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

by Marc Bastow | May 1, 2013 5:00 pm

IPMarketRecap May Day! May Day!    Wednesdays IP Market Recap[1]“Sell in May and go away”[2] 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[3]), 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[4]) 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[5]) declined more than 3% as investors still appear to be spooked by CEO Thorsten Heins’ discouraging comments about the tablet market[6]. Movement in shares of Cisco (NASDAQ:CSCO[7], -2.7%), IBM (NYSE:IBM[8], -1.4%), and Hewlett-Packard (NYSE:HPQ[9], -1.3%) helped to drag down the Dow.

T-Mobile US (NYSE:TMUS[10]) — the merged entity of T-Mobile USA and MetroPCS (NYSE:PCS[11]) — made its debut on the New York Stock Exchange and shot up 16%.

On the earnings front, Humana (NYSE:HUM[12]) 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[13]) improved by more than 2% after reporting profits had more than doubled.

Earnings notables for Thursday include Kellogg (NYSE:K[14]), Kraft Foods (NASDAQ:KRFT[15]), and LinkedIn (NYSE:LNKD[16]).

Three Up

Three Down

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

  1. [Image]:
  2. “Sell in May and go away”:
  3. FB:
  4. AAPL:
  5. BBRY:
  6. CEO Thorsten Heins’ discouraging comments about the tablet market:
  7. CSCO:
  8. IBM:
  9. HPQ:
  10. TMUS:
  11. PCS:
  12. HUM:
  13. GNW:
  14. K:
  15. KRFT:
  16. LNKD:
  17. JRCC:
  18. AMD:
  19. NCR:
  20. CRAY:
  21. KKD:
  22. JDSU:

Source URL:
Short URL: