Economy, Fed Keep Stocks Down — Thursday’s IP Market Recap

by Marc Bastow | February 21, 2013 4:52 pm

[1]Markets headed south for a second day in a row after investors fully digested the Fed’s recent comments on quantitative easing[2] and several economic reports fueled even more negativity, though a late-day rally cut some of the pain.

A survey of purchasing managers showed Europe is still in the doldrums, while a surprise report from the Philadelphia branch of the Federal Reserve showed a decline in its monthly business outlook and an increase in unemployment claims did most of the day’s damage.

The result: losses across the board. The Nasdaq lost 1.04% to close at 3,131.49, while the S&P 500 fell 0.63% to 1,502.42. The Dow Jones Industrial Average finished 0.34% lower to end at 13,880.62.

The big earning news of the day came from retail giant Walmart (NYSE:WMT[3]), which not only announced better-than-expected earnings, but also explained that soft sales in February haven’t been because of higher payroll taxes as was feared, but delayed tax refunds[4]. Walmart also boosted its dividend 18% to 47 cents per share. WMT finished more than 1% higher on the day.

Other low-cost retailers breathed a sigh of relief, including Dollar General (NYSE:DG[5], +3.9%), Dollar Tree (NASDAQ:DLTR[6], +2.9%) and Family Dollar (NYSE:FDO[7], +2.6%).

Online vacation and rental marketplace HomeAway (NASDAQ:AWAY[8]) rose over 13% to extend its year-to-date gains to 29% after reporting solid revenue and earnings growth[9].

All was gloom in the investment management world after Carlyle Group (NASDAQ:CG[10]) announced disappointing earnings that jolted the stock price down over 7% on the day. Fellow management companies Apollo Management (NYSE:APO[11], -4.9%), and KKR (NYSE:KKR[12], -1.3%) fell in sympathy.

Electronic payment systems firm VeriFone (NYSE:PAY[13]) cratered by 42% to hit a multi-year low after providing disappointing revenue and earnings forecasts for 2013. Meanwhile, Electric car maker Tesla Motors (NASDAQ:TSLA[14]) plunged more than 8% after posting a bigger loss than expected for the fourth quarter.

Finally, Hewlett-Packard (NYSE:HPQ[15]) continued to ride a resurgence, rising over 2% on the in advance of its fourth quarter earnings release. HPQ stock was sent another 7% higher in post-market trading after HPQ topped revenue and earnings expectations and provided an upbeat look for 2013.

Three Up

• Safeway (NYSE:SWY[16]): Up 14.1% ($2.84) to $22.97.
• JCPenney (NYSE:JCP[17]): Up 6.7% ($1.36) to $21.55.
• Groupon (NASDAQ:GRPN[18]): Up 3.8% (21 cents) to $5.80.

Three Down

• Trina Solar (NYSE:TSL[19]): Down 9.3% (46 cents) to $4.50
• 3D Systems (NYSE:DDD[20]): Down 8.4% ($5.01) to $54.89
• SunPower (NASDAQ:SPWR[21]): Down 7% (92 cents) to $12.25

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.

Source URL: https://investorplace.com/2013/02/thursdays-ip-market-recap-wmt-dg-dltr-fd-awa-ow/

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