by Marc Bastow | April 23, 2013 5:25 pm
Investors shrugged off a major blip that caused U.S. stocks to plunge and pushed the major indices ahead Tuesday.
The Associated Press Twitter account was hacked Tuesday, and a tweet reporting a bomb blast at the White House injuring President Obama proved false — but still was enough to briefly send Wall Street into a selling frenzy until the tweet was debunked.
However, the markets returned back to normal and finished up to finish off the day, then gave way to the much-anticipated Apple (NASDAQ:AAPL) earnings report.
And Apple did not disappoint.
AAPL — which traded up more than 2% during the day — was being juiced by another 5% after a positive report and a couple big announcements concerning the company’s cash pile.
Revenues of $43.6 billion came in ahead of analyst estimates, and while net income of $10.09 was lower than last year’s figure, it also topped Wall Street forecasts.
The company also said it would increase its share buyback authorization and dividend. Apple’s quarterly payout will improve by 15% to $3.05 per share, payable May 16 to shareholders of record as of the close of business on May 13, and represents a roughly 3% yield on Tuesady’s closing price. Also, its share repurchase authorization is being ramped up from $10 billion to $60 billion — the largest share buyback allowance in history. The program is expected to be completed by 2015.
Just an hour earlier, the Nasdaq finished the day with a 1.11% gain to end at 3269.33, the Dow Jones Industrial Average finished up 1.05% to close at 14719.46 and the S&P 500 improved 1.04% to end at 1578.78.
Netflix (subscriber gains and profit during the third quarter. NFLX has now returned 135% year-to-date.
Upscale retailer Coach (NYSE:COH) also roared ahead, to the tune of 9%-plus, after posting strong third-quarter revenues and earnings, with overseas sales in China helping to boost its numbers. COH also raised its dividend.
The housing sector rode a positive report from the Census Bureau on new home sales, as homebuilders Toll Brothers (NYSE:TOL, +9.3%), Lennar (NYSE:LEN, +6.9%), PulteGroup (NYSE:PHM, +6%) and KB Home (NYSE:KBH, +4.2%) all helped power a 3.8% surge in the iShares Dow Jones US Home Construction ETF (NYSE:ITB).
Airlines also did well Tuesday, with Delta Air Lines (NYSE:DAL, +10.4%) and US Airways (
Finally, RadioShack (NYSE:RSH) posted weaker quarterly earnings, but finished up fractionally after a roller coaster of a trading day.
Notable earnings releases for Wednesday include Corning (NYSE:GLW), Procter & Gamble (NYSE:PG) and Sprint (NYSE:S).
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he was long AAPL
Source URL: http://investorplace.com/2013/04/tuesdays-ip-market-recapaapl-glw-pg-s-nflx-coh/
Short URL: http://invstplc.com/1nujQ1Z
Copyright ©2017 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.