (NYSE:LUV[13]) also saw slight gains on a positive report[14]. Verizon (NYSE:VZ[15]) grew earnings by 16%[16], matching Wall Street’s estimates and sending shares up just more than 2% on the day.

Grocery chain SuperValu (NYSE:SVU[17]) reported another awful quarter but got a 5% pop on the news that it was talking to interested parties about a sale. eBay (NASDAQ:EBAY[18]) also climbed 5%[19] after reporting the afternoon prior.

Morgan Stanley (NYSE:MS[20]) announced that it lost $1 billion last quarter;[21] adjusted EPS beat the Street’s estimates, but shares still slipped around 4%. Shares of Nokia (NYSE:NOK[22]) dipped nearly 5% after the company reported its sixth straight quarterly loss[23], while Philip Morris International (NYSE:PM[24]) fell around 4% on a drop in earnings and sales[25].

Mattress-maker Select Comfort (NASDAQ:SCSS[26]) took a 7% haircut despite beating expectations all around[27] and raising its earnings outlook.

Finally, Microsoft (NASDAQ:MSFT[28]) and Chipotle (NYSE:CMG[29]) both reported after the bell and stumbled in after-hours trading. Chipotle shares slipped more than 12% as the company missed expectations for sales and earnings, while Microsoft fell around 3% on a 22% decline in earnings.

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://www.investorplace.com/hot-topics/investorplace-market-recap/
  2. GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG
  3. worse-than-expected numbers: http://investorplace.com/2012/10/google-stock-smashed-after-massive-earnings-blunder/
  4. RRD: http://studio-5.financialcontent.com/investplace/quote?Symbol=RRD
  5. MLNX: http://studio-5.financialcontent.com/investplace/quote?Symbol=MLNX
  6. on a weak Q4 forecast: http://www.businessweek.com/ap/2012-10-18/mellanox-shares-tumble-on-weak-4q-outlook
  7. ALGN: http://studio-5.financialcontent.com/investplace/quote?Symbol=ALGN
  8. CYTR: http://studio-5.financialcontent.com/investplace/quote?Symbol=CYTR
  9. PLXT: http://studio-5.financialcontent.com/investplace/quote?Symbol=PLXT
  10. jobless claims rose 46,000: http://investorplace.com/2012/10/seasonal-shift-drives-spike-in-jobless-claims/
  11. TRV: http://studio-5.financialcontent.com/investplace/quote?Symbol=TRV
  12. set an earnings record: http://investorplace.com/2012/10/travelers-3q-earnings-set-a-company-record/
  13. LUV: http://studio-5.financialcontent.com/investplace/quote?Symbol=LUV
  14. on a positive report: http://investorplace.com/2012/10/southwest-airlines-swings-to-q3-profit/
  15. VZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=VZ
  16. grew earnings by 16%: http://investorplace.com/2012/10/wireless-unit-lifts-verizon-q3-earnings/
  17. SVU: http://studio-5.financialcontent.com/investplace/quote?Symbol=SVU
  18. EBAY: http://studio-5.financialcontent.com/investplace/quote?Symbol=EBAY
  19. climbed 5%: http://investorplace.com/2012/10/find-mobile-profits-on-ebay/
  20. MS: http://studio-5.financialcontent.com/investplace/quote?Symbol=MS
  21. lost $1 billion last quarter;: http://investorplace.com/2012/10/morgan-stanley-beats-q3-earnings-forecasts/
  22. NOK: http://studio-5.financialcontent.com/investplace/quote?Symbol=NOK
  23. sixth straight quarterly loss: http://investorplace.com/2012/10/nokia-shares-drop-on-wider-q3-loss/
  24. PM: http://studio-5.financialcontent.com/investplace/quote?Symbol=PM
  25. drop in earnings and sales: http://investorplace.com/2012/10/philip-morris-shares-dip-on-lower-sales/
  26. SCSS: http://studio-5.financialcontent.com/investplace/quote?Symbol=SCSS
  27. beating expectations all around: http://investorplace.com/2012/10/select-comfort-slides-despite-killer-earnings/
  28. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  29. CMG: http://studio-5.financialcontent.com/investplace/quote?Symbol=CMG
  30. CYBI: http://studio-5.financialcontent.com/investplace/quote?Symbol=CYBI
  31. BWEN: http://studio-5.financialcontent.com/investplace/quote?Symbol=BWEN
  32. OEH: http://studio-5.financialcontent.com/investplace/quote?Symbol=OEH
  33. IMUC: http://studio-5.financialcontent.com/investplace/quote?Symbol=IMUC
  34. RGA: http://studio-5.financialcontent.com/investplace/quote?Symbol=RGA
  35. CLWR: http://studio-5.financialcontent.com/investplace/quote?Symbol=CLWR

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