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

by Marc Bastow | May 9, 2013 5:01 pm

IPMarketRecap Squeezes Cant Save the Rally    Thursdays IP Market Recap[1]A 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[2]), which surged nearly 28% after its quarterly earnings beat analysts’ expectations[3] and announced plans to extend its K-Cup partnership[4] with Starbucks (NASDAQ:SBUX[5]).

Electric automobile manufacturer Tesla Motors (NASDAQ:TSLA[6]) also scared out the shorts [7]after announcing its first-ever profit and revenues that topped Street estimates. TSLA stock ended Thursday up more than 24%.

Groupon (NASDAQ:GRPN[8]) joined in the rally on surprisingly good news[9], 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[10] saying Microsoft (NASDAQ:MSFT[11]) could offer to buy[12] the digital assets of Barnes & Noble’s (NYSE:BKS[13]) 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[14]) 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[15]. DISH traded down just over 2% by day’s end.

Finally, Monster Beverage (NASDAQ:MNST[16]) was pelted after missing quarterly earnings, blaming the drop primarily on legal costs. MNST lost just more than 5%.

Three Up

Three Down

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

  1. [Image]: http://investorplace.com/wp-content/uploads/2011/11/IPMarketRecap.gif
  2. GMCR: http://studio-5.financialcontent.com/investplace/quote?Symbol=GMCR
  3. beat analysts’ expectations: http://slant.investorplace.com/2013/05/green-mountain-coffee-stock-is-back-and-hotter-than-ever/
  4. plans to extend its K-Cup partnership: http://investorplace.com/2013/05/starbucks-to-triple-number-of-k-cup-products/
  5. SBUX: http://studio-5.financialcontent.com/investplace/quote?Symbol=SBUX
  6. TSLA: http://studio-5.financialcontent.com/investplace/quote?Symbol=TSLA
  7. scared out the shorts : http://investorplace.com/2013/05/my-tesla-motors-victory-lap/
  8. GRPN: http://studio-5.financialcontent.com/investplace/quote?Symbol=GRPN
  9. surprisingly good news: http://investorplace.com/2013/05/groupon-its-better-just-not-a-buy/
  10. report: http://techcrunch.com/2013/05/08/microsoft-mulling-nook-media-llc-purchase-for-1-billion/
  11. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  12. offer to buy: http://investorplace.com/2013/05/microsoft-could-pay-1b-for-bns-nook-unit/
  13. BKS: http://studio-5.financialcontent.com/investplace/quote?Symbol=BKS
  14. DISH: http://studio-5.financialcontent.com/investplace/quote?Symbol=DISH
  15. drop in earnings: http://investorplace.com/2013/05/dish-network-is-stuck-in-neutral/
  16. MNST: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  17. OWW: http://studio-5.financialcontent.com/investplace/quote?Symbol=OWW
  18. SODA: http://studio-5.financialcontent.com/investplace/quote?Symbol=SODA
  19. SPWR: http://studio-5.financialcontent.com/investplace/quote?Symbol=SPWR
  20. RAX: http://studio-5.financialcontent.com/investplace/quote?Symbol=RAX
  21. CTB: http://studio-5.financialcontent.com/investplace/quote?Symbol=CTB
  22. STX: http://studio-5.financialcontent.com/investplace/quote?Symbol=STX

Source URL: http://investorplace.com/2013/05/thursdays-ip-market-recap-msft-bks-grpn-spwr-soda-oww/
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