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Squeezes Can’t Save the Rally — Thursday’s IP Market Recap

Shorts flee GMCR, GRPN and TSLA, but markets still taper off

   
Squeezes Can’t Save the Rally — Thursday’s IP Market Recap

IPMarketRecap Squeezes Can't Save the Rally    Thursday's IP Market RecapA couple short squeezes and a U.S. government report showing jobless claims fell to their lowest point in five years weren’t able to help the nation’s major indices maintain their rallies Thursday.

Markets muddled around all day before finishing down across the board. The S&P 500 lost 0.37% to close at 1626.67, while the Dow Jones Industrial Average fell 0.15% to 15082.62. The Nasdaq managed to hold to a loss of 0.12% at 3409.17.

The squeeze was on at Green Mountain Coffee Roasters (NASDAQ:GMCR), which surged nearly 28% after its quarterly earnings beat analysts’ expectations and announced plans to extend its K-Cup partnership with Starbucks (NASDAQ:SBUX).

Electric automobile manufacturer Tesla Motors (NASDAQ:TSLA) also scared out the shorts after announcing its first-ever profit and revenues that topped Street estimates. TSLA stock ended Thursday up more than 24%.

Groupon (NASDAQ:GRPN) joined in the rally on surprisingly good news, gaining nearly 12% after a strong first-quarter report showed both revenue growth and smaller losses, as well as North American sales that improved 42% year-over-year.

A report saying Microsoft (NASDAQ:MSFT) could offer to buy the digital assets of Barnes & Noble’s (NYSE:BKS) Nook Media unit for $1 billion sent BKS shares up 24% on the day. MSFT continued a recent slide, however, scaling back 1%.

Dish Network (NASDAQ:DISH) didn’t fare as well after issuing a quarterly report that showed declines on both the top and bottom lines, highlighted by a 40% drop in earnings. DISH traded down just over 2% by day’s end.

Finally, Monster Beverage (NASDAQ:MNST) was pelted after missing quarterly earnings, blaming the drop primarily on legal costs. MNST lost just more than 5%.

Three Up

  • Orbitz (NYSE:OWW): Up 21.2% ($1.37) to $7.82.
  • Sodastream (NASDAQ:SODA): Up 6.8% ($3.53) to $56.49.
  • Sunpower (NASDAQ:SPWR): Up 6.3% (96 cents) to $16.32.

Three Down

  • Rackspace (NYSE:RAX): Down 24.7% ($12.88) to $39.36.
  • Cooper Tire & Rubber (NYSE:CTB): Down 7.6% ($1.99) to $24.35.
  • Seagate Technology (NASDAQ:STX): Down 4.7% ($1.99) to $40.33.

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/thursdays-ip-market-recap-msft-bks-grpn-spwr-soda-oww/.

©2014 InvestorPlace Media, LLC

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