Boeing Grounds the Dow — Wednesday’s IP Market Recap

by Marc Bastow | January 16, 2013 4:44 pm

[1]Wednesday was role reversal day for the major U.S. indices, with one particular stock giving a helpful nudge to the Nasdaq and the Dow taking a loss. All the while, earnings season kicked into high gear, and concerns over the debt ceiling filtered into investor sentiment.

The Nasdaq improved by 0.22% to 3,117.54, thanks to a 4%-plus gain in beaten-of-late Apple (NASDAQ:AAPL[2]). That also helped the S&P finish with marginal gains to 1,472.63. The Dow ended 0.21% in the red to close at 13,507.01.

Hampering the Dow was Boeing (NYSE:BA[3]), which fell more than 3% as its Dreamliner suffered yet another issue[4]. Two Japanese airlines grounded their fleets of 787 aircraft after one of All Nippon Airways‘ (PINK:ALNPY[5]) Dreamliners was forced into an emergency landing. Boeing’s drop was by far the largest in the Dow on Wednesday.

Goldman Sachs (NYSE:GS[6]) reported earnings that beat expectations[7], driven by strong results from its proprietary trading business. Investors bid up GS stock more than 4%, sending it to highs not reached in more than a year.

JPMorgan Chase (NYSE:JPM[8]) struck another positive note for financials, saying both Q4 and full-year 2012 profit set records, which marks a third consecutive year of record income for the banking giant. JPM also announced that CEO Jamie Dimon’s bonus would be cut to $10 million (more than half of his 2011 haul) in lieu of the “London Whale” debacle. JPM climbed up just under 1% on the news.

Dell (NASDAQ:DELL[9]) fell more than 4% after CNNMoney reported that at least one equity firm, TPG Capital, has walked away from a potential deal[10] to take Dell private. Conversely, Hewlett-Packard (NYSE:HPQ[11]) ran up more than 4% after Dow Jones reported that HPQ has received interest from potential buyers about its Autonomy business unit.

Shares of Chipotle (NYSE:CMG[12]) sank 5% after the Mexican food chain restaurant revised fourth-quarter earnings well below analysts’ expectations.

Finally, gun stocks Smith & Wesson (NASDAQ:SWHC[13], +5.7%) and Sturm, Ruger (NYSE:RGR[14], +5%), as well as outdoors retailer Cabelas (NYSE:CAB[15], +6.1%), forged ahead after President Barack Obama announced broad measures aimed at gun control legislation and action, including reintroducing a ban on assault-type weapons.

Earnings reports for Thursday include Intel (NASDAQ:INTC[16]), General Electric (NYSE:GE[17]), Citigroup (NYSE:C[18]), and American Express (NYSE:AXP[19]).

Three Up

• Genworth Financial (NYSE:GNW[20]): Up 8.86% (72 cents) to 8.85%
• Constellation Brands (NYSE:STZ): Up 6.15% ($2.24) to 6.15%
• Phillips 66 (NYSE:PSX[21]): Up 4.36% ($2.28) to $54.52

Three Down

• Crocs (NASDAQ:CROX[22]): Down 9.68% ($1.52) to $14.19
• Splunk (NASDAQ:SPLK[23]): Down 5.02% ($1.68) to $31.78
• General Motors (NYSE:GM[24]): Down 4.22% ($1.29) to $29.31

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he was long AAPL, INTC and GE.

Source URL: https://investorplace.com/2013/01/wednesdays-ip-market-recap-aapl-dell-ba-alnpy-jpm-gs-cmg/

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