Fed Rumors Rattle Investors — Monday’s IP Market Recap

Hints toward the end of QE leave stocks mostly middling

   
Fed Rumors Rattle Investors — Monday’s IP Market Recap

IPMarketRecap Fed Rumors Rattle Investors    Mondays IP Market RecapAfter ending last week on a high note, investors woke up to the new week with a different attitude.

A Wall Street Journal report published May 11 said the Fed was considering an early exit strategy for its stimulus program. That news — combined with a report from China indicating an expansion of industrial production that didn’t meet expectations — sent markets down in early trading and 10-Year Treasury yields swinging toward 2%. However, a positive retail report did manage to fuel a late rally that kept losses confined to the Dow Jones Industrial Average.

The Dow fell 0.18% to close at 15091.88, while the Nasdaq finished up fractionally at 3438.79 and the S&P 500 ended flat at 1633.77.

Economically sensitive stocks took a beating, with Joy Global (NYSE:JOY, -3.6%),  U.S. Steel (NYSE:X, -3.5%) and Alcoa (NYSE:AA, -2%) all tumbling on the news from China.

In the tech sector, Intel (NASDAQ:INTC) was the big loser on the Dow, down just under 2% on no particular news.

Barnes & Noble (NYSE:BKS) shares dropped more than 9% as a rumor circulated that a bid for its Nook business announced last week by Microsoft (NASDAQ:MSFT) was just that: a rumor. MSFT shares rose over 1%.

On the plus side of the ledger, shares of electric car maker Tesla Motors (NASDAQ:TSLA) continue to hum along, improving more than 14% on news that it sold more of its Model S in the cars in the U.S. than Germany’s Big Three (Mercedes, BMW, Audi). TSLA shares are up over 55% in the last week.

Meanwhile, shares of Netflix (NASDAQ:NFLX) also flew north, finishing up 5% on continued momentum from its earnings release last week.

Three Up

  • SolarCity (NASDAQ:SCTY): Up 24.2% ($7) to $35.88.
  • Zynga (NASDAQ:ZNGA): Up 7.4% (24 cents) to $3.47.
  • Caesars Entertainment (NASDAQ:CZR): Up 6.7% ($1) to $16.02.

Three Down

  • Jos. A. Bank (NASDAQ:JOSB): Down 7.2% ($3.31) to $42.90.
  • Thompson Creek Metals (NYSE:TC): Down 3.5% (13 cents) to $3.63.
  • Armour Residential REIT (NYSE:ARR): Down 3.2% (20 cents) to $6.04.

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


Article printed from InvestorPlace Media, http://investorplace.com/2013/05/347218-hpq-intc-tsla-msft-bks/.

©2014 InvestorPlace Media, LLC

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