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

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

[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

• Cybex International (NASDAQ:CYBI[30]): Up 81.5% ($1.10) to $2.45.
• Broadwind Energy (NASDAQ:BWEN[31]): Up 26.7% (58 cents) to $2.75.
• Orient-Express Hotels (NYSE:OEH[32]): Up 22.5% ($2.03) to $11.05.

Three Down

• Immunocellular Therapeutics (AMEX:IMUC[33]): Down 14.1% (34 cents) to $2.07.
• Reinsurance Group (NYSE:RGA[34]): Down 10.8% ($6.50) to $53.51.
• Clearwire Corp. (NASDAQ:CLWR[35]): Down 10.2% (23 cents) to $2.03.

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/tech-slides-amid-googles-goof-thursdays-ip-market-recap/

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