May Day! May Day! — Wednesday’s IP Market Recap

Wall Street takes 'Sell in May and go away' to heart


IPMarketRecap May Day! May Day!    Wednesdays IP Market Recap“Sell in May and go away” indeed!

Wednesday’s ADP jobs report showed a slowdown in hiring for April helped set the tone for the first day of the new month, and a mid-afternoon report from the Fed indicating it will continue purchasing bonds to move the economy forward did little to slow the momentum.

The Dow Jones Industrial Average tumbled 0.94% to close at 14000.95, the S&P 500 fell 0.93% to 1582.70 and the Nasdaq lost 0.89% to finish at 3299.13.

Immediately thereafter, investors focused their attention to  Facebook (NASDAQ:FB), which reported first-quarter earnings. FB reported revenue improvement of 38% year-over-year to $1.46 billion, beating estimates, though profits of 12 cents per share were flat against last year’s Q1 and a cent below Wall Street estimates. Those results prompted an indifferent response in early after-hours trading.

Apple (NASDAQ:AAPL) was once again a bellwether of sentiment for the market, as it fell about 3.5% after its successful sale of a record $17 billion in debt securities late Tuesday evening.

The rest of the tech sector also took a breather. Blackberry (NASDAQ:BBRY) declined more than 3% as investors still appear to be spooked by CEO Thorsten Heins’ discouraging comments about the tablet market. Movement in shares of Cisco (NASDAQ:CSCO, -2.7%), IBM (NYSE:IBM, -1.4%), and Hewlett-Packard (NYSE:HPQ, -1.3%) helped to drag down the Dow.

T-Mobile US (NYSE:TMUS) — the merged entity of T-Mobile USA and MetroPCS (NYSE:PCS) — made its debut on the New York Stock Exchange and shot up 16%.

On the earnings front, Humana (NYSE:HUM) jumped up nearly 5% to lead the S&P 500 after delivering strong first-quarter profit on lower benefit expenses and increased membership. And Genworth Financial (NYSE:GNW) improved by more than 2% after reporting profits had more than doubled.

Earnings notables for Thursday include Kellogg (NYSE:K), Kraft Foods (NASDAQ:KRFT), and LinkedIn (NYSE:LNKD).

Three Up

  • James River Coal (NASDAQ:JRCC): Up 29.1% (48 cents) to $2.20.
  • Advanced Micro Devices (NYSE:AMD): Up 13.8% (39 cents) to $3.21.
  • NCR (NYSE:NCR): Up 7.1% ($1.94) to $29.21.

Three Down

  • Cray (NASDAQ:CRAY): Down 17% ($3.60) to $17.56.
  • Krispy Kreme Doughnuts (NYSE:KKD): Down 7.5% ($1.03) to $12.63.
  • JDS Uniphase (NASDAQ:JDSU): Down 7.3% (98 cents) to $12.52.

Marc Bastow is an Assistant Editor at As of this writing he is long AAPL.

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