Fed Rumors Rattle Investors — Monday’s IP Market Recap

by Marc Bastow | May 13, 2013 4:51 pm

Fed Rumors Rattle Investors — Monday’s IP Market Recap

IPMarketRecap Fed Rumors Rattle Investors    Monday's IP Market Recap[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

Three Down

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

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/11/IPMarketRecap.gif
  2. Fed was considering an early exit strategy: http://slant.investorplace.com/2013/05/dont-fear-the-fed-bernanke-will-keep-the-cash-flowing/
  3. JOY: http://studio-5.financialcontent.com/investplace/quote?Symbol=JOY
  4. X: http://studio-5.financialcontent.com/investplace/quote?Symbol=X
  5. AA: http://studio-5.financialcontent.com/investplace/quote?Symbol=AA
  6. INTC: http://studio-5.financialcontent.com/investplace/quote?Symbol=INTC
  7. BKS: http://studio-5.financialcontent.com/investplace/quote?Symbol=BKS
  8. a rumor circulated: http://www.insidermonkey.com/blog/microsoft-corporation-msft-employee-says-barnes-noble-inc-bks-nook-deal-not-happening-140576/
  9. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  10. TSLA: http://studio-5.financialcontent.com/investplace/quote?Symbol=TSLA
  11. NFLX: http://studio-5.financialcontent.com/investplace/quote?Symbol=NFLX
  12. SCTY: http://studio-5.financialcontent.com/investplace/quote?Symbol=SCTY
  13. ZNGA: http://studio-5.financialcontent.com/investplace/quote?Symbol=ZNGA
  14. CZR: http://studio-5.financialcontent.com/investplace/quote?Symbol=CZR
  15. JOSB: http://studio-5.financialcontent.com/investplace/quote?Symbol=JOSB
  16. TC: http://studio-5.financialcontent.com/investplace/quote?Symbol=TC
  17. ARR: http://studio-5.financialcontent.com/investplace/quote?Symbol=ARR

Source URL: http://investorplace.com/2013/05/347218-hpq-intc-tsla-msft-bks/
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