Stocks Crawl Under Congressional Cloud — Tuesday’s IP Market Recap

by Marc Bastow | November 27, 2012 5:05 pm

Stocks Crawl Under Congressional Cloud — Tuesday’s IP Market Recap

IPMarketRecap Stocks Crawl Under Congressional Cloud    Tuesday's IP Market Recap[1]For all of Tuesday’s good news, one little statement went a long way in the other direction.

The Case-Shiller Home Sales Index showed home prices jumped 3.6% in the third quarter, the biggest increase since the second quarter of 2010. We also got a better-than-expected reading on consumer confidence from The Conference Board, and new orders for durable goods (excluding transportation goods) were up 1.5%.

Plus in Europe, eurozone finance ministers and the International Monetary Fund reached an agreement that moves Greece closer to receiving a massive bailout payment.

Yet a remark by Senate Majority Leader Harry Reid about the “little progress” made on avoiding the year-end cliff was enough to send the markets in retreat. The Dow Jones finished down 0.69% at 12,878.13, the S&P 500 lost 0.52% to end at 1,398.94, and the Nasdaq ended lower by 0.3% to 2,967.79.

Hewlett-Packard (NYSE:HPQ[2]) was one of the Dow’s biggest weights, losing nearly 3% as it continues to suffer the effects of its $8.8 billion Autonomy write-down[3]. HP now has been threatened with shareholder lawsuits[4] related to the deal.

McMoRan Exploration (NYSE:MMR[5]) added more losses Tuesday following Monday’s report that testing at its huge Davy Jones fields proved inconclusive[6]. MMR has lost nearly a third of its value in just two days.

Monster Beverage (NASDAQ:MNST[7]) soared more than 13% after news[8] that concerns over a regulatory restraint on energy drinks might not be as significant as originally feared, and the FDA is not planning on any immediate action.

Footwear maker Crocs (NASDAQ:CROX[9]) shares rose nearly 10% after Goldman Sachs (NYSE:GS[10]) initiated coverage on the name with a “buy” rating and $17 price target. Shares closed at $13.50 on the day.

Lastly, food giant ConAgra (NYSE:CAG[11]) reached a deal to buy private-label food manufacturer Ralcorp (NYSE:RAH[12]) for $90 per share in cash — a 28% premium on RAH shares. CAG got a bump of just less than 5% by Tuesday’s close.

Three Up

Three Down

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities.

Endnotes:
  1. [Image]: http://www.investorplace.com/hot-topics/investorplace-market-recap/
  2. HPQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=HPQ
  3. $8.8 billion Autonomy write-down: http://investorplace.com/2012/11/no-winners-in-hpqs-blame-game/
  4. shareholder lawsuits: http://investorplace.com/2012/11/hewlett-packard-shareholder-sues-company/
  5. MMR: http://studio-5.financialcontent.com/investplace/quote?Symbol=MMR
  6. proved inconclusive: http://investorplace.com/2012/11/mcmoran-drowning-in-davy-jones-locker/
  7. MNST: http://studio-5.financialcontent.com/investplace/quote?Symbol=MNST
  8. news: http://online.wsj.com/article/BT-CO-20121127-710105.html
  9. CROX: http://studio-5.financialcontent.com/investplace/quote?Symbol=CROX
  10. GS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GS
  11. CAG: http://studio-5.financialcontent.com/investplace/quote?Symbol=CAG
  12. RAH: http://studio-5.financialcontent.com/investplace/quote?Symbol=RAH
  13. BSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=BSFT
  14. GLW: http://studio-5.financialcontent.com/investplace/quote?Symbol=GLW
  15. KCG: http://studio-5.financialcontent.com/investplace/quote?Symbol=KCG
  16. RIMM: http://studio-5.financialcontent.com/investplace/quote?Symbol=RIMM
  17. VRNG: http://studio-5.financialcontent.com/investplace/quote?Symbol=VRNG
  18. NOK: http://studio-5.financialcontent.com/investplace/quote?Symbol=NOK

Source URL: http://investorplace.com/2012/11/tuesdays-ip-market-recap-mnst-bby-hpq-cag-rah/
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