Fed Rumors Rattle Investors — Monday’s IP Market Recap
by Marc Bastow | May 13, 2013 4:51 pm
[1]After 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[2] 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], -3.6%), U.S. Steel (NYSE:X[4], -3.5%) and Alcoa (NYSE:AA[5], -2%) all tumbling on the news from China.
In the tech sector, Intel (NASDAQ:INTC[6]) was the big loser on the Dow, down just under 2% on no particular news.
Barnes & Noble (NYSE:BKS[7]) shares dropped more than 9% as a rumor circulated[8] that a bid for its Nook business announced last week by Microsoft (NASDAQ:MSFT[9]) 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[10]) 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[11]) also flew north, finishing up 5% on continued momentum from its earnings release last week.
Three Up
- SolarCity (NASDAQ:SCTY[12]): Up 24.2% ($7) to $35.88.
- Zynga (NASDAQ:ZNGA[13]): Up 7.4% (24 cents) to $3.47.
- Caesars Entertainment (NASDAQ:CZR[14]): Up 6.7% ($1) to $16.02.
Three Down
- Jos. A. Bank (NASDAQ:JOSB[15]): Down 7.2% ($3.31) to $42.90.
- Thompson Creek Metals (NYSE:TC[16]): Down 3.5% (13 cents) to $3.63.
- Armour Residential REIT (NYSE:ARR[17]): 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.
- [Image]: https://investorplace.com/wp-content/uploads/2011/11/IPMarketRecap.gif
- Fed was considering an early exit strategy: http://slant.investorplace.com/2013/05/dont-fear-the-fed-bernanke-will-keep-the-cash-flowing/
- JOY: http://studio-5.financialcontent.com/investplace/quote?Symbol=JOY
- X: http://studio-5.financialcontent.com/investplace/quote?Symbol=X
- AA: http://studio-5.financialcontent.com/investplace/quote?Symbol=AA
- INTC: http://studio-5.financialcontent.com/investplace/quote?Symbol=INTC
- BKS: http://studio-5.financialcontent.com/investplace/quote?Symbol=BKS
- a rumor circulated: http://www.insidermonkey.com/blog/microsoft-corporation-msft-employee-says-barnes-noble-inc-bks-nook-deal-not-happening-140576/
- MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
- TSLA: http://studio-5.financialcontent.com/investplace/quote?Symbol=TSLA
- NFLX: http://studio-5.financialcontent.com/investplace/quote?Symbol=NFLX
- SCTY: http://studio-5.financialcontent.com/investplace/quote?Symbol=SCTY
- ZNGA: http://studio-5.financialcontent.com/investplace/quote?Symbol=ZNGA
- CZR: http://studio-5.financialcontent.com/investplace/quote?Symbol=CZR
- JOSB: http://studio-5.financialcontent.com/investplace/quote?Symbol=JOSB
- TC: http://studio-5.financialcontent.com/investplace/quote?Symbol=TC
- ARR: http://studio-5.financialcontent.com/investplace/quote?Symbol=ARR
Source URL: https://investorplace.com/2013/05/347218-hpq-intc-tsla-msft-bks/