Apple, Citi Move Heaven and Earth — Wednesday’s IP Market Recap

by Marc Bastow | December 5, 2012 5:09 pm

Apple, Citi Move Heaven and Earth — Wednesday’s IP Market Recap

IPMarketRecap Apple, Citi Move Heaven and Earth    Wednesdays IP Market Recap[1]A significant selloff in the biggest stock on the planet clashed with news of a major layoff in the financial sector to create something of a pair of clashing markets Wednesday.

Apple (NASDAQ:AAPL[2]) took center stage as investors jumped out of the stock on an IDC report[3] suggesting mobile devices powered by Google (NASDAQ:GOOG[4]) and Microsoft (NASDAQ:MSFT[5]) will gain ground over the next five years. AAPL fell more than 6%, dragging the Nasdaq to a 0.77% loss (to 2,973.70) and holding the S&P to a muted 0.16% gain (to 1,409.28).

Meanwhile, the Dow rallied 0.64% to 13,034.49 thanks primarily to bank stocks, which were rewarded thanks to Citigroup‘s (NYSE:C[6]) willingness to cut its way to profits. C shares rose more than 6% after announcing plans to cut 11,000 jobs[7] and take a $1 billion fourth-quarter charge to “reposition” the company. Dow components Bank of America (NYSE:BAC[8], +5.7%) and JPMorgan (NYSE:JPM[9], +1.6%) rose in sympathy.

Speaking of sympathy, shares of Select Comfort (NASDAQ:SCSS[10]) fell nearly 10% after  Mattress Firm (NASDAQ:MFRM[11]) reported weakening sales and warned of lower revenues through 2013. Of course, MFRM took the brunt of it, falling more than 20%. But the fallout was broad, even snagging coil spring manufacturer Leggett & Platt (NYSE:LEG[12], -2.4%).

Pandora (NYSE:P[13]) lost nearly 18% after announcing a projected loss in the fourth quarter[14] thanks to higher infrastructure spending and expected caution among advertisers as the fiscal cliff looms.

Nokia (NYSE:NOK[15]) shares hit a seven-month high, rising 12% on news it’s planning a deal to sell its products through China Mobile (NYSE:CHL[16]), the largest mobile operator in the world with more than 700 million subscribers (but no contract to sell iPhones).

Finally, investors in coffee titan Starbucks (NASDAQ:SBUX[17]) reacted with a slightly jaded eye and dropped the stock just under 1% as the company announced its intention to open another 1,500 locations[18] over the next five years, adding to its existing 11,000 stores. The company also announced it will offer a $450 gift card made of steel.

With that, its time to freshen up another cup of coffee.

Three Up

Three Down

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing he is long AAPL and MSFT.

Endnotes:
  1. [Image]: http://www.investorplace.com/hot-topics/investorplace-market-recap/
  2. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  3. IDC report: http://www.idc.com/getdoc.jsp?containerId=prUS23833612#.UL_Ceme9t_7
  4. GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG
  5. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  6. C: http://studio-5.financialcontent.com/investplace/quote?Symbol=C
  7. announcing plans to cut 11,000 jobs: http://slant.investorplace.com/2012/12/grinches-at-citi-fire-11000-but-its-the-right-move/
  8. BAC: http://studio-5.financialcontent.com/investplace/quote?Symbol=BAC
  9. JPM: http://studio-5.financialcontent.com/investplace/quote?Symbol=JPM
  10. SCSS: http://studio-5.financialcontent.com/investplace/quote?Symbol=SCSS
  11. MFRM: http://studio-5.financialcontent.com/investplace/quote?Symbol=MFRM
  12. LEG: http://studio-5.financialcontent.com/investplace/quote?Symbol=LEG
  13. P: http://studio-5.financialcontent.com/investplace/quote?Symbol=P
  14. a projected loss in the fourth quarter: http://investorplace.com/2012/12/pandora-shares-tumble-on-q4-outlook/
  15. NOK: http://studio-5.financialcontent.com/investplace/quote?Symbol=NOK
  16. CHL: http://studio-5.financialcontent.com/investplace/quote?Symbol=CHL
  17. SBUX: http://studio-5.financialcontent.com/investplace/quote?Symbol=SBUX
  18. its intention to open another 1,500 locations: http://investorplace.com/2012/12/sanity-check-starbucks-american-expansion-sbux/
  19. MMR: http://studio-5.financialcontent.com/investplace/quote?Symbol=MMR
  20. Read more here: http://investorplace.com/2012/12/freeport-mcmoran-a-buy-after-the-megadeal/
  21. SVU: http://studio-5.financialcontent.com/investplace/quote?Symbol=SVU
  22. ACI: http://studio-5.financialcontent.com/investplace/quote?Symbol=ACI
  23. QIHU: http://studio-5.financialcontent.com/investplace/quote?Symbol=QIHU
  24. PHM: http://studio-5.financialcontent.com/investplace/quote?Symbol=PHM
  25. TSO: http://studio-5.financialcontent.com/investplace/quote?Symbol=TSO

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